The impact of environmental innovations on firms competitive advantage the practice in vietnam

I

ACKNOWLEDGEMENT
For the successful completion of this thesis, I would like to extend my
sincere thanks to:
Respectful lecturers of University of Economics Ho Chi Minh City, who
have transferred to me valuable knowledge during my course, especially PhD.
Nguyen Thi Nguyet Que, who has always instructed me to fully completion of this
thesis
Secondly, I would like to thank my colleagues who are from enterprises in
province of Dongnai, Binh Duong and Hochiminh city for helping me to collect the
data for this thesis
Thirdly, I would like to thank my classmates of the eMBA course, University
of Economics Ho Chi Minh City for kindly helping me in data analysis
Although the author has tried best for this thesis, the errors still may have
taken place. Therefore, the author is looking forward to the review as well as
valuable feedbacks from everyone so that this thesis can be better

Nguyen Anh Khoa
Ho Chi Minh, Octorber 22 nd 2012


II

COMMITMENT
I would like to commit that this thesis, “The impact of environmental
innovations on firm’s competitive advantage –The practice in Vietnam”, was
scientifically achieved through my independent and serious studies. The data was
collected in reality with clear origin. In addition, the data has never been released in
any menu

Nguyen Anh Khoa


III

TABLE OF CONTENTS
ACKNOWLEDGEMENT ....................................................................................... I
COMMITMENT .................................................................................................... II
TABLE OF CONTENTS ...................................................................................... III
LIST OF FIGURE .............................................................................................. VIII
ABSTRACT ............................................................................................................ 1
Chapter 1

INTRODUCTION ............................................................ 2

1.1 Introduction .................................................................................................... 2
1.2 Research Issues, Objectives & Questions ....................................................... 3
1.3 Research methodology ................................................................................... 3
1.4 Significance of study ...................................................................................... 4
1.5 Structure of study ........................................................................................... 5
Chapter 2:

LITERATURE REVIEW...................................................... 6

2.1 Definition of environmental innovation .......................................................... 6
2.2 Review of previous studies on environmental innovation ............................... 8
Table 2.1: antecedent variables of environmental innovations ........................... 9
Table 2.2: environmental innovations and dependent variables ....................... 14
2.2.1 Influential factors on environmental innovations .................................... 18
2.2.2 Impact of environmental innovations on organization’s outcomes.......... 19

2.3 Development of theoretical model and research hypothesis .......................... 21
2.3.1 The influence of environmental regulations on environmental innovations
....................................................................................................................... 21
2.3.2 Environmental innovations and managerial environmental concerns ...... 23
2.3.3 Environmental innovations and competitive advantage of enterprise ...... 25
2.4 Conclusion ................................................................................................... 26


IV

Figure 2.1: Theoretical model ......................................................................... 27
Chapter 3

RESEARCH METHODOLOGY ................................. 28

3.1 Introduction ..................................................................................................... 28
3.2 Research procedure.......................................................................................... 28
Figure 3.1. Research procedure ....................................................................... 28
3.3 Questionnaires Design ..................................................................................... 29
3.3.1 Scale of managerial environmental concerns (MEC) ................................. 30
Table 3.1 Scale of managerial environmental concerns ................................... 30
3.3.2 Scale of environmental regulations (ER) ................................................... 30
Table 3.2. Scale of environmental regulations ................................................. 31
3.3.3 Measurement of environmental innovations variables ............................... 31
Table 3.3 Scale of environmental product innovation (EPD) ........................... 32
Table 3.4 Scale of environmental product innovation (EPS) ........................... 32
3.3.4 Measurement of firm’s competitive advantage(FCA) ................................ 33
Table 3.5 Scale of firm’s competitive advantage (FCA) .................................. 33
3.4 Data analysis techniques .................................................................................. 33
Table 3.6 Specification for cronbach alpha and EFA method .......................... 34

3.5 Main survey ................................................................................................. 34
3.6 Conclusion....................................................................................................... 35
Chapter 4

DATA ANALYSIS ...................................................................... 36

4.1 Introduction .................................................................................................. 36
4.2 Main study sample profile ............................................................................ 36
Table 4.1 Main study profile ........................................................................... 36
4.3 Evaluating the scales .................................................................................... 37
4.3.1 Cronbach alpha result of main survey..................................................... 37
Table 4.2 Cronbach alpha result of main survey .............................................. 39


V

4.3.2 EFA result of main survey...................................................................... 40
Table 4.3a KMO and Bartlett's Test ................................................................ 40
Table 4.3b Total Variance Explained .............................................................. 41
Table 4.3c Rotated Component Matrixa .......................................................... 42
Table 4.4a. KMO and Bartlett's Test ............................................................... 43
Table 4.4b. Total Variance Explained ............................................................. 43
Table 4.4c. Rotated Component Matrixa ......................................................... 44
4.4 Hypothesis Testing .......................................................................................... 45
4.4.1 Normality assumption test ...................................................................... 45
4.4.2 Hypothesis 1a,2a .................................................................................... 45
Table 4.5 Normality assumption test ............................................................... 46
Table 4.6a Pearson correlation between each pairs of variables (ER,MEC),
(ER,EPD), (MEC,EPD) .................................................................................. 47
Table 4.6b MLR result of hypothesis 1a, 2a (Model summary) ...................... 48

Table 4.6c MLR result of hypothesis 1a, 2a (ANOVA) ................................... 48
Table 4.6d MLR result of hypothesis 1a, 2a (Coefficient) ............................... 48
4.4.3 Hypothesis 1b,2b .................................................................................... 49
Table 4.7a Pearson correlation between each pairs of variables: MEC, EPS, ER
....................................................................................................................... 50
Table 4.7b MLR result of hypothesis 1b, 2b (Model summary)...................... 50
Table 4.7c MLR result of hypothesis 1b, 2b (ANOVA) ................................. 51
Table 4.7d MLR result of hypothesis 1b, 2b (Coefficient) ............................... 51
4.4.4 Hypothesis 3a,3b .................................................................................... 51
Table 4.8a Pearson correlation between each pairs of variables (EPD, EPS,
FCA), .............................................................................................................. 52
Table 4.8b MLR result of hypothesis 3a, 3b (Model summary) ...................... 52
Table 4.8c MLR result of hypothesis 3a, 3b (ANOVA).................................. 53
Table 4.8d MLR result of hypothesis 3a, 3b (Coefficient) ............................... 53
4.4.5 Testing regression assumption on heteroskedasticity .............................. 54
4.5 Conclusion....................................................................................................... 56


VI

Figure 4.1 Regression result of theoretical model ............................................ 56
Chapter 5 DISCUSSION AND CONCLUSION .................................................. 57
5.1 Introduction .................................................................................................. 57
5.2 Discussion of Findings ................................................................................. 57
5.3 Practical Implications ................................................................................... 58
5.4 Limitations and recommendations for future research .................................. 59
REFERENCES ...................................................................................................... 61
APPENDIX I - QUESTIONNAIRES .................................................................... 65
APPENDIX II- RESULT OF CRONBACH ALPHA ............................................ 68
Appendix 2.1 – Cronbach alpha of environmental regulations (ER) ................... 68

Appendix 2.2 – Cronbach alpha of managerial environmental concerns (MEC) . 69
Appendix 2.3 – Cronbach alpha of environmental product innovations (EPD) ... 70
Appendix 2.4 – Cronbach alpha of environmental process innovations (EPS) .... 72
Appendix 2.5 – Cronbach alpha of firm’s competitive advantage (FCA) ............ 73
APPENDIX III – EFA RESULT ........................................................................... 74
Appendix 3.1 –EFA result of 1st running ............................................................ 74
Appendix 3.2 –EFA result of 2nd running&histograms ...................................... 79

LIST OF TABLES

Table 2.1: antecedent variables of environmental innovations ........................... 9
Table 2.2: environmental innovations and dependent variables ....................... 14
Table 3.1 Scale of managerial environmental concerns ................................... 30
Table 3.2. Scale of environmental regulations ................................................. 31


VII

Table 3.3 Scale of environmental product innovation (EPD) ........................... 32
Table 3.4 Scale of environmental product innovation (EPS) ........................... 32
Table 3.5 Scale of firm’s competitive advantage (FCA) .................................. 33
Table 3.6 Specification for cronbach alpha and EFA method .......................... 34
Table 4.1 Main study profile ........................................................................... 36
Table 4.2 Cronbach alpha result of main survey .............................................. 39
Table 4.3a KMO and Bartlett's Test ................................................................ 40
Table 4.3b Total Variance Explained .............................................................. 41
Table 4.3c Rotated Component Matrixa .......................................................... 42
Table 4.4a. KMO and Bartlett's Test ............................................................... 43
Table 4.4b. Total Variance Explained ............................................................. 43
Table 4.4c. Rotated Component Matrixa ......................................................... 44

Table 4.5 Normality assumption test ............................................................... 46
Table 4.6a Pearson correlation between each pairs of variables (ER,MEC),
(ER,EPD), (MEC,EPD) .................................................................................. 47
Table 4.6b MLR result of hypothesis 1a, 2a (Model summary) ...................... 48
Table 4.6c MLR result of hypothesis 1a, 2a (ANOVA) ................................... 48
Table 4.6d MLR result of hypothesis 1a, 2a (Coefficient) ............................... 48
Table 4.7a Pearson correlation between each pairs of variables: MEC, EPS, ER
....................................................................................................................... 50
Table 4.7b MLR result of hypothesis 1b, 2b (Model summary)...................... 50
Table 4.7c MLR result of hypothesis 1b, 2b (ANOVA) ................................. 51
Table 4.7d MLR result of hypothesis 1b, 2b (Coefficient) ............................... 51
Table 4.8a Pearson correlation between each pairs of variables (EPD, EPS,
FCA), .............................................................................................................. 52
Table 4.8b MLR result of hypothesis 3a, 3b (Model summary) ...................... 52
Table 4.8c MLR result of hypothesis 3a, 3b (ANOVA).................................. 53
Table 4.8d MLR result of hypothesis 3a, 3b (Coefficient) ............................... 53


VIII

LIST OF FIGURE

Figure 2.1: Theoretical model ......................................................................... 27
Figure 3.1. Research procedure ....................................................................... 28
Figure 4.1 Regression result of theoretical model ............................................ 56


1

ABSTRACT

As environmental issues becomes a global matter, enterprises in the world
also face a real challenge of reducing harmful impact from manufacturing activities
under pressure of international and domestic environmental regulations. In that
scenario, what companies mostly concern about is the relationship between
environmental improvement activities and the competitiveness of enterprise as they
have to incur the extra cost from environmental activities.
By regression analysis of 137 samples from enterprises in southern Vietnam,
this paper concludes that the competitiveness of enterprises is positively impacted
by environmental process innovations. In addition, for the environmental
innovations to be fully implemented, the government regulation should comprise
more stringent requirements of product and process to be environment-friendly.
Besides, enterprises also should care about the impulse role of management in
accelerating the environmental activities in company


2

Chapter 1

INTRODUCTION

1.1 Introduction

The worst flood in Thailand history in 2011, the longer winter in
Europe in 2011, the Katrina storm in America in 2005… may have partially
expressed the bad consequences from harmful impact of waste from daily
production of enterprises in the world. Moreover, these natural calamities
also mean that the current number of environmental protection is not enough
to preserve the environment.
Along with the world, Vietnam is also suffered the natural disaster

yearly as a result of harmful discharge into environment. Although the “Law
on environment protection” was issued in year 2005, many corporations also
violate this law as pouring untreated waste into the environment in later
years (example: Vedan in 2008, Sonadezi in 2011). Besides, Vietnam has
also become an ideal destination to invest in recent years which would
consequently make a major impact into environment. Thus, exploring the
relationship between environmental innovations and firm’s competitive
advantage becomes a crucial matter in current situation due to the following
reasons:
Firstly, the result of the relationship between environmental
innovations and firm’s competitive advantage can help partially explain the
internal motives that push enterprises to violate the environmental laws in
recent years
Secondly, in the case that it is a positive relationship, it creates
impetus for enterprises to implement environmental activities as they have to
obey the environmental laws


3

Thirdly, from the result of this paper, law maker can evaluate the
appropriateness of current regulated items then they may complement or
modify to be more suitable with current situations in Vietnam

1.2 Research Issues, Objectives & Questions

This paper aims to evaluate the impact of environmental innovations
on competitive advantage of enterprise in the situation that environmental
innovations are under the pressure of regulation and managerial
environmental concerns. Specifically, this paper evaluates:

(1) The impact of environmental regulations on environmental product and
process innovation
(2) The impact of managerial environmental concerns on environmental
product and process innovation
(3)The impact of environmental product and process innovation on firm’s
competitive advantage

1.3 Research methodology

This paper is implemented through two steps: (1) in-depth interview
and (2) main survey (quantitative). The in-depth interview is carried out by
face-to-face discussion with employees and managers. Next, the main survey
is implemented through convenient sampling by sending hard copy and
email to employees and managers. Data collection is implemented in
province of Binh Duong, Dongnai and Hochiminh city where most
companies concentrate in southern Vietnam
For data analysis, Cronbach alpha and EFA is firstly used to verify the
scales of variables. Thereafter, multi-linear regression method is applied to


4

evaluate the theoretical model and research hypothesis. In this paper, the
software SPSS (Version 16.0) is used.

1.4 Significance of study

From the theoretical perspective, this paper firstly investigates the
relationship between managerial environmental concerns and environmental
regulation with environmental innovations in enterprise. Secondly, the

relationship between environmental innovations and firm’s competitive
advantage is also inquired. Thus, these results can be used to complement the
theory of environmental innovations for developing economy, like Vietnam
In addition, this paper also has many practical meanings:
Firstly, the result from this paper helps enterprises more understand
about the role of managerial environmental concerns and environmental
regulation as impacting factors on environmental innovations in enterprises.
Consequently, enterprises can speed up the environmental activities to
preserve the earth and surrounding atmosphere
Secondly, the relationship between environmental innovation and
firm’s competitive advantage leads the enterprise to a new outlook of the
environmental activities which are no longer burdened-cost activities, but a
new tool to increase the competitiveness of company.
Finally, the result from this paper helps policy makers to grasp the
impact of environmental laws on enterprise. On this basis, policy makers can
complement or modify the current items in the law so as to be more suitable
and to play an encourage role to accelerate environmental activities in
enterprise


5

1.5 Structure of study

This study is divided into five chapters:
Chapter 1 presents the overview of this study.
Chapter 2 introduces literature review and theoretical model
development.
Chapter 3 presents research methodology which aims to verify scale
and evaluate the hypothesis.

Chapter 4 outlines the result of analyzing multi-linear regression
model.
Chapter 5 presents discussion of research result, implication and
further research.


6

Chapter 2:

LITERATURE REVIEW

2.1 Definition of environmental innovation
In the process of manufacturing, enterprises have contributed a great
amount of toxic materials, hazardous waste, and noxious carbon into
environment. In order to reduce the impact of these pollutions,
environmental innovations is defined as activities that aim to change of
processes, techniques, practices, systems and products so as to lower the
harmful impact of manufacturing activities on environment (Rennings et al,
2004). Ediadat et al, (2008) also suggests the environmental innovations as a
class of manufacturing practices which aims to reduce the using of resources
and preventing pollution
Porter & van der Linde (Fall 1995) have other contribution for
environmental innovation when classifying them into two main activities:
process innovations and product innovations, specifically:
Firstly, products are forced to be innovated in the way that creates
better-performing, higher quality, higher resale or safer characteristics, in
other words, making the lifetime of product longer. Moreover, the innovated
products must have lower product cost per unit and lower disposal cost from
users. These results come from material substitution, less packaging so as to

be easy in recycling or disassembly.
Secondly, the process must be innovated in the method that reduces
pollution by less use of energy, higher yield, and less downtime. Therefore,
environmental product and process innovations help to transfer higher added
value to customer with a lower cost of production. In other words, the
environmental product and process innovations can lead to competitive


7

advantages over the enterprises that do not subject to environmental
regulations (Porter & van der Linde, Fall 1995)
In addition, in the OECD Oslo Manual (2005, (Gunday et al, 2011),
process and product innovations are defined as closely related to the concept
of technological developments. Specifically, a product innovation is the
introduction of a good or service that is new or significantly improved
regarding its characteristics of intended uses, including significant
improvements

in

technical

specifications,

components

and

materials…whereas a process innovation is the implementation of a new or

significantly improved production or delivery method which intends to
decrease unit costs of production or delivery, to increase quality, or to
produce or deliver new or significantly improved products.
Along with Porter &van der Linde (Fall 1995), other researchers
substitute environmental innovations with a term “green innovations” that
has a similar meaning. Chen et al, (2006) suggests that there should be
technological change in green innovations which comprise of green product
and process innovation.

These changes should result in energy-saving,

pollution prevention, waste recycling, product designs or corporate
environmental management.

Chiou et al, (2011) also integrated green

managerial innovations, green product, and green process into green
innovations, in which the green managerial innovation is conceptualized as
internal managerial support for green initiatives. Therefore, green
innovations and environmental innovations can be used interchangeably.
Moreover, many researchers also replace process innovation and
product innovation with new concepts. For example Snir, (2001) uses
product stewardship to describe the set of practices that reduce
environmental impact by less use of hazardous chemicals and nonrenewable
materials in product development, and product design. Meanwhile,
W.Y.Wong et al, (2011) suggests the term process stewardship as preventing


8

inefficient use of materials and resources in transportation, production, and
disposal of product so as to reduce adverse environmental impact. It
emphasizes waste reduction and contributes to environmental protection
through implementing such processes as recycling, reengineering polluting
processes, minimizing carbon emission and so forth Therefore, product and
process innovations are specific kinds of technological innovation which aim
to reduce environmental burden for product and process (Ziegler &
Nogareda, 2009)
Generally, the environmental innovation can be used interchangeably
with green innovation which consists of two main elements of product
innovation and process innovation aiming to reduce harmful environmental
impact to the earth

2.2 Review of previous studies on environmental innovation

Since

Porter & van der Linde, (Fall 1995) arise the role of

environmental innovation as it can offset the cost of complying with
environmental regulations and lead to competitive advantage, many authors
have tried to re-examine this role as well as discovering the factors that
influence environmental innovation and the factors that is impacted by
environmental innovation. Below tables are summarized for these factors as
well as the methodology and main findings. Generally, these papers can be
divided into two main categories. On one hand, there are factors that play as
independent variable, which influence environmental innovations such as:
customers, suppliers, regulatory and competitive pressures (table 2.1). The
other is the dependent factors that are impacted by environmental
innovations such as: environmental performance, competitive advantage and

firm performance (finance, export intensity…) (table 2.2)


9

Table 2.1: antecedent variables of environmental innovations
No Authors

1

Main category:
- Antecedent variables:
regulations, customer/supplier,
managerial concerns…
- Dependent variables:
environmental innovations
Yalabik & Customer, regulatory, and competitive
J.Fairchild, pressure as drivers of environmental
(2011)
innovation

Methodology

Findings

Positive relationship
-Solving the monopoly
model for the optimal
price and environmental
emission level of the firm

-Environmental innovation motives
should be encouraged by awards
rather than by fine
-Competition can be effective
driver of environmental innovation
while regulatory pressure can be
effective drivers of environmental
innovation in case consumers are
likely to switch due to
environmental performance

No/negative
relationship
-


10

Table 2.1: antecedent variables of environmental innovations
No Authors

Main category:
- Antecedent variables:
regulations, customer/supplier,
managerial concerns…
- Dependent variables:
environmental innovations
The impact of customer benefit and
regulation on environmental product

(EP)innovation

2

Kammerer,
(2009)

3

Ediadat et The influence of perceived stakeholders
al, (2008)
pressure, managerial environmental
concerns and government
environmental regulations on
environmental innovation strategy.

Methodology

Findings

Positive relationship

No/negative
relationship

-Data is collected by
online questionnaire in
three different sectors:
information and
communication technology

(IT), household appliances
(HA), and medical
appliance (MA) of German
manufacturers
-Using logit regression for
analyzing data

-Both customer benefit and
regulation foster the
implementation of environmental
product innovation

-

-Survey from
environmental managers in
the chemistry industry in
Jordan
-Sample of 119 firms
-Analyzing data with SEM

-Environmental innovation strategy
is associated with improved
perceived firm’s business
performance
-The adoption of environmental
innovation strategy is influenced by
managerial environmental concerns
but not influenced by government
environmental regulations,

The adoption
of
environmental
innovation
strategy is not
influenced by
government
environmental
regulations,


11

Table 2.1: antecedent variables of environmental innovations
No Authors

Main category:
- Antecedent variables:
regulations, customer/supplier,
managerial concerns…
- Dependent variables:
environmental innovations
The influence of greening the
suppliers and green innovation
on environmental performance and
competitive advantage in Taiwan

Methodology

4

Chiou et
al, (2011)

-Survey across 124
companies from eight
industry sectors in Taiwan
-Using SEM to analyze
data

5

Hofer et al, The competitive determinants of a -A negative binominal
( 2012)
firm’s environmental mangement (EM) generalized estimating
activities
equations (GEE) model is
used to analyze data
-Data includes
observations from leader
and challenger firm in
each six-digit NAICS
industry in the US

Findings

Positive relationship

No/negative

relationship

Greening the suppliers through
green innovations improves the
environmental performance and
competitive advantage

-

- Market leadership, firm size and
firm profitability significantly
affect the magnitude of a firm’s
environmental management
activities


12

Table 2.1: antecedent variables of environmental innovations
No Authors

6

7

Main category:
- Antecedent variables:
regulations, customer/supplier,
managerial concerns…
- Dependent variables:

environmental innovations
W.Y.Wong -The influence of environmental
et al,
management capability (EMC) of
(2011)
suppliers on firm performance of green
operations (product stewardship and
process stewardship) and pollution
reduction

Methodology

Ziegler &
Nogareda,
(2009)

Exploring the causal relationship
between environmental management
system and technological
environmental innovations

Findings

Positive relationship

No/negative
relationship

-Data is collected of 122
electronics manufacturers

in Taiwan
-Applying multigroup
analysis with AMOS 7.0

-Process stewardship improves
both the environmental and
financial performance

-Product
stewardship
negatively
impact on both
the
environmental
and financial
performance of
electronic
manufacturers

-Data were collected by a
questionnaire-based
telephone survey in
Germany
-Using univariate probit
analysis

-

-The causal
relationship

between
environmental
management
system and
technological
environmental
innovations is
not clear


13

Table 2.1: antecedent variables of environmental innovations
No Authors

8

Pujari et al
,(2003)

Main category:
- Antecedent variables:
regulations, customer/supplier,
managerial concerns…
- Dependent variables:
environmental innovations
The influential factors on
environmental new product
development (ENPD) performance

Methodology

Findings

Positive relationship
-Collecting data from 1000
firms in UK by mail
-Using regression analysis
to analyze data

- E-co performance of ENPD is
positively influenced by many
factors: A higher degree of top
management support for ENPD; a
higher degree of integration of
environmental coordinator in
ENPD process; a higher degree of
supplier involvement
-E-co performance and market
performance of ENPD is positively
influenced by: a higher degree of
effective groundwork; a higher
degree of integration of
environmental impact databases in
existing information systems; a
higher degree of cross-functional
coordination; a higher degree of
environmental benchmarking

No/negative

relationship


14

No Authors

Table 2.2: environmental innovations and dependent variables
Main category:
Methodology
Findings
- Antecedent variables:
environmental innovations
- Dependent variables:
Positive relationship
Financial performance, business
performance, competitive
advantage….
The influence of environmental
-Survey from
-Environmental innovation
innovation strategy on perceived firm’s environmental managers in strategy is associated with
business performance
the chemistry industry in
improved perceived firm’s
Jordan
business performance
-Sample of 119 firms
-Analyzing data with SEM

1

Ediadat et
al,( 2008)

2

Shrivastava,
(summer
1995)

3

Chen et al, The influence of green innovation
(2006)
performance on corporate advantage in
Taiwan

Environmental technologies and
competitive advantage

None/negative
relationship
-

-Case study of 3M
company

-Environmental technologies
enhance the competitive

advantage of enterprise

-

-Survey from the
information and
electronics company in
Taiwan by random
sampling from 600
enterprises -Using
regression analysis

Green product innovation and
green process innovation
positively relates to corporate
competitive advantage

-


15

No Authors

Main category:
Methodology
- Antecedent variables:
environmental innovations
- Dependent variables:
Financial performance, business

performance, competitive
advantage….
Environmental strategy and exports in -Survey from the food
medium, small and micro-enterprises
industry in Spain
-The sample includes 156
firms by random sampling
from 1556 firms
-Using hierarchical
regression analysis to
analyze data

4

MartinTapia et al
,(2010)

5

Costantini
How the export competitiveness of the
& Mazzanti, European Union has been affected by
(2012)
environmental regulation and
innovation

-Test both strong and
narrowly strong versions
of Porter hypothesis (PH)
-Adopting a theoretically

based gravity model to
analyze data
-Data is made up of 14
exporting countries (EU
members) and 145
importing countries

Findings

Positive relationship

None/negative
relationship

- Proactive environmental
strategies of SMEs positively
influenced their export intensity,
but this effect depends on size,
and more intense with an
increase in size

-

-For strong version of PH:
environmental regulation does not
seem to be harmful for export
competitiveness
-For narrowly strong version of
PH: environmental innovation
efforts fosters green exports

16

No Authors

Main category:
- Antecedent variables:
environmental innovations
- Dependent variables:
Financial performance, business
performance, competitive
advantage….
Modelling the causual relationship
between
firm’s
environmental
performance and their financial
resources and management capability

6

M.Clarkson
et al , 2011)

7

T.Lucas & The relationship between
A.Wilson,
environmental management and

(2008)
financial performance in the service
industry

8

Filbeck & The relationship between the
F.Gorman,
environmental and financial
(2004)
performance of Public Utilities

Methodology

-Using the longitudinal
data from 1990 to 2003
for the four industries in
the US
-Using three-stage-leastsquares (3SLS) model to
analyze data
-Using data from a sample
of 1228 service
organizations
-Using univariate and
multivariate analysis
-Using secondary data
from Investor
Responsibility Research
Center’s 2000 Corporate
Environmental Profiles

Database to analyze

Findings

Positive relationship

None/negative
relationship

-There is positive association
between environmental
innovation and financial
performance
-Environmental innovation
cannot be easily mimicked by all
firms
Environmental management
positively influence financial
performance

-

-

Negative
relationship
between
financial return
and a more proactive measure
of

environmental
performance

-


17

No Authors

9

Simpson
et al,
( May,Jun
2004)

Main category:
- Antecedent variables:
environmental innovations
- Dependent variables:
Financial performance, business
performance, competitive
advantage….
Does adopting environmental practice
in
SMEs
increase
competitive
advantage?

Methodology

Findings

Positive relationship

-Using questionnaire
survey (n=63)and
telephone interview (n=15)

None/negative
relationship
SMEs do not get
competitive
advantage
because the cost
of
environmental
responsibility