María D. López-Gamero

Green management and financial performance: a literature review

Purpose – The purpose of this paper is to carry out a literature review of the quantitative studies that have analyzed the impact of green management on financial performance.Design/methodology/approach – An examination of the literature was undertaken to review the quantitative studies that analyze the influence of environmental management on financial performance. A total of 32 studies were identified, examining the environmental variables used, the financial performance variables, the statistical analyses, and the main findings obtained by these studies.Findings – Results are mixed, but studies where a positive impact of environment on financial performance is obtained are predominant. In addition, the findings show that the set of firms, industries and countries are varied. Some studies use environmental management variables and other works employ environmental performance variables, and regression analysis prevails.Research limitations/implications – The study does not consider studies that analyze t...

The whole relationship between environmental variables and firm performance: competitive advantage and firm resources as mediator variables.

The examination of the possible direct link between environmental protection and firm performance in the literature has generally produced mixed results. The present paper contributes to the literature by using the resource-based view as a mediating process in this relationship. The study specifically tests whether or not the resource-based view of the firm mediates the positive relationships of proactive environmental management and improved environmental performance with competitive advantage, which also has consequences for financial performance. We also check the possible link between the adoption of a pioneering approach and good environmental management practices. Our findings support that early investment timing and intensity in environmental issues impact on the adoption of a proactive environmental management, which in turn helps to improve environmental performance. The findings also show that a firms resources and competitive advantage act as mediator variables for a positive relationship between environmental protection and financial performance. This contribution is original because the present paper develops a comprehensive whole picture of this path process, which has previously only been partially discussed in the literature. In addition, this study clarifies a relevant point in the literature, namely that the effect of environmental protection on firm performance is not direct and can vary depending on the sector considered. Whereas competitive advantage in relation to costs influences financial performance in the IPPC law sector, the relevant influence in the hotel sector comes from competitive advantage through differentiation.

Environmental Strategies and Their Impact on Hotel Performance

This study examines the relevance of environmental management as a source of competitive advantage for hotels. The relationship between the environmental proactivity of hotels located in the province of Alicante (Spain) and their economic performance levels was studied, and three strategic groups, based on environmental proactivity, were identified: Proactive, Intermediate and Reactive. The findings show that the degree of proactivity achieved by these hotels does not strongly impact on their organisational performance. Nevertheless, performance levels increase as environmental proactivity grows.

Quality management, environmental management and firm performance: A review of empirical studies and issues of integration

Quality management (QM) and environmental management (EM) are two business practices that may affect firm performance. These practices are being increasingly introduced into firms, which often use them jointly owing to their similarities. As a result of these similarities, their integration has become a popular topic of research and practice. In the field of integration, the highest level of integration may be achieved by means of a single, full QM-EM system (QEM) in which QM and EM lose their independence. It is therefore desirable to identify dimensions from which to assess these management practices and their effects on performance. The aim of this paper is to carry out a literature review in order to propose and analyse dimensions for QM, EM, QEM and firm performance, as well as models of cause-effect relationships between these variables. The topics reviewed are the following: (1) the QM and EM dimensions; (2) the empirical studies about QM-performance and EM-performance links; and (3) issues of integration. The review suggests that the large body of QM research may inform EM and QEM. This is so because research on the QM side is more advanced and developed than that on the EM side.

Mixed methods studies in entrepreneurship research: Applications and contributions

Mixed methods research is becoming an increasingly popular approach in several fields. However, its application in the field of entrepreneurship has not been studied. The authors reviewed the use of mixed methods research in three entrepreneurship journals and two leading generalistic journals that publish entrepreneurship research, examining the main purposes and designs. A total of 955 articles were reviewed and 81 mixed methods studies were identified. The analysis of these articles revealed opportunities associated with the application of this approach. Mixed methods may help to improve entrepreneurship research addressing challenges emphasized in earlier studies. Suggestions on why and how to use mixed methods research are offered, and recommendations are provided to guide future mixed methods studies to advance our understanding of the entrepreneurial phenomenon.

Environmental Perception, Management, and Competitive Opportunity in Spanish Hotels

Seeking to fill the gap on research regarding the hospitality industry in relation to the environment, this article examines the environmental peculiarities of the tourism industry. Applying a single framework, the article analyzes the antecedents of organizations’ perceptions of the environment by combining two theoretical approaches: institutional theory and the resource-based view. The study uses a structural equation model to analyze the data from 239 hotels in Spain. The findings show that a number of external factors (i.e., environmental regulation, stakeholders, and uncertainty) and internal factors (i.e., resources and capabilities) have different effects on managerial perceptions of the environment as a competitive opportunity. The study demonstrates that the attitude and perceptions of managers appear to be essential factors for investment in preventive environmental technologies. Among other findings, the study found that managers respond favorably to voluntary norms, rather than environmental legislation; stakeholder pressure seems to have a negative effect on managers’ perceptions of the competitive opportunity inherent in sustainability; and the availability of complementary resources encourages managers’ perceptions of sustainability as a competitive opportunity. These perceptions are behind the adoption of an environmental management scheme with a stronger focus on prevention strategies. The perception of this competitive advantage means that a manager is more likely to develop a proactive environmental management approach.

Evaluating environmental regulation in Spain using process control and preventive techniques

Because environmental regulations may be adjusted over time to reflect updated understanding or new circumstances, there may be scope for strategic behaviour too. Regulations affect not only current emission levels, but also the effect on investment in RD during the second, the propositions emerging from the first phase were tested through a structural equation model of 239 hotels and 208 firms affected by the IPPC law in Spain. This paper has made a contribution to the existing research literature through the examination of the similarities and differences concerning managerial decision-making in the field of natural environment regulations. Moreover, a contact point between the Porter hypothesis and its criticism is offered. In relation to practical implications, updated information about the European, National and Community environmental legislation is presented that affects firms from eight sectors. In this context, legal environmental requirements are identified so as to make easier the adoption of managerial decisions which guarantee compliance with the law and avoidance of fines.

The Holy Grail: environmental management, competitive advantage and business performance in the Spanish hotel industry.

Purpose – This paper aims to analyse the influence of environmental proactivity on cost and differentiation competitive advantages, and to explore the double relationship between environmental proactivity and business performance. Design/methodology/approach – The population consists of all three- to five-star hotels in Spain. A sample of 350 hotels was classified according to environmental proactivity and performance levels, employing a two-step cluster analysis. Significant differences between groups were examined. Findings – The results show two types of environmental behaviour (reactive and proactive), with proactive hotels developing significantly better on both cost and differentiation competitive advantage and achieving significantly higher performance levels. Hotels which achieve above average business performance levels are significantly more environmentally proactive. Research limitations/implications – The present paper demonstrates that environmental management is related to competitive advant...

Intellectual and environmental capital

Purpose – Faced with increasing environmental problems, traditional methods for transmitting information regarding corporate environmental actions are insufficient. Accordingly, the purpose of this paper is to suggest the environmental capital report, the knowledge map and the balanced scorecard as alternative instruments to provide the environmental information needed to develop internal corporate activity and meet the requirements of society.Design/methodology/approach – A practical approach is applied to facilitate understanding of some sections of these tools, analysing the GRI reports of certain environmentally proactive firms.Findings – The findings show that the environmental information provided relates mainly to collaborations established with stakeholders and to the development of internal processes aimed at preserving and protecting the environment. Accordingly, it could be said that the environmental capital report proposed in this paper seems to be materialized in the GRI report. Moreover, th...

Organizational design, quality management and competitive advantage in hotels

Purpose The aim of this study is to examine the relationship between practices of quality management (QM) and the characteristics of organizational design, and QM and competitive advantage. Design/methodology/approach The study uses a partial least squares approach to test these relationships in 350 hotels in Spain. Findings The findings show that QM influences specialization, formalization and interdepartmental interactions, and that QM practices influence both cost and differentiation competitive advantage. The results also indicate the importance of QM strategic and operational systems as practices that have a key impact on the characteristics of organizational design. Similarly, the QM operational system is key in the relationship between QM and cost competitive advantage. Finally, the QM operational, information and strategic systems positively influence differentiation competitive advantage. Practical implications When hotels adopt QM practices, there will be significant changes in a number of organizational variables, including specialization, formalization and interdepartmental interactions. This paper provides empirical evidence that QM practices improve both cost and differentiation competitive advantage in the hotel industry. Originality/value There has been little research on the effects of QM on organizational design in the hotel industry. The contribution of this paper is that analyze the effects of QM on organizational design and competitive advantage, extending knowledge about these issues in a specific sector.