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Environmental Management: Testing the Win‐Win Model

The debate over the possibility of seeking competitive advantages through greener strategies versus the scarcity of such opportunities is not yet resolved. This study is an attempt to test the win-win model. The role of the variables at the core of the win-win model, such as the regulatory factors, environmental strategy and environmental innovativeness, was examined. The results validated the positive competitive and financial impact of progressive environmental strategies contingent upon the presence of favourable external and internal conditions. From purely a profitability standpoint, it is important to seek a balance between the environmental measures and market expectations. Comprehensive superiority in relative environmental performance will not necessarily lead to environmental competitive advantage.