AN INTERNATIONAL COMPARISON OF THE FACTORS AFFECTING ENVIRONMENTAL STRATEGY AND PERFORMANCE.

While the adoption of proactive environmental strategies, such as environmental management systems (EMS), has increased worldwide, there has been little research evaluating why facilities adopt these strategies across different countries. Moreover, the link between EMS adoption and a company's business performance has yet to be demonstrated. This study draws on institutional theory and the resource-based view of the firm to determine when a facility's environmental strategy may lead to improved environmental and business performance. We analyze these relationships using survey data from manufacturing facilities operating in Canada, Germany, Norway, and the United States and structural equation modelling techniques. Our results support the notion that facilities whose environmental strategies are mainly driven by institutional pressures may improve their environmental performance. On the other hand, facilities that are driven primarily by their resources and capabilities observe both positive environmental and business performance. [ABSTRACT FROM AUTHOR]