Table 38. Main ESA factors observed in the case studies

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5.2. ESA Factors

ESA factors observed in this research pretty well match those contemplated in the literature. However, some peculiarities of the socio-economic context need to be stressed, since they are specific of emergent economies.

Table 38. Main ESA factors observed in the case studies. Esa factors Cases

green markets Bank, Agri-business Association and Cosmetic Company

Green industry (i.e. competitors, parent company, suppliers)

Bank, Agri-business Association, Cosmetic Company and Dairy Company Dynamic business models Bank, Chemical Company, Agri-business Association, Cosmetic Company and Dairy Company Societally-oriented managers Bank and Dairy Company Profit-oriented managers Chemical Company, Agri-business Association, Cosmetic Company

Environmental licensing for natural resources exploitation Utility Company and Oil & Gas Company

Community and public demands Chemical Company, Utility Company and Oil & Gas Company Stable models Utility Company and Oil & Gas Company Compliance-oriented managers Utility Company and Oil & Gas Company

• Business context

Business context factors corresponded to regulation (environmental licensing, pollution limits and environmental permits for environmental protection) and community pressure (demands for benefits in exchange for performing business activity), green markets (i.e. green standards, market requirements and consumer demands) and green industry (competitors, suppliers, parent companies).

• Business models

Business models factors corresponded to stable business models (supported by lobbying and litigation capabilities, technical know-how, business efficiencies, risk management and a permanent dialogue with stakeholders) and

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dynamic business models (supported by R&D and innovative capabilities and operational and supply chain efficiency).

• Manager´s perspective

Manager´s perspective toward ESA corresponded to compliance (i.e. fulfillment of environmental regulation), profits (i.e. addressing the needs of the market) and a societally-oriented focus (i.e. addressing societal needs in addition to shareholders’ satisfaction).

• Additional factors

In addition to ESA factors, the socio-economic conditions of the country need to be mentioned. Twenty-seven percent of Colombian people live below the monetary poverty line, while the Gini Index is 0.53. Such conditions, coupled to scarce governmental presence over an extended period of time, could have affected the expectations of the communities about the role of companies in satisfying their needs at the local level, for which they certainly put pressure. The result of these factors is treated in detail in the discussion section.

It is key to mention that results were also related to the transfer of the local environmental capabilities of Chemical Company to the Multilatina company that purchased it. Specifically, the green processes approach of the Chemical Company constituted a key asset that was globally replicated by the Multilatina company. It seems that this corporation, in addition to the operational capabilities and market positioning of the local firm, also acquired its environmental capabilities, which had previously been recognized by the environmental authorities and the public as being proper of an environmentally sustainable company.

5.3. Co-occurrence configuration between ESA and ESA factors

The case studies showed the preponderant role of export green markets and international credit providers in the adoption of green products, thus driving the Colombian companies to build innovative capabilities hand in hand with a dynamic business model and a manager’s perspective towards either a profits or a societal focus.

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In turn, ESA towards green processes was influenced by voluntary programs for sustainability (e.g. developed by universities, regulators and industry) in addition to organizational industrial contexts made up of green competitors, key suppliers and associations in addition to parent companies or subsidiaries.

The cases that adopted compliance strategies relied on capabilities for environmental litigation and lobbying activities, ecosystem restoration, and impact mitigation (i.e., Utility Company and Oil & Gas Company), capabilities for maintaining an effective relationship with regulators and stakeholders, to manage business efficiency, implement technical know-how and management of reputation (Chemical Company, Utility Company, Oil & Gas Company). Utility Company and Oil & Gas Company dedicated to extract energy from natural resources. Specifically, Utility Company harnessed hydropower to obtain electricity, while Oil & Gas Company extracted hydrocarbons to refine them and obtain secondary fuels. In the cases that implemented a compliance strategy, it was observed a manager´s compliance-orientation, in order to satisfy environmental advocates such as regulators, NGO´s and communities.

Chemical Company was influenced by parent company, public concern about product toxicity and, the consequent health and safety risks of the company´s products, and the influence of a highly regulated sector regarding worker protection. For their part, the business model and manager´s perspective factors in Chemical Company were related to a dynamic business model and the profit focus of the manager of the company. The combined action of these factors may have driven the adoption of private (i.e. standards) and public regulated set of environmental strategies adopted by this company.

Finally, Oil & Gas Company was influenced by community pressure, NYSE, international competitors, the consequent environmental risks of the company’s´ operations, and a highly regulated sector regarding environmental protection. For their part, the business models and manager’s perspectives in Oil & Gas Company were related to a stable business model and the compliance focus of the manager and his transformational leadership style. The combined action of these factors may have driven the adoption of a compliance and green processes strategy.

These results suggest that the studied Colombian big firms may have developed their green products strategy under the influence of green markets at business context, dynamic business models and profits or societal manager’s

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perspective. Study of Colombian cases refine the predictions made about the sample, in terms of a co-occurrence configuration between green products design and green market contexts in conjunction with dynamic business models and profit -oriented managers. In addition, it is interesting to note that companies that adopt green products design in conjunction with social innovation strategies are influenced by green market contexts, dynamic business models and societal-oriented managers. The latter managerial orientation mainly focuses on social innovation, in addition to market and efficiency gains, while the former is directed towards the market and operational efficiency.

In turn, the adoption of a green processes strategy may have occurred under the following configuration: (i) green processes strategy is triggered by a dynamic business model and a profit oriented manager in first-mover companies that want to achieve a competitive advantage and also (ii) green processes could be triggered by green industry and parent company contexts in second-mover companies that run stable business models with a compliance-oriented manager.

Green processes occurred in 6 out of 7 cases, which allows contemplating the possibility that, for example, the adoption of a green processes strategy may occur because of the dissemination of such strategy in large firms of the Colombian business context. It can only be speculatively asserted that normative (i.e. voluntary programs) and mimetic influences (green competitors or parent companies) play a key role in emerging economies. Table 39 displays ESA and ESA factors across the case studies.