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Economic Freedom, Internal Motivation, and Corporate Environmental Responsibility of SMEs

Johan Graafland and Reyer Gerlagh (r.gerlagh@tilburguniversity.edu)
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Reyer Gerlagh: Tilburg University

Environmental & Resource Economics, 2019, vol. 74, issue 3, No 8, 1123 pages

Abstract: Abstract The effect of economic freedom on firms’ environmental responsible management is still unconcluded. We conjecture that the effects are conditional on a firm’s internal motivation and use a large-scale survey to run an empirical test. The sample consists of 4338 small and medium-sized enterprises from twelve European countries. Distinguishing between intrinsic (environmental) and extrinsic (profit) internal motivations, we find clear support that the effects of economic freedom and intrinsic motivation on corporate environmental performance interact with each other. Our findings explain the ambiguous results of previous empirical studies at the aggregate level.

Keywords: Corporate environmental performance; Economic freedom; Intrinsic motivation; Extrinsic motivation; Interaction (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (8)

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DOI: 10.1007/s10640-019-00361-8

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