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  • Print publication year: 2019
  • Online publication date: July 2019

4 - Organizational Drivers of Corporate Environmental Sustainability Strategy

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.