RT info:eu-repo/semantics/article
T1 Environmental strategy and firm performance: A new methodological proposal
A1 Arbelo Pérez, Marta
A1 Armas-Cruz, Yaiza
A1 Arbelo Álvarez, Antonio Manuel
A2 Dirección de Empresas e Historia Económica
A2 Grupo de investigación: Eficiencia y ventaja competitiva.
Instituto de investigación: Instituto Universitario de la Empresa (IUDE).
K1 Bayesian approach
K1 environmental strategies
K1 heterogeneity
K1 livestock industry
K1 profit efficiency
K1 resource based view
AB Environmental strategies and their effects on firm performance are receiving increased attention in the literature, but the results are inconclusive. To fill this gap, we propose to evaluate the effect of environmental strategies on firm performance, thereby making two significant contributions. The first is the use of Bayesian techniques to estimate a stochastic frontier model with random coefficients to evaluate the relationship between environmental strategies and performance at the individual firm level, thus adequately incorporating heterogeneity; the second is the adoption of profit efficiency as a measure of firm performance. To test this idea, we studied the effect of a set of pollutants on profit efficiency in a sample of livestock firms in Spain. The results reveal that i) the success of environmental strategies depends on the properties and internal characteristics of each firm and the environment in which it operates and ii) the mean efficiency is 55.80%, which implies that these firms are losing on average 44.20% of their maximum potential profit. These results have significant strategic implications for firms' ability to achieve a competitive advantage.
YR 2022
FD 2022
LK http://riull.ull.es/xmlui/handle/915/38741
UL http://riull.ull.es/xmlui/handle/915/38741
LA en
DS Repositorio institucional de la Universidad de La Laguna
RD 19-nov-2024