The formation of green strategies in chinese firms: Matching corporate environmental responses and individual principles

Oana Branzei (First Author), Weijiong Zhang (Participant Author), Ilan Vertinsky (Participant Author), Teri Jane Ursacki-Bryant (Participant Author)

Research output: Contribution to journalJournal

101 Citations (Web of Science)

Abstract

This study examines how Chinese firms began responding to worsening environmental concerns in the late 1990s. Combining predictions from control theory, escalation of commitment, and goal theory, we seek to explain how leaders' cognitions shape the formation of novel responses to the value-laden issue of corporate greening. We propose an iterative model that links leaders' principles with corporate actions and test it using survey data gathered from 360 firms. The model views strategy organically, as a set of adaptive goals and behaviors, and highlights the role of systemic and local feedback loops in strategy formation. We find that top executives who champion new strategic initiatives monitor early success or failure, and adjust their efforts to match early performance feedback. Perceptions of satisfactory performance strengthen leaders' efforts towards their initial target, while perceptions of unsatisfactory performance diminish them. This feedback relationship is invariant throughout favorable or unfavorable expectancies of success, contrary to the contingent prediction of control theory. The model also examines how top-down and bottom-up strategic initiatives combine to help firms maintain a positive momentum of change when champions' efforts decline in the face of premature failure signals.
Original languageEnglish
Pages (from-to)1075-1095
JournalStrategic Management Journal
Volume25
Issue number11
DOIs
Publication statusPublished - 2004

Corresponding author email

oana.branzei@sauder.ubc.ca

Keywords

  • DECISION-PROCESSES; ORGANIZATIONAL PERFORMANCE; EMPIRICAL EXPLORATION; ESCALATING COMMITMENT; PLANNED BEHAVIOR; MAKING PROCESSES; ISSUE DIAGNOSIS; SELF-EFFICACY; MANAGERIAL; MANAGEMENT
  • control theory
  • escalation of commitment
  • feedback
  • goal theory
  • strategy formation

Indexed by

  • FT
  • ABDC-A*
  • Scopus
  • SSCI

Fingerprint

Dive into the research topics of 'The formation of green strategies in chinese firms: Matching corporate environmental responses and individual principles'. Together they form a unique fingerprint.

Cite this