Does Market Competition Dampen Environmental Performance? Evidence from China
Maoliang Bu () and
Russell Pittman ()
MPRA Paper from University Library of Munich, Germany
Departing from the extant literature which assumes that firms pursue strong environmental performance as a differentiation strategy, we analyse the general relationship between firms’ competitive strategy and their response to heightened market competition. We find that, using a large sample of Chinese manufacturing firms between 2000 and 2005, intensified market competition has an overall negative impact on firms’ environmental performance. The negative impact is exacerbated in firms adopting a cost-leadership strategy, but attenuated in those adopting a differentiation strategy. The results emphasize the importance of including an examination of the particular competitive strategies chosen by firms in seeking to understand the impact of intensified market competition.
Keywords: Market competition; environmental performance; China; corporate social responsibility; cost leadership; differentiation; market concentration (search for similar items in EconPapers)
JEL-codes: L11 L13 L21 L25 M14 M31 Q52 Q56 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cna, nep-com, nep-env, nep-res and nep-tra
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Journal Article: Does market competition dampen environmental performance? Evidence from China (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:88378
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