SME Managers’ Perceptions of Competitive Pressure and the Adoption of Environmental Practices in Fragmented Industries: A Multi-Country Study in the Wine Industry

This study explains how managers’ perceptions of pressure from competitors and industry associations to adopt environmental practices are associated with the adoption of such practices, and firm performance in small- and medium-sized enterprises (SMEs) in fragmented industries. First, we hypothesize...

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Bibliographic Details
Published in:Organization & environment 2020-09, Vol.33 (3), p.437-463
Main Authors: Tyler, Beverly, Lahneman, Brooke, Beukel, Karin, Cerrato, Daniele, Minciullo, Marco, Spielmann, Nathalie, Cruz, Allan Discua
Format: Article
Language:English
Subjects:
Amendments
Attention
Climate change
Competition
Competitive advantage
Competitors
Costs
Decision making
Financial performance
Hypotheses
Influence
Managers
Organizational effectiveness
Organizational performance
Perceptions
Pressure
Sustainability
Value creation
Vineyards
Wine industry
Wineries
Wines
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Summary:This study explains how managers’ perceptions of pressure from competitors and industry associations to adopt environmental practices are associated with the adoption of such practices, and firm performance in small- and medium-sized enterprises (SMEs) in fragmented industries. First, we hypothesize, in fragmented industries, perceived weaker competitive pressure focuses SME managers’ attention on opportunities associated with the adoption of environmental practices, resulting in further adoption of such practices. We also hypothesize that perceived stronger competitive pressure focuses managers’ attention on competitive threats and efforts to maximize value creation from adopted practices, thus, positively moderating the relationship between adopted environmental practices and financial performance. We test our hypotheses with survey data from wineries and vineyards in Italy, France, Denmark, and the United States, and find support for both hypotheses. These findings deepen our understanding of how SMEs in fragmented industries respond to perceived competitive pressure to adopt environmental practices.
ISSN:1086-0266
1552-7417
DOI:10.1177/1086026618803720