Competitiveness and Legitimation: The Logic of Companies going Green in Geographical Clusters

TitleCompetitiveness and Legitimation: The Logic of Companies going Green in Geographical Clusters
Publication TypeJournal Article
Year of Publication2014
AuthorsMartinez-del-Rio J., Cespedes-Lorente J.
JournalJournal of Business Ethics
Date PublishedMar
Type of ArticleArticle
ISBN Number0167-4544
Accession NumberCCC:000331657700010
KeywordsCompetitiveness, Environmental management, Environmental responsiveness,, environmental performance, localized competition, strategic management,, firm performance, industry, perspective, innovation, knowledge,, Geographical clusters, Legitimacy, networks, organizations

This study analyzes the logic behind the development of environmental responsiveness in companies that are located in geographical clusters. Drawing on previous research, we contend that competitiveness and legitimation are important sources of variation in these companies' environmental responses. In particular, the companies' perceived rivalry, competition tracking capabilities, interaction with industry associations and network embeddedness influence their competitiveness and legitimation motivations for environmental responsiveness. We used structural equation modeling to test these hypotheses on a sample of 251-clustered agricultural firms in Spain. The results support the hypotheses and provide a number of insights about the underlying motivations behind going green in geographical clusters.