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Environmentally Proactive Strategies and Absorptive Capacity: The Role of the Directors Interlocks

Environmentally Proactive Strategies and Absorptive Capacity: The Role of the Directors Interlocks
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Author(s): Cristian González-Zubieta (Universidad Complutense de Madrid, Spain) and Javier Amores-Salvadó (Universidad Complutense de Madrid, Spain)
Copyright: 2021
Pages: 22
Source title: Knowledge Management for Corporate Social Responsibility
Source Author(s)/Editor(s): Gregorio Martín-de Castro (Complutense University of Madrid, Spain) and Jaime González-Masip (Rey Juan Carlos University, Spain)
DOI: 10.4018/978-1-7998-4833-2.ch014

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Abstract

The objective of this chapter is to deepen into the association between corporate governance and the adoption of environmentally proactive strategies. The theoretical approach used is the knowledge-based view. This chapter explains how the environmentally proactive strategies could be enhanced by the director interlocks, who help the company to acquire environmental knowledge. The concept of the environmental absorptive capacity is used to inquire how the knowledge from the director interlocks is utilized to improve the company's environmental responsiveness. The results of the analysis conducted indicates that the main contribution of the director interlocks is to help companies to acquire resources and environmental knowledge, useful to deploy environmentally proactive strategies. This study is of particular importance for firms, establishing environmentally proactive strategies. The study invites investors, CEOs, and managers to consider the director interlocks to renew the environmental capacities and comply the most stringent requirement of stakeholders.

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