Introduction
Background and Theory on Environmental Performance—Firm Performance Link
Theory: the Resource-Based View of a Firm
Evidence for a Relationship—Positive, Negative, or Neutral
The Case for More Complex Relationships
The Case for Curvilinear Relationships Between EP and FP
Reverse Causality of FP Influencing EP and the Endogeneity Issue
Methods
Measures and Scale Development
Name | Loading | Average variance extracted (AVE) | Composite reliability | KMO significance |
---|---|---|---|---|
Company has achieved important environment-related certifications | 0.842 | 71 % | 0.823 | 0.000 |
On an average, environmental performance has improved over the last 5 years | 0.842 | |||
On an average, sales have been growing over the last 5 years | 0.957 | 92 % | 0.957 | 0.000 |
On an average, company has increased its market share in the last 5 years | 0.957 |
1 | 2 | 3 | 4 | |
---|---|---|---|---|
1. Size | 1 | |||
2. Firm performance | 0.320** |
0.959
a
| ||
3. Environmental performance | 0.282** | 0.125 |
0.843
| |
4. Square of environmental performance | −0.068 | 0.141 | −.344** | 1 |
Minimum | 3 | −2.727 | −2.552 | 0 |
Maximum | 5 | 1.484 | 1.330 | 6.51 |
Mean | 4.75 | 0 | 0 | 0.993 |
Std. deviation | 0.517 | 1 | 1 | 1.310 |
Sample Selection and Survey
Convergent Validity
Discriminant Validity
Analysis and Results
Moderated Regression Analysis Results
Dependent variable: firm performance | ||
---|---|---|
Independent variables | Stage1 | Stage2 |
Control: size | 0.047 | 0.111 |
Direct effect: Environmental performance | 0.307*** | 0.302*** |
Moderating effect: Square of environmental performance | 0.187** | |
R
2
| 0.105 | 0.135 |
R
adj
2
| 0.091 | 0.115 |
ΔR
2
| 0.031** | |
F
| 7.47*** | 6.63*** |