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FACTORS THAT INFLUENCE FIRMS’ ENVIRONMENTAL PERFORMANCE: AN EXAMINATION OF LARGE COMPANIES

Klossner, David

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2014, Doctor of Philosophy, Case Western Reserve University, Management.
This research illuminates the differences among US-based multinational corporations (MNCs) that operate in a pro-environmentally responsible manner and those that do not. I asked: What factors might explain differences between weak and strong performance among MNCs? I investigated different groups and explored the following lines of inquiry: Does industry matter? What can explain discrepancies in firms’ accounts of their performance when compared to actual performance? I applied an open mixed method approach that used five datasets: (a) firms’ environmental performance as reported by Newsweek statistics, (b) firms’ safety performance as reported to OSHA, (c) a survey conducted among top executives of the Fortune 500 companies, (d) 78 interviews with top US- and India-based executives of the MNCs, and (e) field observations of MNCs’ facilities in India. I discovered two distinct drivers that explain environmental performance: (a) organizational consciousness, and (b) elevated concern for employee safety. Organizational consciousness is a reflection of proactive management (characterized as heedful, alert, and caring about policies and operations). I observed that the Resource-Based View and institutional factors alone cannot explain significant differences between strong vs. weak environmental performers. I found the most significant difference is explained by industry type: (a) high-performing manufacturers have a greater ability to transfer knowledge across functional boundaries and source, and exploit new knowledge for environmental performance; (b) low-performing manufacturers are reluctant to allocate sufficient resources, and use “short-term fixes” to avoid risks associated with uncertain environmental outcomes, and (c) service companies do not see that they represent a risk to the environment and place a low priority on environmental concerns. Surprisingly, a number of firms underestimated their environmental performance (termed “Greenmodest”), and these share the following attributes: (a) primarily service companies, and (b) see a weak connection between their environmental performance, organizational capacities, and external pressure. In contrast, “Greenwashing” firms (a) are mainly manufacturers, (b) are older and more traditional, (c) have higher per-employee annual revenues, (d) are anxious about making decisions, and (e) try to “just get by.” “Greenhonests” - whose perception of the firm’s environmental performance aligned with actual performance - prioritize accurate measurement of environmental performance. Overall, the study provides new and surprising insights into factors that explain superior environmental performance among large companies.
Kalle Lyytinen (Committee Chair)
David Cooperrider (Committee Member)
James Gaskin (Committee Member)
Roger Saillant (Committee Member)
192 p.

Recommended Citations

Citations

  • Klossner, D. (2014). FACTORS THAT INFLUENCE FIRMS’ ENVIRONMENTAL PERFORMANCE: AN EXAMINATION OF LARGE COMPANIES [Doctoral dissertation, Case Western Reserve University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=case1395301067

    APA Style (7th edition)

  • Klossner, David. FACTORS THAT INFLUENCE FIRMS’ ENVIRONMENTAL PERFORMANCE: AN EXAMINATION OF LARGE COMPANIES . 2014. Case Western Reserve University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=case1395301067.

    MLA Style (8th edition)

  • Klossner, David. "FACTORS THAT INFLUENCE FIRMS’ ENVIRONMENTAL PERFORMANCE: AN EXAMINATION OF LARGE COMPANIES ." Doctoral dissertation, Case Western Reserve University, 2014. http://rave.ohiolink.edu/etdc/view?acc_num=case1395301067

    Chicago Manual of Style (17th edition)