Stakeholder pressure, eco-control systems, and firms’ performance: empirical evidence from UK manufacturers

Abstract

This study investigates whether stakeholder pressure directly intensifies the extent of eco-control systems' use, and thus indirectly affects economic and environmental performance. Crosssectional data was collected from 93 UK manufacturers belonging to industries of high pollution propensity, and analysed using structural equation modelling. This study provides a broader understanding of environmental management control systems (EMCS) development, responds to calls in the literature for extending prior empirical research to both the antecedents and consequences of EMCS, and offers further evidence from the UK context (one of the leading countries in tackling environmental-related issues). Our findings reveal that the pressure from organisational stakeholders is significantly and positively associated with all eco-control systems' constructs. Interestingly, our findings indicate a lack of significant indirect relations between stakeholder pressure groups and firms' performance (economic or environmental), and only ecocontrol incentives influence UK firms' environmental performance.

Carbon performance, carbon disclosure, and economic performance: the mediating role of carbon (media) legitimacy in the UK

“…However, the negative effect of poor carbon performance on the share price has been evident in many cases. In this study, we investigate how corporate economic performance is affected by carbon performance and carbon disclosure, and how carbon (media) 1 legitimacy mediates such a relationship. We argue that not only carbon performance and disclosure may directly affect firm's economic performance, but also they may indirectly do so through enhancing carbon legitimacy.…”

CSR initiatives, organizational performance and the mediating role of integrating CSR into management control systems: Testing an inclusive model within SMEs in an emerging economy

“…We recommend use of objective secondary data, in particular for organizational performance, as this would extend the findings to objective organizational performance measures (e.g. Abdel-Maksoud et al, 2021). By focusing on SMEs and emerging economies, this research points to the relevance of studying nontraditional contexts in management control research.…”

Corporate social responsibility antecedents and practices as a path to enhance organizational performance: The case of small and medium sized enterprises in an emerging economy country

“…Stakeholders 1 pressures implicate the interest and impact of various groups (Henriques & Sadorsky, 1996). It is argued that firms' decisions are affected by these groups, and since these groups have different interests, it is important that firms identify their stakeholders and appropriately respond to their demands (Abdel‐Maksoud et al, 2020; Russo & Perrini, 2010). CSR is said to help firms integrate social and environmental concerns in interacting with their stakeholders (CEC, 2006).…”

“…Moreover, the legitimacy theory argues that managers tend to implement managerial changes, and communicate them, to satisfy powerful stakeholders through various methods. 2 Such pressure is said to have motivated the implementation of environmental and social practices (Abdel-Maksoud et al, 2020;Pondeville et al, 2013;Schaltegger & Burritt, 2000). This can be explained as a result of managers' tendency to implement managerial changes, and communicate them, to satisfy influential stakeholders (Deegan et al, 2002;Islam & Deegan, 2010).…”

“…Such pressure is said to have motivated the implementation of environmental and social practices (Abdel‐Maksoud et al, 2020; Pondeville et al, 2013; Schaltegger & Burritt, 2000). This can be explained as a result of managers' tendency to implement managerial changes, and communicate them, to satisfy influential stakeholders (Deegan et al, 2002; Islam & Deegan, 2010).…”