e-ISSN 2231-8542
ISSN 1511-3701

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Stakeholder Pressure and Its Effect on Environmental Proactiveness and Firm Performance: The Mediating Role of Dynamic Managerial Capabilities

Elok Savitri Pusparini, Budi Widjaja Soetjipto, Riani Rachmawati and Lily Sudhartio

Pertanika Journal of Tropical Agricultural Science, Volume 26, Issue S, August 2018

Keywords: Dynamic managerial capabilities, environmental proactiveness, firm performance, hotel industry, stakeholder pressure

Published on: 26 June 2018

This study examines how Indonesia's hotel industry responds to environmental sustainability pressure and how dynamic managerial capabilities play a significant role in defining environmental proactiveness as a proxy of strategic response and its impact on a firm's performance. This will be done using a model that integrates institutional theory, resource dependence theory, and cognitive theoretical perspectives. The findings of this study indicate that stakeholder pressures perceived by hotel managers have a positive impact on hotels' environmental proactiveness through the mediating effect of dynamic managerial capabilities. This current study also finds a strong and positive relationship between environmental proactiveness and firm performance. Drawing from the results, research contributions, managerial implication, policy implication, and future avenues of inquiries for researchers are provided.

ISSN 1511-3701

e-ISSN 2231-8542

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