A framework of theoretical lenses and strategic purposes to describe relationships among firm environmental strategy, financial performance, and environmental performance

Purpose - The purpose of this paper is to investigate whether the type of theoretical lens and strategic purpose impacts the relationships among firm environmental strategy, financial performance, and environmental performance. Design/methodology/approach - This is a theoretical paper which first investigates three constructs: firm environmental strategy, environmental performance, and economic performance. Scholars have argued for different relationships among the three constructs. The paper then discusses two theoretical lenses (strategic choice and the resource-based view) and two strategic purposes (stakeholder and shareholder) used in the literature. The paper argues that the type of theoretical lens and strategic purpose will impact the way the three constructs (firm environmental strategy, financial performance, and environmental performance) are arranged. Findings - The paper provides a two-by-two matrix distinguishing between theoretical lens and strategic purpose. The paper argues that the specific choice of theoretical lens and strategic purpose helps define the way firm environmental strategy, financial performance, and environmental performance are arranged. Originality/value - As different scholars have argued for different relationships among the three constructs, this paper provides a framework that could help justify the seemingly paradoxical relationships. The paper concludes with ideas for future research on these issues.