The Effects Of Business And Political Ties On Proactive Environmental Strategy:The Moderating Role Of Institutional Environment

With the increasing attention to environmental issue,sustainable development has become imperative for firms' survival and growth.As such,adopting environmental strategy is important for firms to gain competitive advantage and superior performance.Despite the growing interest in identifying drivers of proactive environmental strategy,limited attention is paid to the impact of managerial ties.Based on the resource-based view and institution view,this study focuses on how managerial ties,including political and business ties,affect firms' adoption of proactive environmental strategy,as well as,the moderating roles of production factor markets and legal environment on the above relationship.Using a survey on 166 Chinese hotels,the findings show that political ties has a negative relationship with proactive environmental strategy,while business ties has a positive relationship effect.Production factor markets weakens the negative effect of political ties on proactive environmental strategy,and also the positive relationship between business ties and proactive environmental strategy;whlie legal environment strengthens the positive relationship between business ties and proactive environmental strategy.These findings provide novel insights into how managerial ties affect the firm's adoption of proactive environmental strategy under the influences of the institutional environment.