Working Paper BETA #2007-08

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Title : Effects on competitiveness and innovation activity from the integration of strategic aspects with social and environmental management

Author(s) : Marcus Wagner

Abstract : This paper analyses the nature and details of the impact which the integration of social and environmental considerations with business strategy has on different dimensions of competitiveness and innovation activity on the firm level. Its objective is to answer the question as to whether a positive link exists between integration and the effects of environmental and social performance on competitiveness and innovation activity. After presenting a theoretical framework based on extant work, the paper introduces the research methods and variables. Subsequently results are presented for four different dimensions of competitiveness, namely market-related, image-related, efficiency-related and risk-related advantage as well as for innovatory activity in terms of product and process innovation. These raise the possibility that the process of integration is more important for bringing about a positive link than a resulting integration type. Based on the results, implications are discussed and we shall draw the conclusions from the findings.

Key-words : stakeholder, environmental management, integration, strategy, quality, social performance, environm

JEL Classification : NA