European Business Schools Librarian's Group

IESE Research Papers,
IESE Business School

No D/408: Environmental strategy and value creation

Miguel A. Rodriguez () and Joan E. Ricart ()
Additional contact information
Miguel A. Rodriguez: IESE Business School, Postal: IESE Business School. Research Division, Av Pearson 21, 08034 Barcelona, SPAIN
Joan E. Ricart: IESE Business School, Postal: IESE Business School. Research Division, Av Pearson 21, 08034 Barcelona, SPAIN

Abstract: The purpose of this research paper is to show that the environmental variable influences companies' value creation processes. The goal of any strategy is to achieve sustained superior performance, and this depends on the industry's attractiveness and the choice of business positioning. In turn, the success of any given positioning depends on the sustainability of the competitive advantages on which it is based. This paper provides numerous examples to show the considerable influence that the environment has on industry attractiveness, business positioning, and the sustainability of competitive advantages. The conclusion is that although not all companies need to adopt an environmental strategy, they should all take the environmental variable into account when formulating their business strategy.

Keywords: environmental variable influences; value creation processes; strategy

JEL-codes: M10

28 pages, January 17, 2000

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