Do Environmental Practices Improve Business Performance Even in an Economic Crisis? Extending the Win-Win Perspective

Bruno Michel Roman Pais Seles, Ana Beatriz Lopes de Sousa Jabbour, Charbel Jose Chiappetta Jabbour, Hengky Latan and David Roubaud ()

Ecological Economics, 2019, vol. 163, issue C, 189-204

Abstract: This article analyses the effects of economic crises on the relationship between environmental practices, environmental performance and business performance. Six hypotheses are tested via survey responses from firms located in Brazil – a country that has recently faced a serious economic crisis. The data were analysed using PLS path-modelling (PLS-PM). The findings are discussed through the theoretical lenses of contingency theory and dynamic capabilities theory. We provide evidence that the aftermath of the recent economic crisis has significantly weakened the relationship between environmental practices, environmental performance and business performance among Brazilian firms. However, environmental practices that are linked to firms' strategy and have dynamic capability characteristics can still improve business performance, even under economic contingencies, as the win-win characteristics of these practices remain even in times of economic crisis. Firms may benefit from the awareness that even in difficult times, environmental practices continue to support business performance. The article extends the understanding of the ‘win-win situation’ regarding a market environment facing an economic crisis. The originality of this study, to the best of our knowledge, is that it is the first study to employ this theoretical and methodological approach to deal with this key societal and economic subject.

Keywords: Environmental Practices; Economic Crisis; Environmental Performance; Business Performance (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:163:y:2019:i:c:p:189-204

DOI: 10.1016/j.ecolecon.2019.04.013

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