'Too-much-of-a-good-thing'? The role of advanced eco-learning and contingency factors on the relationship between corporate environmental and financial performance

Latan, H., Chiappetta Jabbour, C.J., Lopes de Sousa Jabbour, A.B., Renwick, D.W.S. ORCID: 0000-0001-6819-5746, Wamba, S.F. and Shahbaz, M., 2018. 'Too-much-of-a-good-thing'? The role of advanced eco-learning and contingency factors on the relationship between corporate environmental and financial performance. Journal of Environmental Management, 220, pp. 163-172. ISSN 0301-4797

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Abstract

Inspired by the natural-resource-based view (NRBV) theory, we attempt to shed light on a controversy which has been persistent over the last decade, concerning the relationship between corporate environmental performance (CEP) and corporate financial performance (CFP). Using the 'too-much-of-a-good-thing' (TMGT) concept, which suggests that "too much can be worse than too little," we link mixed results and consider the roles of advanced eco-learning and contingency factors in influencing the CEP-CFP relationship. Based on a sample composed of ISO 14001 certified companies in Indonesia, and analyzing the data using consistent Partial Least Squares (PLSc), we found that: the CEP-CFP relationship follows an inverted U-shape; advanced eco-learning is a significant predictor of the CEP-CFP relationship, meaning that organizations able to develop higher eco-learning capability will be better able to identify the ideal boundaries of investment in environmental performance without reducing their financial performance; and that contingency factors such as environmental strategy and firm size have a significant role in influencing the CEP-CFP relationship. The study's limitations, implications for practitioners and a future research agenda are also detailed.

Item Type: Journal article
Publication Title: Journal of Environmental Management
Creators: Latan, H., Chiappetta Jabbour, C.J., Lopes de Sousa Jabbour, A.B., Renwick, D.W.S., Wamba, S.F. and Shahbaz, M.
Publisher: Elsevier
Date: 15 August 2018
Volume: 220
ISSN: 0301-4797
Identifiers:
NumberType
10.1016/j.jenvman.2018.05.012DOI
Divisions: Schools > Nottingham Business School
Depositing User: Linda Sullivan
Date Added: 04 Jul 2018 15:07
Last Modified: 04 Jul 2018 15:07
URI: http://irep.ntu.ac.uk/id/eprint/34006

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