Table 2. Typology of environmental strategies used in this research

Literature review and theoretical model | 47

Finally, the green systems design strategy seeks to capture economic value by fulfilling societal needs through the development of green or social product-service systems and the development of capabilities in collaborative networks, within a win-win relationship between society and the business (Boons, 2009; Porter & Kramer, 2011). In this type of strategy, environmental issues are assumed as an opportunity to generate social benefits and firms deploy resources through their customer, supplier, competitor and stakeholder networks to create new markets. This type of strategy constitutes a means to overcome the technology bias of traditional processes and product innovation approaches and move towards system-level innovations that are integral to collaborative networks (Tukker, 2015) to achieve industrial symbiosis and circular economies, within a win-win relationship between society and the business (Boons, 2009; Porter & Kramer, 2011). .

The interest in the adoption of environmental strategies (i.e. green processes, green product development or green system design projects) relies on understanding why some firms address environmental issues through the development of practices and innovations in addition to those required by law in an emerging economy.

Table 2. Typology of environmental strategies used in this research. Environmental

Strategy Characteristics Examples References

Compliance * Environmental strategies are performed to fulfill the law. * Environmental issues are assumed as an economic burden. * There is gradual involvement of top management in environmental issues. * Environmental issues are only dealt with when necessary. End of pipe technologies, pollution control, impact mitigation, material substitution restricted by law, lobbying activities and environmental litigation. Boons (2009); Petulla (1987) Hart (1995); Shrivastava (1995) and Henriques (1999).

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Environmental Strategy Characteristics Examples References

Green processes * Environmental strategies are performed to reduce operational costs through process innovation, while improving environmental performance. * Environmental issues are assumed as an opportunity to achieve efficiency in the consumption and use of resources. * There is some involvement of top management in environmental issues. * Internal reporting, but little external reporting occurs. * Environmental issues are constantly handled. Cleaner production, product stewardship and recycling Porter (1995); Henriques (1999) and Hart (1995).

Green products development

* Environmental strategies are performed as a business function. * Environmental management is seen as an opportunity to improve the company’s image. * Top management provides support and is involved in environmental issues. Green product differentiation by the use of truthful advertising, internal and external reporting and environmental and social responsibility. Henriques (1999); Porter and Kramer (2006); Boons (2009); Miles and Covin (2000).

Green systems design

* Environmental strategies are performed as a future business function. * Environmental management is seen as an opportunity to improve the social and economic conditions where firms operate, in order to make social changes. * There is internal and external reporting. * Top management supports and is involved in environmental or social issues. Creation of new production and consumption systems and development of capabilities in collaborative networks (i.e. industry, supply chain, communities, etc.). Porter and Kramer, 2011; Boons (2009); Henriques (1999)