Pollution prevention & financial performance: Exploring the impact of organizational capabilities and managerial cognition and framing
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Despite the growing attention in research to the question if it pays to be green, inconsistent empirical results persist. Drawing on the natural resource-based-view (NRBV) theoretical framework, this thesis addresses the relationship between a pollution prevention strategy and the financial performance of manufacturing firms. Particular attention is being paid to the impact of organizational capabilities and managerial cognition and framing to this relationship. The analysis was conducted with the European Manufacturing Survey (EMS) 2015 database with data of 177 Dutch manufacturing firms. Contrary to what is argued by the NRBV, this thesis shows no autonomous effect of pollution prevention on financial performance. Also, organizational capabilities do not seem to impact the profitability of environmental pollution prevention. The empirical findings show that managers of Dutch manufacturing firms make financial sense to only invest in pollution preventing technology when required by law and regulations. The evidence shows that by adhering to the laws and regulations, costs in the production process can be reduced. Based on the findings in this thesis, managerial implications are discussed and suggestions for future research are outlined.
Faculteit der Managementwetenschappen