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Environmental Performance Feedback and Timing of Reshoring: Perspectives from the Behavioural Theory of the Firm

Zhang, Minhao; Shui, Xiaolong; Smart, Palie; Wang, Xiaojun; Chen, Jing

Environmental Performance Feedback and Timing of Reshoring: Perspectives from the Behavioural Theory of the Firm Thumbnail


Authors

Minhao Zhang

Xiaolong Shui

Palie Smart

Xiaojun Wang

JING CHEN Jing.Chen@nottingham.ac.uk
Assistant Professor



Abstract

The behavioural theory of the firm (BTOF) claims that firms’ performance feedback is significant for strategic decision‐making. Building upon this, we shift our focus from the widely researched topic of financial performance to sustainability performance. We theorize that firms’ environmental performance feedback (i.e. performance relative to aspirations) influences their reshoring decisions. Based on a sample of publicly traded manufacturing multinational enterprises (MNEs) from 15 developed countries, we find that firms with below‐aspiration environmental performance (BEP) are slower to engage in reshoring activity. In contrast, firms with above‐aspiration environmental performance (AEP) are quicker to engage in reshoring. Moreover, we substantiate the moderating role of financial performance feedback: positive financial performance feedback enables firms with higher BEP to engage in reshoring activity even more slowly. Nevertheless, the moderating role of positive financial performance feedback has not been confirmed in the relationship between higher AEP and the timing of reshoring.

Journal Article Type Article
Acceptance Date Oct 10, 2022
Online Publication Date Nov 17, 2022
Publication Date 2023-07
Deposit Date Oct 17, 2022
Publicly Available Date Nov 18, 2024
Journal British Journal of Management
Print ISSN 1045-3172
Electronic ISSN 1467-8551
Peer Reviewed Peer Reviewed
Volume 34
Issue 3
Pages 1238-1258
DOI https://doi.org/10.1111/1467-8551.12677
Public URL https://nottingham-repository.worktribe.com/output/12599251
Publisher URL https://onlinelibrary.wiley.com/doi/10.1111/1467-8551.12677
Additional Information Special Issue Article

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