Sustainable environmental strategy, firm competitiveness, and financial performance: Evidence from the mining industry

Samuel Adomako and Mai Dong Tran

Resources Policy, 2022, vol. 75, issue C

Abstract: Although our understanding of how mining firms' sustainable environmental strategy drives financial performance is well-established, there is still limited research that examines the mechanism that proves this correlation. Consequently, this paper investigates how firm competitiveness plays into the aforementioned narrative. In addition, we examine the moderating role of market orientation the relationship sustainable environmental strategy and firm competitiveness. Using time-lagged data from 194 mining companies, we found support for our hypotheses. Specifically, our findings revealed that (1) sustainable environmental strategy positively relates to firm competitiveness, (2) the impact of sustainable environmental strategy on firm competitiveness is moderated by market orientation, especially when it is high, and (3) firm competitiveness mediates the relationship between sustainable environmental strategy and financial performance. This study contributes to the literature on environmental management, especially on mining firms’ sustainability. It is also expected that these outcomes would guide managers and policymakers on the importance of establishing meaningful sustainable strategies to drive the bottom line.

Keywords: Environmental strategy; Mining firms; Competitiveness; Performance; Market orientation; Sustainable development; Sustainability (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420721005225
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:75:y:2022:i:c:s0301420721005225

DOI: 10.1016/j.resourpol.2021.102515

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().