Can adopting ambitious environmental sustainability initiatives lead to business failures? An analytical framework

Amankwah‐Amoah, Joseph; Syllias, Johnny

doi:10.1002/bse.2361

Cited by 48 publications

(30 citation statements)

References 53 publications

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“…First, unlike previous research that indicates that reputation is crucial for start‐ups seeking venture capital (Amankwah‐Amoah & Syllias, 2020; Petkova, 2014; Petkova, Rindova, & Gupta, 2008) and venture performance (Downing & Ma, 2017), we examine the indirect effect of reputation on environmental innovation. A major contention is that an examination of the role of the individual's reputation in driving environmental innovation is lacking.…”

Section: Discussionmentioning

confidence: 99%

CEOs' reputation, quality management and environmental innovation: The roles of stakeholder pressure and resource commitment

et al. 2020

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In this paper, we examine how and when chief executive officers' (CEOs') reputation enhances environmental innovation by considering quality management as a mediating mechanism of this relationship. In addition, we introduce stakeholder pressures (primary and secondary stakeholder pressures) as important contingencies of the relationship between CEOs' reputation and quality management. Moreover, we test the moderating role of resource commitment on the quality management‐environmental innovation relationship. We test our research model using data from a manufacturing industry sample of 217 firms from Ghana. We find that quality management mediates the relationship between reputation and environmental innovation. Moreover, the relationship between CEOs' reputation and quality management is amplified when levels of both primary and secondary stakeholder pressures are greater. Finally, our findings show that the effect of quality management on environmental innovation is enhanced when resource commitment is greater. Implications for theory and practice are discussed.

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Section: Discussionmentioning

confidence: 99%

CEOs' reputation, quality management and environmental innovation: The roles of stakeholder pressure and resource commitment

et al. 2020

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“…Prior to the 21st century, many of the challenges facing global businesses revolved around how to mitigate business failure (see Amankwah-Amoah & Syllias, 2020 ). However, in discussing both business ailments and remedies, a great deal of the literature rested on two fundamental assumptions: the increasing primacy of markets, and that much could be taken for granted about the global business ecosystem.…”

Section: Introductionmentioning

confidence: 99%

“…There is a growing body of research on business failure (see Amankwah-Amoah & Syllias, 2020 ; Boso, Adeleye, Donbesuur, & Gyensare, 2019 ; Habersang, Küberling-Jost, Reihlen, & Seckler, 2019 ; Kücher, Mayr, Mitter, Duller, & Feldbauer-Durstmüller, 2020 ; Mellahi & Wilkinson, 2004 ; Rider & Negro, 2015 ; Shepherd, 2003 ). However, as we have seen, past “shocks” of this nature have involved comfortingly familiar phenomena, making it challenging to theorize about challenges outside the realm of past experience ( Wood, 2019 ); the last global pandemic, Spanish flu, occurred a century ago, when the global economy was in a very different place.…”

Section: Introductionmentioning

confidence: 99%

COVID-19 and business failures: The paradoxes of experience, scale, and scope for theory and practice

Amankwah‐Amoah

Khan

Wood

2021

European Management Journal

247

186

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In light of growing scholarly works on business failure, across the social science domains, it is surprising that past studies have largely overlooked how extreme environmental shocks and ‘black swan’ events such as those caused by the coronavirus (COVID-19) pandemic and other global crises, can precipitate business failures. Drawing insights from the current literature on business failure and the unfolding event of COVID-19, we highlight the paradoxes posed by novel exogenous shocks (that is, shocks that transcend past experiences) and the implications for SMEs. The pandemic has accelerated the reconfiguration of the relationship between states and markets, increasing the divide between those with political connections and those without, and it may pose new legitimacy challenges for some players even as others seem less concerned by such matters, whilst experiential knowledge resources may be both an advantage and a burden.

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“…Unlike the existing studies which have mostly focused on large firms (Filbeck & Gorman, 2004; Nollet, Filis, & Mitrokostas, 2015; Trumpp & Guenther, 2017), this study, for the first time, present empirical evidence on the nonlinear relationship between sustainable environmental practices and financial performance of listed SMEs, hence providing a different dimension to the sustainable environmental practices and financial performance debate. This argument is particularly important as emphasised by Amankwah‐Amoah and Syllias (2020) that SMEs may not be able to meet the additional regulatory and financial burden of sustainable environmental practices. Therefore, policy debate that emphasises gradual implementation approach would enhance the capacity of SMEs in transiting from short to long‐term is essential in helping them to overcome the regulatory burden and financial constraints.…”

Section: Introductionmentioning

confidence: 99%

Sustainable environmental practices and financial performance: Evidence from listed small and medium‐sized enterprise in the United Kingdom

Boakye

Tingbani

Ahinful³

et al. 2020

Bus Strat Env

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In this article, we investigate the financial implication of sustainable environmental practices on UK small and medium‐sized enterprises (SMEs)–traded firms. Existing literature indicates that there is a direct relationship between sustainable environmental practices and financial performance. However, studies looking at this relationship have focused mainly on large firms with little attention paid to SMEs. Further, those looking at environmental and financial performance relationships have often used a single measure of performance in their studies. This study bridges these research gaps by focusing on listed SMEs in the United Kingdom using multiple measures of sustainable environmental policy indices on a panel of 201 SMEs on the Alternative Investment Market from 2011 to 2016. Evidence from our panel data analysis suggests significant and a nonlinear (concave) relationship between sustainable environmental practices and firms' financial performance. Specifically, energy efficiency practices, greenhouse gases, material, and resource efficiency revealed an inverted U‐shaped relationship with financial performance. The results will offer guidance to management in terms of allocating resources to sustainable environmental practices investment.

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Can adopting ambitious environmental sustainability initiatives lead to business failures? An analytical framework

Abstract: The version in the Kent Academic Repository may differ from the final published version. Users are advised to check http://kar.kent.ac.uk for the status of the paper. Users should always cite the published version of record.

Cited by 48 publications

References 53 publications

CEOs' reputation, quality management and environmental innovation: The roles of stakeholder pressure and resource commitment

CEOs' reputation, quality management and environmental innovation: The roles of stakeholder pressure and resource commitment

COVID-19 and business failures: The paradoxes of experience, scale, and scope for theory and practice

Sustainable environmental practices and financial performance: Evidence from listed small and medium‐sized enterprise in the United Kingdom

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