Towards sustainable development: Environmental innovation, cleaner production performance, and reputation

The growing concerns regarding sustainability and a firm's effects on the environment explain the important role that environmental management may play in corporate reputation. Following the premises of the stakeholder approach and dynamic capability theory, we explore how a comprehensive envir...

Full description

Saved in:
Bibliographic Details
Published in:Corporate social-responsibility and environmental management 2022-09, Vol.29 (5), p.1330-1340
Main Authors: Quintana‐García, Cristina, Marchante‐Lara, Macarena, Benavides‐Chicón, Carlos G.
Format: Article
Language:English
Subjects:
dynamic capability
Environmental effects
Environmental management
Innovations
manufacturing firms
proactive environmental strategy
reputation
stakeholder theory
Sustainability
Sustainable development
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The growing concerns regarding sustainability and a firm's effects on the environment explain the important role that environmental management may play in corporate reputation. Following the premises of the stakeholder approach and dynamic capability theory, we explore how a comprehensive environmental management (environmental innovation [EI] and cleaner production [CP]) impacts a firm's reputation. By analyzing a panel data of European manufacturing firms, we show that EIs benefit corporate reputation. Results also confirm that the higher effectiveness of CP initiatives, the higher a firm's reputation. Both dynamic capabilities improve the firm's legitimacy and stakeholders' perceptions concerning the firm's commitment to environmental sustainability. We offer relevant insights for the academic community as to how EI and CP represent proactive strategies that enhance reputation and provide practical implications for managers in order to respond to stakeholders' demands.
ISSN:1535-3958
1535-3966
DOI:10.1002/csr.2272