Title: Environmental strategies in emerging markets as a source of competitive advantage

Authors: Maria Laura Ferranty Maclennan; Simone R. Barakat

Addresses: School of Economics, Management and Accounting (FEA), University of São Paulo (USP), 908 Prof. Luciano Gualberto, 05508-010, São Paulo, SP, Brazil ' School of Economics, Management and Accounting (FEA), University of São Paulo (USP), 908 Prof. Luciano Gualberto, 05508-010, São Paulo, SP, Brazil

Abstract: Within the same industry and market, it is possible to see firms adopting different types of environmental position. This paper examines differences in the environmental position of firms that operate in an emerging market context. Based on a literature review, we propose a framework that combines the external and internal factors that have an influence on the environmental positions of firms. The external factors of the framework are industry structure and the country of origin's image. Internal factors comprise the organisational characteristics-company size, degree of internationalisation, managerial attitude and position in the value chain. Using a case study strategy, we analyse the LED lighting market in Brazil, its interactions and competitive opportunities and the challenges associated with environmental strategy options. Our exploratory qualitative study reveals that companies can fully implement proactive environmental strategies if their orientation is directed towards satisfying local market demands. However, the literature review and data analysis show that the industry presents some challenges for scale LED lighting, such as the offer of low quality products. We also show that firm-specific advantages can be offset by market forces and that local players may develop more fitting business models in order to respond to local market demands.

Keywords: sustainable product; environmental strategy; emerging markets.

DOI: 10.1504/IJBEM.2017.087820

International Journal of Business and Emerging Markets, 2017 Vol.9 No.4, pp.332 - 353

Available online: 02 Nov 2017 *

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