Business Strategy and Corporate Environmental Performance: Evidence from High Environmental Risk Countries in the Asian Region
This study aims to provide empirical evidence of the effect of business strategy on the management and operational performance of the company's environment. This study examines business strategy as a company's fundamental element in corporate decision-making. It focuses on prospector and d...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Ikatan Akuntan Indonesia
2022-01-01
|
| Series: | The Indonesian Journal of Accounting Research |
| Subjects: | |
| Online Access: | https://ijar-iaikapd.or.id/index.php/ijar/article/view/609 |
| _version_ | 1797978046326636544 |
|---|---|
| author | Hilma Tsani Amanati Choirunnisa Arifa |
| author_facet | Hilma Tsani Amanati Choirunnisa Arifa |
| author_sort | Hilma Tsani Amanati |
| collection | DOAJ |
| description | This study aims to provide empirical evidence of the effect of business strategy on the management and operational performance of the company's environment. This study examines business strategy as a company's fundamental element in corporate decision-making. It focuses on prospector and defender business strategies as strategies at opposite extremes of the continuum. The research sample is non-financial companies listed on the Indonesia, India, and China Stock Exchanges. The final sample in this study consisted of 869 company observations and years, with the research period from 2015 to 2019. Data analysis was carried out by panel data regression using STATA 17 tools. We found that the company's business strategy had a significant effect on environmental management performance and the environmental and operational performance of the company. Overall, prospector and defender business strategies have different tendencies towards the level of environmental management performance and environmental and operational performance. Companies with a prospector business strategy can maintain their environmental externalities well even though they have a lower level of environmental management performance. Meanwhile, a company with a defender business strategy managerially has a strategic planning system that has been stable but tends to limit involvement in environmental activities in real terms with cost considerations. This research can illustrate for regulators to consider proactive environmental policies for companies. |
| first_indexed | 2024-04-11T05:16:45Z |
| format | Article |
| id | doaj.art-daa86d1145014d6683e3e0878b3d6f82 |
| institution | Directory Open Access Journal |
| issn | 2086-6887 2655-1748 |
| language | English |
| last_indexed | 2024-04-11T05:16:45Z |
| publishDate | 2022-01-01 |
| publisher | Ikatan Akuntan Indonesia |
| record_format | Article |
| series | The Indonesian Journal of Accounting Research |
| spelling | doaj.art-daa86d1145014d6683e3e0878b3d6f822022-12-24T08:52:46ZengIkatan Akuntan IndonesiaThe Indonesian Journal of Accounting Research2086-68872655-17482022-01-0125114716610.33312/ijar.609Business Strategy and Corporate Environmental Performance: Evidence from High Environmental Risk Countries in the Asian RegionHilma Tsani Amanati0Choirunnisa Arifa 1Universitas Gadjah MadaUniversitas Gadjah MadaThis study aims to provide empirical evidence of the effect of business strategy on the management and operational performance of the company's environment. This study examines business strategy as a company's fundamental element in corporate decision-making. It focuses on prospector and defender business strategies as strategies at opposite extremes of the continuum. The research sample is non-financial companies listed on the Indonesia, India, and China Stock Exchanges. The final sample in this study consisted of 869 company observations and years, with the research period from 2015 to 2019. Data analysis was carried out by panel data regression using STATA 17 tools. We found that the company's business strategy had a significant effect on environmental management performance and the environmental and operational performance of the company. Overall, prospector and defender business strategies have different tendencies towards the level of environmental management performance and environmental and operational performance. Companies with a prospector business strategy can maintain their environmental externalities well even though they have a lower level of environmental management performance. Meanwhile, a company with a defender business strategy managerially has a strategic planning system that has been stable but tends to limit involvement in environmental activities in real terms with cost considerations. This research can illustrate for regulators to consider proactive environmental policies for companies.https://ijar-iaikapd.or.id/index.php/ijar/article/view/609business strategyenvironmental management performanceenvironmentaloperational performance |
| spellingShingle | Hilma Tsani Amanati Choirunnisa Arifa Business Strategy and Corporate Environmental Performance: Evidence from High Environmental Risk Countries in the Asian Region The Indonesian Journal of Accounting Research business strategy environmental management performance environmental operational performance |
| title | Business Strategy and Corporate Environmental Performance: Evidence from High Environmental Risk Countries in the Asian Region |
| title_full | Business Strategy and Corporate Environmental Performance: Evidence from High Environmental Risk Countries in the Asian Region |
| title_fullStr | Business Strategy and Corporate Environmental Performance: Evidence from High Environmental Risk Countries in the Asian Region |
| title_full_unstemmed | Business Strategy and Corporate Environmental Performance: Evidence from High Environmental Risk Countries in the Asian Region |
| title_short | Business Strategy and Corporate Environmental Performance: Evidence from High Environmental Risk Countries in the Asian Region |
| title_sort | business strategy and corporate environmental performance evidence from high environmental risk countries in the asian region |
| topic | business strategy environmental management performance environmental operational performance |
| url | https://ijar-iaikapd.or.id/index.php/ijar/article/view/609 |
| work_keys_str_mv | AT hilmatsaniamanati businessstrategyandcorporateenvironmentalperformanceevidencefromhighenvironmentalriskcountriesintheasianregion AT choirunnisaarifa businessstrategyandcorporateenvironmentalperformanceevidencefromhighenvironmentalriskcountriesintheasianregion |