Predicting the Cost of Environmental Management System Adoption: The Role of Capabilities, Resources and Ownership Structure

Strategic Management Journal, Vol. 27, No. 2, pp. 301-320, 2006

20 Pages Posted: 27 Aug 2007

See all articles by Nicole Darnall

Nicole Darnall

Arizona State University - College of Global Futures; School of Sustainability; Sustainable Purchasing Research Initiative

Daniel Edwards

University of North Carolina (UNC) at Chapel Hill - Department of Public Policy

Abstract

This research explores why some facilities accrue greater costs when adopting an environmental management system (EMS) and why costs vary among three different ownership structures. Using survey data of organizations that documented their EMS adoption costs over a three-year period, the results show that publicly traded facilities had stronger complementary capabilities prior to EMS adoption and therefore lower adoption costs. By contrast, government facilities and privately owned enterprises had fewer capabilities and accrued higher EMS adoption costs. The development of organizational capabilities and resources therefore appears to be a function of both organizational exploitation of imperfect or incomplete market factors, and the institutional context of these decisions.

JEL Classification: L21, L60, M14, L33

Suggested Citation

Darnall, Nicole and Edwards, Daniel, Predicting the Cost of Environmental Management System Adoption: The Role of Capabilities, Resources and Ownership Structure. Strategic Management Journal, Vol. 27, No. 2, pp. 301-320, 2006, Available at SSRN: https://ssrn.com/abstract=1009310

Nicole Darnall (Contact Author)

Arizona State University - College of Global Futures; School of Sustainability ( email )

800 S Cady Mall, PO Box 87402
Tempe, AZ 85287-5402
United States
602.496.0445 (Phone)

HOME PAGE: http://isearch.asu.edu/profile/1811617

Sustainable Purchasing Research Initiative ( email )

Arizona State University
https://sustainability.asu.edu/spri/
United States

Daniel Edwards

University of North Carolina (UNC) at Chapel Hill - Department of Public Policy ( email )

Abernathy Hall
Chapel Hill, NC 27599-3435
United States

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