Measuring Environmental Strategy: Construct Development, Reliability, and Validity

CSS Publication Number: 
CSS11-21
Abstract: 

Inconsistent results in prior work that link environmental strategy to competitive advantage may be due to the empirical difficulties of marrying the theoretical connection between a firm’s resource base and its environmental strategy. The authors contribute to the field by developing a measure that is congruent with the natural resource–based view, a dominant paradigm in this line of work. This article content analyses company reports and secondary data to develop a measure of environmental strategy grounded in the natural resource–based view. They identify six environmental capabilities that form components of a reliable, multidimensional construct of proactive environmental strategy. They also identify a measure of reactive compliance strategy. They verify reliability of their new measure through exploratory and confirmatory factor analyses, establish convergent and discriminant validity via a multitrait, multimethod matrix and demonstrate superior predictive validity of their measure compared to two others commonly used in the literature. In the conclusion, they discuss implications for research and practice.

Keyword: 
environmental strategy
competitive advantage
environmental capabilities
measurement
reliability
validity
Publication Type: 
Journal Article
Business & Society
Date Published: 
March 2011
Persistent URL: 
10.1177/0007650310394427
Full Citation: 
Walls, Judith L., Phillip H. Phan, Pascual Berrone. (2011) “Measuring Environmental Strategy: Construct Development, Reliability, and Validity” Business and Society, 50 (1): 71-115.
Admin Content
Publication Status: 
Published