Exploring the impact of stakeholder pressure on environmental management strategies at the plant level: what does industry have to do with it?

• Published in: Journal of cleaner production Vol. 92; pp. 282 - 294
• Main Authors: Betts, Teresa K., Wiengarten, Frank, Tadisina, Suresh K.
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.04.2015
• Subjects: environmental management; Industry; Stakeholder theory; stakeholders; Survey; surveys; Sustainability; United States; United States; Industry; Survey; Stakeholder theory; Sustainability
• ISSN: 0959-6526; 1879-1786
• DOI: 10.1016/j.jclepro.2015.01.002

Stakeholder theory and empirical evidence confirm the positive relationship between stakeholder pressure and the implementation of environmental practices and strategies. However, the specific mechanisms and impact of selected stakeholder groups on environmental management strategies are relatively underexplored. In this paper, this shortcoming is addressed by exploring the impact of selected stakeholder groups on environmental management strategies taking the contingency factor industry into consideration (i.e., dynamic vs. static industries). Basing the arguments primarily on stakeholder theory, it is suggested that stakeholder pressures are perceived differently in plants in dynamic versus static industries. Similarly, it is suggested that the influence of stakeholder pressures on the implementation of environmental strategies is influenced by industry type. To test the proposed research model, primary survey data from 502 plants collected in the United States across multiple industries is used. Thus, this paper contributes to the sustainability operations management literature through exploring the relationship between stakeholder pressure, environmental strategy implementation and contextual factors (i.e., industry type) through hypotheses testing. Results indicate that industry type does indeed affect stakeholder pressure, and the relationship between stakeholder pressure and environmental strategy implementation. Plants situated in dynamic industries experience a significantly higher level of stakeholder pressures as opposed to plants situated in static industries across an array of environmental strategies. •The role of industry on stakeholder pressure and environmental strategy is explored.•Stakeholder theory is combined with contingency theory.•Results indicate that industry type affect stakeholder pressure.•Plants in dynamic industries experience significantly higher level of stakeholder pressures.