Chief executive officers' sustainability orientation and firm environmental performance: Networking and resource contingencies

Samuel Adomako, Joseph Amankwah‐Amoah, Albert Danso and George Obeng Dankwah

Business Strategy and the Environment, 2021, vol. 30, issue 4, 2184-2193

Abstract: Although the existing literature supports the relationship between chief executive officers' (CEOs') sustainability orientation (SO) and entrepreneurial behaviour, empirical studies exploring how SO drives firm environmental performance (FEP) are lacking. In addition, the potential moderating effects of firm‐level factors on this relationship are less understood. We contribute to filling this gap by examining the moderating effects of political connections and financial slack on the relationship between SO and FEP. Using data obtained from 297 small and medium‐sized enterprises (SMEs) in Ghana, our results reveal that SO is positively related to FEP. In addition, our results show that the effect of SO on FEP is negative when firms have stronger financial slack and when firms are highly politically connected.

Date: 2021
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