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4 - Organizational Drivers of Corporate Environmental Sustainability Strategy

Published online by Cambridge University Press:  12 July 2019

Sanjay Sharma  and
Pramodita Sharma
Sanjay Sharma
Affiliation:
University of Vermont
Pramodita Sharma
Affiliation:
University of Vermont
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Summary

This chapter is divided into three sections. 1) Corporate governance (ownership and management) influences; the influence of institutional investors, activist shareholders, and board of directors; the influence of top management teams in non-family firms or the dominant coalition of family firms determines the temporal orientation of key decision makers and the extent to which these decision makers identify with the firm. 2) The firm's strategic responses to market forces and regulatory influences. The relationship between firms’ generic and sustainability strategies and the impact of these strategies on a firms’ financial performance. 3) The importance of organizational capabilities that enable firms to achieve a balance between their economic and environmental performance. Family firms in which the controlling owners strongly identify with their family business and share a vision of corporate sustainability and long-term stewardship, are more likely to develop organizational capabilities needed to undertake a PES. In turn, such family firms will more likely enjoy positive performance on financial as well as socioemotional dimensions important to their dominant coalition.

Keywords

OwnershipGovernanceTop Management TeamDominant CoalitionsTemporal OrientationFamily IdentitificationMarket and Competitive StrategiesThe Natural Resource-based ViewEnvironmental CapabilitiesFamilinessStewardshipFamily IdentityThe Contingent Natural Resource-Based View
Type
Chapter
Information
Patient Capital
The Role of Family Firms in Sustainable Business
 , pp. 98 - 149
Publisher: Cambridge University Press
Print publication year: 2019

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