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Does an Endogenous Relationship Exist between Environmental and Economic Performance? A Resource-Based View on the Horticultural Sector

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Abstract

The aim of this paper is to analyse the relationship between environmental and economic performance from the resource-based theory within firms of the fresh fruit and vegetables sector. This study considers that the adoption of environment-friendly practices has a greater influence on firms’ opportunities and abilities in the agricultural sector than in manufacturing sectors and leads to closer links between performance variables. The reference for this empirical analysis is a panel data of horticultural farming-marketing firms in Spain. The voluntary environmental programmes and the heterogeneity of their application lead us to regard acquiring a competitive advantage as a relevant driver to improve environmental performance in this sector. A simultaneous equations model is suggested reflecting the differential environmental effect and the assumption of endogeneity among variables. The results show a positive impact of environmental differentiation on profitability and market share, also suggesting that the perception of this positive experience implies greater environmental performance.

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  1. Departmento de Economía Aplicada, Universidad de Almería, La Cañada de San Urbano, s/n, 04120, Almería, Spain

    Emilio Galdeano-Gómez

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  1. Emilio Galdeano-Gómez
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Correspondence to Emilio Galdeano-Gómez.

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Galdeano-Gómez, E. Does an Endogenous Relationship Exist between Environmental and Economic Performance? A Resource-Based View on the Horticultural Sector. Environ Resource Econ 40, 73–89 (2008). https://doi.org/10.1007/s10640-007-9141-4

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  • DOI: https://doi.org/10.1007/s10640-007-9141-4

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