Environmental strategy and economic performance: the mediating role of competitive advantage and firm resources

Abstract

The aim of this paper is to clarify the relationship between environmental management and firm performance through the incorporation of the main limitations and the most relevant contributions made from various fields of study. The research is carried out using a mixed method research design in two phases: qualitative and quantitative. The first phase includes comparative case studies. The findings lead to establish propositions which are integrated in a model that depicts all the variables related to the link between environmental strategy and performance. In a second phase, we conduct a survey among firms affected by the IPPC law in Spain to test the proposed model using a structural equation analysis. Findings show that a direct link exists between the proactive environmental strategy, environmental performance, competitive advantage and economic performance.