Understanding environmental management practices: integrating views from strategic management and ecological economics

This paper proposes an integrating framework, based on theoretical concepts from the fields of strategic management and ecological economics, to enhance our understanding of environmental management practices (EMPs) and their relationship to sustainable competitive advantage. Starting with an expansion of the resource‐based view of the firm to include the natural environment, the article next engages the interdisciplinary field of ecological economics and its thermodynamic approach to ‘joint production’ to provide additional insights into the challenges and opportunities brought by a bio‐physically constrained economy. Informed by this understanding, the article then categorizes examples of EMPs drawn from the literature and discusses their potential impact on competitiveness. The paper concludes with a discussion of implications for future research in the hope that the proposed framework will stimulate debate and lead to a fuller understanding of the impact of environmental management in the 21st century.