Does Environmental Performance Affect Organizational Performance? Evidence from Green IT Organizations

The growing concern about the environment and the realization that organizations are major contributors of harmful emissions and waste as well as major consumers of finite natural resources have resulted in the growing push towards the adoption of green IT. However, there is a lack of empirical research that examines the impact of environmental performance on organizational performance of green IT organizations. By drawing on the resource-based perspective on corporate environmental performance, we examine the relationship between environmental performance measured in terms of emissions, and different measures of organizational performance such as profitability and operational performance using objective data. We move beyond correlational approach and employ advanced econometric methods to test the relationships. The result shows that there is a positive impact of different measures of environmental performance on organizational performance. Implications for research and practice are discussed.

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