Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 125-134 |
| Journal | Journal of Cleaner Production |
| Volume | 116 |
| DOIs | |
| Publication status | Published - 2016 |
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Keywords
- corporate social performance
- environmental performance
- short-termism
- price competition
- SMEs
- time horizon
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Price competition, short-termism and environmental performance. / Graafland, Johan.
In: Journal of Cleaner Production, Vol. 116, 2016, p. 125-134.Research output: Contribution to journal › Article › Scientific › peer-review
TY - JOUR
T1 - Price competition, short-termism and environmental performance
AU - Graafland, Johan
PY - 2016
Y1 - 2016
N2 - This paper studies the relationships between the intensity of price competition, time horizon and environmental performance. We hypothesize that more intense price competition discourages environmental performance by inducing short-termism in companies.We test the hypotheses on a sample of 3152 companies from twelve European countries. Using structural equation modeling, test results show that price competition significantly shortens the time horizon that companies apply in strategic decisions and that (long) time horizon significantly increases their environmental performance. However, the net negative effect of the intensity of price competition on environmental performance is small in absolute terms. The policy implication is that there is no serious dilemma between fostering environmental performance on one hand and increasing consumer surplus by encouraging price competition on the other hand.
AB - This paper studies the relationships between the intensity of price competition, time horizon and environmental performance. We hypothesize that more intense price competition discourages environmental performance by inducing short-termism in companies.We test the hypotheses on a sample of 3152 companies from twelve European countries. Using structural equation modeling, test results show that price competition significantly shortens the time horizon that companies apply in strategic decisions and that (long) time horizon significantly increases their environmental performance. However, the net negative effect of the intensity of price competition on environmental performance is small in absolute terms. The policy implication is that there is no serious dilemma between fostering environmental performance on one hand and increasing consumer surplus by encouraging price competition on the other hand.
KW - corporate social performance
KW - environmental performance
KW - short-termism
KW - price competition
KW - SMEs
KW - time horizon
U2 - 10.1016/j.jclepro.2015.12.045
DO - 10.1016/j.jclepro.2015.12.045
M3 - Article
VL - 116
SP - 125
EP - 134
JO - Journal of Cleaner Production
JF - Journal of Cleaner Production
SN - 0959-6526
ER -