Environmental technologies and competitive advantage

Abstract

In this decade and the coming century, the natural environment will be an important arena for economic, competition. Ecological issues regarding energy, natural resources, pollution, and waste offer both competitive opportunities and constraints, and are changing the competitive landscape in many industries. Corporations can gain competitive advantage by managing ecological variables. This paper explains the concept of ‘environmental technologies’ as a competitive force and a tool for competitive advantage. Environmental technologies offer a new substantive orientation and a management process for minimizing ecological impacts of economic production while enhancing Competitiveness of firms. The practical application of environmental technologies is illustrated using a mini case example of 3M Corporation. Strategic implications of environmental technologies for competitiveness are explored.

The whole relationship between environmental variables and firm performance: Competitive advantage and firm resources as mediator variables

“…The contribution of proactive environmental management to competitive advantage is in terms of costs and differentiation (Galdeano-Gó mez et al, 2008;Gonzá lez-Benito and Gonzá lezBenito, 2005;Shrivastava, 1995). Cost advantages typically arise from the adoption of practices that improve the production process (Hart, 1995) increasing its efficiency and reducing input and waste disposal costs (Hart, 1995;Shrivastava, 1995).…”

“…Cost advantages typically arise from the adoption of practices that improve the production process (Hart, 1995) increasing its efficiency and reducing input and waste disposal costs (Hart, 1995;Shrivastava, 1995). Decisions such as the purchase of a new green technology, the consideration of greener distribution and transportation systems or the eco-design of products and processes will allow firms to gain competitive advantages derived from cost reductions (Fraj-André s et al, 2008).…”

“…Other authors use competitive advantage measures to represent firm performance. Christmann (2000) and Shrivastava (1995) examine the potential outcomes of being environmentally proactive, arguing that it contributes to improvements in competitive advantage, by lowering costs and improving differentiation. Following these studies, we propose to analyze the causal relationships between environmental variables and financial performance, considering the role of competitive advantages as mediator variable.…”

Drivers of environmental management in the Brazilian context

“…The indispensable involvement of the private sector is based on the recognition that governments cannot address all potential externalities. Therefore, firms are expected to improve environmental management practices (also called environmental management systems), in changing production technology to diminish the usage of natural resources, to reduce waste and polluting outputs, as well as to increase recycling (Hart, 1995;Shrivastava, 1995). These practices include equipment, methods and procedures that aim at minimizing environmental impacts.…”

“…Proactive strategies involve the development of resources, capabilities and green competencies that cannot be easily imitated by the market and provide superior competitiveness for firms (Buysse & Verbeke, 2003;Christmann, 2000;Darnall et al, 2010). On the other hand, some firms present reactive responses aimed at pure compliance with existing regulation and the development of end-of-pipe solutions and pollution control initiatives (Hart, 1995;Shrivastava, 1995). Such initiatives involve limited resources and are designed to manage liability risks and to reduce costs (Buysse & Verbeke, 2003;Sharma & Vredenburg, 1998).…”