The catalyzing role of customer pressure on environmental initiatives and export intensity::A study of family firms

Abstract

Predominantly, firms’ adoption of environmental initiatives has been driven by regulatory and economic incentives. Yet, recognizing mounting evidence that family firms demonstrate superior environmental proactivity, it is likely that other drivers also inspire their environmentalism. To assess this possibility, an integrated stakeholder, institutional and resource-based perspective is espoused. Thus, this inquiry assesses how environmental pressure from customers stimulates environmental initiatives and the extent to which this constitution would boost export intensity. Based on 620 observations of Turkish family firms, a robust path analysis procedure revealed that customer pressure positively increases the adoption of environmental planning and energy management. In turn, these instruments work in concert to reduce environmental regulatory obstacles and enhance export intensity, with environmental planning playing a key role. Theoretically, customer pressure is introduced as a fresh antecedent. Practically, family firms in Turkey can grasp the virtuous knock-on effect of acceding to the environmental pressure exerted by customers.