Can environmentally oriented CEOs and environmentally friendly suppliers boost the growth of small firms?

Abstract

The core question addressed in the natural resource-based view (NRBV) of the firm is how to develop and exploit resources beneficial for both the natural environment and firm performance. Due to the resource constraints and increased competition facing small manufacturing firms, achieving this is a challenge for such companies. Building on the NRBV and resource orchestration literatures, we examine the relationship between green purchasing capabilities (GPCs), CEO's environmental orientation (EO), and firm growth. Results from 304 Swedish small manufacturing firms indicate a significant relationship between GPC and growth, and this relationship is positively moderated by the EO of the CEO. KEYWORDSgreen purchasing, natural resource-based view, resource orchestration, small firm growth, sustainable entrepreneurship

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