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Institutional environment, managerial attitudes and environmental sustainability orientation of small firms

Roxas, Banjo and Coetzer, Alan 2012, Institutional environment, managerial attitudes and environmental sustainability orientation of small firms, Journal of business ethics, vol. 111, no. 4, pp. 461-476, doi: 10.1007/s10551-012-1211-z.

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Title Institutional environment, managerial attitudes and environmental sustainability orientation of small firms
Author(s) Roxas, BanjoORCID iD for Roxas, Banjo orcid.org/0000-0003-3675-0535
Coetzer, Alan
Journal name Journal of business ethics
Volume number 111
Issue number 4
Start page 461
End page 476
Total pages 16
Publisher Springer Netherlands
Place of publication Dordrecht, Netherlands
Publication date 2012-12
ISSN 0167-4544
1573-0697
Keyword(s) business orientation
cognitive
environmental sustainability
institutional environment
institutions
managerial attitudes
normative
Philippines
regulation
small firms
sustainable development
Summary This study examines the direct impact of three dimensions of the institutional environment on managerial attitudes toward the natural environment and the direct influence of the latter on the environmental sustainability orientation (ESO) of small firms. We contend that when the institutional environment is perceived by owner–managers as supportive of sound natural environment management practices, they are more likely to develop a positive attitude toward natural environment issues and concerns. Such owner–manager attitudes are likely to lead to a positive and proactive orientation of their firms toward environmental sustainability. The study uses survey data from 166 small manufacturing firms located in three Philippine cities. First, the study develops and tests the measurement models to examine the validity of the constructs representing the firm’s institutional environment, managerial attitudes toward the natural environment and the ESO of firms. Second, the study develops and tests the structural models examining the institutional environment–managerial attitudes–ESO linkages. Multi-sample invariance structural model analysis shows the mediating role of managerial attitudes in the institutional environment–ESO nexus. The findings show that ESO is a construct comprising three dimensions: knowledge of environmental issues, sustainable practices and commitment toward environmental sustainability. The cognitive, regulatory and normative elements of the institutional environment are strongly linked to positive managerial attitudes toward environmental sustainability, which in turn, positively influences the firm’s overall ESO. Managerial attitudes play a mediating role in the institutional environment–ESO linkages. The managerial, practical, research and policy implications of the research findings are discussed.
Language eng
DOI 10.1007/s10551-012-1211-z
Field of Research 159999 Commerce, Management, Tourism and Services not elsewhere classified
Socio Economic Objective 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2012, Springer Science+Business Media B.V.
Persistent URL http://hdl.handle.net/10536/DRO/DU:30042410

Document type: Journal Article
Collection: School of Management and Marketing
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