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Environmental management and firm performance: a case study
Enrique Claver1, María D López, José F Molina
1Department of Business Management, University of Alicante, Campus de San Vicente del Raspeig, Ap. 99, E-03080 Alicante, Spain. enrique.claver@ua.es
Journal of Environmental Management
|December 5, 2006
Summary
Environmental management, focusing on prevention, positively impacts a farming cooperative's environmental and economic performance. This proactive strategy builds capabilities, enhances brand image, and creates a competitive advantage.
Area of Science:
- Environmental Management
- Business Strategy
- Agricultural Economics
Background:
- Understanding the link between environmental management and economic performance is crucial for sustainable business practices.
- Firm performance encompasses environmental, competitive, and economic dimensions.
- Integrating environmental strategy into a broader firm performance framework requires empirical investigation.
Purpose of the Study:
- To clarify the relationship between environmental management and economic performance.
- To examine how environmental strategy influences overall firm performance, including environmental and competitive aspects.
- To provide a case study analysis of a farming cooperative's environmental management practices.
Main Methods:
- Case study methodology applied to the COATO farming cooperative.
- Analysis of environmental management practices focused on prevention logic.
- Evaluation of the impact on environmental performance, organizational capabilities, and competitive advantage.
Main Results:
- Environmental management with a prevention focus yielded a positive net effect on environmental performance.
- Adoption of practices fostered new organizational capabilities and employee experience in waste reduction.
- COATO achieved a differentiation competitive advantage through enhanced brand image and credibility.
Conclusions:
- Proactive environmental strategies correlate positively with improved firm performance.
- Environmental management can lead to significant economic benefits and competitive advantages.
- The study highlights the importance of integrating environmental and economic goals in business strategy.
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