Premium
The competitive determinants of a firm's environmental management activities: Evidence from US manufacturing industries
Author(s) -
Hofer Christian,
Cantor David E.,
Dai Jing
Publication year - 2012
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/j.jom.2011.06.002
Subject(s) - rivalry , profitability index , industrial organization , panel data , firm offer , marketing , business , manufacturing , empirical evidence , competitive advantage , perspective (graphical) , empirical research , economics , econometric analysis , cost leadership , microeconomics , econometrics , finance , philosophy , epistemology , artificial intelligence , computer science
Environmental management (EM) issues have received substantial attention in operations management. While the link between EM practices and firm performance has been well studied, little is known about the competitive drivers of a firm's EM activities. In this research, a Schumpeterian economics perspective is adopted to investigate competitive interactions among leader and challenger firms in the domain of EM, with a particular focus on operational EM activities. Using econometric methods, the empirical analysis of panel data from a broad cross‐section of US manufacturing firms reveals that such rivalry does exist and that the effect of a rival's past EM activity on a focal firm's EM activity is greater for more profitable and smaller firms. In addition, firm characteristics such as market leadership, firm size and firm profitability are found to significantly affect the magnitude of a firm's EM activities. This study presents theoretical and empirical evidence of rivalrous behaviors in the domains of EM and OM and, thus, has interesting implications for operations management research and practice.