NRBV Sustainability Strategies: Can the implementation method affect sustainability performance?

Hart’s (1995) Natural Resource Based View (NRBV) of the firm has been a key theoretical construct within the corporate sustainability and strategic management research fields for the past two decades. Hart’s work... [ view full abstract ]

Hart’s (1995) Natural Resource Based View (NRBV) of the firm has been a key theoretical construct within the corporate sustainability and strategic management research fields for the past two decades. Hart’s work highlights three key strategic capabilities of i) Pollution Prevention, ii) Product Stewardship and iii) Sustainable Development, with further research refining the sustainable development strategy into Clean Technology and Base of the pyramid strategies.

Hart has subsequently posed the critical question of whether implementation of these strategies is necessary in sequence, or whether the strategies could be developed in parallel. Empirical research has found that progress in one area was independent of progress in another, and therefore the strategies could be implemented in parallel; this despite the hierarchical nature of the strategies, that are built upon expanding resources and competitive advantages. Furthermore, it has been suggested that companies would be best served by viewing sustainability as a continual process of organizational innovation and development on all fronts and arenas, rather than a sequential process that is often initiated by first dealing with Pollution Prevention.

Our study examines and expands upon this retort to Hart’s query; by identifying the sustainability strategies and practices adopted by businesses over time, we are able to identify the progression of adoption of these practices, and also determine how they are being combined to increase synergies. Our research conducts content analysis using Corporate Social Responsibility reports of over 200 companies, over a 6-year period. We utilize both latent and manifest forms of text analysis. Hierarchical clustering analysis is used to determine clusters or combinations. We use publicly available corporate social responsibility reports to collect data on sustainable business practices.

Business and sustainability literature has seen only very minor research in the implementation of the ‘higher’ level strategies beyond pollution prevention. Few publications have focused on the implementation of these strategies. Our novel research aims to gain an understanding of how these strategies are adopted, particularly in light of previous research theorizing that they be done in parallel. Evidence of sequential adoption being more prevalent may indeed signal the presence of influences beyond strategic or resource capabilities. Our research will also aid the development of practical guidelines for sustainability strategy implementation, which can have implications on the success of an organization’s sustainability performance.