Environmental management in SMEs: organizational and sectoral determinants in the context of an Outermost European Region

Abstract

This paper evaluates the environmental behavior of SMEs in the Canary Islands (Spain), one of the Outermost European Regions. The islands’ fragile socioeconomic systems and scarce resources noticeably condition the competitiveness of their firms. An empirical analysis ranks environmental protection practices in SMEs and identifies differences on the basis of size and business sector. In addition, groups of firms with different environmental behavior are identified to facilitate the design of environmental policies, improve effectiveness in decision making and the more efficient use of resources. From a theoretical perspective, this paper contributes to the gap identified by the precursors of the Natural Resource-Based View of the firm by analyzing specific resource combinations that each firm can use to improve its environmental performance and achieve competitive advantages. The firms best positioned to develop the dynamic capabilities needed are identified not only considering the physical environment, but also the socio-economic one and key intangible resources are measured that shape firms’ environmental strategy.

Keywords:

• environmental management
• small and medium-sized enterprises
• OERs
• sector
• Resource-Based Theory
• Rasch Measurement Theory

JEL Classification:

• M14
• M21
• Q55

Additional information

Notes on contributors

Yaiza Armas-Cruz

Yaiza ARMAS-CRUZ is PhD in Business Management and Professor in the Department of Business Management and Economic History at the University of La Laguna (Spain). Her research is primarily in the area of corporate environmental strategies and management. She has published several research articles in refereed journals of Business and Management subject categories.

Esperanza Gil-Soto

Esperanza GIL-SOTO is PhD in Business Administration and Professor in the Department of Business and Economic History at the Universidad de La Laguna (Spain). Some of their main lines of research are focused on entrepreneurial orientation analysis and the evaluation of entrepreneurship education. She has also published in other fields as management information systems and environmental management.

Juan Ramón Oreja-Rodríguez

Juan Ramón OREJA-RODRÍGUEZ is Full Professor of Strategy Management at Universidad de La Laguna (Spain). His research focuses on the cognitive approach to management: Competitive Analysis, environmental scanning, uncertainty and risk in decision making, strategy formulation; methodology of the objective measurement (Rasch Measurement Theory). He has published the results of his research in books, book chapters, congress proceedings and articles in refereed journals.