Given the overwhelming concerns on environmental issues, our study attempts to investigate the important role of environmental management practice in the context of product exploration and product exploitation. Additionally, we examine the moderating effect of transformative capability and absorptive capability on the relationship between environmental management and product exploration and exploitation. Based on a survey of 106 managerial-level employees from small manufacturing firms in the United Kingdom (UK), this study found that environmental management practice has a positive direct effect on product exploitation and product exploration. The study also found that (1) transformative capability positively influences the relationship between environmental management and product exploration; (2) absorptive capability negatively influences the relationship between environmental management and product exploitation. From this study, we offer novel insights that extend the existing literature concerning the outcomes of environmental management within the context of product exploration and product exploitation.
This article examines the roles of organizational structure of decision-making and external pressure in determining the practice of environmental management. Using contingency theory, this study argues that having a decentralized structure, entrepreneurial firms are able to adapt to external pressure while implementing environmental management. The data were drawn from 106 small and medium-sized firms in the United Kingdom. The study found that a decentralized structure is positively associated with the practice of environmental management while external pressure from global awareness and social relationships has less impact on firms’ environmental management. Interestingly, the impact of decentralized structure on environmental management is strengthened in the context of high level of technological dynamic. Overall, the findings of the study have provided some recommendations to theory and practice of environmental management especially in the context of entrepreneurial firms.
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