Challenges of the "green imperative": a natural resource-based approach to the environmental orientation-business performance relationship

Drawing on the natural-resource-based view (NRBV) of the firm, the authors test a model of the impact of the higher order construct of natural environmental orientation (NEO) on firm performance. Based on the literature in this area, the authors define NEO as comprising three components: entrepreneurship, corporate social responsibility (CSR), and commitment to the natural environment. The study uses data from 140 Australian manufacturing firms. The findings reveal that the higher order construct of NEO is positively and significantly related to profit after tax and,market share; however, it is negatively related to sales growth. The study's practical and academic implications are discussed, along with limitations and future research directions. (c) 2003 Elsevier Inc. All rights reserved.