A resource-based perspective on the relationship between environmental strategies and organizational capabilities in SMEs: The case of small and medium-sized restaurants in Manila

College

Ramon V. Del Rosario College of Business

Department/Unit

Business Management

Document Type

Archival Material/Manuscript

Publication Date

2004

Abstract

Business operations of SMEs have significant negative effects on the natural environment. Previous research found their efforts to take care of the natural environment to be minimal because of resource constraints. The study, using the Resource-based view, investigated the environmental strategies of 240 small and medium-sized restaurants in Manila and their relationship with organizational capabilities. Results show that there is a high level of implementation of environmental strategies among small and medium-sized restaurants in Manila. To implement environmental strategies, organizational capabilities are necessary, though not sufficient. Organizational capabilities were found to be significant but they indicate moderate association only and have low explanatory power. Stakeholder management is the most important organizational capability in implementing environmental strategies. A typology of small and medium-sized restaurants in terms of environmental strategies was also developed. Managers are encouraged to develop organizational capabilities among subordinates.

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Disciplines

Business | Business Administration, Management, and Operations | Entrepreneurial and Small Business Operations

Keywords

Restaurants—Philippines—Manila—Environmental aspects; Small business—Philippines—Manila—Environmental aspects; Environmental responsibility

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