What is it about?
Latin America has witnessed a major expansion in the adoption of environmentally responsible behavior over last decade or so. The region annually produces sustainable food products worth over one billion dollars. Brazil, Argentina, Chile, Colombia and Peru are now major global suppliers of organic coffee, soybean, sugar, herbs, fruits and vegetables. However, this behavior is somewhat surprising as there is not much of a demand for organic and sustainable products within the region. This study provides robust evidence suggesting that Latin American firms have adopted sustainability to succeed in export markets.
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Why is it important?
If you are a business organization, this study shows you how to succeed in a competitive landscape. If you are a non-profit or consumer organization wanting to make businesses in your jurisdiction act more responsibly, this study provides strong evidence on kickstarting a virtuous cycle that better aligns the interests of firms and their stakeholders. If you are a researcher, it provides strong evidence on the link between CSR/ESP and firm performance.
Perspectives
We find that these firms primarily engage in ESP to succeed in export markets. We also find that firms are rewarded for this behavior when they adopt complementary strategies such as obtaining international quality certifications to develop credibility among stakeholders. Their cause receives a further boost when they are based in institutional environments that are known for strong democratic voice and accountability mechanisms. Overall, this study sheds light on the interplay of strategy and institutions.
Dr. Punit Arora
City University of New York System
Read the Original
This page is a summary of: Environmental sustainability practices and exports: The interplay of strategy and institutions in Latin America, Journal of World Business, June 2020, Elsevier,
DOI: 10.1016/j.jwb.2020.101094.
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