A meta‐analytic investigation of the relationship between HRM bundles and firm performance

Human resource management bundles consisting of multiple complementary practices are typically considered superior to individual best practices in influencing firm performance. This study investigates the relationship between three such bundles (empowerment, motivation, and skill‐enhancing) and business outcomes (retention, operating performance, financial performance, and overall performance ratings). A meta‐analysis of 239 effect sizes derived from 65 studies reveals that HRM bundles have significantly larger magnitudes of effects than their constituent individual practices, are positively related to business outcomes, and display effect sizes that are comparable to or larger than those of high‐performance work systems. These findings reaffirm the case for firm‐level investments in synergistic HRM combinations and highlight the importance of investing in complementary practices. © 2009 Wiley Periodicals, Inc.     

ISO 14001, EMAS and environmental performance: A meta‐analysis

The adoption of voluntary environmental certifications such as ISO 14001 and Eco‐Management and Audit Scheme (EMAS) has gained momentum in the last two decades. The scholarly literature has analyzed in depth the performance implications of the adoption of these certificates. Yet the findings are scattered and inconclusive. This article aims to shed light on this issue by meta‐analyzing the influence of the adoption of voluntary environmental certifications on corporate environmental performance, drawing on a sample of 53 scholarly studies analyzing a total of 182,926 companies. The findings show a positive influence of ISO 14001 and EMAS certifications on corporate environmental performance. A set of underlying moderating effects are also identified, such as a more pronounced positive effect for adoptions based on environmental innovation and for firms with a more mature certification. Implications for scholars, managers, and other stakeholders are discussed.     

How environmental innovation influences firm performance: A meta-analytic review

Coupled with the increasing concern toward sustainability and sustainable development issues, environmental innovation practices have been of burgeoning interest among both scholars and practitioners. Building on this, the main purpose of this study is to quantitatively aggregate the extant empirical research on eco-innovation and firm performance and to assess the role of moderating factors in this theoretical relationship by pursuing a meta-analytic approach. To serve this objective, 196 effects based upon 70 studies including more than 25,000 firms (N = 25,412) were meta-analytically examined. Quantitative evidence drawn from the meta-analysis indicates that organizational eco-innovation exerts the strongest influence on firm performance. Moreover, the meta-analytic findings suggest that significant variations in the correlation between eco-innovation and firm performance exist across different performance types, and the magnitude of the eco-innovation–firm performance association is stronger in developing compared with developed countries. This meta-analytic review is expected to considerably contribute to the pertinent literature by means of improving the understanding of the relevance of eco-innovation typology to firm performance.     

Employee ownership and firm performance: a meta‐analysis

Employee ownership has been an area of significant practitioner and academic interest for the past four decades. Yet, empirical results on the relationship between employee ownership and firm performance remain mixed. To aggregate findings and provide potential direction for future theoretical development, we conducted a meta‐analysis of 102 samples representing 56,984 firms. Employee ownership has a small, but positive and statistically significant relation to firm performance ( = 0.04). The effect is generally positive for studies with different sampling designs (samples assessing change in performance pre‐employee–post‐employee ownership adoption or samples on firms with employee ownership), different performance operationalisation (efficiency or growth) and firm type (publicly held or privately held). Suggesting benefits of employee ownership in a variety of contexts, we found no differences in effects on performance in publicly held versus privately held firms, stock or stock option‐based ownership plans or differences in effects across different firm sizes (i.e. number of employees). We do find that the effect of employee ownership on performance has increased in studies over time and that studies with samples from outside the USA report stronger effects than those within. We also find little to no evidence of publication bias.     

An analysis of environmental sustainability in small & medium‐sized enterprises: Patterns and trends

One of the greatest challenges facing the world today is climate change. The need to consistently advance with environmentally sustainable practices in today's businesses is crucial, and businesses are demanded to be more environmentally sustainable every day. This study conducts an analysis of the literature on small and medium‐sized enterprises' (SMEs) environmental sustainability by carefully examining 122 studies from 58 journals published from 2013 to 2019. We investigate the trends in drivers and barriers of sustainability adoption to inform both SMEs managers and policymakers. Our results also classify the reviewed studies on the basis of their methodologies and show the distribution of studies across industry sectors and locations in order to set directions for future research on sustainability practices of SMEs.     

It is merely a matter of time: A meta‐analysis of the causality between environmental performance and financial performance

Research on the relationship between corporate environmental performance (CEP) and financial performance (CFP) continuously receives high attention in both general media and academic publications. One central issue concerns the causal effects between the two constructs. Because existing primary literature is characterized by its heterogeneous study designs and mixed empirical evidence, the aim of this paper is to explicitly shed light on the causality effects between CEP and CFP by means of a meta‐analysis of 893 empirical estimates from 142 CEP–CFP studies. Our findings suggest that in the short run (1 year), financial resources can increase a firm's environmental performance as proposed by the slack resources hypothesis; however, the effects disappear in the long run (after more than 1 year). Conversely, increasing environmental performance has no short‐term effect on a corporate financial performance, whereas a firm significantly benefits in the long term, which is in accordance with the Porter hypothesis. Overall, our results show that the causality between environmental performance and financial performance depends on the time horizon.     

High‐performance organizing,environmental management,and organizational performance: An evolutionary economics perspective

This study applies evolutionary economics reasoning to the green HRM context and examines whether and how environmental management routinization relates to organizational performance. In doing so, we introduce the concept of ecological routines, defined as deeply embedded, firm‐specific rules and procedures associated with organizing and practicing corporate environmental management that do not change very much from one iteration, period, or functional unit to another. We examine the extent to which ecological routines that encompass organizing (high‐performance organizing [HPO]) and practice routines of environmental sustainability relate to green decisions, green behaviors, and organizational performance. In a sample of 229 managers from 33 organizations in the environment‐sensitive industries of the United States, we find support for multilevel mediation of green decisions and green behaviors as well as interaction of HPO and environmental management practice routines. Implications for research and practice are discussed.     

Understanding environmental management practices: integrating views from strategic management and ecological economics

This paper proposes an integrating framework, based on theoretical concepts from the fields of strategic management and ecological economics, to enhance our understanding of environmental management practices (EMPs) and their relationship to sustainable competitive advantage. Starting with an expansion of the resource‐based view of the firm to include the natural environment, the article next engages the interdisciplinary field of ecological economics and its thermodynamic approach to ‘joint production’ to provide additional insights into the challenges and opportunities brought by a bio‐physically constrained economy. Informed by this understanding, the article then categorizes examples of EMPs drawn from the literature and discusses their potential impact on competitiveness. The paper concludes with a discussion of implications for future research in the hope that the proposed framework will stimulate debate and lead to a fuller understanding of the impact of environmental management in the 21st century. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

Innovation intensity,creativity enhancement,and eco‐innovation strategy: The roles of customer demand and environmental regulation

This study develops a contingency framework to investigate how and when innovation intensity and creativity enhancement affect a firm's eco‐innovation strategy by drawing upon the perspectives of the resource‐based view and stakeholder theory. This investigation aims to explore whether firms with high innovation intensity and creativity enhancement really pursue eco‐innovation strategy. Our examination is based on a sample of 2,126 manufacturing firms. By using a hierarchical regression, the results reveal that the effects of innovation intensity and creativity enhancement on eco‐innovation strategy depend on customer demand and environmental regulation. Specifically, customer demand positively moderates the effects of innovation intensity and creativity enhancement on eco‐innovation strategy, whereas existing regulation has a weaker effect on the relationship between innovation activities and eco‐innovation strategy than that of anticipated regulation.     

The effect of regional factors in the development of eco‐innovations in the firm

This research addresses the study of the effect of regional factors in the development of eco‐innovations in the firm. We assume the hypothesis of regional heterogeneity, that is, geographical factors and the regional heterogeneity play an important role in determining the innovations in the firms. In this line, we will approach our study from the perspective of regional innovation systems (RISs). Therefore, our research question involves the evaluation of regional factors as determinants of eco‐innovation developing in the firm. To examine these questions, the PITEC database that covers the period 2011–2013 was used. Overall, 5,461 firms have been employed for the ordinal logit regression model. This research contributes to the studies of eco‐innovation, extending the investigation into drivers of eco‐innovation, and highlights the impact that RIS has on the eco‐innovative development in the firm. We find that regional interaction and regional characteristics are key elements for the development of eco‐innovation in firms. Thus, the density of companies in the region, the regional per capita income, and the existence of financing mechanisms are key elements for the eco‐innovative development in the firm.     

The management of sustainable development: A longitudinal analysis of the effects of environmental performance on economic performance

The literature on sustainable development has largely focused on investigating the relationship between companies' environmental and economic performance. However, many aspects remain unexplored, and empirical studies are far from reaching a consensus due to the heterogeneity of the environmental and economic measures and methodologies used. This study contributes to the literature on sustainable development by considering a panel of 998 US companies observed over the period 2003–2017 using both traditional panel data methods and an unconditional quantile regression technique. The empirical evidence confirms that environmental performance, measured in terms of environmental orientation and environmental innovation, positively affects returns on assets and equity. It also demonstrates that these returns change across quantiles and depend on the capacity of green companies to generate the same streams of income as nongreen companies but with less capital. In other words, green firms tend to be more efficient in generating future wealth.     

Environmental management practices and financial performance using data envelopment analysis in Japan: The mediating role of environmental performance

This study investigates the relationship between environmental management practices (EMPs) and financial performance (FP) and consequently ascertains whether environmental performance (EP) can mediate the EMPs–FP nexus. Distinctly using data envelopment analysis and generalised method of moments techniques to analyse a comprehensive dataset of Nikkei 225 listed firms from 2007 to 2018 (1920 firm-year observations), our findings first suggest that EMPs have a positive effect on FP. Second, the desired EP can be achieved through the adoption of comprehensive EMPs. Third, improved EP has a substantial impact on shaping the EMPs' effect on FP. These findings are consistent with the predictions of resource-based view and institutional theories. The results are robust to controlling for different types of alternative measures and endogeneities. The findings have important implications for academics, investors, managers, policymakers and regulators.     

Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective

Despite environmental sustainability being identified as one of the key drivers of innovation, extant literature lacks a theoretically sound and empirically testable framework that can provide specific insights into green product innovation from a capability perspective. This study develops a theoretical framework from a sustainability‐oriented dynamic capability (SODC) perspective. We conceive SODCs as consisting of three underlying processes (external resource integration, internal resource integration, and resource building and reconfiguration) that influence the change/renewal of sustainability‐oriented ordinary capabilities (SOOCs) (green innovation capability and eco‐design capability). This study answers two key questions: which SODCs are needed to develop green innovation and eco‐design capabilities? Which of these capabilities lead to better market performance of green products? We test a structural model linking SODCs to market performance in 189 Italian manufacturing firms. First, we find that the nature of the SODC–performance link (direct or indirect) depends on the SODC type. Specifically, resource building and reconfiguration is the only SODC with a direct effect on market performance. Second, all three types of SODC affect the eco‐design capability, which mediates the link between SODCs and market performance. Third, we find that external resource integration is the only SODC affecting the green innovation capability, which mediates the link between external resource integration and market performance. Resource building and reconfiguration is the SODC with the overall (direct and indirect) highest impact on market performance. This study, among the first to consider capabilities for green product innovation under a dynamic capability perspective, provides implications for scholars, managers and policy makers. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment     

The product‐market performance benefits of environmental policy: Why customer awareness and firm innovativeness matter

Researchers have widely studied the nexus between corporate environmental (“green”) policy and its green performance and firm financial performance, but with mixed findings. A potential explanation for these mixed findings is the focus of extant studies on the direct and immediate impact of environmental performance on financial performance to the exclusion of firm‐specific boundary conditions. Furthermore, all prior research study the effect of environmental performance on either stock market‐based performance measures (i.e., stock return) or accounting‐based performance measures (i.e., return on assets). A missing third dimension of firm performance, product–market‐based performance (i.e., market share), has so far remained unexplored despite representing a crucial objective when innovating. Using Newsweek's annual green ranking as a novel measure of environmental performance for a panel of U.S. firms from 2010 to 2015, this paper attempts to fill these voids in the literature. The results show a positive relationship between firms' environmental performance and market share as a measure of product–market‐based performance. The findings further demonstrate that this relationship is positively moderated by the level of customer awareness and innovativeness of the firm: The higher the level of awareness of a firm's environmental credentials and innovativeness, the stronger the effects of environmental performance on market share. Our results are robust against endogeneity concerns and alternative measures of firm financial and environmental performance.     

Corporate sustainability and financial performance: Collective reputation as moderator of the relationship between environmental performance and firm market value

Markets value superior corporate sustainability performance in part because investors use a firm's environmental performance as a signal of desirable but difficult-to-observe attributes, such as the firm's integrity capacity. Yet a signaling conflict can arise when a firm belongs to an organizational form that has a collective reputation for being unethical. In such circumstances, the firm's environmental performance may no longer credibly signal its underlying integrity capacity, leading markets to adjust downward the value they would otherwise place on the firm's environmental performance. Using longitudinal data on South Korean firms, we find that improvements in firm environmental performance lead to smaller increases in market values for firms belonging to a poorly reputed organizational form. However, firms can partially recover lost value by adopting firm features that reduce the signaling conflict, thereby restoring the notion of corporate sustainability performance driving firm market values.     

How do green knowledge management and green technology innovation impact corporate environmental performance? Understanding the role of green knowledge acquisition

Increasing regulatory obligations to adapt and execute environmentally friendly operations make it critical for businesses to pursue strategies that can strengthen their competitive edge in the market. Academics and practitioners alike have recently gravitated toward exploring how knowledge acquisition activities might improve business outcomes. To address this growing research interest, this study investigates the critical roles of green knowledge acquisition in enhancing green knowledge management and green technology innovation activities in improving corporate environmental performance, positioning resource commitment as a moderator. The research model has been assessed using structural equation modeling with survey data from 283 Indian manufacturers, demonstrating that green knowledge acquisition significantly impacts green knowledge management and green technology innovation. The statistical findings also show that green technology innovation acts catalyzes the translation of green knowledge management into improved corporate environmental performance. The results demonstrate that resource commitment moderates green knowledge acquisition's interaction with green knowledge management and green technology innovation, providing practical insights enabling managers to focus on planning, allocating, and budgeting resources for effective green practices that can contribute to improving corporate environmental performance.     

Sustainability Strategy and Eco‐Innovation: A Moderation Model

This study develops a moderation model to examine the role of a proactive environmental strategy on eco‐innovation. Drawing upon the perspectives of contingency theory, this study argues that the impacts of sustainability strategy on eco‐innovation depend on market demand, innovation intensity and government subsidy. The sample used to test the hypotheses is obtained from the Community Innovation Survey in Taiwan. A total of 2955 manufacturing firms are included in the final sample. A logit moderating regression is adopted to analyze the models. The results reveal that market demand and government subsidy positively moderate the relationship between environmental strategy and eco‐innovation. Specifically, firms are more likely to adopt a proactive environmental strategy to improve eco‐innovation under high levels of market demand and government subsidy. Furthermore, the results indicate that innovation intensity affects the effect of environmental strategy on eco‐innovation, but the direction of the influence varies with different categories of eco‐innovation. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment     

High‐commitment HR practices,employee effort,and firm performance: Investigating the effects of HR practices across employee groups within professional services firms

In this study, the authors examine the relationship between high‐commitment HR practices and firm performance in professional services firms through the mediator of employee effort. In addition, they contribute to the debate in the field of strategic HRM on whether high‐commitment HR practices should be used across all employee groups within a firm. Their study's results show that high‐commitment HR practices positively relate to firm performance through employee effort for two employee groups within professional services firms. Further, they found that the relationship between effort and performance is contingent on the value of the employee group to firm competitive advantage, suggesting that companies may only want to expend the effort and resources on building a high‐commitment HR system for employee groups that are clearly tied to creating firm competitive advantage. © 2011 Wiley Periodicals, Inc.     

Eco‐innovation and firm growth in the circular economy: Evidence from European small‐ and medium‐sized enterprises

As the circular economy (CE) concept gains growing popularity among consumers and producers, small‐ and medium‐sized enterprises (SMEs) increasingly look for ways to reorganize their offering and operations to integrate into the CE. This study examines the impact of (a) circular eco‐innovations and (b) external funding available for CE activities on the growth of European SMEs using a data set of 5,100 SMEs across 28 European countries in 2016. Findings reveal that a significant threshold investment (i.e., higher than 10% of revenues) into circular eco‐innovations is required for SMEs to benefit from investing into the CE. Moreover, the majority of circular eco‐innovations fail to boost the growth rates of SMEs, with the exception of investments into eco‐design innovations. Although traditional forms of debt and grant finance targeted to CE activities are found to have no or negative impact on the growth of SMEs, equity finance (i.e., angel and venture capital investments) contributes positively to their growth. The study offers insights into the lower levels of SME engagement in the CE as well as policy implications for improving engagement.     

A comparison of family and nonfamily small firms in their approach to green innovation: A study of Italian companies in the agri‐food industry

Despite the growing scholars' attention toward green innovation, on the one hand, and family firms, on the other hand, there is still limited attention toward the intersection of these two streams of literature, because very few studies deal with green innovation in family firms. This paper aims at comparing family and nonfamily small firms in their approach to green innovation. To this aim, a multiple case studies methodology was used to understand whether and in which aspects family firms and nonfamily firms differ. In particular, a sample of 14 small enterprises (seven family and seven nonfamily firms) operating in the agri‐food industry and located in Italy was studied. Results suggest that family and nonfamily firms are similar with regard to green innovation characteristics, features of the green innovation process, faced challenges, and achieved outcomes. On the contrary, family firms differ from nonfamily firms in three key areas: firm's motivations, most relevant pressures, and green innovation view.