Figure 15. ESA and the ESA factors at the Dairy Company

Analysis of results

This chapter analyzes the results of the present work, as framed in the fulfillment of its objectives: (i) the testing of the propositions about the co-occurrence configuration between environmental strategies (i.e. green products and green processes) and specific types of business context (i.e. green markets or competitors), business model (i.e. dynamic or stable) and manager´s perspective (i.e. societal or profit-oriented), in the studied cases (main objective); and (ii) the characterization of ESA and ESA factors in the studied Colombian big firms as they perform in an emergent economy (secondary objective). The contribution of the research is also presented in conjunction with future research avenues that could be fruitfully explored. Thus, section 5.1 addresses ESA in connection with the typology of environmental strategies presented in the literature review. Section 5.2 characterizes the ESA factors observed in the sample as framed in the literature. Section 5.3 assesses the co-occurrence between ESA and ESA factors according to the theoretical model developed by the author based on the literature review. This section constitutes the very core of the present analysis, since it actually tests the predictions derived from the hypothesis.

5.1. Environmental Strategies Adoption (ESA)

ESA in the studied large Colombian firms fits the environmental strategy typology presented in the literature review: compliance, greener processes and green products design. Novel environmental strategies related to green systems design were not observed in a systematic way, although some isolated practices such as waste exchange and the acquisition of some shared resources have been adopted by some of the cases under study. Results suggest that big firms in emergent economies probably adopt similar strategies to those adopted by firms in developed economies. Nevertheless, it was noticeable how all companies deployed corporate social programs (i.e. nutrition programs for children, co-financing of aqueducts and schools, promotion of sports and cultural activities in the areas of influence) in addition to environmental strategies, which are discussed in more detail in the section on analysis and discussion.

Environmental strategies mainly included green products design (focused on product innovation and the market), green processes (focused on

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savings and process improvement both at the company level and along the supply chain). Compliance oriented strategies featured environmental licensing and lobbying, pollution control, substitution of restricted materials, pollution compensation and management of the relation with stakeholders (focused on risk management). Green systems design strategies were not observed, thus allowing to speculate that Colombian large companies that were under study still are developing their capabilities to perform those type of strategies or could be assumed that the conditions required in the country to do so are not still in place. Table 37 shows the environmental strategies as they were observed in the studied companies.

While the green products design strategies constituted a brand differentiation means to achieve competitive advantage, the green processes strategy constituted a normative strategy driven either by company´s envision to achieve a competitive advantage or by the pressure of parent companies and green competitors. The observed green products strategies were focused on the design and development of new solutions to supply or create new markets while the green processes strategies were focused on cleaner production in order to achieve either a more legitimate or efficient operation.

Finally, the compliance strategies were intended for risk management and liability reduction focused on environmental and social license, which allows avoiding fines, community blockages and economic losses.

These observed environmental strategies confirm the typology employed for the present work. In addition, green products strategy tends to be aligned with green markets and dynamic business models while green processes strategy occurs under the influence of parent companies and organizational field contexts. Green processes then, seems to correspond to a disseminated strategy in large Colombian firms.

• Green products strategy.

Green products strategy in the studied Colombian companies focused on green marketing by selling novel products or services blended with environmental features. Examples of products corresponded to organic products (i.e. organic coffee) or green financial products (i.e. green bonds and green lending), both of which allow gaining competitive advantage by obtaining environmental and economic benefits, in addition to reputation improvement. In effect, the observed green products have allowed Colombian companies

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to enter new markets and improve their position. The specific practices observed in the studied cases included the development of agricultural organic products (Agri-business Association), development of carbon neutral products (Dairy Company), natural-based ingredients (Cosmetic Company), green bond placement (Bank) and financing of green projects (Bank).

• Green processes strategy.

Green processes strategy in the studied Colombian companies focused on improvement of operational efficiencies (i.e. cleaner production), which allows gaining competitive advantage by obtaining environmental benefits and cost reduction for first-mover companies, in addition to uncertainty avoidance for second-mover companies. In effect, while the observed green products have allowed companies to enter new markets and improve their position, operational-efficiencies have allowed Colombian companies to play safe and achieve the mentioned environmental benefits and cost savings. The specific practices observed in the studied cases included the development of cleaner production and operational efficiency practices (Bank, Chemical Company, Agri-business Association, Cosmetic Company and Dairy Company).

• Compliance strategy.

Compliance strategy in the studied Colombian companies was observed to focus on risk management of social issues (i.e. legal, environmental, reputational and economic risk). This strategy sought to achieve environmental and social license to operate in a safe manner by fencing off demands, reputation positioning and meeting of pollution standards.

The specific compliance oriented practices observed in the studied cases included environmental impact assessment, environmental management plans, renewal of environmental license, environmental litigation, ecosystem restoration and impact mitigation, lobbying activities, hearing processes (applied by Utility Company and Oil & Gas Company), dialogue with communities, social projects, social investments and reward activities for communities (applied by Chemical Company, Utility Company and Oil & Gas Company).