Antecedents of Corporate Environmental Commitments

The Role of Customers

Asghar Afshar Jahanshahi, Alexander Brem

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Abstract

The management of natural environments has become a fundamental issue for companies in recent years. A firm’s environmental commitment affects all levels of its operation. In this study, we investigated whether having an effective and constant relationship with customers over time (customer capital) makes a difference to firms with a high environmental commitment compared with less environmentally committed firms. We found support for our idea by using original survey data from 149 small and medium-sized enterprises (SMEs) in Iran (2016⁻2017). Furthermore, we found that customer capital enhances environmental collaboration with customers which, in turn, has a positive impact on the firm’s environmental commitments. These findings provide empirical evidence for the important role of “getting closer to customers” as a way of enhancing corporate environmental responsibility in developing countries with weak institutional environments.

Original languageEnglish
Article number1191
JournalInternational Journal of Environmental Research and Public Health
Volume15
Issue number6
Number of pages10
ISSN1661-7827
DOIs
Publication statusPublished - 2018

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Iran
Developing Countries
Surveys and Questionnaires

Keywords

  • Corporate environmental commitments
  • Customer capital
  • Developing country
  • Environmental collaboration
  • SMEs

Cite this

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Antecedents of Corporate Environmental Commitments : The Role of Customers. / Jahanshahi, Asghar Afshar; Brem, Alexander.

In: International Journal of Environmental Research and Public Health, Vol. 15, No. 6, 1191, 2018.

Research output: Contribution to journalJournal articleResearchpeer-review

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AU - Jahanshahi, Asghar Afshar

AU - Brem, Alexander

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AB - The management of natural environments has become a fundamental issue for companies in recent years. A firm’s environmental commitment affects all levels of its operation. In this study, we investigated whether having an effective and constant relationship with customers over time (customer capital) makes a difference to firms with a high environmental commitment compared with less environmentally committed firms. We found support for our idea by using original survey data from 149 small and medium-sized enterprises (SMEs) in Iran (2016⁻2017). Furthermore, we found that customer capital enhances environmental collaboration with customers which, in turn, has a positive impact on the firm’s environmental commitments. These findings provide empirical evidence for the important role of “getting closer to customers” as a way of enhancing corporate environmental responsibility in developing countries with weak institutional environments.

KW - Corporate environmental commitments

KW - Customer capital

KW - Developing country

KW - Environmental collaboration

KW - SMEs

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