Environmental capabilities and corporate strategy: exploring acquisitions among US manufacturing firms

In this article, we investigate whether environmental capabilities influence firms' corporate strategies, a topic that has received little attention to date. We hypothesize that firms are more likely to acquire facilities when ownership facilitates the transfer of capabilities either to or from...

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Bibliographic Details
Published in:Strategic management journal 2012-09, Vol.33 (9), p.1053-1071
Main Authors: Berchicci, Luca, Dowell, Glen, King, Andrew A.
Format: Article
Language:English
Subjects:
Acquisitions
Acquisitions & mergers
Business structures
Corporate acquisitions
Corporate planning
Corporate strategies
corporate strategy
environmental capabilities
Environmental economics
Environmental management
Environmental regulation
geographic distance
Green businesses
Hypothesis
Industrial regulation
Inventories
Management science
Management theory
Manufacturing
ownership change
Strategic management
Studies
Target acquisitions
Waste generation
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Summary:In this article, we investigate whether environmental capabilities influence firms' corporate strategies, a topic that has received little attention to date. We hypothesize that firms are more likely to acquire facilities when ownership facilitates the transfer of capabilities either to or from the facility. Using a panel from the U.S. government's Toxics Release Inventory Program, we find firms with superior environmental capabilities are significantly more likely to acquire physically proximate facilities with inferior environmental capabilities and vice versa. Our results extend theories of both corporate and environmental strategy.
ISSN:0143-2095
1097-0266
DOI:10.1002/smj.1960