University of Ghana http://ugspace.ug.edu.gh UNIVERSITY OF GHANA COLLEGE OF HUMANITIES UNIVERSITY OF GHANA BUSINESS SCHOOL ENVIRONMENTAL PERFORMANCE AND FIRM PERFORMANCE: THE MEDIATING ROLES OF MARKET-BASED ASSETS AND INTEGRATED MARKETING COMMUNICATION FRANCIS FONYEE NUTSUGAH (10552694) THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF A DOCTOR OF PHILOSOPHY DEGREE IN MARKETING DEPARTMENT OF MARKETING AND ENTREPRENEURSHIP JULY 2019 University of Ghana http://ugspace.ug.edu.gh DECLARATION I do hereby declare that this thesis is the result of my own research and has not been presented by anyone for academic award in this or any other university. All references used in the work have been dully acknowledged. I bear sole responsibility for any shortcomings contained in this thesis. ………………………………… Date: …………………………… Francis Fonyee Nutsugah (Student) i University of Ghana http://ugspace.ug.edu.gh CERTIFICATION I do hereby certify that this thesis was supervised in accordance with the guidelines and procedures laid down by the University of Ghana. ………………………………… Date: …………………………… Dr. Stephen Mahama Braimah (Principal Supervisor) ………………………………… Date: …………………………… Dr. Thomas Anning Dorson (Co-Supervisor) ………………………………… Date: …………………………… Dr. Ernest Yaw Tweneboah-Koduah (CO-SUPERVISOR) ii University of Ghana http://ugspace.ug.edu.gh DEDICATION This thesis is dedicated to my lovely wife, Matilda Teinor Okine, to my lively daughters, Hephzibah Sesinam Nutsugah and Buelah Sedinam Nutsugah, and to the blessed memories of my dear parents, Grace Aku Klome and Torgbiga James Ameko Nutsugah. iii University of Ghana http://ugspace.ug.edu.gh ACKNOWLEDGEMENT I am eternally grateful to God Almighty, the source of all goodness. Certainly, I would not have come this far without His unfailing love, mercies, protection and direction through the working together of my Lord Jesus Christ and the Holy Spirit. God, I am thankful! To my Supervisors, Dr. Stephen Mahama Braimah, Dr. Thomas Anning Dorson and Dr. Ernest Tweneboah-Koduah, I am grateful for your invaluable suggestions that have enriched and shaped this thesis. I am grateful also to Prof. Bedman Narteh for the opportunity he granted me to embark on the PhD journey, and to Prof. Robert Ebo Hinson for his constant motivation. I sincerely thank the entire Faculty and Staff of the Department of Marketing and Entrepreneurship and of the UGBS. I am highly indebted to you, Mr. Alex Dasmon Akpabli for your encouragement, advice, and above all for all your financial and material support. The journey would have been tougher, perhaps unbearable, without your support and encouragement. You are indeed a strong pillar I leaned on during the entire journey. I am very thankful! You deserve a special mention, Dr Alfred Dickson Dai-Kosi for your marvellous support which is simply beyond description! Sincerely, I am thankful to Pan African Doctoral Academy (PADA) for coming to my aid to grant me a PADA Thesis Completion Grant. I am grateful also to EPA, AGI, MC, GTA and all other companies and institutions, groups and individuals who supported this thesis. Permit me to recognise your special and immeasurable contributions, towards the completion of this project: Mr. Clemence Kotochie, Rev. Bernard Okpatta, Mr. Vincent Azorli, Dr John Sedofia, Mr. Emmanuel Mawuli Axorlu, Hon. John Majisi, Mr. Francis Kudoto, Rev. Fr. John Patrick Tindana, Torgbi Agorwu II, Mr. Fred Ali Amu, B/K Benjamin Arthur, and S/K Prosper Ocloo. To all other friends of mine whose names I could not mention here, I am thankful for your support. I am uniquely thankful to you, my family members: to Matilda, who has had to deny herself so much, to Sesi and Sedi, who tolerated all the neglect and to my siblings who accommodated all the excuses. In spite of all these, your love, prayers, encouragement and support were simply unflinching. iv University of Ghana http://ugspace.ug.edu.gh TABLE OF CONTENTS DECLARATION ..................................................................................................................... i CERTIFICATION .................................................................................................................. ii DEDICATION ....................................................................................................................... iii ACKNOWLEDGEMENT ..................................................................................................... iv TABLE OF CONTENTS ........................................................................................................ v LIST OF FIGURES ............................................................................................................... xi LIST OF TABLES ................................................................................................................ xii LIST OF ABBREVIATIONS .............................................................................................. xiv ABSTRACT ......................................................................................................................... xvi CHAPTER ONE ..................................................................................................................... 1 INTRODUCTION .................................................................................................................. 1 1.1 Introduction ............................................................................................................. 1 1.2 Background to the study ......................................................................................... 1 1.3 Statement of the problem ........................................................................................ 5 1.4 Research gaps .......................................................................................................... 6 1.4.1 Issue gaps ............................................................................................................ 6 1.4.2 Methodological gaps ........................................................................................... 8 1.4.3 Contextual gaps ................................................................................................... 9 1.4.4 Theoretical gaps ................................................................................................ 10 1.5 Aim and objectives of the study ............................................................................ 15 1.6 Significance of the study ....................................................................................... 15 1.6.1 Theoretical significance .................................................................................... 15 1.6.1.1 Interdisciplinary study ............................................................................... 15 1.6.1.2 Corporate environmentalism continuum ................................................... 16 1.6.1.3 Theory integration ..................................................................................... 16 1.6.2 Managerial significance .................................................................................... 16 1.6.3 Policy significance ............................................................................................ 16 1.7 Operational definition of key constructs ..................................................................... 17 1.8 Organization of the study ...................................................................................... 18 1.9 Chapter summary .................................................................................................. 18 CHAPTER TWO .................................................................................................................. 20 CONTEXTUAL REVIEW ................................................................................................... 20 2.1 Introduction ........................................................................................................... 20 2.2 Sustainability ......................................................................................................... 20 2.2.1 Macro sustainability (sustainability at the global level) ................................... 21 2.2.2 Meso sustainability (sustainability at the national level) .................................. 23 2.2.2.1 The Environmental Protection Agency (EPA) .......................................... 24 2.2.3 Micro sustainability (sustainability at the firm level) ....................................... 26 2.2.3.1 Economic (Profit) sustainability ............................................................... 27 2.2.3.2 Social (People) sustainability .................................................................... 28 v University of Ghana http://ugspace.ug.edu.gh 2.2.3.3 Environmental (Planet) sustainability ....................................................... 28 2.2.4 Environmental performance (in the Ghanaian context) .................................... 28 2.3 Implications for the study ..................................................................................... 31 2.4 Chapter summary .................................................................................................. 32 CHAPTER THREE ............................................................................................................... 33 THEORETICAL FOUNDATION ........................................................................................ 33 3.1 Introduction ........................................................................................................... 33 3.2 The relevance of theory in research ...................................................................... 33 3.3 Theory integration ................................................................................................. 34 3.4 Resource-based theory (RBT) ............................................................................... 35 3.4.1 Value of resources ................................................................................................ 37 3.4.2 Rarity of firm resources ....................................................................................... 39 3.4.3 Inimitability of firm resources ............................................................................. 41 3.5 Dynamic capabilities theory (DCT) ...................................................................... 41 3.5.1 Unique characteristics of capabilities................................................................ 43 3.5.1.1 Degree of objectivity (transformation)...................................................... 43 3.5.1.2 Degree of transferability ........................................................................... 43 3.5.1.3 Degree of embeddedness .......................................................................... 44 3.5.2 Building capabilities ......................................................................................... 44 3.5.2.1 Richardian perspective .............................................................................. 45 3.5.2.2 Schumpeterian perspective ....................................................................... 45 3.6 Stakeholder salience theory (SST) ........................................................................ 46 3.6.1 Definition of stakeholder salience theory ............................................................ 47 3.6.2 Stakeholder salience ............................................................................................. 48 3.6.2.1 Stakeholder power ......................................................................................... 48 3.6.2.2 Stakeholder legitimacy .............................................................................. 49 3.6.2.3 Stakeholder urgency .................................................................................. 50 3.7 Integration of RBT, DCT and SST ....................................................................... 50 3.8 Chapter summary .................................................................................................. 52 CHAPTER FOUR ................................................................................................................. 54 CONCEPTUAL FRAMEWORK ......................................................................................... 54 4.1 Introduction ........................................................................................................... 54 4.2 Conceptual framework .......................................................................................... 54 4.3 Development of conceptual framework ................................................................ 56 4.4 Explanation of concepts (Literature) ..................................................................... 57 4.4.1 Environmental performance (EP) ..................................................................... 57 4.4.1.1 Objective conceptualisation of EP ............................................................ 58 4.4.1.2 Non-objective conceptualisation of EP ..................................................... 58 4.4.1.3 Reconceptualization of EP ........................................................................ 59 4.4.2 Firm performance (FP) ...................................................................................... 59 4.4.3 Market-based assets (MBA) .............................................................................. 61 4.4.4 Integrated marketing communication (IMC) .................................................... 62 4.5 Description of dimensions (dimensionality) ......................................................... 65 vi University of Ghana http://ugspace.ug.edu.gh 4.5.1 Dimensionality of EP ........................................................................................ 65 4.5.2 Dimensionality of FP ........................................................................................ 67 4.5.3 Dimensionality of MBA .................................................................................... 68 4.5.3.1 Relational property MBA .......................................................................... 69 4.5.3.2 Intellectual property MBA ........................................................................ 70 4.5.3.3 Brand equity MBA .................................................................................... 74 4.5.3.4 Interplay among intellectual, relational and brand equity MBAs ............. 77 4.5.4 Dimensionality of IMC ..................................................................................... 78 4.5.4.1 Message consistency ................................................................................. 78 4.5.4.2 Interactivity ............................................................................................... 79 4.5.4.3 Stakeholder-centred strategic focus .......................................................... 79 4.5.4.4 Organizational alignment .......................................................................... 80 4.6 Hypotheses development (establishing relationships) .......................................... 81 4.6.1 Direct relationships ........................................................................................... 81 4.6.2 Indirect relationships ......................................................................................... 82 4.6.2.1 Individual Mediation with MBA ............................................................... 83 4.6.2.2 Individual mediation with IMC ................................................................. 84 4.6.2.3 Multiple mediation with MBA and IMC .................................................. 86 4.6.3 Controlled relationships .................................................................................... 87 4.6.3.1 Age of firm ................................................................................................ 88 4.6.3.2 Size of firm ................................................................................................ 89 4.6.3.3 Origin of firm ............................................................................................ 89 4.6.3.4 Ownership of firm ..................................................................................... 90 4.6.3.5 Industry of firm ......................................................................................... 90 4.6.3.6 Location of firm ........................................................................................ 90 4.7 Chapter summary .................................................................................................. 91 CHAPTER FIVE ................................................................................................................... 94 METHODOLOGY ................................................................................................................ 94 5.1 Introduction ........................................................................................................... 94 5.2 Philosophical assumptions .................................................................................... 94 5.2.1 Ontological assumptions ................................................................................... 95 5.2.1.1 Objectivism ............................................................................................... 95 5.2.1.2 Subjectivism .............................................................................................. 95 5.2.1.3 Ontological assumption of the study ......................................................... 96 5.2.2 Epistemological assumptions ............................................................................ 96 5.2.2.1 Positivism .................................................................................................. 96 5.2.2.2 Interpretivism ............................................................................................ 97 5.2.2.3 Epistemological assumption of the study .................................................. 97 5.2.3 Axiological assumptions ................................................................................... 98 5.2.3.1 Axiological assumption of the study ......................................................... 98 5.3 Methodological approaches .................................................................................. 98 5.3.1 Quantitative approach ....................................................................................... 99 5.3.2 Qualitative research approach ........................................................................... 99 5.3.3 Mixed method approach .................................................................................. 100 vii University of Ghana http://ugspace.ug.edu.gh 5.3.4 The methodological approach of the study ..................................................... 100 5.4 Research designs ................................................................................................. 101 5.4.1 Explanatory design .......................................................................................... 101 5.5 Sampling design .................................................................................................. 102 5.5.1 Defining the study population ......................................................................... 102 5.5.2 Identifying sampling frame ............................................................................. 104 5.5.3 Determining sample size ................................................................................. 105 5.5.4 Selecting sampling procedure ......................................................................... 106 5.5.4.1 Industry stratification .............................................................................. 107 5.5.4.2 Regional stratification ............................................................................. 108 5.5.5 Selecting sample elements .............................................................................. 109 5.6 Data collection .................................................................................................... 110 5.6.1 Data collection method ...................................................................................... 110 5.6.2 Data collection instrument ................................................................................. 111 5.6.2.1 Instrument validity .................................................................................. 112 5.6.2.2 Instrument reliability ............................................................................... 113 5.6.2.3 Questionnaire administration ...................................................................... 114 5.6.2.4 Preliminary calls...................................................................................... 114 5.6.2.5 Permission and introductory letters ......................................................... 115 5.6.2.6 Questionnaire distribution ....................................................................... 115 5.6.2.7 Dealing with common method bias ............................................................ 116 5.6.2.8 Questionnaire retrieval ............................................................................ 116 5.7 Ethical considerations ......................................................................................... 118 5.7.1 Right to privacy and informed consent ........................................................... 118 5.7.2 Anonymity and confidentiality ....................................................................... 119 5.8 Chapter summary ................................................................................................ 119 CHAPTER SIX ................................................................................................................... 121 DATA ANALYSIS ............................................................................................................. 121 6.1 Introduction ......................................................................................................... 121 6.2 Descriptive analysis ............................................................................................ 121 6.2.1 Central tendency of the distribution ................................................................ 122 6.2.2 Variability of the distribution .......................................................................... 123 6.2.3 Shape of distribution ....................................................................................... 124 6.3 Multivariate data analysis (MDA) ...................................................................... 126 6.3.1 Structural equation modelling (SEM) ............................................................. 128 6.3.2 Partial least square structural equation modelling (PLS-SEM) ...................... 129 6.4 Analysis of measurement models ....................................................................... 130 6.4.1 Reliability measures ........................................................................................ 131 6.4.2 Validity measures ............................................................................................ 132 6.5 Analysis of structural models .............................................................................. 134 6.5.1 Analysis of simple cause-effect structural model ........................................... 135 6.5.2 Analysis of mediation models ......................................................................... 136 6.6 Chapter summary ................................................................................................ 139 viii University of Ghana http://ugspace.ug.edu.gh CHAPTER SEVEN ............................................................................................................. 141 RESULTS OF DATA ANALYSIS .................................................................................... 141 7.1 Introduction ......................................................................................................... 141 7.2 Results of descriptive analysis ............................................................................ 141 7.2.1 Descriptive analysis of demographic characteristics of participating firms ... 141 7.2.2 Descriptive analysis of environmental performance (EP) .............................. 144 7.2.3 Descriptive analysis of firm performance (FP) ............................................... 146 7.2.4 Descriptive analysis of integrated marketing communication (IMC) ............. 147 7.2.5 Descriptive analysis of market-based assets (MBA) ...................................... 149 7.3 Results of measurement models assessment ....................................................... 150 7.3.1 Reliability of measurement models ................................................................. 151 7.3.1.1 Internal consistency reliability (ICR) ...................................................... 151 7.3.2 Validity of measurement models .................................................................... 153 7.3.2.1 Convergent validity ................................................................................. 153 7.3.2.2 Discriminant validity ............................................................................... 154 7.4 Results of structural model analysis .................................................................... 154 7.4.1 Objective 1: The impact of EP on FP.............................................................. 154 7.4.2 Objective 2: The mechanisms through which EP affects FP .......................... 155 7.4.2.1 Results of simple mediation models ....................................................... 155 7.4.2.2 Evaluation of Multiple Mediation Model ............................................... 162 7.5 Controlling for the effect of demographic variables ........................................... 175 7.6 Summary of hypothesis and findings .................................................................. 176 7.7 Chapter summary ................................................................................................ 177 CHAPTER EIGHT ............................................................................................................. 179 DISCUSSION OF FINDINGS ........................................................................................... 179 8.1 Introduction ......................................................................................................... 179 8.2 Highlights of research objectives ........................................................................ 179 8.3 Research Objective 1: Relationship between EP and FP .................................... 179 8.4 Research Objective 2: Mechanisms through which EP predicts FP ................... 182 8.4.1 Individual Mediation role of MBA in EP-FP relationship .............................. 182 8.4.2 Individual mediation role of IMC in EP-FP relationship ................................ 184 8.4.3 Simultaneous mediation with MBA and IMC ................................................ 186 8.5 Chapter summary ................................................................................................ 188 CHAPTER NINE ................................................................................................................ 190 SUMMARY, CONTRIBUTIONS AND CONCLUSIONS ............................................... 190 9.1 Introduction ......................................................................................................... 190 9.2 Summary of research process.............................................................................. 190 9.2.1 Theoretical section .......................................................................................... 191 9.2.2 Empirical section ............................................................................................. 192 9.3 Summary of research findings ............................................................................ 193 9.4 Contributions of the study ................................................................................... 194 9.4.1 Theoretical contributions ................................................................................ 194 9.4.1.1 Corporate environmentalism continuum (CEC) ..................................... 195 ix University of Ghana http://ugspace.ug.edu.gh 9.4.1.2 A hub of mediation analysis .................................................................... 197 9.4.1.3 Translation of EP into marketable brands ............................................... 198 9.4.1.4 CIMIT research ....................................................................................... 198 9.4.1.5 Theory integration ................................................................................... 199 9.4.2 Managerial contributions ................................................................................ 199 9.4.2.1 Inducement of responsible environmental behaviour ............................. 199 9.4.2.2 Knowledge of relationship between EP and FP ...................................... 200 9.4.2.3 Value addition to EP ............................................................................... 200 9.4.2.4 Information to enrich policy formulation and implementation ............... 201 9.5 Conclusions ......................................................................................................... 203 9.6 Limitations of the study ...................................................................................... 204 9.6.1 Subjective design of questionnaire ................................................................. 205 9.6.2 Southern sector focus ...................................................................................... 205 9.6.3 The use of composite measures ...................................................................... 205 9.7 Suggestions for future research ........................................................................... 206 BIBLIOGRAPHY ............................................................................................................... 208 APPENDICES .................................................................................................................... 232 Appendix A: Questionnaire............................................................................................. 232 Appendix B: Introductory letter to participating companies ........................................... 240 Appendix C: Permission letter to participating companies ............................................. 241 Appendix D: An introductory letter to EPA ................................................................... 242 Appendix E: Permission letter to EPA ............................................................................ 243 Appendix F: Request for introductory letter to Ethics Committee ................................. 244 Appendix G: Introductory letter to Ethical Committee for Humanities ......................... 245 Appendix H: Ethical Clearance Approval Letter ............................................................ 246 Appendix I: Introductory Letter to AGI .......................................................................... 247 Appendix J: A letter requesting for data from AGI ........................................................ 248 Appendix K: Introductory Letter to GTA ....................................................................... 249 Appendix L: A letter requesting for data from GTA ...................................................... 250 Appendix M: Introductory Letter to Minerals Commission ........................................... 251 Appendix N: A letter requesting for data from MC ........................................................ 252 x University of Ghana http://ugspace.ug.edu.gh LIST OF FIGURES Figure 2.1: Contextualisation of EP, using concentric approach ........................................ 21 Figure 2. 2: Ghana’s EPA Environmental Regulatory System Tools ................................. 26 Figure 2. 3: Triple bottom line (TBL) sustainability framework ........................................ 27 Figure 4.1: Conceptual framework ..................................................................................... 56 Figure 4.2: Sequential AKOBEN rating rules .................................................................... 66 Figure 7.1: Direct relationship between EP and FP .......................................................... 154 Figure 7.2: Simple mediation with MBA .......................................................................... 156 Figure 7.3: Simple mediation with IMC ........................................................................... 159 Figure 7.4: Concurrent multiple mediation with MBA and IMC ..................................... 163 Figure 7.5: Sequential multiple mediation with MBA and IMC ...................................... 168 Figure 7. 6: Combine multiple mediation with MBA and IMC ........................................ 171 Figure 9.1: Corporate environmentalism continuum (CEC) ............................................. 195 xi University of Ghana http://ugspace.ug.edu.gh LIST OF TABLES Table 1.1: Theories commonly used in environmental sustainability research .................... 11 Table 1.2: Key Constructs: Definitions and Sources ............................................................ 17 Table 2.1: Sustainable Development Goals (SDGs) ............................................................. 22 Table 2.2: Environmental SDGs to which this study relates ................................................ 31 Table 4.1: AKOBEN Colour codes and their EP interpretations .......................................... 67 Table 5.1: Industry classification of the population ............................................................ 103 Table 5.2: Regional and industry classification of the population ...................................... 103 Table 5.3: Regional and industry classification of the sampling frame .............................. 104 Table 5.4: Table for determining sample size for known population ................................. 106 Table 5. 5: Industry classification of the sample size ......................................................... 108 Table 5.6: Regional classification of the sample size ......................................................... 108 Table 5.7: Regional and industry classification of the sample size .................................... 110 Table 5. 8: Summary of questionnaire administration ........................................................ 117 Table 5.9: Categories of multivariate analysis techniques .................................................. 127 Table 6.1: Categories of multivariate analysis techniques .................................................. 127 Table 7.1: Demographic characteristics of the respondent companies ............................... 142 Table 7.2: Descriptive statistics: Environmental performance (EP) ................................... 145 Table 7.3: Descriptive statistics of firm performance ......................................................... 146 Table 7.4: Descriptive Statistics – Integrated Marketing Communication (IMC) .............. 148 Table 7.5: Descriptive statistics – market-based assets (MBA) .......................................... 149 Table 7.6: Reliability and Validity of the dimensions of the constructs ............................. 151 Table 7.7: True reliability values of EP, FP, IMC and MBA ............................................. 153 Table 7.8: Results of the analysis of the relationship between EP and FP ......................... 154 Table 7.9: Direct effects of EP on FP through MBA .......................................................... 156 Table 7.10: Indirect effects of EP on FP through MBA ..................................................... 157 xii University of Ghana http://ugspace.ug.edu.gh Table 7.11: Total effect of EP on FP through MBA ........................................................... 158 Table 7.12: Direct effects of EP on FP through IMC ......................................................... 159 Table 7.13: Indirect effects of EP on FP through IMC ....................................................... 160 Table 7.14: Total effect of EP on FP................................................................................... 161 Table 7.15: Differences among the multiple mediation models ......................................... 161 Table 7.16: Direct effects of EP on FP through MBA and IMC concurrently ................... 163 Table 7.17: Indirect effects of EP on FP through MBA and IMC concurrently ................. 164 Table 7.18: Type of partial mediation in the IMC and MBA mediation model ................. 166 Table 7.19: Simple model indirect effects differential ........................................................ 167 Table 7.20: Total effect of EP on FP through IMC and MBA ............................................ 167 Table 7.21: Direct effects of EP on FP through MBA and IMC sequentially .................... 169 Table 7. 22: Indirect effects of EP on FP through MBA and IMC sequentially ................. 169 Table 7. 23: Total effect of EP on FP through IMC and MBA sequentially ...................... 171 Table 7.24: Direct effects of EP on FP via MBA and IMC in a combined model ............. 172 Table 7.25: Indirect effects of EP on FP through MBA and IMC sequentially .................. 172 Table 7.26: Combined indirect effect of MBA and IMC on EP-FP relationship ............... 173 Table 7.27: Total effect of EP on FP through IMC and MBA sequentially ....................... 174 Table 7.28: Differences among the multiple mediation models ......................................... 175 Table 7.29: Pearson Correlation matrix of FP and demographic (control) variables ......... 175 Table 7.30: Pearson Correlation matrix of FP and demographic (control) variables ......... 176 Table 7.31: Summary of hypotheses and findings .............................................................. 177 Table 9.1: A heuristic model of research objective, gaps and contributions ...................... 202 xiii University of Ghana http://ugspace.ug.edu.gh LIST OF ABBREVIATIONS AGI – Association of Ghana Industries AVE – Average Variance Extracted CB-SEM – Covariance-Based Structural Equation Modelling CEC – Corporate Environmentalism Continuum CEOs – Chief Executive Officers CFA – Confirmatory Factor Analysis CH4 – Methane CL – Cross-Loadings CO2 – Carbon Dioxide CR – Composite Reliability DCT – Dynamic Capability Theory DoME – Department of Marketing and Entrepreneurship DV – Discriminant Validity EAR – Environmental Assessment Regulations ECSR – Environmental Corporate Social Responsibility EFA – Exploratory Factor Analysis EIA – Environmental Impact Assessment EIS – Environmental Impact Statements EMP – Environmental Management Plan EMPs – Environmental Management Practices EMS – Environmental Management System EP – Environmental Performance EPA – Environmental Protection Agency FLC – Fornell-Larcker Criterion FO – First Order FP – Firm Performance GEPC – Ghana Environmental Protection Council GHG – Greenhouse Gas GNA – Ghana News Agency GNEP – Ghana National Environmental Policy GRI – Global Reporting Initiative GTA – Ghana Tourism Authority HO – Higher Oder HTMT – Heterotrait-Monotraint IMC – Integrated Marketing Communication IOL – Indicator Outer Loading ISO – International Organization for Standardization KMO – Kaiser-Meyer-Olkin L.I. – Legislative Instrument LO – Lower Order MBA – Market-Based Assets MC – Minerals Commission xiv University of Ghana http://ugspace.ug.edu.gh MDA – Multivariate Data Analysis MDGs – Millennium Development Goals MDs – Managing Directors CIMIT – Cross-disciplinary, Intra-disciplinary, Multi-disciplinary, Inter-disciplinary and Trans-disciplinary N/A – Not Applicable N2O – Nitrous Oxide NEA – National Education Association NEAP – National Environmental Action Plan NEIMA – Negative Environmental Impacts Mitigating Activities NHST – Non-Hypothesis Significance Testing NOx – Nitrogen Oxides ODS – Ozone-Depleting Substances PCA – Principal Component Analysis PLS-SEM – Partial Least Square Structural Equation Modelling RBT – Resource-Based Theory SCA – Sustained Competitive Advantages SDGs – Sustainable Development Goals SEM – Structural Equation Modelling SO – Second Order SOx – Sulphur Oxides SPSS – Statistical Package for Social Sciences SRMR – Standardized Root Mean Square Residual SST – Stakeholder Salience Theory TBL – Triple Bottom Line TOL – Tolerance Level UG – University of Ghana UGBS – University of Ghana Business School UN – United Nations UV – Ultraviolet VAF – Variance Accounted For VIF – Variance Inflation Factor VRI – Value, Rarity and Inimitability VRIN – Value, Rarity, Inimitability and Non-substitutability WBCSD – World Business Council for Sustainable Development xv University of Ghana http://ugspace.ug.edu.gh ABSTRACT Africa, after the expiration of the Millennium Development Goals (MDGs) in 2015, was described as the most urbanising region of the world because the continent had witnessed a proliferation of new businesses. The upsurge of businesses, however, was not without environmental consequences which were affecting life. Pressure was mounting on businesses to safeguard the environment. But the response of businesses to this call remained mixed. Consequently, scholars are attracted to research into the link between environmental performance (EP) of firms and their overall firm performance (FP). Inconclusive and contradictory findings, labelled a Porter-Wagner dilemma, were reported. Consequently, the need for fresh research to explain and resolve the Porter-Wagner dilemma conflict was urgent. This study took on the challenge to resolve the Porter-Wagner dilemma conflict by exploring the mechanisms through which the environmental protection activities of firms impact their overall FP. Questionnaires were used to gather data from 194 respondents. The data were analysed using descriptive statistics and structural equation modelling (SEM). While the descriptive statistics focussed on measures of central tendencies, dispersions and the shape of the dataset, the SEM focussed on measurement and structural models. The study found that, directly, there is a very strong negative relationship between EP and FP. Indirectly, however, the study established that market-based assets (MBA) and integrated marketing communication (IMC), used individually and simultaneously, mediate the EP-FP relationship. Used individually, while MBA fully mediates the association between EP and FP, IMC mediates the relationship partially. Used simultaneously, both MBA and IMC partially mediate the relationship between EP and FP. Based on the results of the study, it is concluded that the Porter-Wagner dilemma conflict can be resolved with the concept of a corporate environmentalism continuum, which theorises that the relationship between EP and FP is both positive and negative, depending on how firms perceive and approach their environmental protection activities. That is, although protecting the environment involves huge outlay of (financial) resources, the benefits are enormous if it is supported with the right mindset, technology and strategies. The thesis makes several contributions to both theory and practice. The study has effectively conceptualised EP to include both objective and non- objective indicators across extractive, manufacturing and service industries. In addition, the study investigated and established that EP is both an asset and a capability that can be marketed through MBA and IMC for enhanced FP. It is however recommended that future studies should examine the individual effects of the dimensions of EP on FP and its dimensions. It is suggested also that qualitative research should undertake to explore the factors responsible for the corporate environmentalism continuum. xvi University of Ghana http://ugspace.ug.edu.gh CHAPTER ONE INTRODUCTION 1.1 Introduction This chapter presents the general overview of the entire thesis. It lays the foundation for the research through the research background. It also discusses the research problem based on which the research gaps were identified. The chapter formulates the research aims and objectives to guide the study. In addition, the structure of the entire thesis is outlined. The chapter ends with the chapter summary. 1.2 Background to the study The first set of global goals, the Millennium Development Goals (MDGs) between 2000 and 2015, was crucial in international development, especially in Africa. According to D’Alessandro and Zulu (2016), the implementation of MDGs led to proliferation of businesses in many African countries, including Ghana, making Africa the most swiftly urbanising region of the world. However, the upsurge of businesses is not without environmental challenges. Mensah and Blankson (2013) contend that the extraction of natural resources and processing them into finished and intermediate products lead to numerous environmental problems. They cited resource depletion, land degradation and pollution as some of some of the environmental impacts of business activities. Ghana is thus faced with a myriad of environmental challenges, resulting from both human and business activities. The introduction of the Sustainable Development Goals (SDGs) by the United Nations marked an important turning point for governments, businesses and academics (D’Alessandro & Zulu, 2016). According to UNDP (2012), SDGs are a negotiated agreement by world 1 University of Ghana http://ugspace.ug.edu.gh leaders on sustainable development to reflect the global aspiration for development. There is therefore, a shift from MDGs to SDGs. The shift from MDGs to SDGs is described as a transition from 8 MDGs (with 60 measurement indicators) to 17 SDGs (with 169 measurement indicators). It is in line with this that Grant (2015) posits that the shift from MDGs to SDGs is to bring more attention to previously neglected sustainable issues and/or to draw attention to emerging ones. SDGs thus define global priorities and aspirations for 2030 (GRI, UN Global Compact & WBCSD, 2015). Social scientists have embraced sustainability as an area requiring extensive research (McDonagh & Prothero, 2014) because it has become a megatrend in the 21st century (Lubin & Esty, 2010). GRI, UN Global Compact and WBCSD (2015) assert that governments worldwide have already agreed to the SDGs, and indicate that it is time for businesses to take action. McDonagh and Prothero (2014) add that environmental sustainability is relevant because it impacts on value creation for consumers, and call for environmental sustainability to be at the heart of organisations’ activities. SDGs in general and environmental sustainability in particular affect businesses (McDonagh & Prothero, 2014; GRI et al., 2015). As a result, stakeholders call on businesses to demonstrate greater environmental responsibility in order to reduce the environmental problems (Mensah & Blankson, 2013), and by so doing improve their environmental performance (EP). EP has been observed by Dias (2016) as unquestionably an important concept in the policy- making debate nowadays and one that is under public scrutiny. This argument is taken further when Escrig‐Olmedo, Muñoz‐Torres, Fernández‐Izquierdo, and Rivera‐Lirio (2017) state that in recent years, EP has received a lot of attention from researchers and the business community. It is also a source of interest for markets and society because it tends to define trade-offs with the social and economic components of sustainable development. 2 University of Ghana http://ugspace.ug.edu.gh Stakeholders are, therefore, taking increasing interest in the EP of firms before making investment decisions (Escrig-Olmedo et al., 2017). Consequently, some businesses appear to recognise their environmental responsibilities by launching environmental programmes and undertaking environmental management with different degrees of success (Mensah & Blanson, 2013). Nevertheless, a large number of companies do not regard environmental sustainability as an important component of FP (McDonagh & Prothero, 2014). Kuada and Hinson (2012) observe that firms in pursuit of their corporate social responsibilities contribute less to address environmental problems. This is in spite of the substantial attention being given to mechanisms by which businesses could be engaged with the issue of environmental sustainability, and in particular with strategies by which they may mitigate the negative environmental impact of their practices on the environment (Lewis, 2015). The paucity of environmental sustainability interest of businesses thus reflects the lack of improved EP among businesses (Meneses, 2010; Trudel & Argo, 2013). The concern, as observed by Kaiser, Wölfing and Fuhrer (1999), is what determines businesses’ readiness to improve their EP. Marketing is believed to have championed distribution and consumption culture that is detrimental to the environment. “Marketing is partly to blame for most of the world's environmental ills” (Polonsky , 2011, p. 1311). This notwithstanding, scholars believe that marketing can assist in addressing environmental problems (Wymer & Polonsky, 2015). According to Kumar and Venkatasubbaiah (2017), sustainability represents an important consumer need, and is now an integral aspect of product quality. Therefore, products need to be green and brands need to be green as well. There is therefore the need for sustainability marketing as a mechanism through which marketing is deployed to help address 3 University of Ghana http://ugspace.ug.edu.gh environmental problems. Kumar and Venkatasubbaiah (2017) defines sustainability marketing as “the means of designing and marketing products that can be used universally by all the consumers across the world over extended periods, without causing harm to either the consumers or the environment” (p. 36). The search is on; to what extent are companies marketing their environmental performance (environmental sustainability marketing) and what impact will it have on their overall performance? A search into literature, however, reveals that there are numerous studies carried out to establish whether or not improvement in the EP of businesses will enhance their overall firm performance (FP) (Linder et al., 2014; Shahidullah & Haque, 2014). The findings are, however, inconclusive. Albertini (2017) points out that researchers disagree with themselves about the direction and the magnitude of the association between EP and FP of businesses. Concurring with this argument, Mazzi, Toniolo, Mason, Aguiari and Scipioni (2016) assert that the correlation between EP and FP of businesses is inconsistent and contradictory. These inconclusive findings about the nature, direction and magnitude of the link between EP and FP make it difficult, if not impossible, to advance research in the domain. There is, therefore, a yawning gap that warrants further research into the mechanisms through which the association between EP and FP is established. In recognition of this gap, based on the recommendations of Linder, Björkdahl and Ljungberg (2014), Albertini (2017) and Mazzi et al. (2016) that future studies should mediate and/or moderate the relationship between EP and FP, the study seeks to mediate the EP-FP relationship. The concern, however, is what to mediate the EP-FP relationship with. As a modest contribution to the knowledge base, this study seeks to marry the discipline of environmental sustainability with that of marketing by mediating the connexion between EP and FP with marketing capabilities. Specifically, the study mediates the EP-FP interaction 4 University of Ghana http://ugspace.ug.edu.gh with integrated marketing communication (IMC) and market-based assets (MBA), an area that appears not to have been explored in literature. 1.3 Statement of the problem Businesses the world over, operating from marketing concept perspective, are focussed on identifying and satisfying the needs of their multiple stakeholders through production, distribution and consumption activities. These business activities have an impact on the environment, at times, negatively, resulting in climate change, deforestation, resource depletion, pollution and waste (Mensah & Blankson, 2013). These negative impacts, coupled with environmental consciousness of and pressure from stakeholders, put firms under intense pressure to reduce the harmful effects of their activities on the environment, thereby improving upon their environmental performance. The response of businesses to this call is mixed. Some firms responded positively and engaged in Negative Environmental Impacts Mitigating Activities (NEIMA) by undertaking environmental management at different degrees of success (Mensah & Blanson, 2013), all in an attempt to improve their EP. Other firms, to the contrary, regard improvement in their EP as an optional add-on, rather than as a significant component of FP (McDonagh & Prothero, 2014). Mazzi et al. (2016) describe this opposing stand of companies on the relationship between EP and FP as a ‘Porter-Wagner dilemma: Does better EP determine better FP of companies, or vice versa?’ (p.1). According to the authors, while Porter’s point of view sees EP as a strategic competitive factor, Wagner regards it as a luxury good. This raises the question: Why do some firms consider EP as a strategic competitive factor, and are willing to improve upon it whereas other firms regard it as a luxury good, achievable only by enterprises with good economic performance, and are thus unwilling to improve on it? The study therefore responds to calls by scholars (Linder et al., 2014; Mazzi et al., 2016; Albertini, 5 University of Ghana http://ugspace.ug.edu.gh 2017) on researchers to resolve the Porter-Wagner dilemma conflict by investigating the mechanisms through which the EP-FP relationship is established. 1.4 Research gaps Extant literature on EP and its relationship with FP is explored with the view to identifying the position of scholars on the above posed questions. In the process, research gaps were identified, and the current study is anchored on the research gaps. Broadly, the gaps are classified into: Issue gap, methodological gap, contextual gap and theoretical gap (Boateng, 2015). 1.4.1 Issue gaps Issue gaps, as demonstrated by Boateng (2015), occur when empirical research about a particular concept is skewed, inconsistent and bedevilled with unresolved issues. According to Mazzi et al. (2016), many scholars have carried out extensive empirical and conceptual studies on EP-FP relationship. The conclusion drawn is that extant literature reveals conflicting results regarding the concept of ‘going green’. Earlier, Albertini (2013) expressed a similar view that there was no agreement among scholars about the direction and the strength of the link between EP and FP. In her review of articles from 1992 to 2015, Albertini (2017) observed an inconsistent and contradictory relationship between EP and FP. The identified issues that require re-examination about EP-FP correlation, therefore, are: the existence, direction and magnitude of their interactions. In the debate regarding the existence of relationship between EP and FP, no consensus was reached among scholars (Albertini, 2017; Mazzi et al., 2016; Dragomir, 2013). Several researchers (Tang, Hull & Rothenberg, 2012; Salama, Anderson, & Toms, 2011) and (Dixon- Fowler, Slater, Johnson, Ellstrand, & Romi, 2013; Horvathova, 2010; Mazzi et al., 2016) have ascertained a link between EP and FP, respectively in empirical studies and in conceptual 6 University of Ghana http://ugspace.ug.edu.gh reviews. Contrary to these studies, however, other researchers claim that the correlation between EP and FP cannot be established at all (Yamaguchi & Van-Kooten, 2008; Dragomir, 2013; Guenther & Hoppe, 2014; Muhammad, Scrimgeour, Reddy & Abidin, 2015; Yu, Ting, & Jim-Wu, 2009; Iwata & Okada, 2011; Darnall, 2009; King & Lenox, 2001; Christmann, 2000). The disagreement among researchers establishes the need for re-examination of the relationship between EP and FP, particularly in the Ghanaian context where studies in the area appear scanty. Among scholars who established a link between EP and FP, inconsistent results emerged. While some scholars argue for a significant positive (Molina-Azorin, 2009; Zeng, Meng, Yin, Tam & Sun, 2010; Fujii, Iwata, Kaneko & Managi, 2013; De Burgos-Jiménez, Vázquez- Brust, Plaza-Úbeda, & Dijkshoorn, 2013 ; Endrikat, Guenther, & Hoppe, 2014; Larran-Jorge, Madueño, Martínez-Martínez & Sancho, 2015) relationship, others are of the view that the EP-FP relationship is insignificantly positive (Menguc, Auh & Ozanne, 2010; Madsen, 2008). Researchers (e.g. Wagner, 2010; Perez-Calderon, 2012; Tang et al., 2012; Dixon-Fowler et al., 2013; Youn et al., 2013; Moon, Bae & Jeong, 2014; Wang et al., 2014) agree with a positive relationship but fail to indicate how significant the relationship is. The positive EP-FP relationship assertion contradicts the result of studies conducted by Lioui and Sharma (2012), Horvathova (2010), Salama et al. (2011), McPeak et al. (2010), Hassel, Nilsson and Nyquist (2005) and Wagner (2005), who reported a negative EP-FP relationship. On the issue of linear EP-FP relationship, Mazzi at al. (2016) toe a different path. According to them, the EP-FP relationship is bidirectional, where improved EP leads to improved FP and vice-versa. They affirm, however, that the bidirectional EP-FP relationship is not alternate but complementary. 7 University of Ghana http://ugspace.ug.edu.gh In addition to these regular but contradictory positive, negative and bidirectional linear EP- FP relationships, some scholars have established non-linear and conditional relationships between EP and FP. The non-linear relationships identified include: a U-shaped relationship (Trumpp & Guenther, 2015) and an inverted U-shaped relationship (Misani & Pogutz, 2015). The possibility of an indirect relationship between EP and FP is not ruled out in the thinking of Mazzi et al. (2016). Confirming the thinking of Mazzi et al., Albertini (2017) asserts that the relationship between EP and FP is conditioned on mediating and/or moderating variables. It is recalled that the concept of indirect relationship between EP and FP was earlier echoed in the studies of Lopez-Gamero et al. (2009) and Aragon-Correa and Sharma (2003), and has since not been resolved. There is recommendation, therefore, that the relationship between EP and FP is mediated and/or moderated (Mazzi et al., 2016; Albertini, 2017). The challenge, however, is to identify what to moderate and/or mediate the relationship with. The question of concern therefore, is ‘does marketing have the power, the tools and the capabilities to moderate and/or mediate the relationship between EP and FP effectively?’ The inconsistency of the EP-FP relationship is a fertile ground for further researches to critically not only re-examine, but to explore and explain the mechanisms (marketing capabilities) through which EP and FP relate. 1.4.2 Methodological gaps A number of methodological issues were also identified, hinging on the measurement of constructs. Albertini (2017) alleges that the definition of EP is ambiguous, and blames this on the multidimensionality and bifocal directions of EP. EP is a multidimensional concept (Trumpp et al., 2013), yet many researchers measure it using unidirectional measures (Albertini, 2017). Unidirectional measures rely solely on either objective measures (environmental impact measurement dimensions) or non-objective indicators (environmental 8 University of Ghana http://ugspace.ug.edu.gh management practices) to measure EP (Trumpp et al., 2013; Schultze & Trommer, 2012). Neither objective measures nor non-objective indicators, used alone, is enough to capture fully the multidimensionality and the complexity of EP (Albertini, 2017). The paucity of studies combining both the objective and the non-objective measures of EP in a single study is thus a cause for concern and a motivation for the current study. 1.4.3 Contextual gaps The geographical setting of this study is narrowly defined to the context of Ghana. In the review of EP-FP relationship by Mazzi et al. (2016) between the period of 2000 and 2015, 52.06%, 12.77%, 10.64%, 8.51% and 2.13% of the studies were conducted in Europe, Asia, Central America, Oceania and Africa, respectively. And out of the few papers (2.13%) that focussed on Africa, only one study (Appeaning & Thollander, 2013), representing 0.44%, was authored in Ghana to explore barriers to industrial energy efficiency improvement, an aspect of EP-FP study from the Ghanaian perspective. There is therefore a dearth of empirical studies in the Ghanaian context about EP-FP correlation. On the basis of this gap, this study is occasioned. In the context of marketing, between the same periods of 2000 to 2015, very few marketing concepts: customer satisfaction and company image (Tang et al., 2012), relationship marketing (Larran-Jorge et al., 2015) and competitive advantage (Lopez-Gamero, 2009) were used to mediate the EP-FP relationship. Marketing has more capabilities than have been deployed in the mediation of EP-FP relationship. It appears from the reviews that the use of MBA and IMC as mediator variables in establishing EP-FP relationsh was highly limited. The need for this study is thus borne. In addition, marketing capabilities are so versatile and thus compatible with several fields of study: in sports (sports marketing) (Rein & Shields, 2007; Khoshtaria, 2015) in relationship 9 University of Ghana http://ugspace.ug.edu.gh management (relationship marketing) (Narteh, Agbemabiese, Kodua & Braimah, 2013) in behaviour change communication (social marketing) (Vallone et al., 2016; Tweneboah‐ Koduah & Owusu‐Frimpong, 2013), and in politics (political marketing) (Speed, Butler & Collins, 2015; Reeves, 2018). Given the influential roles marketing capabilities play in these varied fields of discipline, it is important to deploy and explore the mediating influences of marketing capabilities in environmental sustainability and its interactions with FP (Lim, 2016; Ottman, 2017). In view of this, this study explores the mediating function of integrated marketing communication (IMC) and market-based assets (MBA) in the EP-FP relationship. 1.4.4 Theoretical gaps Theories play important roles in management research: they enable researchers to better understand many different aspects of phenomena, to organise ideas about the world, to establish and justify relationship among constructs, to improve predictions and expectations of entities and to achieve better understanding of the world (Mile, 2012; Hambrick, 2007; Mayer & Sparrowe, 2013). There are several theories that are applicable in environmental sustainability studies. Stern (2018) categorises environmental sustainability theories into five major groups as follows: theories relating to motivation, cognition and reasoning, theories relating to morals, intuitions, culture, and identity, theories relating to trust, negotiation and public involvement, theories relating to organisations and theories relating to systems. Table 1.1 presents the categories of theories commonly used in environmental sustainability. 10 University of Ghana http://ugspace.ug.edu.gh Table 1.1: Theories commonly used in environmental sustainability research Category of Specific theory Proposition of the Source theory theory Motivation Social norm theory Approaches must be Perkins and /Cognition/ done to go with the flow Berkowitz (1986) Reasoning rather than go against it The Norm Action People feel morally Kahneman and Theory and Value- obliged to take action Miller (1986) Benefit-Norm Theory Cognitive dissonance What happens when we Festinger (1957) theory become aware that our actions do not match our values The Likelihood We need to pay attention Petty, Cacioppo elaboration model to qualities of our and Goldman arguments for us to have (1981) an influence on them Theory of planned Types of evaluations Ajzen (1985) behaviour people make when thinking through a potential course of action. People do not always follow through on their intentions Self-determination What factors can best Deci and Ryan theory help to strengthen (2008) people’s motivation Motivation crowding Providing incentives Titmuss (1970) theory could backfire Morals/ Social identity theory People seem to take Tajfel and Turner Intuitions/ things so personally (1986) Culture/ Self-affirmation theory People should be helped Steele (1988) Identity to feel less threatened when trying to resolve heated issues Haidt’s social It is so hard to change Haidt (2001) intuitionist model of people’s minds moral judgement Cultural cognition People cannot be Kahan (2008) theory convinced by the facts Morals foundations It is so easy to think the Graham et al. theory people on the other side (2013) of an argument are crazy Frame theory There are some ways of Casazza (2000 presenting the same information more persuasive than others Trust/ Trust theory What is trust, how does it Castelfranchi and negotiation/ come about, why is it so Falcone (2010) public frequently lacking, and involvement what can we do about it? 11 University of Ghana http://ugspace.ug.edu.gh Principled negotiation We can better facilitate Lens (2004) agreements between two parties who want different things Co-orientation theory We can better Goutzamani understand others’ (2016) viewpoints such that we can improve our chances of working towards common understanding of problems and collaborations The reasonable person We can design Kaplan and model interaction to suit the Kaplan (2006) needs of participants Organisational Herzberg’s motivation- Which factors best Herzberg (1968) hygiene theory motivate people at work? Team effectiveness What factors most Weisbord (1985) theory commonly enhance the effectiveness of working teams Accountability theory We can set ourselves to Vance, Lowry, better understand and and Eggett (2015) manage competing accountabilities in our work Nonaka’s theory of There are practices that Nonaka and organisational best encourage leaning Takeuchi (1995) knowledge creation and innovation within an organisation or network Systems Commons theory We can appropriately Lloyd (1833) manage resources that nobody owns The community We can best marshal Flora and Flora capitals framework community assets to (2008) promote healthy and resilient socio-ecological systems Diffusion theory Innovations become Rogers (1995) adopted and spread Collective impact There are tested Kania and Kramer theory strategies of building a (2011) coalition to solve large- scale societal issues Source: Constructed from Stern (2018). Social science theory for environmental sustainability: A practical guide. Oxford University Press. 12 University of Ghana http://ugspace.ug.edu.gh In spite of the numerous environmental sustainability theories, scholars argue that the theoretical base of EP as an aspect of environmental sustainability is generally weak. For instance, Hoffman and Bassal (2012) claim that how EP was conceptualised and defined weakens its theoretical grounding. Aragon-Correa and Sharma (2003) also state that lack of knowledge convergence about how to measure EP and its correlation with FP results in weak theoretical foundation. It is therefore required that the theoretical foundation of EP and FP research is explored and strengthened. Integration of different theories (probably from different domains) was recommended as an approach to strengthen the theoretical underpinnings of studies (particularly multidisciplinary studies) with weak theoretical foundation (Mayer & Sparrowe, 2013). The study therefore seeks to strengthen the theoretical underpinnings of EP research by combining different theories (resource-based theory, dynamic capability theory and stakeholder salience theory) from different domains. Resource-based theory (RBT) provides the theoretical lens for the assessment of relative effects of multiple market-based resources on FP (Kozlenkora et al. (2014). RBT is adopted to provide a platform for explaining the competitive, synergistic and differential effects of a company’s EP as a resource (Fang et al, 2011) on its overall FP. The RBT theory argues that resources that are simultaneously valuable, rare, imperfectly imitable and imperfectly substitutable have the potential to boost a firm’s overall performance (Barney, 1991). The question of concern, however, is do companies sees their environmental protection activities and outcomes as competitive resources? Valuable and competitive resources do not necessarily translate into improved performance. Katkalo et al. (2010) demonstrated that resources that are valuable, rare, inimitable and non- 13 University of Ghana http://ugspace.ug.edu.gh substitutable may bring few benefits if used inefficiently. Dangelico and Vocalleli (2017) assert “developing green products/services would be useless for environmental sustainability unless these get widespread acceptance in the market” (p.1264). The need for marketing/communicating EP was created as a result. Marketing of EP, as a branding tool, is situated within the context of DCT, defined as the “firm’s ability to integrate, build and reconfigure internal and external competencies to address rapidly changing environment” (Teece et al., 1997, p.516). It has been argued also by Madu (2012) and Gonzalez‐Benito and Gonzalez‐Benito (2006) that stakeholders are environmentally conscious and will align themselves to organisations they perceive to be environmentally friendly. To what extent are firms taking advantage of the situation by communicating the firm’s EP to the consciousness of the stakeholders and markets in order to improve firms’ overall performance on the market? If a company is to achieve environmental sustainability for its stakeholders, build environmental sustainability relationship with its stakeholders, and communicate its environmental protection activities and outcomes to its stakeholders, which categories of stakeholders will be of paramount interest for the company? It is argued that Freeman’s (1984) definition of stakeholders is so broad that it leaves no one out of the stakeholder net. Almost anyone is directly or indirectly connected to the activities of a firm, and can be a stakeholder (Thijssens et al., 2015). Meanwhile, firm resources are not insatiable (Thijssens et al., 2015); they cannot satisfy the needs of all stakeholders, (Neville & Menguc, 2006), and therefore need to respond to the claims of only those stakeholders they consider relevant and important. Which stakeholders should they prioritise and how should they identify and select them? 14 University of Ghana http://ugspace.ug.edu.gh 1.5 Aim and objectives of the study This study aims at mediating the relationship between EP and FP, using MBA and IMC, in the context of resource-based theory (RBT), dynamic capability theory (DCT), and stakeholder salience theory (SST). To achieve this aim, the following set of objectives were formulated. i. To re-examine the EP-FP relationship. ii. To assess the mechanisms through which EP relates to FP. 1.6 Significance of the study The study is relevant from several standpoints: theoretical significance, practical significance and policy significance. 1.6.1 Theoretical significance This study contributes greatly to knowledge regarding the relationship between EP and FP in numerous ways as follows: 1.6.1.1 Interdisciplinary study The study appears to be among the pioneering studies to mediate the relationship between EP and EP with MBA and IMC capabilities. It is also among the very few studies to demonstrate the translation of EP into MBA, which mediates the EP and FP relationship. The study thus brings together concepts from different disciplines: marketing and environmental sustainability. The marriage of marketing capability with environmental sustainability illustrates the influential roles marketing plays in promoting environmental sustainability at the firm level. This adds to the general knowledge base in explaining the indirect relationship between EP and EP. 15 University of Ghana http://ugspace.ug.edu.gh 1.6.1.2 Corporate environmentalism continuum In resolving the Porter-Wagner dilemma conflict, the study postulates, based on its findings, that the EP-FP relationship is a continuum. As a continuum, there is both a positive and a negative relationship between EP and FP, based on how a firm perceives and approaches its environmental protection activities. This postulation of the study is novel and is expected to inspire academic discourse among corporate environmental performance researchers. 1.6.1.3 Theory integration Integration of different theories – BRT, DCT and SST – in this study adds to theory integration literature. In addition, it strengthens the theoretical underpinnings of EP-FP relationship research. 1.6.2 Managerial significance The insight provided by this study regarding the comprehensive measures of EP will be of paramount interest to management of firms. Guided by this study, managers will be able to measure their EP more accurately. In addition, the study provides a clear path for management as to how to add value to their EP by translating this to MBAs for enhanced FP. As stakeholders are becoming environmentally conscious, the study enables managers to build relationships with stakeholders through environmental friendliness, which eventually culminates in business value. Therefore, the knowledge of the EP-FP relationship provided by the study will guide managers to deliberate on the environmental implications of their business strategies and actions. 1.6.3 Policy significance Policy makers benefit tremendously from this study. The study reveals to environmental policy makers information about firms that are not only environmental regulation compliant, but also take initiatives to protect and promote the wellbeing of the environment. This 16 University of Ghana http://ugspace.ug.edu.gh provides the basis for identifying and rewarding ‘best’ environmental performing organisations. This will stir up environmental competitiveness among businesses, leading to overall environmental protection. This vital information that will go a long way to enrich environmental policy formulation and implementation, and environmental regulation enactment and enforcement. 1.7 Operational definition of key constructs This section of the study defines the key constructs used in the study. The definitions rage from those adapted and adopted. Table 1.2 presents the key constructs, their definitions as adopted and/or adapted. Table 1.2: Key Constructs: Definitions and Sources Key Construct Definition Source Environmental EP refers to the formulation, implementation, Operationalized Performance (EP) evaluation and analysis a firm’s environmental from Albertini processes aimed at enhancing positive (2017), Mazzi et al. environmental gains as well as minimizing (2016) negative environmental impacts of the firm’s environmental inputs and outputs for enhanced firm performance. Firm Performance Firm performance is an objective and/or a Adapted from: (FP) subjective measure of the effectiveness (extent Santos and Brito of objectives realised) and efficiency (2012); Anning- (economic use resources) of an organisation’s Dorson (2017); Wu inputs, operations and outputs, expressed in (2009) financial and/or non-financial terms. Market-based Off-the balance sheet strategic intangible Adapted from assets (MBA) resources and capabilities a firm develops by Srivatava et al. interacting with its internal and external (1998); Yang et al. stakeholders through inside-out and outside-in (2013). mechanisms in order to improve and sustain its competitive advantages for enhanced overall firm performance. Integrated “The stakeholder-centred integrative process Adopted from marketing of cross-functional planning and alignment of Porcu et al. (2017) communication organisational, analytical and communication (IMC) processes that allow for possibility of continuous dialogue by conveying consistent and transparent messages via all media to foster long-term profitable relationships that create value” (p.124). Source: Compiled from literature 17 University of Ghana http://ugspace.ug.edu.gh 1.8 Organization of the study The study is organised into nine (9) chapters. Chapter One is the general introduction to the entire thesis. It discusses the background of the study, highlights the research problem, states the research aim and objectives and enumerates the significance of the study. Chapter Two focusses on the contextual review to put the study in perspective. Chronologically, the chapter explains sustainability at the global, national and firm levels, and zeros it down to AKOBEN, the Ghanaian concept of EP. Chapter Three addresses issues relating to the theoretical underpinnings of the study. It reviews RBT, DCT and SST, and justifies their integration in the study. Chapter Four concentrates on the conceptual framework, under which literature on the key constructs (EP, FP, MBA and IMC) have been reviewed, dimensions measuring each construct are highlighted, hypothesised relationships are developed, and controlled variables are indicated and justified. Chapter Five is based on the methodology. It justifies the choice of the researcher’s world view, survey design, population and sampling, instrumentation and data collection. Chapter Six outlines how data was analysed. It details descriptive data, measurement model and structural model analysis. Chapter Seven presents the results of data analysis. The results cover descriptive statistics, measurement and structural models. Chapter Eight explains the findings through detailed discussions and illustrations. Chapter Nine ends the thesis with a summary, contributions, conclusion and suggestions for future studies. 1.9 Chapter summary This overview chapter laid the foundation for the study. The background to the study paved the way for the sequential flow of the research problems and gaps. The chapter discussed the research problem in detail, and delineated that the attempts of firms to satisfy the needs of society through extraction, production, distribution and consumption activities negatively impact the natural environment. Command and control and market-based mechanisms were deployed to compel firms to mitigate the harmful effects of their operations on the 18 University of Ghana http://ugspace.ug.edu.gh environment. However, the response of firms to this call was mixed, leading to the unexplored and unanswered question: … ‘what benefits will it be for companies to comply with environmental regulations, improve environmental waste management, institute best environmental management systems and practices, and embark upon voluntary environmental initiatives?’ The chapter also presented a number of research gaps – classified into contextual, conceptual, theoretical and methodological gaps – all worth exploring in this study. The research objectives, which the study depend on as a guide, were also formulated. The chapter briefly discussed the theoretical, practical and policy contributions of the research. The synopsis of the entire thesis, structured in nine chapters, ended the chapter. 19 University of Ghana http://ugspace.ug.edu.gh CHAPTER TWO CONTEXTUAL REVIEW 2.1 Introduction This chapter contextualises the entire study following a concentric approach (figure 2.1). A concentric approach studies a phenomenon from a very broad perspective and gradually narrows it down to a more specifically defined concept. In this regard, the study is contextualised broadly within the general framework of sustainability at the global (macro), national (meso) and firm (micro) levels. Following the principle of a triple bottom line (TBL), the chapter also presents the economic (profit), social (people) and environmental (planet) aspects of sustainability, with a focus on environmental sustainability. From a narrower perspective, the chapter zeroes in on a more specifically defined EP in the Ghanaian context. 2.2 Sustainability The concept of sustainability, defined as the ‘ability to ensure that development meets the needs of the present generations without compromising the ability of future generations to meet their own needs’ (Green, Toms & Clark, 2015; Ong, Trireksani & Djajadikerta, 2016, p. 18), was popularised by UN (Hussey, Kirsop & Meissen, 2001; Deegan, 2013). It is recognised that sustainability is a broad concept (Amoako, Lord & Dixon, 2017), shaped by public, political and academic influence (Orlitzky, Siegel & Waldman, 2011), dimensioned on economic, social and environmental aspects of the greater society (Milne & Gray, 2013), and difficult to achieve (Deegan, 2013). Therefore, as a macro, meso and/or micro phenomenon, sustainability transcends firm level through national level to global level, and focuses on the ability to meet economic, social and environmental aspirations of both present and future generations. These levels of environmental sustainability are illustrated in figure 2.1 below, using concentric approach. 20 University of Ghana http://ugspace.ug.edu.gh Figure 2.1: Contextualisation of EP, using concentric approach Environment al Performance Environmental Sustainability Micro Sustainability (firm level sustainability) Meso Sustainability (national level sustainability) Macro Sustainability (global level sustainability) Source: Adapted from Webb (2012, p. 7). Retrieved on 22nd May, 2018 from https://www.mariamontessori.com/2012/10/22/weaving-the-cosmos/ 2.2.1 Macro sustainability (sustainability at the global level) At the global level, sustainability, expressed in measurable SDGs, reflects the resolve of the world leaders and economies to ensure that global development meets the needs of the present as well as future generations (Ong, Trireksani & Djajadikerta, 2016). Defining the SDGs, Global Compact Network Canada (2018) states that SDGs are a negotiated agreement by world leaders on sustainable development to reflect the global aspirations and development objectives between 2015 and 2030. SDGs thus define global priorities and aspirations for 2030 and indicate an important turning point for governments, businesses and academics worldwide (United Nations Global Compact, 2015). In more specific terms, D’Alessandro and Zulu (2016) explain that the shift from MDGs to SDGs is a transition from eight MDGs (with more than 60 measurement indicators) to 17 SDGs (with 169 measurement indicators). Table 2.1 below lists the SDGs (goals, symbols and themes). 21 University of Ghana http://ugspace.ug.edu.gh Table 2.1: Sustainable Development Goals (SDGs) SDG SDG Symbol Theme Goal 1 End poverty in all its forms everywhere Goal 2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture Goal 3 Ensure healthy lives and promote well-being for all at all ages Goal 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all Goal 5 Achieve gender equality and empower all women and girls Goal 6 Ensure availability and sustainable management of water and sanitation for all Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all Goal 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation Goal 10 Reduce inequality within and among countries Goal 11 Make cities and human settlements inclusive, safe, resilient and sustainable Goal 12 Ensure sustainable consumption and production patterns Goal 13 Take urgent action to combat climate change and its impacts Goal 14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development Goal 15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss Goal 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels Goal 17 Strengthen the means of implementation and revitalise the global partnership for sustainable development Source: Compiled from GRI, UN Global Compact and the WBCSD (2015) and Ramphal Institute (2016) 22 University of Ghana http://ugspace.ug.edu.gh 2.2.2 Meso sustainability (sustainability at the national level) Ghana is endowed with abundant renewable (wood, water, solar energy, wind, water, geothermal and biomass) and non-renewable (gold, diamond, bauxite, manganese, oil and gas) natural resources, which are catalysts for economic growth and development. Nevertheless, Sekyi (2011) posits that the nation experiences declines and booms in its economic transformation, with the accompanying social and environmental costs. He explains that natural resources are exploited and other economic, social and political activities are carried out with little or no environmental considerations. This puts to the test, the sustainability of Ghana’s development trajectory. Commenting on this, Bawua and Owusu (2018) argue that there is always a trade-off between environmental sustainability and economic development. Awan (2013) cautions that excessive exploitation of natural resources degrades and pollutes the environment. In the opinion of Sekyi (2011), the sustainability of economic and social developments depends, to a very large extent, on proper environmental protection. Sustainability at the national level is conceptualised as the ability of the central and local governments to ensure that national, municipal and district development meets the needs of both the present and future generations (Ong et al., 2016). As an initial step towards a proper environmental management and governance mechanism to ensure national environmental sustainability, Ghana Environmental Protection Council (GEPC) was established in 1976 as an advisory and research institution on environmental issues. In 1992, the GEPC formulated Ghana’s National Environmental Policy (GNEP) with the overall aim of putting in place appropriate incentives and sanctions to ensure compliance and enforcement of environmental regulations. The GEPC, however, lacked the necessary legal enforcement powers to ensure environmental sanity, and prevent further damage to the 23 University of Ghana http://ugspace.ug.edu.gh environment (Sakyi, 2011). Restructuring of the GEPC was, thus, necessary. In 1988, the National Environmental Action Plan (NEAP), was prepared for the purposes of restructuring the GEPC. This led to the transformation of the GEPC into the Environmental Protection Agency (EPA) in 1994 through an act of parliament, the Environmental Protection Agency Act, 1994 (Act 490). 2.2.2.1 The Environmental Protection Agency (EPA) As hinted earlier, the EPA is a statutory creation of an act of parliament, Act 490. Primarily, Act 490 seeks to establish a body corporate, an Environmental Protection Agency (EPA), with perpetual succession, to protect the environment. The EPA is then empowered and charged by Act 490 with elaborate and comprehensive responsibilities relating to environmental protection. The EPA, within the confines of its regulatory powers, put in place an Environmental Impact Assessment (EIA) system. The EIA system requires all newly established organisations to secure an environmental permit before starting their operations and all exiting organisations to prepare Environmental Management Plans (EMP) and Environmental Impact Statements (EIS). To augment the EIA system, and ensure environmental disclosures, Environmental Assessment Regulations (EAR), 1999 (L.I. 1652) was passed as a subsidiary Legislative Instrument (L.I). The EAR, 1999 (L.I. 1652) equips the EPA, and details how it should regulate the environmental activities of businesses through the issuance, suspension, cancellation or revocation of environmental permits and certificates, and through the EIA system. The EPA relies heavily on, and makes extensive use of EAR, 1999 (L.I. 1652) in the discharge of its statutory mandates. This supports the assertion that many developing 24 University of Ghana http://ugspace.ug.edu.gh countries have implemented different command and control policy measures to ensure environmental sustainability (Rabhi, 2011; Zeng et al., 2010). However, the command and control policy measures have not succeeded in making companies environmental regulations compliant (Haufler, 2010). Therefore, the EPA’s reliance and extensive use of this orthodox command and control environmental law and policy instruments (Act 490 and L.I. 1652) to ensure environmental protection has been described as ‘carrot and stick’ approach (Sakyi, 2011). It is ineffective, expensive, time consuming (Bawua & Owusu, 2018), and does not command the desire environmental attitude from industries (Haufler, 2010). Following the advice of Blackman, Afsah and Ratunanda (2004) and Clarkson (2008) that market-based policy instruments are successful in ensuring environmental compliance and improvement, EPA embarked on a search for voluntary and participative, effective and efficient, and market-based mechanisms for protecting the environment. Consequently, the AKOBEN programme was developed and launched in November, 2010 (Darko-Mensah & Okereke, 2013) as a dual-purpose (national level and firm level) mechanism. At one side, it is a national level (EPA) tool for assessing the environmental performance of industries in Ghana through rating and disclosure systems, and at the other side, it serves as a firm level environmental performance management tool for achieving environmental efficiency and effectiveness. Nevertheless, as indicated by EPA, the introduction of the AKOBEN programme as a voluntary environmental performance disclosure policy tool is not a substitute for legal enforcement and environmental impact assessment. Rather, it seeks to complement EPA’s existing regulatory management system by using disclosure and reputational rating incentives 25 University of Ghana http://ugspace.ug.edu.gh as additional tools to improve compliance with environmental regulations. This means that the EPA, in addition to environmental impact assessment (EIA) and legal enforcement and fines as environmental regulatory system, encourages firms to disclose their environmental performance publicly. These environmental regulatory system tools are shown in figure 2.2. Figure 2.2: Ghana’s EPA Environmental Regulatory System Tools Source: Mensah (2017) 2.2.3 Micro sustainability (sustainability at the firm level) At the firm level, sustainability imposes moral obligations on organisations to increase the positive impacts and to reduce the negative effects of their activities on the greater society and on the environment (Gherghina & Simionescu, 2015). Firm level sustainability is operationalised as a firm’s ability to ensure that its business outcomes meet the needs of the present and future stakeholders (Ong et al., 2016). The debate in extant literature, particularly in the area of corporate social responsibility (CSR), has established that the study of organisational sustainability follows the triple-bottom-line (TBL) principle (Ralston, et al., 2015; Hinson, et al., 2015, Mahmoud, 2016). Figure 2.3 is an illustration of a firm’s aspects of sustainability, with emphasis on environmental (and social) sustainability. 26 University of Ghana http://ugspace.ug.edu.gh Figure 2. 3: Triple bottom line (TBL) sustainability framework Source: Lee et al. (2016, p. 3). Sustainability 8(5), 466; https://doi.org/10.3390/su8050466 The TBL, according to Roxas and Chadee (2012), is a widely used sustainability framework that explains the role businesses play in sustainable development. The TBL framework, as illustrated in figure 2.3, indicates that firms need to consider the economic, social and environmental aspects of their business activities if they are to be sustainable (Roxas & Chadee, 2012). Amoako et al. (2017) support and reiterate that corporate sustainability covers economic, social and environmental aspects of business operations. 2.2.3.1 Economic (Profit) sustainability Regarding the economic aspect of firm level sustainability, Ralston et al. (2015) posit that the economic dimension of the TBL is concerned with the company’s profitability, which enables firms meet their financial obligations. That is, firms need to make profit to be able to pay their employees’ salaries and wages, to pay the shareholders’ dividend, and to ensure smooth and uninterrupted operations of their business. This implies that companies that are financially sound are economically sustainable. 27 University of Ghana http://ugspace.ug.edu.gh 2.2.3.2 Social (People) sustainability Ralston et al. (2015) argue that social concerns such as ethics, employment and equality will influence how businesses are conducted in the future. They define the social dimension of TBL as the process of incorporating desirable objectives and values of the society in the strategic thinking and policy formulation of the firms. This means that there are social implications of whatever a firm does, and companies are accountable for the societal impact of their operations. The businesses’ social impacts embrace legal (compliance with the laws that regulate relationships a firm has with its stakeholders), ethical (ethical manner in which companies operate) and discretionary (voluntarism or philanthropism of the company) dimensions (Ralston et al., 2015). Therefore, socially sustainable companies are those that are legal, ethical and philanthropic in their operations. 2.2.3.3 Environmental (Planet) sustainability It has been established that stakeholders are now environmentally conscious (Romero et al., 2014) and are demanding environmental responsibility and responsiveness from companies (Ong et al., 2016). It is therefore required of companies to be aware of their environmental protection duties. Environmental sustainability, therefore, requires firms to voluntarily go beyond compliance with existing environmental regulations to take environmental initiatives that protect the environment. The question then is how are firms responding to the requirements of environmental sustainability and the demand of stakeholders? A study to investigate the responsiveness of firms to environmental sustainability and stakeholder requirements is thus warranted. 2.2.4 Environmental performance (in the Ghanaian context) There are several aspects of environmental sustainability. Environmental sustainability dovetails into environmental orientation (Banerjee, 2002; Kaltenborn, Andersen, Vittersø & Bjerke, 2012), environmental regulations (Laitos & Wolongevicz, 2014; Gurtoo & Antony, 28 University of Ghana http://ugspace.ug.edu.gh 2007), environmental performance (Halis & Halis, 2016; Albertini, 2017; Mazzi et al., 2016), environmental innovation (Doran & Ryan, 2016; Costantini et al., 2016), green production (Kirmani & Khan, 2016; Nhamo, 2016), environmental reporting (Dobbs & Staden, 2016; Northey, Haque & Mudd, 2013; Lodhia, Jacobs & Park, 2012), environmental strategy (Green, Toms & Clark, 2015; Papagiannakis, Voudouris & Lioukas, 2014; Brulhart, Gherra & Marais, 2017) and environmental management (Lopez-Gamero, & Molina-Azorín, 2016; Albertini, 2013; Halis & Halis, 2016). It is an illusion, therefore, to attempt to envelop the numerous environmental dimensions into a single study. Instead, this study focusses on environmental performance (AKOBEN) in the Ghanaian context. The focus of this study on AKOBEN is borne out of the observation that since its inauguration in November 2010, AKOBEN has not received substantial research attention. Over the period (from November, 2010 to July, 2018), four studies on the AKOBEN have been sighted. One of the studies, Sekyi (2011), was a conceptual study which explained the methodology behind the AKOBEN. The remaining three studies were empirical studies which respectively investigated the strengths, weaknesses, opportunities and threats inherent in the use of AKOBEN (Darko-Mensah & Okereke, 2013), examined the effect of AKOBEN on environmental disclosures of manufacturing and mining companies (Kusi, 2017) and analysed the influence of AKOBEN on the EP of mining companies (Bawua & Owusu, 2018). Obviously, empirical studies linking the AKOBEN rating of firms to other organisational variables, such as firm performance, strategies, capabilities and resources, are highly limited. The current study is then positioned as one of the pioneering studies to explore the linkages between EP in the Ghanaian context (AKOBEN) and FP. The relevance of this study is made more pronounced by the recommendation of Bawua and Owusu (2018) that the time is due for empirical research to be conducted on the influences of AKOBEN as EP of firms on other outcomes (firm performance) of participating firms. 29 University of Ghana http://ugspace.ug.edu.gh It is also not clear what the benefits of AKOBEN is to the participating companies. Stated differently, the benefits of AKOBEN are skewed towards the regulatory body, EPA (getting companies to comply with environmental regulations) and the local communities (public health improvement and socio-economic development). The critical question, ‘…what benefits will it be for companies to comply with environmental regulations, improve environmental quality standards, use environmental resources efficiently and effectively, improve environmental public health, ensure socio-economic growth of local communities and peacefully resolve environmental conflicts’, remains unexplored. In the light of this, the need to investigate the link between the environmental achievements of companies to their overall firm performance is created. Primarily, AKOBEN was developed to be used to evaluate the EP of extractive (mining) and manufacturing companies in Ghana (EPA, 2010), and over the years the AKOBEN has focussed on both mining companies and manufacturing companies (Bawua & Owusu, 2018). Fifty companies (11 mining companies and 39 manufacturing companies) participated in the first edition of the AKOBEN programme launched in 2010 (Darko-Mensah & Okereke, 2013). The 2012 rating involved 100 companies, made up of the 11 mining companies and 89 manufacturing companies (GNA, 2013). Clearly, in terms of industry coverage, AKOBEN concentrates on extractive (mining) and manufacturing (transformative) industries. What is not clear, and requires research investigation, is the criteria used for selecting the mining and manufacturing companies that were included in the AKOBEN ratings over the years. It is also obvious from the ensuing review that the services companies (tertiary industry) is left out of AKOBEN environmental performance rating and disclosure. Even though the EPA announced the inclusion of oil marketing companies as well as hospitality industry in the future AKOBEN ratings to ensure that all companies operate within the environmental laws (GNA, 2013), that dream is yet to be realised. An urgent need to apply the AKOBEN rating 30 University of Ghana http://ugspace.ug.edu.gh to the services sector is thus created. This research seeks to advance the recommendation of Mazzi et al. (2016) and Albertini (2017) that there is the need for research to explore the integration of different EP indicators from across extractive, manufacturing and services industries. 2.3 Implications for the study The relevance of contextual review to the study cannot be over-emphasised. A review of literature on sustainability provides the broader framework within which this study is contextualised. At the global level, review of literature on the SDGs reveals that out of the 17 SDGs, this study relates more appropriately to only six SDGs because of their relatedness to environmental sustainability issues. The study refers to these six SDGs as environmental SDGs. The six environmental SDGs are presented in table 2.2. Table 2.2: Environmental SDGs to which this study relates SDGs Symbol SDG Themes Relevant Area of study SDG 6 Ensure availability and sustainable Water resources and environmental management of water and sanitation for regulation compliance all SDG 7 Ensure access to affordable, reliable, Energy resources and environmental sustainable and modern energy for all regulation compliance SDG 12 Ensure sustainable consumption and Environmental management system production patterns SDG 13 Take urgent action to combat climate Emissions (gaseous waste), climate change and its impacts change and environmental regulation compliance SDG 14 Conserve and sustainably use the oceans, Effluents (liquid waste) and seas and marine resources environmental regulation compliance for sustainable development SDG 15 Protect, restore and promote sustainable Material resources and use of terrestrial ecosystems, sustainably environmental regulation compliance manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss Source: Constructed from GRI, UN Global Compact and WBCSD (2015) 31 University of Ghana http://ugspace.ug.edu.gh A context review on the scope of AKOBEN indicates that AKOBEN has broad-based comprehensive rating criteria. Within the ambit of these comprehensive rating criteria, a research opportunity is created for this study to reconceptualise environmental performance along the value-chain to incorporate both objective and non-objective indicators. With respect to any context review on the industry coverage, AKOBEN focusses on extractive and manufacturing industries, and excludes services industry. However, it is intended that AKOBEN should pull in all industries, using the same comprehensive environmental performance rating criteria (Marko-Mensah & Okereke, 2013). This study stays ahead of EPA to assess the perceptual implications of AKOBEN on the FP of primary (extractive), secondary (manufacturing) and tertiary (service) industries in Ghana. This is in support of the research recommendations of Mazzi et al (2017) that divergent indicators of measuring environmental performance as a result of differences in industry of application are harmonised. 2.4 Chapter summary In this chapter, literature was reviewed on the context of the study. This was done following the concentric approach, which explored EP as a construct from a very broad perspective of environmental sustainability and scaled it down gradually to a narrowly defined EP, even in the Ghanaian context. Sequentially, the chapter discussed global level sustainability, country level sustainability and firm level sustainability. At the firm level, the chapter explained economic, social and environmental dimensions of sustainability, and justified the need to concentrate the study on environmental aspect. The chapter recognised that environmental sustainability has numerous branches, and advanced reasons to justify the need for the study to be directed at environmental performance in the Ghanaian context. 32 University of Ghana http://ugspace.ug.edu.gh CHAPTER THREE THEORETICAL FOUNDATION 3.1 Introduction This chapter provides an overview of the theoretical foundation that underpins the study. The chapter begins with relevance of theory in research. It further indicates the need for and explains theory integration, its challenges and approaches. The chapter examines the resource-based theory, with specific focus on its theoretical lens to distinguish between competitive and non-competitive resources at the disposal of firms. The chapter also discusses the dynamic capabilities theory, emphasizing how the theory aids the transformation of low- order resources into high-order, market-based and competitive resources and competencies through routines, processes and capabilities. The chapter reviews the stakeholder salience theory as a guide to firms in identifying and prioritizing which stakeholder environmental needs to respond to and how the theory drives the organizations’ resource-transformation and capability-building efforts. Finally, the chapter integrates the three theories, highlighting the significance of their integration in the study. The chapter concludes with a chapter summary. 3.2 The relevance of theory in research Theory is defined as a set of interrelated constructs, definitions and propositions that presents a systematic view of various phenomena by specifying relations among variables with the purpose of explaining natural phenomena’ (Gottschalk, 2014, p. 123). This view of Gottschalk (2014) on theory agrees with Creswell’s (2009) who defined theory as an interrelated set of variables formed into proposition or hypotheses that specify the relationships among variables. Theories, therefore, play important roles in management research. They enable researchers to better understand many different aspects of phenomena, to organize ideas about the world, to improve predictions and expectations of entities, and to 33 University of Ghana http://ugspace.ug.edu.gh achieve better understanding of the world (Mile, 2012; Hambrick, 2007; Mayer & Sparrowe, 2013). 3.3 Theory integration In relation to this study and for the relevance of this chapter, Hoffman and Bassal’s (2012) proposition that the conceptualisation of EP makes it difficult to develop theories around it, warrant the need to strengthen its theoretical grounding. The theory integration was based on Aragon-Correa and Sharma’s (2003) assertion that lack of knowledge convergence about how to measure EP and its correlation with FP, results in a weak theoretical foundation. The need to strengthen the theoretical foundation of EP and FP research is thus created. Integration of different theories from different disciplines and domains is essential in strengthening the theoretical underpinnings of a study that is multi-disciplinary in nature. Mayer and Sparrowe (2013) argue that many concepts and research questions cannot be fully answered with a single theory. This suggests that researchers may combine multiple theories to explain what a single theory, used alone, could not address. The application of two or more theories in a single study is thus conceptualized in this study as theory integration, and a mechanism for strengthening the theoretical foundation of a study. The scope of this study makes integration of different theories relevant. The study is a cross- disciplinary, intra-disciplinary, multi-disciplinary, and inter-disciplinary research, which relies on concepts from marketing, sustainability and environmental performance management domains. It is appropriate, therefore, that different theories that are capable of effectively explaining the concepts and elements from different domains and disciplines are integrated. Theory integration occurs when the basic elements of multiple theories are put together in a single study (Mayer & Sparrowe, 2013). This allows scholars to better understand and explain phenomena, and/or to better answer important research questions. The 34 University of Ghana http://ugspace.ug.edu.gh theoretical foundation of this study is thus strengthened through the integration of the resource-based theory (RBT), the dynamic capability theory (DCT) and the stakeholder salience theory (SST). 3.4 Resource-based theory (RBT) As the business environment gets competitively keener, firms are exploring ways and means to either outperform their competitors or, at best, remain competitive. Resource-based strategies are among the several competitive strategies firms adopt. Firms are concerned about the type of resources they use, when, where and how these resources are acquired, the use to which these resources are put and the manner the resources are utilized. Every firm operates with and manipulates resources of different kinds to achieve its objectives. The strategic and competitive acquisition, possession and utilization of resources by firms led to the development of RBT (Barney, 1991). The supposition is that every firm possesses a bundle of resources even in the same industry and that resources are difficult to trade across firms (Kozlenkova, Samaha & Palmatier, 2014). The Resource-Based Theory (RBT) began to take shape in 1980s when Wernerfelt (1984) launched the expression ‘resource-based view’ and emphasized the importance of resources to the formulation, definition and implementation of strategy (Takahashi & Sander, 2017) because resources determine the extent of a firm’s profitability (Kozlenkora et al., 2014). Barney (1991) helped in the transformation of RBV into a full-fledged RBT by outlining the contents and characteristics of resources and competitive advantages. Even though some researchers still use RBV in their studies, RBV has evolved into a theory (Barney, Ketchen & Wright, 2011) because there has been an increasing use and discussions of the term “resource-based theory” among researchers (Takahashi & Sander, 2017). 35 University of Ghana http://ugspace.ug.edu.gh Barney et al. (2011) describe RBT as an important framework that explains and predicts the competitive advantage and performance of companies. In line with Barney et al.’s (2011) description and from the perspective of marketing, Kozlenkora et al. (2014) describe RBT as a framework that provides theoretical and empirical knowledge about the influence of resources on the performance of companies. Similarly, RBT has been defined as a compelling framework that offers integration of multiple resources and their effects on performance (Fang, Boe & Angelidaki, 2011). It is observable, therefore, RBT is one of those few theories that does not suffer from veracity of definition among researchers. Most definitions of RBT, to which this study is aligned, are focussed on RBT as a framework, as a combination of multiplicity of resources, and as explanation and prediction of the effects of those resources on competitive advantages and FP. In addition, the study positions RBT as a framework capable of screening and differentiating competitive resources from non-competitive ones, based on the unique characteristics of competitive resources inherent in the RBT framework. Barney (1991) opines that companies rely on resources to achieve competitive advantages. He posits that resources are competitive only if they are simultaneously valuable, rare, inimitable and non-substitutable (VRIN). This implies that resources that are not valuable, not rare, imitable and substitutable are not competitive enough. The VRIN conditions dominate RBT research. However, Kozlenkora et al. (2014) has identified and replaced ‘non-substitutability’ with ‘organization’ as a critical feature of competitive resources. They justified the replacement of non-substitutability on the ground that resources that are inimitable cannot be substituted. It is therefore tautological to use both inimitability and non-substitutability to describe the same set of resources. They argue further that even if resources are valuable, rare and inimitable, there is the need for organizational policies, processes and procedures to exploit 36 University of Ghana http://ugspace.ug.edu.gh the VRI resources to create sustained competitive advantages (SCA). Their argument is based on their assertion of similarity of resources and capabilities, which is contrary to scholars such as Teece (2007) and Pasino (2015) who assert that capabilities are different from resources and thus require stand-alone theories. Based on the justification advanced by Kozlenkora et al. (2014), this study deletes non- substitutability from the VRIN framework. The study thus follows the VRI framework in the discussion of the characteristics of environmental performance, market-based assets and integrated marketing communication as resources. Additionally, the study follows the logic of the arguments by Teece (2007) and Pasino (2015) and distinguishes between resources and capabilities. In this regard, the study situates the discussion of resources in the RBT framework and, later in the chapter, discusses capabilities in the framework of the dynamic capabilities theory (DCT). As hinted earlier, apart from the resources being tangible or intangible, external or internal, they may as well be competitive or non-competitive, depending on the extent to which they meet the VRI conditions. The study describes the VRI conditions of competitive assets as follows. 3.4.1 Value of resources Valuable resources, according to Crook, Ketchen, Combs and Todd (2008), are those resources that exhibit systematic effects within and across firms. Valuable resources are beneficial to firms. They decrease cost, increase revenue in ways that are not possible without them (Kozlenkora et al., 2014). Generally, resources are valuable if they provide unique benefits to organizations, enabling the organizations to charge significant price premiums thereby boosting their profitability. Specifically, to determine whether or not resources are valuable, Barney and Mackey (2016) recommend that the following set of questions should be asked and answers given as a guide: 37 University of Ghana http://ugspace.ug.edu.gh 1. How does the resource in question create value? 2. Does the resource reduce cost? 3. Does the resource increase revenue? Applying the recommendation of Barney and Mackey (2016) as a litmus test, to test the valuableness of EP, the study argues that EP is a valuable resource of firms. EP, as conceptualized in this study, is predominantly concerned with firms’ compliance with regulations and standards governing the environment, incorporating environmental concerns into business strategies and policies and undertaking environmental initiatives to restore the dignity of the environment. These environmental activities, according to Yang et al. (2013), enable firms to simultaneously minimize the negative effects of their business activities on the environment and at the same time accumulate market-based assets, with their accompanying benefits. Specifically, EP helps firms to increase production efficiency, decrease input and waste disposal costs, increase customer purchasing intention and brand loyalty, charge premium prices for green products, and create business profitability. From the afore-mentioned, EP is one of the valuable resources of firms. MBAs (knowledge, relationships and strong brands) benefit firms tremendously. Scholars, particularly those in relationship marketing, have investigated the value of relationships to firms. Based on their investigations, relationships reduce customer service costs (Kozlenkora et al., 2014), increase profit margin (Morgan, Vorhies & Mason, 2009), induce innovation (Srivastava & Gnyawali, 2011), enhance customer loyalty and referrals (Verhoef et al., 2011) and generate customer value (Palmatier, 2008). An intimacy of a firm’s relationship with its customers increases efficiency, lowers cost of capital and increass customer loyalty (Van Riel, De Mortanges & Streukens, 2005). Market-based knowledge, knowledge about the customers and the businesses environment, aids the development of unique and successful 38 University of Ghana http://ugspace.ug.edu.gh products (Ramaswami, Srivastava & Bhargava, 2009), identification of high-value customers and improvement in customer satisfaction and retention (Srivastava, Fahey & Christensen, 2001). Holistically, MBA generate short-term cash flows and customer loyalty, achieve long- term and sustained cash flow and customer value, improve efficiency, enhance profitability and increase shareholder value of firms (Yang et al., 2013; Srivastava et al., 1998, 2001). MBAs are thus valuable resources of organizations because they increase cash flows, lover cash fluctuation and reduce cash vulnerability. IMC benefits firms in several ways. IMC increases sales, facilitates strategy and policy development (Sellahvarzi, Mirabi & Parizi, 2014), links producers and consumers together (Pearson, 1996), integrates all messages, pictures and products in a customer’s mind (Kotler, 2003), and creates and nourishes profitable relationships with customers and other stakeholders (Andreaus, Costa, Pesci & Taufer, 2014). IMC also helps firms to build not only a competitive advantage in a competitive market (Zaušková, Bezáková & Grib, 2015), but also an innovative and a sustainable marketing strategy (Schouten, 2014). It is obvious therefore that IMC meets the value criterion of the VRI condition of competitive assets. 3.4.2 Rarity of firm resources Another important characteristic that determine whether a resource is competitive or not is rareness. Resources are rare if they are owned by only a few firms and vary among companies in the same industry (Kozlenkora et al., 2014). Resources that are not rare are a source of competitive parity (Barney & Mackey, 2016). Competitive parity occurs when the resources a firm has increase revenues or decrease costs, but other firms are also able to generate similar economic value with the same type of resources. It is, however, contended that the competitive advantages derived from rare resources are temporary, unless supported by inimitability. 39 University of Ghana http://ugspace.ug.edu.gh The conceptualization of EP does not make it a rare resource of a firm. As indicated earlier, EP is predominantly about a firm’s compliance with environmental regulations and standards. These standards and regulations are the same and applicable to all firms within an industry. They are not the preserve of and are not uniquely possessed and controlled by a few firms in the industry. The study therefore regards EP of firms as a lower order (level) and a non- competitive resource for organizations. It must be noted, however, that resources that do not pass the test of rarity condition do not qualify to be tested under inimitability and non- substitutability conditions. This argument is made in line with the defence put up by Barney and Mackey (2016) that questions about the inimitability and non-substitutability of resources are valid only after establishing the rarity of the resources. Therefore, to become rare, inimitable and non-substitutable, to generate temporary and sustained competitive advantages (Barney & Mackey, 2016), EP requires some efforts and the use of other resources and capabilities (market-based assets) to translate it into a higher order asset. MBA vary across firms, and very few firms have successfully created and managed them. It has been argued extensively that intimate customer relationships which produce strong brands are a rare resource of an organization, and are not possessed by all firms (Neilbendle, 2013). Similarly, market-based relationships, considered as assets, are very costly and inconsistent among firms. Business relationships are thus rare resources that firms possess. Stakeholder knowledge, marketing intelligence and customer insight, which are a key component of market-based assets, differ from firm to firm. The rarity feature of market-based knowledge is thus established. Srivastava, et al. (2016) demonstrate clearly that the intimate relationships with channels and customers and tacit knowledge about the business environment are impenetrable competitors. The study concludes on the above argument that MBAs are not only valuable, but are also rare. 40 University of Ghana http://ugspace.ug.edu.gh 3.4.3 Inimitability of firm resources Firm resources that are inimitable are difficult to copy by others. Barney and Hesterly (2012) state that resources are imperfectly imitable if they are substantially costly to obtain or create by or for competitors. Expressing a similar view, Kozlenkora et al. (2014) note that firms’ resources are inimitable, not only when rivals are unable to imitate them at a reasonable cost, but also when they persist overtime, making their benefits enduring for firms. Resource inimitability is achieved through mechanisms such as a unique historical condition, social complexity and causal ambiguity of the resources (Crook, 2008). According to Barney and Mackey (2016), inimitability of resources transforms a temporary competitive advantage into sustained competitive advantage. MBA generally have been identified as inimitable assets. Hooley, Greenley, Cadogan, and Fahy (2005) argue that the development of intimate stakeholder relationships is socially complex and causally ambiguous process. Therefore, relationships cannot be obtained with money (Ouyang, 2009). Kozlenkora et al. (2014) demonstrate that knowledge, a type of market-based asset, is highly tacit and a difficult to imitate construct. On the basis of the aforementioned, MBA in this study are inimitable resources firms have because rivals cannot easily develop direct substitutes for them. The study also assumes the non-substitutability condition of MBA. This is based on Kozlenkora et al.’s (2014) assertion that resources that are inimitable cannot be substituted and create isolating mechanisms. 3.5 Dynamic capabilities theory (DCT) It has been argued that there is no justification to evaluate business activities separately from its environment. As Katkalo, Pitelis and Teece (2010) demonstrate, even when resources fulfil the VRI criteria, inefficient use of them may bring only few benefits. The use to which the resources are put and how they are used are paramount in determining their 41 University of Ghana http://ugspace.ug.edu.gh competitiveness. The DCT is thus a capabilities-based competitive framework developed as a response to critiques of RBT who allege that RBT does not consider the efficient use of resources. Dynamic capability was first defined by Teece et al. (1997) as the ‘firm’s ability to integrate, build and reconfigure internal and external competencies to address rapidly changing environment’ (p. 516). The focus of their definition is on the processes a firm adopts to integrate, reconfigure, gain and/or release resources to match and even create the market change. This study adopts the definition of Wojcik (2015), who simplifies and defines dynamic capability as ‘company’s ability to transform resources, routines, processes and capabilities at its disposal to address rapidly changing environment’ (p. 11) In accordance with this definition, dynamic capabilities refer to the capability of a firm to transform its resource to respond to environmental changes. In this regard, the emergence of dynamic capability depends on change of resources and capabilities, based on needs. That is, dynamic capabilities focus on changing how resources, routines, processes and capabilities are organized to adequately, in a more effective and efficient manner, cater for environmental changes and expectations in order to achieve and sustain competitive advantages. DCT, as a theoretical stream, is developed within RBT but hinges predominantly on capabilities (Wojcik, 2015), makes capabilities its foundation and cornerstone. Capability is defined as efficient use of resources via routines, processes and skills to develop sustained competitive advantage and outperform competitors (Wojcik, 2015). In the context of this argument, the study believes that how best a firm translates its lower order EP resource into higher order MBA for enhanced FP, and how strategically a firm deploys its IMC in influencing EP and FP relationship, are unique capabilities of the firm. 42 University of Ghana http://ugspace.ug.edu.gh 3.5.1 Unique characteristics of capabilities Capabilities differ from firm to firm. Contrast with lower-order resources, as in the case of EP in this study, capabilities are high-order competencies and, as a result, have characteristics that extend beyond the VRI criteria. That is, capabilities, in addition to the VRI characteristics, possess certain unique features. Makadok (2001) identifies degree of objectivity, transferability and embeddedness as those unique characteristics that capabilities have beyond the VRIN condition. 3.5.1.1 Degree of objectivity (transformation) The degree of objectivity feature posits that capabilities in general are centred on transformation and enhancement of efficient usage of resources a firm possesses (Makadok, 2001). This means that capabilities are focussed on transforming processes and resources to make them more efficient and effective. In relation to the study, the degree of objectivity is demonstrated as the ability of the firm to transform (translate) EP from a lower order resource to a higher order MBA. It is also seen in the firm’s use of IMC tools and strategies to positively influence the impact of the firm’s EP on its FP. 3.5.1.2 Degree of transferability The assertion of a degree of transferability feature contends that there is difficulty transferring capabilities from one context to another. Illustrating this feature, Wojcik (2015) states that capabilities cannot simply be taken from one company, be planted into another company and be anticipated to produce a similar outcome. Organizational capabilities are therefore built on routines and processes which create efficiency and effectiveness in a given context. The mechanisms a firm uses, and the extent to which it can change its EP into MBA differs from one company to another. The formulation and implementation of IMC strategies are unique to firms. That is, how a firm builds MBA and deploys IMC is unique and differs from how 43 University of Ghana http://ugspace.ug.edu.gh another firm does them. The variation in the exhibition of these capabilities is linked to the firm’s competitive advantage and overall FP. 3.5.1.3 Degree of embeddedness The degree of embeddedness of capabilities postulates that capabilities are entwined with organizational routines, processes and structures, and are subject to path dependency (Grant, 2005). In the path dependency, each step stems from previous processes. This means that the transformation processes depend on prior events and occurrences. The historical path of development of the organisation is the source of its capabilities (Teece, 2007). Experience, they say, is the best teacher. Companies that are experienced in transforming their EP from lower order to higher order MBA in the past have accumulated and embedded in their systems the necessary transformation capabilities, resulting in their competitive advantage. 3.5.2 Building capabilities The purposefulness of capabilities lies in the creation of competitive advantages. Accordingly, Wojcik (2015) posits that the essence of a firm’s capabilities is to combine its resource base in a way that guarantees imitation barriers. Barriers of imitation or isolating mechanisms are thus built with reliance on causal ambiguity, path-dependency and social complexity, which are linked cross-functionally within the organisation. This linkage does not only increase complexity and hinders transferability, but also creates isolating mechanisms or barriers of imitation and enhances the firm’s sustained competitive advantage. Capabilities with these features are difficult to imitate. The approaches to building isolating mechanisms have been categorized into two perspectives: the Richardian perspective and the Schumpeterian perspective. 44 University of Ghana http://ugspace.ug.edu.gh 3.5.2.1 Richardian perspective The Richardian perspective of capabilities building states that strategically choosing critical resources is a means of creating competitiveness and value (Wojcik, 2015). The Richardian logic is also known as resource picking. According to Hall (1993) resource picking refers to building capabilities based on assets possessed by a firm. These assets stem from regulations (patent, rights, etc.) and from market position (reputation, market relationship, etc.). Therefore, capabilities under this perspective rely on strategic allocation and coordination of resources in possession of the firm. 3.5.2.2 Schumpeterian perspective The Schumpeterian logic develops capabilities based on developed competencies of the organization from functional and cultural viewpoints (Wojcik, 2015). Functionally, the capability building relies on know-hows, which is the firm’s ability to realize certain outcomes or perform certain functions differently and better than competitors. Culturally, the capability building is based on customs, attitudes, beliefs and values, leading to the creation of a sustained competitive advantage. The Schumpeterian perspective, therefore, relies on human activities to build barriers of imitation. In relation to these perspectives, this study holds the view that no single perspective can single-handedly build a more difficult, complex and ambiguous isolating mechanisms required for sustained competitive advantage. There is, therefore, the need for a combined perspective. The combined perspective relies on integrating resources possessed by the firm (Richardian perspective) with functions perform by the firm (Schumpeterian perspective) in building capabilities. This integrative approach to building capabilities requires the dynamism of capabilities, hence the adoption of the dynamic capabilities concept. 45 University of Ghana http://ugspace.ug.edu.gh 3.6 Stakeholder salience theory (SST) Traditionally, under the agency theory, managers of firms are to ensure that whatever they do, in the long run, are in the best interest of the shareholders. Contrary to this view, in the framework of the stakeholder theory, there are non-shareholding stakeholders, described as a disparate group, whose interests must as well be catered for by managers of firms (Boesso & Kumar, 2015). Emphasizing this, Thijssens, Bollen, and Hassink (2015) state that companies have obligations towards both primary and secondary stakeholders. Primary stakeholders are those stakeholders who engage in formal contractual and transactional relationships with a company and include shareholders, managers, employees, customers, and suppliers (Thijssens et al., 2015). Secondary stakeholders, as they explain it, refer to those stakeholders who do not engage in any transactions directly with the company. The secondary stakeholders include communities, religious groups, governments, non-governmental organizations, and media. One of the most cited definitions of stakeholders in literature and that embraces the entire spectrum of both primary and secondary stakeholders (Hult, Mena, Ferrell & Ferrell, 2011) is that of Freeman (1984), who defined stakeholders as any individual or firm, having the capacity to influence and be influenced by the operations of a company. Both primary and secondary stakeholders are demanding environmental accountability from companies. The implication is that a firm’s EP affects and is influenced by a mixed of both primary and secondary stakeholders, at different rates though. Freeman’s (1984) definition of stakeholders is so broad that it leaves no one out of the stakeholder net. Almost anyone is directly or indirectly connected to the activities of a firm. Thijssens et al. (2015), in support, state that virtually anyone can be a stakeholder. Firms cannot satisfy the needs of all stakeholders, particularly, when the stakeholders make multiple 46 University of Ghana http://ugspace.ug.edu.gh and conflicting claims to and demands on the organization (Neville & Menguc, 2006) because the resources are not enough to support that (Thijssens et al., 2015). It is imperative, therefore, that firms respond to the claims of those stakeholders they consider relevant and important. However, if firms are to respond to the claims of some, not all stakeholders, which stakeholders should they choose and why? It is in pursuant of answers to this question that Mitchell, Agle and Wood (1997) developed the Stakeholder Salience Theory as a tool for identifying, prioritising and selecting stakeholders and their claims (Neville, Bell & Whitwell, 2011). 3.6.1 Definition of stakeholder salience theory The postulators, Mitchell et al. (1997), defined SST with emphasis on salience. According to them, salience reflects how managers screen and prioritise stakeholder needs. Resources are allocated to respond to the claims of stakeholders based on the salience of their claims (Thijssens et al., 2015). By extension, Neville et al. (2011) defined SST as a mechanism that identifies and prioritises the claims of stakeholders. Majoch, Hoepner and Hebb (2017) assert that SST acknowledges the firm’s difficulty in meeting of incompatible and unequal interests of stakeholders. On the account of this, the SST has been used to a very large extent to evaluate the relationships companies have with different stakeholders (Mainardes, Alves & Raposo, 2013; Brower & Mahajan, 2013). The SST is a persuasive theory commonly used in management literature (Mainardes et al. 2013). because of its versatility and applicability (Tashman & Raelin, 2013). This study identifies itself with Neville et al.’s (2011) definition of SST, which focusses on the salience attributes managers use to identify and prioritize the needs and demands of stakeholders. Arguably, the development and application of SST rests on stakeholder salience. 47 University of Ghana http://ugspace.ug.edu.gh 3.6.2 Stakeholder salience It is noted that the SST is developed based on stakeholder salience (Thijssens et al., 2015). The stakeholder characteristics which managers consider in responding to conflicting stakeholder claims are referred to as stakeholder salience. Mitchell et al. (1997) define salience as the extent to which managers prioritise the needs of stakeholders. Stakeholder salience, therefore, describes the factors managers consider when deciding which stakeholders to incorporate in their business agenda. Stakeholder salience attributes identified include stakeholder power, stakeholder legitimacy and stakeholder urgency. Following these arguments, this study operationalizes stakeholder salience attributes as the degree to which stakeholders are identified and prioritized based on their power on, legitimacy of and urgency to the claims on a firm. 3.6.2.1 Stakeholder power In defining power, most scholars quote the definition of Pfeffer (1981) who defined power as a relationship among social actors in which one actor, A, can get another social actor, B, to do something that B would not have otherwise done (Thijssens et al., 2015). This study adapts the definition of Gifford (2010) who abridged the definition of power as ‘…the situation where a stakeholder uses coercive, utilitarian and/or normative means to receive response to its claims on a firm’ (p.79). Gifford’s definition is a summary of Mitchell et al (1997)’s explanation of how stakeholders use power to get response to their claims. In the explanation, Mitchell et al. (1997) identified coercive power, utilitarian power and normative power. Coercive power, although may face resistance, uses force, restraints and violence to achieve the desired outcome. Utilitarian power uses material resources (rewards and/or punishment) to influence and achieve outcomes. Normative power concerns itself with the use of symbolic resources (media attention and/or reputation) to influence and obtain the desired end. Some scholars, however, focus on one or two types of power to define stakeholder power. 48 University of Ghana http://ugspace.ug.edu.gh Therefore, the ability of a stakeholder group to influence and receive favourable responses from a firm using force and violence, reward and punishment or media attention and reputation constitutes stakeholder power as an attribute of stakeholder salience. Relating this to the study, it is argued that the environmental stakeholders that are able to use coercive, utilitarian and normative mechanisms to influence firms to respond to their environmental demands have the stakeholder power. 3.6.2.2 Stakeholder legitimacy Stakeholder legitimacy is unanimously defined by scholars as the acuity that whatever a company does is desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs and definitions (Mitchell, et al., 1997; Majoch, 2017; Thijissens et al., 2015; Erdiaw-Kwasie et al., 2017; Boesso & Kumar, 2016). However, in an attempt to identify the source of stakeholder legitimacy, Mitchell, et al. (1997) identified and explained individual legitimacy, organizational legitimacy and societal legitimacy as the degree to which the legitimacy is tied to the individual, to the firm and to the society respectively. Contrary to this categorization of sources of legitimacy, pragmatic legitimacy and moral legitimacy have also been identified and explained. From the stakeholders’ point of view, pragmatic legitimacy is defined as the degree to which legitimacy is tied to the strength of arguments and the amount of new information presented by the stakeholders to management (Gifford, 2010; Majoch, 2017). Using moral legitimacy, managers evaluate how appropriate, desirable and relevant the claims of the stakeholders are (Neville et al., 2011). This study argues that a blend of both pragmatic and moral perspectives of stakeholders’ legitimacy is essential in assessing the desirability and appropriateness of the claims stakeholders make on organisations. 49 University of Ghana http://ugspace.ug.edu.gh 3.6.2.3 Stakeholder urgency Like legitimacy, there is not much variation among researchers about the conceptualization of stakeholder urgency. Stakeholder urgency refers to the degree to which stakeholders’ claims call for immediate attention (Mitchell, et al. 1997; Majoch, 2017; Thijissens et al., 2015; Erdiaw-Kwasie et al., 2017; Boesso & Kumar, 2016). Regarding the source of urgency, Mitchell et al. (1997) posit that stakeholder urgency is derived from criticality and time sensitivity. According to them and scholars like Majoch (2017), criticality relates to the importance managers attached to the claims stakeholders make. It is deductible, in the premise of the above argument, that whatever managers consider critical is important, and will receive urgent attention. On the contrary, whatever is less important to managers is less critical to them and will not merit their urgent attention. Time sensitivity, as a source of stakeholder urgency, is defined as the degree of urgency attached to time pressure (Mitchell, 1997; Majoch, 2017). That is, considering the numerous and conflicting stakeholder claims managers get attracted to and give urgent attention to, those claims of stakeholders that are time bound managers deal with before turning their attention to those claims with less time pressure. The study thus regards stakeholder urgency as the immediacy with which demands of stakeholders are attended to on the basis of criticality and time sensitivity of the claims. It has been established conceptually and empirically that, in the context of stakeholder salience theory, managers of firms urgently respond to the claims of powerful and legitimate stakeholders. Thus, this theory provides guidelines for identifying and prioritizing stakeholders and their claims. 3.7 Integration of RBT, DCT and SST This study is multi-disciplinary. It seeks to investigate how EP impacts FP, FP to build MBAs that resonate with salient stakeholders, and effectively communicate EP to the appropriate stakeholders. Therefore, combining elements of RBT, DCT and SST, allow for better 50 University of Ghana http://ugspace.ug.edu.gh understanding of building MBAs that resonate with salient stakeholders and effectively communicating EP to salient stakeholders than any single one of the theories in isolation. It is argued in this study that building capabilities (DCT) to enhance a firm’s competitive position and to satisfy the requirement of its salient stakeholders (SST), the firms require the use of resources (RBT). Similarly, capabilities (DCT) are needed to deploy and apply resources (RBT) effectively and efficiently in such a manner as will serve the needs of the relevant stakeholders (SST). Therefore, building higher-order MBA (RBT) with lower-order EP (RBT) requires certain capabilities embedded in the organisational processes, routines and competences, and responsiveness to the dynamism of the business environment (DCT). The use of RBT provides a comprehensive understanding of the lower-order and higher-order assets, but lacks the understanding of how these assets are built and used, and how responsive they can be to the changing business environment. Complimentarily, DCT elucidates the mechanisms through which resources are effectively utilised and managed to enhance the fortunes of the organisation. The integration of the RBT with DCT therefore provides a comprehensive and better understanding of the formation and the utilisation of a firm’s lower-order and higher- order assets. The essence of building MBA is to developed resources that appeal to and resonate with stakeholders that the firm considers valuable and critical to the success of the organisation. Therefore, when building MBA, it is important that the firm keeps its eyes on the needs of the relevant stakeholders. This requires a full understanding of stakeholder needs, their identification and prioritisation, and their relationship with the organisation. Because MBAs are built to meet the expectations of key stakeholders, it is crucial that SST, which addresses 51 University of Ghana http://ugspace.ug.edu.gh the identification and prioritisation of stakeholder needs, is integrated with both RBT and DCT, which complimentarily address building sustained competitive advantage through the deployment of resources and capabilities. Effective communication of a firm’s offerings also requires the combination of RBT, DCT and SST. Both resources and capabilities are needed for any marketing communication to be effective. The environmental offerings the firm intends to communicate constitute resources. The degree of competitiveness of the firm’s EP is determined using RBT. Ability to craft an appealing environmental message, select a blend of environmental communication tools and media, and ensure consistency and interactivity somehow defines the firm’s use of DCT. Tailoring and delivering the environmental messages to only those who matter require screening of stakeholders through SST. Therefore, and integration of RBT, DCT and SST provides a better understanding of strategic EP and MBA communication than any one of the three theories will do individually. 3.8 Chapter summary This chapter highlighted the theoretical foundation of the study and indicated that theories enable researchers to better appreciate different facets of phenomena, to organize concepts about the world, and to establish and explain relationships among variables, for improved predictions and expectations of how concepts behave. The chapter, in the context of RBT, distinguished higher order assets from lower-order assets. This distinction is made after the chapter delineated the value, rarity, inimitability and non- substitutability of the key constructs – EP, MBA and IMC – in the study. It is concluded in the chapter that while EP is largely a lower-order asset that needs translation into a higher- order asset for enhanced FP, MBA and IMC are higher-order assets that directly improve FP. 52 University of Ghana http://ugspace.ug.edu.gh The chapter demonstrated that curtain unique capabilities are required not only to translate EP, a lower-order asset into MBA, a higher-order asset, but also to appropriately use IMC tools to communicate EP and MBA to relevant stakeholders. This requires building of capabilities (isolating mechanisms) based on their degree of objectivity, transferability and embeddedness by relying on the key resources of the firms (Richardian perspective) and/or on the functions and culture of the firms (Schumpeterian perspective). To identify, select, prioritise and target the environmental and communication needs of stakeholders, the chapter highlighted the use of stakeholder power, urgency and legitimacy in SST. 53 University of Ghana http://ugspace.ug.edu.gh CHAPTER FOUR CONCEPTUAL FRAMEWORK 4.1 Introduction This chapter creates a platform that brings together the theories and the concepts in this study to interact and form a holistic framework that offers a better and comprehensive explanation of the phenomena under investigation. It therefore serves as an interface between the concepts and theories in the study. Specifically, the chapter discusses and details the stages in developing conceptual framework, with emphasis on explanation of concepts (literature review), description of dimensions of constructs (dimensionality) and establishment of relationships (hypotheses development). The chapter ends with a chapter summary. 4.2 Conceptual framework Conceptual framework is an essential component of research process, and doctoral dissertation for that matter. The conceptual framework in research is constructed to serve as a grounding base or an anchor for selection of topic, development of problem statement, formulation of research objectives, synthesis of literature, crafting of methodological approach and analysis of plan (Grant & Osanloo, 2014). Conceptual framework therefore allows research reports to flow from one thought to another (Lysaght, 2011). This is to say, without a conceptual framework, the structure and vision of a research will not be clear, and there will be a limited usefulness of findings and conclusions (Sarter, 2005). It is believed therefore that conceptual framework is constructed, not found, to incorporate concepts that are borrowed from theories and/or literature (Camp, 2001; Grant & Osanloo, 2014). It represents a conception or a model of what is out there a researcher plans to study, 54 University of Ghana http://ugspace.ug.edu.gh what is going on with those things and why (Robson, 2011). This conclusion led to the adoption of Sinclair’s (2007) definition of conceptual framework that ‘Conceptual framework describes and explains the concepts to be used in a study, their relationships with each other, and how they are to be measured’ (p. 1) Luse, Mennecke and Townsend (2012) contend that conceptual framework enables researchers to specify and define concepts within a research problem. Grant and Osanloo (2014) affirmed that conceptual framework delineates diagrammatically how ideas (concepts) relate to one another in a study. On the advice of Sinclair (2007) that conceptual framework involves mapping out or visualizing theoretical threads to form some diagrammatic representation of interrelatedness, the conceptual framework in this study maps out the interrelationships among EP, MBA, IMC and FP. The study assumes that there is a significant relationship between EP and FP following the studies of Porter and Van de Linde (1995), Wagner (2005), Mazzi et al. (2016) and Albertini (2017) in line with the first objective of the study. Lopez-Gamero et al. (2009) and Aragon- Correa and Sharma (2003) propose an indirect relationship between EP and FP, following the inconsistencies among scholars with respect to the relationship between EP and FP. This indirect relationship, described as mediation strategy, is undertaken with the goal to describe the mechanisms through which effects of EP on FP occur (Hayes, 2013). On this premise and in line with the second objective, the study argues that EP transmits its effects on FP through MBA and IMC. In other words, MBA and IMC explain how EP impacts FP as it is not enough to know whether EP impacts EP but how it does so. In mediation analysis, it is recommended that researchers “Test mediators individually and all together.” (MacKinnon et al., 2012, p.4). In order to test and evaluate the mediators 55 University of Ghana http://ugspace.ug.edu.gh individually and compositely, the study proposes that: (1) MBA and IMC individually mediate the relationship between EP and FP and (2) MBA and IMC simultaneously mediate the relationship between EP and FP. These propositions are consistent with Hair et al.’s (2017), Cepada et al. (2018), Hayes’ (2019) classification of simple, and multiple mediation models. Figure 4.1 below depicts the corresponding conceptual framework of the study. Figure 4.1: Conceptual framework Integrated Marketing Control Market-Based Communication (IMC) Variables Assets (MBA) Message consistency Age Relational assets Stakeholder focus Size Intellectual assets Stakeholder interactivity Type Brand equity Organisational alignment Origin Location Ownership Environmental Per formance (EP) Firm Performance (FP) Legal requirement Cash flow Waste management Cost efficiency Best Envt. Mgt. Practices. Profitability Envt. Complaint Handling Growth Compliance with Standards Stakeholder satisfaction Standard Monit &Reporting Stakeholder loyalty Envt. CSR Source: Constructed from literature 4.3 Development of conceptual framework Regarding the development of conceptual framework, Sinclair (2007) outlines five (5) sequential steps to be followed. The steps are enumerated as follows: i. identifying the relevant concepts, ii. defining those concepts, iii. operationalising the concepts, iv. identifying any moderating or intervening variables, and v. identifying the relationship between variables. 56 University of Ghana http://ugspace.ug.edu.gh However, this study restructures and condenses Sinclair’s (2007) five steps into three stages, based on the basic tenets of his conceptualisation of conceptual framework that conceptual framework describes and explains the concepts to be used in a study, how they are to be measured, and their relationships with each other (p. 1). The restructuring is done to provide a comprehensive but coherent logical flow of “the journey toward theoretical ‘know how’ and ‘know what’” (Sinclair, 2007, p.1). The basic tenets that are followed in restructuring the stages in conceptual framework development in this study are as follows: i. explanation of concepts (literature review) ii. description of dimensions (dimensionality) iii. establishment of relationships (hypotheses development) 4.4 Explanation of concepts (Literature) The study identified and threaded into a framework EP, FP, IMC and MBA as the basic and relevant concepts that have the potency to answer the research questions. It is important that literature on these concepts are comprehensively reviewed. The study, therefore, one after the other, reviews literature on and conceptualises environmental performance, firm performance, market-based assets and integrated marketing communication. 4.4.1 Environmental performance (EP) Different scholars define EP differently based on their environmental perceptions and orientations (Mensah & Blankson, 2013; Garvare & Johansson, 2010; Yang, & Peng, 2011; Zink, 2005; Yang, et al., 2013). EP, in the argument of Green et al. (2014), reflects an organization’s ability to reduce air emissions, effluent emissions, solid wastes and the use of toxic materials resulting from the organization’s operating processes. Their conceptualization of EP is based on environmental outputs, which are basically wastes in solid, liquid, and gas forms. Linder et al. (2014) perceive that EP is often measured using some sort of pollution 57 University of Ghana http://ugspace.ug.edu.gh index or reputation rating. Their definition of EP focusses on pollution control and the company’s environmental image. They were silent on how a company uses resources and how it practises its environmental management systems. But, in the eyes of Albertini (2017), EP is a multidimensional concept, and is best understood from both objective and non- objective perspectives. 4.4.1.1 Objective conceptualisation of EP From objective point of view, EP is defined as the output of environmental management (Schultze & Trommer, 2012; Molina-Azorin et al., 2009). These objective indicators focus on the results of the environmental management system (EMS) and are presented as observable and quantifiable variables (Albertini, 2017). Following this line of argument, GRI (2016) classified objective measures of EP into environmental input resources (materials, energy and water) and output wastes (emissions, effluents and solid wastes). 4.4.1.2 Non-objective conceptualisation of EP Non-objective measures of EP are based on the environmental practices that produce environmental outcomes (Dixon-Fowler et al., 2013), and efforts firms put in place to minimize the negative impacts of their operations on the environment (Lopez-Gamero et al., 2009). This is echoed also in the submission of Schultze and Trommer (2012) that non- objective EP measures highlight the environmental management systems (EMS) – goals, strategies and practices – set up and implemented by firms to manage and improve their EP. Albertini (2017) describes non-objective perspective of EP as the organization’s environmental perception, culture and practices. The non-objective measures of EP, therefore, embraces the environmental management systems (EMSs) a firm engages in in the course of its business operations in order to minimize its negative impacts on the environment. 58 University of Ghana http://ugspace.ug.edu.gh 4.4.1.3 Reconceptualization of EP The diversity of environmental performance measurement indicators (Mazzi et al., 2016), coupled with its multidimensionality (Trumpp et al., 2013) renders its definitions ambiguous. Albertini (2017) indicates that, adopted alone, neither objective conceptualisation nor non- objective conceptualisation comprehensively define and explain a firm’s total EP. There is therefore the need to take a broader view of EP to envelop both objective and non-objective perspectives. Villiers et al. (2016), in an attempt, broaden the focus of EP, and contend that EP focuses on production of products and services that have environmental benefits, undertaking pollution prevention programmes such as emission reduction and toxic use reduction, using recycled materials as resources and/or engaging in recycling activities, and reducing impact of businesses activities on climate change and air pollution through the use of renewable energy, clean fuels, or energy efficiency. Their definition and conceptualisation of EP identifies environmental benefits, recognisable in the absence of negative environmental impact caused by a firm or its products and services. On the basis of Alberni’s (2017) indication and Mazzi et al.’s (2016) recommendation, the study reconceptualises and operationalises environmental performance as follows: Environmental performance refers to the formulation, implementation, evaluation and analysis a firm’s environmental processes aimed at enhancing positive environmental gains as well as minimizing negative environmental impacts of the firm’s environmental inputs and outputs. 4.4.2 Firm performance (FP) The choice of FP as the dependent variable in this study is relevant and empirically supported, as scholars argue that it is most relevant and frequently used outcome variable (Santos & Brito, 2012; Richard, Devinney, Yip & Johnson, 2009; Cho & Pucik, 2005; Sila & Ebrahimpuor, 2005; Wiklund & Shepherd, 2003). However, several challenges characterized 59 University of Ghana http://ugspace.ug.edu.gh the use of FP as dependent variable in research. Its definition, dimensionality and measurement vary among researchers (Selvam, Gayathri, Vasanth, Lingaraja & Marxiaoli, 2016). Santos and Brito (2012) indicated that FP is predominantly measured using financial performance indicators. Financial performance measures, according to them, account for (82%) of indicators used to measure FP, with accounting measures of profitability being the most common choice, representing (52%) of financial performance measures (Combs, Russell & Shook, 2005; Carton & Hofer, 2006; Richard et al., 2009). However, financial performance, represented usually by profitability, growth and market value, does not satisfy the need of all stakeholders (Cho & Pucik, 2005; Selvam et al., 2016). Consequently, the needs of other stakeholders are left out in the use of financial performance indicators in measuring firm performance. Realising the need to incorporate the entire spectrum of stakeholders in the conceptualisation of FP, this study integrates Santos and Brito’s (2012) and Wu’s (2009) definitions of FP. Whiles Santos and Brito (2012) defined FP as “a subset of organizational effectiveness that covers operational and financial outcomes” (p.8), Wu (2009) defined it as “a measure of how well a mechanism/process achieves its purpose” (p.24). The integration of the above definitions is based on the recognition that FP is a complex and multidimensional construct (Selvam et al., 2016). Integrating the above definitions, the study comprehensively conceptualised and defined FP as follows: Firm performance is an objective and/or a subjective measure of the effectiveness (extent of objectives realised) and efficiency (economic use resources) of an organisation’s inputs, operations and outputs, expressed in financial and/or non- financial terms. 60 University of Ghana http://ugspace.ug.edu.gh 4.4.3 Market-based assets (MBA) The activities of every firm influence and are influenced by a bundle of stakeholders with varied and conflicting needs and interests to be served. The tastes and preferences of these stakeholders change quickly. The pressure on firms to respond to these rapidly changing tastes and preferences of stakeholders gets intensified. The competitiveness of the environment gets keener as different competitors continuously and aggressively seek the attention of the same basket of stakeholders. Firm are therefore on the search looking for competitive ways to relate best to their stakeholders and better manage their varied and conflicting expectations satisfactorily. Some firms purposively and constantly interact with different external stakeholders and, in the process, develop certain intangible assets. It is these assets a firm develops from the interaction it has with its external stakeholders that Srivastava et al. (1998) described as market-based assets (MBA). Srivastava et al. (1998) developed the concept of MBA with the argument that marketing is about developing and managing MBAs. This follows the criticism that marketing functions in organizations are predominantly cost units which contribute no value to shareholders. In furtherance of this argument, Yang et al. (2013) allege that the traditional roles and benefits of marketing functions in an organization are limited to a product market aimed at creating and increasing sales. The disagreement with this notion by marketing scholars and practitioners led to the development of the MBA conceptual framework which seeks to make explicit the contribution of marketing to shareholders and to firm value. The MBAs are defined as ‘assets that arise from the commingling of the firm with entities in its external environment’ (Srivastava et al., 1998, p.1). In a similar manner, Yang et al. (2013) define MBA as a multidimensional construct that consists of strong brands, relational assets, 61 University of Ghana http://ugspace.ug.edu.gh and intellectual assets. In this study, market-based assets are conceptualized and operationalised as: Off-the balance sheet strategic intangible resources and capabilities a firm develops by interacting with its internal and external stakeholders through inside-out and outside-in mechanisms in order to improve and sustain its competitive advantages for enhanced overall firm performance. This conceptualization is in line with the definition of Srivastava et al. (1998) and agrees with earlier scholars who asserted that MBAs are intangible (Yang, Zhao, Lou & Wei, 2013; Merrin et al., 2013) and strategic assets (Said et al., 2015). It is also in congruence with the findings of researchers who posited that firms develop, nurture, and leverage MBA in order to derive both internal and external benefits (Hewett & Krasnikov, 2016). Additionally, the operationalization of MBA in this study falls within the general framework of assets described by Wieneke and Lehrer (2016) as all resources, capabilities, organizational processes, firm attributes, information and knowledge owned and/or controlled by a firm. 4.4.4 Integrated marketing communication (IMC) Zauskova et al. (2015) mooted that EP must be supported with the appropriate communication strategies in order to build environmental awareness among customers. They believe that this will help customers choose the right commodities which are in line with sustainable development. Communication with customers is thus an important factor in the success of green production, a critical component of EP. Miklencilova and Capkovicova (2014) note that firms, through IMC, disclose to their customers and other stakeholders that they offer products and services that satisfy their environmental needs. Communication of environmental protection consciousness among customers is thus an essential part of both business processes and an environmental sustainability agenda. 62 University of Ghana http://ugspace.ug.edu.gh IMC, therefore, offers a mechanism through which firms relate their EP to their stakeholders. This is a response to the philosophical question ‘if a tree falls in a forest and no one is a round to hear it, does it make sound?’ (Berkeley, 2009, p. 16). This is to say that without IMC, stakeholders might not know about a firm’s environmental offerings, protection and concerns. IMC is, thus, a crucial means through which firms build environmentally strategic relationships with stakeholders, acquire strategic environmental insights from their stakeholders and create awareness of their environmental brands. Porcu et al. (2012) assert that IMC emerged in the 1990s from the integration of two traditional marketing tools: above-the-line (the use of mass or conversional media) and below-the-line (the use of non-conversional media). Deepening their argument, they state that separate use of above-the-line or below-the-line leads to uncoordinated implementation of communications. The need for a relational approach to communication is thus created. The relational approach to communication is achieved through IMC. In using the IMC concept, Schultz, Tannenbaum and Lauterborn (1993) suggested that the traditional marketing mix (product, price, place and promotion – 4Ps) be replaced with a communication mode (consumer, cost, convenience and communication – 4Cs). They noted that, in the traditional 4Ps, communication is approached from the perspective of persuasion, which tends to be one-way. A relational approach to communication was therefore emphasised (Porcu et al., 2012). IMC is conceptualised and defined differently by different scholars from different perspectives. Duncan and Everett (1993) define IMC as the harmonisation of all messages and media a company deploys to communicate its brand value to stakeholders. From a strategic perspective, IMC is defined as a strategic business process used to plan, develop, 63 University of Ghana http://ugspace.ug.edu.gh execute and evaluate coordinated, measurable and persuasive marketing communication programmes over time with customers, consumers, employees, prospects and other targeted, relevant external and internal audience (Shultz & Shultz, 1998). From an integrative view, Kotler (2000) defines IMC as the integration and coordination of communication channels and consistent and compelling messages about the organization and its products. Broadly, IMC is defined to embrace two-way interactive processes between a firm and its stakeholders. In this context, IMC is defined as the process for managing the customer relationships that drive brand value (Duncan, 2002). Similarly, Sellahvarzi et al. (2014) define IMC as a means of establishing and maintaining profitable relationships with stakeholders. In a summarised form, IMC is defined as a management process that strengthens brand proposals (Fill, 2002). Singh (2014) regards IMC as an integrated way of using all marketing communications to create consistency and synergy in the message sent to the target audience. The veracity of definitions of the IMC has compelled Tafesse and Kitchen (2016) to conclude that there are definitional and conceptual controversies about IMC among scholars. The effect, as they note, is that the theoretical position, definitions and measurements of IMC are vague and uncertain. Affirming this, Porcu et al. (2017) note that lack of conceptual clarity hindered the development of a valid and reliable measurement scale for IMC. However, agreeing with Muñoz-Leiva, Porcu and Barrio-García (2015), they see the differences in definition of IMC among scholars as normal and argue that the conceptualization of IMC has only evolved from the marketing communication centred approached to a broad firm-wide organizational perspective. From a multidimensional and a firm-wide organisational perspective, Porcu et al. (2017) define IMC as: ‘The stakeholder-centred integrative process of cross-functional planning and alignment of organisational, analytical and communication processes that allow for possibility of continuous dialogue by conveying consistent and transparent messages via all media to foster long-term profitable relationships that create value (p.124). 64 University of Ghana http://ugspace.ug.edu.gh This definition appears all-embracing, and is adopted in this study. 4.5 Description of dimensions (dimensionality) As indicated earlier, this study is designed to incorporate EP, FP, MBA and IMC as its main constructs. It is important that the dimensions and indicators that defined and explained each construct are thoroughly explored. Following Sinclair’s (2007) conceptualisation of conceptual framework in which the dimensions of concepts are explained, this study presents the dimensions and indicators that measure each of the concepts around which the conceptual framework is structured. 4.5.1 Dimensionality of EP The conceptualisation of EP is within the framework of AKOBEN and supports the assertion of Darko-Mansah and Okereke (2013) that the AKOBEN’s measures address the interplay among social, economic and environmental aspects of sustainability. The indicators for measuring each of the rating criterion collectively seek to make AKOBEN achieve environmental regulatory compliance, environmental quality improvement, efficient use of environmental resources, public health improvement, socio-economic growth, and peaceful conflict resolution (EPA, 2010). AKOBEN is an environmental performance rating and disclosure (EPRD) programme developed and launched by EPA in November, 2010 (Darko-Mensah & Okereke, 2013). The AKOBEN programme is inspired by the traditional Ghanaian adinkra symbol, akoben, which stands for vigilance and wariness, and signifies alertness and readiness to serve a good cause (Sakyi, 2011; Bawua & Owusu, 2018). The overarching purpose of the AKOBEN programme is to assess the EP of industries in Ghana through rating and disclosure systems. This study, therefore, interprets the AKOBEN as a dual-purpose market-based mechanism that uses 65 University of Ghana http://ugspace.ug.edu.gh rating and disclosure systems to evaluate the EP of firms in Ghana, and to ensure environmental effectiveness and efficiency of Ghanaian companies. The study relies on AKOBEN dimensions and indicators to measure the EP of companies. AKOBEN uses a seven-parameter criterion, embodying seven parameters in assessing the EP of companies in Ghana. These criteria include legal issues, hazardous waste management, toxic and non-toxic releases, monitoring and reporting environmental quality standards, environmental best practices, responsiveness to community complaints and corporate social responsibilities (Darko-Mensah & Okereke, 2013; EPA, 2010; Sekyi, 2011) (see figure 4.2). Figure 4.2: Sequential AKOBEN rating rules Source: Bawua and Owusu (2018, p. 13) The EP level a company achieves is rated using colour codes. The AKOBEN uses a five- colour coding scheme in rating the EP of companies in Ghana (Sekyi, 2011). The five colours are GOLD, GREEN, BLUE, ORANGE, and RED, representing a rating that ranges from excellent to poor. The choice of a colour coding scheme is to demystify the high-level technicalities and jargons associated with environmental evaluation. It also facilitates the communication and understanding of technical and scientific data that pertain to environmental issues (EPA, 2010). The AKOBEN therefore translates technical environmental data into non-technical colour codes that can be communicated and understood 66 University of Ghana http://ugspace.ug.edu.gh easily. Table 4.1 highlights the performance interpretations and implications of the five colour codes used in AKOBEN. Table 4.1: AKOBEN Colour codes and their EP interpretations Source: https://safeghana.wordpress.com/ (Accessed on 7th July, 2018) 4.5.2 Dimensionality of FP Incorporating the needs of stakeholders in the measurement of FP, according to Santos and Brito (2012) and Selvam et al. (2016), will facilitate the use of FP indicators for inter-firm comparison and will close the gap between academia and management practice. In addition, the impact of EP and MBA on FP obviously is the interest of not only shareholders, but also of several other stakeholders, hence the adoption of the stakeholder approach to measuring firm performance. The stakeholder approach conceptualizes that companies should identify the key stakeholders of a firm and the set of performance outcomes that measures their satisfaction should be defined (Santos & Briton, 2012; Selvam et al., 2016). The adoption of the stakeholder approach to measure FP is grounded in the Stakeholder (Salience) Theory (SST), which according to Selvam et al. (2016) offers a social dimension to a company’s objectives. 67 University of Ghana http://ugspace.ug.edu.gh Companies have obligations towards a broader group of stakeholders than just shareholders (Hinson et al., 2015; Hillenbrand & Money, 2007). Scholars emphasize the need to include non-financial factors, relevant to corporate stakeholders, into corporate performance evaluations (Santos & Brito, 2012, Docekalova & Kocmanova, 2015; Raucci & Tarquinio, 2015; Selvam et al., 2016). A similar view was shared by Ayuso, Ángel-Rodríguez, García- Castro & Ángel-Ariño, (2011) when they argue that knowledge sourced from engagement with stakeholders affects firm’s reporting orientation. Therefore, the measurement of FP in this study is reported as a response to pressure from salient stakeholder groups, hence the adoption of SST (see chapter 4). The stakeholder approach to FP measurement sees FP as a complex construct with multiple dimensions and indicators. The approach classifies FP measurement indicators into two major categories: financial performance and non-financial performance. Anning-Dorson (2017) observes that both financial and non-financial performance measures of FP have been used in several studies. He argues further that quantitative financial measure of performance should be matched against qualitative non-financial measures to get accurate business performance. The dimensionality of firm performance as argued by Santos and Brito (2012), Anning- Dorson (2017), Keller (2016) and Srivastava et al. (1998) is adapted in this study. In the study, non-financial performance is dimensioned on stakeholder satisfaction, stakeholder loyalty, and social performance. Financial performance, on the other hand, is assessed based on profitability, growth, market value, cost efficiency and cash flows dimensions. 4.5.3 Dimensionality of MBA MBA takes different forms and types, which determines its measures. MBA measures, based on the conceptualisations by Yang et al. (2013) and Srivastava et al. (1998), are categorized into intellectual, relational, and brand equity. 68 University of Ghana http://ugspace.ug.edu.gh 4.5.3.1 Relational property MBA Founded in the resource-based theory (Barney 1991), relational market-based assets represent outcomes of the relationship between a firm and its key external stakeholders (Srivastava et al., 1998). Markers are committed to building profitable relationships with their customers and key partners, leading to the concept of relationship marketing, seen as MBA. Berry (1983), who introduced relationship marketing, defined it as a process of attracting, maintaining, and enhancing customer relationships. This conceptualisation of relationship is limited in scope because the focus was on customers. Morgan and Hunt (1994) broadened the scope and suggested that relationship marketing embraces all marketing activities aimed at nurturing profitable relational exchanges. Agreeing with Morgan and Hunt, Gummesson (2002) described relationship marketing as marketing based on the interface within systems of associations. The focus of this study, however, is on the outcome of the relationship a firm establishes with its stakeholders, internal or external, in the course of its interaction with the stakeholders. A firm’s relationship with stakeholders contributes and enhances firm value (Fang et al., 2011; Lim & Lusch, 2011). The competitiveness of the relational MBA depends on the quality of the relationship, described as the overall judgment of the strength of stakeholder-firm relationship (Palmatier, 2008). The study relies on Morgan and Hunt’s (1994) Commitment- Trust Theory as a measure of the quality of relational market-based assets. In this framework, the quality of a relational MBA has been conceptualized as a two-dimensional construct that Barnes et al. (2014) argue is indicated by trust and commitment (Hewett & Kransnikov, 2016; Narteh et al., 2013; Morgan & Hunt, 1994). Trust is defined as a stakeholder’s confidence in a firm’s reliability and integrity and vice versa (Hewett & Kransnikov, 2016; Crosby, Evans & Cowles, 1990; Morgan & Hunt, 1994). 69 University of Ghana http://ugspace.ug.edu.gh According to Narteh, Agbemabiese, Kodua, and Braimah (2013), trust, defined as a willingness to rely on the cooperation of an exchange partner in whom one has confidence, is expressed in terms of opportunistic behaviour, shared values, mutual goals, uncertainty, action with positive outcomes, and making and keeping promises. Trust reduces uncertainty and functional conflict, but increases cooperation and commitment (Morgan & Hunt, 1994). Narteh et al. (2013) define commitment as an enduring desire to maintain a valued relationship. This has been summarized from Morgan and Hunt (1994) who conceptualize and define commitment as the belief in the importance of an ongoing relationship. It implies, therefore, that a committed partner is ready and willing to invest the maximum efforts and resources into an ongoing relationship in order to ensure that the relationship endures for a long time. Commitment is thus a stakeholder’s intent to continue a relationship with a firm, and/or a firm’s intent to continue a relationship with a stakeholder. Commitment is very critical for long-standing relationships (Hewett & Kransnikov, 2016). The level of commitment is determined by cost of terminating the relationship, benefits derived from the relationship, shared values of the parties to the relationship, and trust between the parties. The value of commitment to a relationship have been identified to include cooperation and stakeholder loyalty (Morgan & Hunt, 1994), and their accompanying benefits. 4.5.3.2 Intellectual property MBA Intellectual MBAs are the types of knowledge, insight and intelligence a firm possesses about the environment (Srivastava et al., 1998; Srivastava et al., 2001; Yang et al., 2013). It is about the company’s understanding of the needs of stakeholders and how to satisfy them (Wieneke & Lehrer, 2016). This definition portrays intellectual MBA as in-depth and actionable knowledge about stakeholders’ needs and underlying motivations. Their definition confirms 70 University of Ghana http://ugspace.ug.edu.gh that of Said, Macdonald, Wilson and Marcos (2015) who define intellectual MBA as a knowledge about the stakeholder that is available for the firm. Yang et al. (2013), on their part, describe intellectual MBA as market knowledge or organized intelligence of stakeholder needs and market trends. They cite examples of intellectual MBAs to include knowledge about both internal and external environment and marketing know-how embedded in process-based organization and marketing capabilities. Knowledge is power. Therefore, a firm that has adequate environmental information, knowledge, intelligence and insight about its stakeholders than its rivals is better placed to serve the environmental needs of the stakeholders more satisfactorily than its competitors. The knowledge about the stakeholders thus becomes a strategic and competitive MBA. Even though a firm accumulates intellectual MBAs when it is identifying the needs of its stakeholders and when it is managing stakeholder relationships (Yang et al., 2013), the accumulation differs from one firm to another. While Yang et al., (2013) argue that intellectual MBAs are developed from continual interaction with stakeholders, Wieneke and Lehrer (2016) believe that firms that have the capability to acquire and make sense of market information in the business context can turn this information into valuable stakeholder insights that then build intellectual MBAs. According to Said et al. (2015), the generation of intellectual MBA involves exploration and exploitation. Intellectual MBA exploration defines how knowledge about stakeholders comes into the organization and how it is generated within the firm (Weerawardena, Mort, Salunke, Knight, & Liesch, 2015). The intellectual MBA exploration entails identification of the need for stakeholder knowledge, the acquisition of the knowledge, transformation or translation of stakeholder information into stakeholder knowledge and synthetization and analysis of 71 University of Ghana http://ugspace.ug.edu.gh stakeholder knowledge. The exploration of intellectual MBA is substantiated in the context of absorptive capacity as how firms can absorb externally generated knowledge (Wieneke & Lehrer, 2016). They demonstrated that firms absorb knowledge through acquisition and assimilation. Acquisition represents all that a firm does to access knowledge about stakeholders, markets and the general business environment. Said et al. (2015) refer to this as knowledge demand chain management, which they explain as the capability of a firm to acquire stakeholder insight from external and internal sources. This involves recognizing and contracting external suppliers of stakeholder knowledge and building and resourcing internal systems capable of generating stakeholder knowledge. The acquisition of intellectual MBA is thus summarized as the process of generating relevant stakeholder insight both internally and externally. Assimilation, on the other hand, concerns itself with making sense of and understanding the acquired knowledge. It entails the routines and processes embedded in the company. These processes allow the company to analyse, process, interpret and understand the knowledge acquired from both external and internal sources (Wieneke & Lehrer, 2016). After the stakeholder knowledge is acquired and understood, it is important that it is used or deployed to be used across the organization. This is achieved through exploitation of intellectual market-based assets. The exploitation of intellectual MBA is defined as how stakeholder knowledge is deployed as a resource in the firm (Atuahene-Gima, 2010; Said et al., 2015). A similar view is echoed in the submission of Weerawardena, et al. (2015) that intellectual market-based exploitation indicates the use to which existing and acquired stakeholder knowledge is put. 72 University of Ghana http://ugspace.ug.edu.gh Different scholars express different thoughts about the use of intellectual MBA. It is asserted that exploitation of intellectual MBA involves disseminating the stakeholder knowledge across the organization (Fang et al., 2014; Hughes et al., 2013; Said et al., 2015), building a shared interpretation and agreed application of the stakeholder knowledge acquired (Cayla & Arnould, 2013, Said et al., 2015) and storage of stakeholder knowledge into the firm’s memory (Smits & Kok, 2012; Said et al., 2015). Wieneke and Lehrer (2016) posit that intellectual MBAs are exploited through transformation and utilization. Transformation, according to Wieneke and Lehrer (2016), denotes a firm’s capability to develop and refine routines that facilitate combining existing knowledge and the newly acquired and assimilated knowledge. This means that the firm creates actionable stakeholder knowledge by updating the existing stakeholder knowledge and aligning the new stakeholder knowledge with the existing one. The utilization of intellectual MBA, on the other hand, is defined as the firm’s capability to refine, extend and leverage existing competences or to create new ones by incorporating acquired, assimilated and transformed stakeholder knowledge into its operations (Wieneke & Lehrer, 2016). This indicates that a firm that is able to recognize new value-creating opportunities and incorporate stakeholder knowledge into concrete applications will better serve its stakeholders, making it more competitive. In the broader framework of exploration and exploitation of intellectual MBA, this study conceptualizes and describes the processes of generating and using intellectual MBA as: The acquisition, assimilation, alignment, application and assessment of stakeholder insights to enhance the firm’s competitive advantage and market value. 73 University of Ghana http://ugspace.ug.edu.gh 4.5.3.3 Brand equity MBA Researchers contend that brand equity constitutes one of the most valuable resources of a company (Wilden et al., 2010; Sirmon & Hitt, 2009; Vomberg et al., 2015). Wilkof (2018) eulogises that brand equity determines how strong a brand is and provides benefits to all stakeholders. In this case, brand equity, assesses the commercial value of a firm’s environmental orientation, conservation, protection and regeneration. Brand equity originates from brands (Wilkof, 2018). Comprehensively, Kotler (1991), as cited in Keller (1993), sees brand as the use of a name, term, sign, symbol, and/or design to identify and differentiate the products and services of one company from those of competitors. In this context, brand is thought of as a differentiating and positioning tool organizations deploy to be competitive. Therefore, the environmental performance of a firm (the degree of a firm’s commitment to minimize the negative impact of business operations on the environment) is a brand the firm can rely on to become competitive. Brand equity emerged to embrace the various segments of the concept of brand. As Keller (2016) argue, brand equity has been viewed from a variety of perspectives. From customer perspective, he defined brand equity as the differential effect that brand knowledge has on customers’ reaction to brand campaign activities. Adapting Keller’s definition of brand equity, this study regards environmental brand equity as the differential effect that the knowledge of the environment has on stakeholders’ reaction to a firm’s environmental and marketing communication activities. The study thus views brand equity from the perspective of stakeholders. Keller (2016) identifies two approaches to measuring customer-based brand equity: direct and indirect approaches. According to Keller (2016), while the direct approach focusses on 74 University of Ghana http://ugspace.ug.edu.gh the impact of the brand, the indirect approach attempts to measure the brand knowledge itself, not its effects. These two approaches are relied on in this study in line with Keller’s definition adopted in the study. That is, the approaches to measuring brand equity focus on measuring brand knowledge and its effects on stakeholders. The stakeholders’ perceived knowledge about the firm’s EP is thus at the centre of brand equity assessment in this study. Keller (2016) describes the stakeholders’ knowledge of a firm’s EP as any type of mental environmental association of the stakeholders and identifies two components of brand knowledge: brand awareness and brand association (image). Brand awareness, in this case, EP awareness, is a dimension used in measuring brand equity. Keller (1993) refers to brand awareness as the stakeholders’ ability to identify the brand under different conditions. This is linked to brand differentiation (Naidoo & Abratt, 2018) and measures the degree to which a brand is deemed different from other brands (Stahl, Heitmann, Lehmann & Neslin, 2012). Brand awareness reflects how well an identified brand serves its function and consists of brand recognition and brand recall (Keller, 2016). Brand recognition explains the ability of stakeholders to confirm their earlier exposure to the brand whenever they come into contact with it (Keller, 2016). This requires that stakeholders are able to correctly identify, differentiate and discriminate the brand as having been heard of or been seen in previous encounters. Brand recognition plays a crucial role in reminding stakeholders of an organisation’s environmental protection activities. Brand recall, as the second dimension of brand awareness, indicates the stakeholders’ ability to correctly recollect, generate and retrieve the brand from their memory, focussing on such attributes as product category, functions performed and benefits derived (Keller, 2016). 75 University of Ghana http://ugspace.ug.edu.gh Together, brand recognition and brand recall define brand awareness which plays an important role in stakeholder decision making. That is, a firm’s environmental awareness determines whether stakeholders will think about the firm if they think about environmental issues, whether stakeholders will choose the products and services of the firm if faced with competitive brands, and whether stakeholders will want to associate themselves with the environmental activities of the firm. Brand equity also relies on brand association, described as brand image, defined as the perception stakeholders hold about a brand and reflected in stakeholders’ responsiveness towards a brand (Keller, 2016). In the context of the study, the favourable and/or unfavourable perceptions of stakeholders towards the firm’s EP defines the brand image and stakeholder’s subsequent association with the firm. The uniqueness, strength and favourability of stakeholders’ association with the firm, its EP and other offerings play a critical role in determining the degree of stakeholders’ responsiveness towards the firm and its environmental offerings through its marketing activities. Brand association is measured using brand-perceived values (brand as product), brand personality (brand as person), and organizational associations (brand as organisation) (Aaker, 1996). However, Keller (2016) is of the view that the true determinants of the kind of association stakeholders have with a brand include the brand’s attributes, benefits and attitudes. This argument extends beyond the contention of Stahl et al. (2012) that the association of stakeholders to a brand is influenced by the relevance of the brand to their needs. In this study, the stakeholders’ association with the firm’s EP is dependent on descriptive features that characterise the firm and its offerings (attributes) related to EP. The functional, 76 University of Ghana http://ugspace.ug.edu.gh experiential and symbolic values stakeholders attach to the firm and its environmental protection activities (benefits) also influence their association with the company and its environmental brands. In addition, stakeholders' overall positive and/or negative evaluations of the firm and its EP (attitudes) are determinants of their association with the companies and their environmental brands. 4.5.3.4 Interplay among intellectual, relational and brand equity MBAs Srivastava et al. (1998) posit that relational, intellectual and brand equity MBAs intertwine in many ways. As a firm interacts with stakeholders, it acquires environmental insight about its stakeholders, based on which the environmental awareness of and association with stakeholders are deepened, and environmental relationships with stakeholders get strengthened. That is, the more a firm interacts with its stakeholders on environmental issues, the more environmental knowledge it generates from the stakeholders. The richer the environmental knowledge gathered from stakeholders, the better the firm’s environmental attitude, attributes and benefits which form the environmental perceptions of the stakeholders and thus determine the degree of their association with the organization and its offerings. The better the environmental attitudes, attributes and benefits of the firm are to the stakeholders, the more intimate the environmental relationships with the stakeholders are. The study of the combined effects of relational, intellectual and brand equity MBA in relating EP to FP is, thus, warranted. This is in agreement with the study of Vomberg et al. (2015) that concluded that there is the need for interdependent examination of brands equity, relational and intellectual MBA in separate research streams to shed insights into potential interdependencies and contingencies. 77 University of Ghana http://ugspace.ug.edu.gh 4.5.4 Dimensionality of IMC Duncan and Moriarty’s (1998) IMC mini audit is the most popularly used measure of IMC in literature. The mini audit helps in measuring integration of the management of marketing communications under five constructs: organisational infrastructure, interactivity, mission marketing, strategic consistency and planning and evaluation (Singh, 2014). Even though the Duncan-Moriarty IMC mini audit is commonly used, this study relies on the dimensions developed by Porcu et al. (2017). Currency, comprehensiveness and firm-wide coverage of the dimensions developed by Porcu et al. (2017) is the motivation behind its adoption in this study. Porcu et al.’s (2017) firm-wide measure of IMC highlights the following dimensions: message onsistency, stakeholder interactivity, stakeholder-centred strategic focus and organisational alignment. 4.5.4.1 Message consistency Porcu et al. (2017) posit that IMC is based on the principle of ‘one-sight-one-sound’ approach, which they explained to mean coordination of the various communication tools (advertising, public relations, sales promotion, personal selling) and communication messages and graphics (persuading, informing, reminding) across all communication media (print and electronic, conversional and non-conversional, social and non-social). The one-sight-one-sound argument is consistent with Duncan and Moriarty’s (1998) IMC mini audit and confirms the stance of Schultz and Schultz (1998) and Moriarty and Schultz (2012). According to Sellahvarzi et al. (2014), IMC ensures that all forms of communication and messages are carefully linked together. In furtherance of this argument, Kotler (2013) indicates that IMC integrates all messages and pictures of the products in customers’ mind. IMC therefore chooses an appropriate mix of communication tools to fix communication problems and interpret the image of an organization for customers. 78 University of Ghana http://ugspace.ug.edu.gh In line with this, this study believes that the consistency of EP communication tools and messages across all communication media a firm relies on will deepen the firm’s environmental relationship with stakeholders and allows the firm to generate the right environmental insights from the stakeholders. Consequently, there will be an improvement in the environmental competitiveness and overall performance of the firm. 4.5.4.2 Interactivity One of the major weaknesses identified with marketing and organizational communications, based on which IMC emerged, was one-way communication which did not allow stakeholder feedback in the communication process (Porcu et al., 2012). In an attempt to rectify this, interactivity is incorporated in IMC measurement. Interactivity indicates symmetrical two-way communication as an essential condition for dialogue between an organization and all its stakeholders (Porcu et al., 2017). The interactivity dimension has been recognised and captured in the measurement of IMC dimensions also by Duncan and Moriarty (1998), Reid (2003), Moriarty and Schultz (2012), and Porcu et al. (2012). The interactivity is thus a relevant dimension in the measurement of IMC, particularly in communicating environmental performance related issues. This study affirms that interactivity and reciprocity in the communication of environmental protection activities between a firm and its salient stakeholders positions the firm to develop not only MBA, but also a competitive advantage and an improved firm performance. 4.5.4.3 Stakeholder-centred strategic focus The uniqueness of Porcu et al.’s (2017) IMC dimensionality is its stakeholder-centredness. According to them, IMC reflects the company’s need to incorporate added value creation in its strategic gaols. The creation of added value for stakeholders will, no doubt, enable the firm 79 University of Ghana http://ugspace.ug.edu.gh to establish and maintain long-term relationships with the stakeholders. IMC is thus a vehicle through which an organization delivers value to its stakeholders. Porcu et al. (2017) suggest that information must flow among the various units of the firm and among all the agents engaged with the firm. Earlier, Kliatchko (2008) and Moriarty and Schultz (2012) stressed the need to include stakeholder orientation and customer focus respectively in the measurement of IMC. The stakeholder-focus, as a dimension of IMC, is considered critical and relevant in this study because it guides organisations in designing the content of their environmental messages that is relevant to salient stakeholders, in choosing appropriate environmental communication tools that appeal best to the target stakeholders, and in selecting the right environmental communication media through which the salient environmental stakeholders can be reached conveniently with environmental messages. 4.5.4.4 Organizational alignment Prior to Porcu et al.’s (2017) development of IMC firm-wide dimensions, organizational alignment has been suggested by scholars, but in varied forms. Whilst Duncan and Moriarty (1998) and Reid (2005) refer to it as mission marketing, Moriarty and Schultz (2012) and Porcu et al. (2012) describe it as cross-functional planning and management. Organizational alignment refers to vertical and horizontal internal integration of IMC (Porcu et al. (2017). This study contends that IMC (integration and coordination of a firm’s environmental messages and tools across all media) considers the whole organization by aligning organizational process and eliminating functional barriers in order to achieve high level integration. The higher the level of integration achieved through IMC, the better the organization’s environmental and overall performance. This supports Singh’ (2014) argument 80 University of Ghana http://ugspace.ug.edu.gh that IMC integration is used to influence stakeholders and to promote products, services and other offerings of a company. 4.6 Hypotheses development (establishing relationships) The establishment of relationships among the concepts in this study, just like the explanation of the concepts, is based on a tenet in Sinclair’s (2007) conceptualisation of conceptual framework. It is also guided by the proposition of Carlson and Wu (2012) that relationships are established among three sets of variables (independent, dependent and influencing variables). While independent variables represent theorized explanations for changes in outcomes, dependent variables represent outcomes of theoretical changes whose values are caused by or depend on independent variables. Influencing variables, on the other hand, are variables that influence the direct association between explanatory and outcome variables. Hypothesis development, therefore, refers to the establishment of theoretical linkages between the explanatory and outcome constructs. The hypothesised relationships could be direct, indirect or conditional or controlled. 4.6.1 Direct relationships Direct relationships are established when the independent variables cause a change in the dependent variables without the recognition of the impacts of an influencing variable. That is, in the absence of influencing variables, the explanatory construct is hypothesised to directly relate to the outcome variable. The study explores, in its framework, the direct relationship between EP and FP. For several years, many scholars (Ambec & Lanoie, 2008; Chen et al., 2016; Horvathova, 2010; Molina-Azorin et al., 2009) have given attention to the economic impact of EP. Some researchers have concluded that EP boosts economic performance and enhances corporate 81 University of Ghana http://ugspace.ug.edu.gh profitability (Zeng et al., 2010; Fujji et al., 2013). This suggests a positive relationship between EP and FP, though at different significant levels. Other scholars see EP as a source of additional costs that harm competitiveness and economic performance of firms (Horvathova, 2010; Salama et al., 2011; McPeak et al., 2010). They conclude that there is a negative relationship between EP and FP, also at different significant levels. Mazzi at al. (2016), observe a positive and complementary bidirectional relationship between EP and FP. This indicates that better EP determines better business performance and vice versa. However, some scholars also claim that the relationship between EP and FP cannot be established at all (Dragomir, 2013; Guenther & Hoppe, 2014; Muhammad et al., 2015). Indeed, conflicting and unresolved relationships between EP and FP among researcher require a further investigation. The study therefore hypothesises as follows: H1: There is a significant relationship between EP and FP. 4.6.2 Indirect relationships Mediating variables, defined as variables that intervene the connexion between exogenous and endogenous variables (Carlson & Bernerth, 2012), cause indirect relationships to be established between the exogenous and endogenous variables. In the establishment of an indirect relationship, the roles of mediating variables are assessed (Carlson & Wu, 2012). The study therefore explores indirect relationships between EP and FP through MBA and IMC individually and simultaneously. The mediation, according to Prado, Mantovani and Korelo (2014), is the process by which an explanatory variable impacts the outcome variable through one or more mediating variables, and in this case through MBA and IMC. The mediating variables are therefore mechanisms that intervene in-between the antecedent variable and consequent variable (Hoyle & 82 University of Ghana http://ugspace.ug.edu.gh Robinson, 2004). A mediated relationship, in this study, explains how EP impacts FP. This is in accordance with Hayes’ (2013) proposition that it is not enough to know whether EP affects FP, but to know also how EP affects FP. The indirect relationships are described as mediation strategy undertaken with the goal of describing the mechanisms which explain how certain effects occur. Hayes (2013) maintains that mediated relationships seek to illustrate and examine the direct and indirect pathways through which EP transmits its effects on FP. The contention of Hayes (2013) regarding mediation is that a mediated relationship illustrates and examines direct and indirect pathways through which an independent variable transmits its effects on a dependent variable. This study, on the premise of Hayes’ (2013) argument and in line with the second objective of the study, hypothesises that: EP transmits its effects on FP through MBA and IMC. 4.6.2.1 Individual Mediation with MBA Investment in environmental protection activities, though capital intensive (Wagner, 2005), must be seen as investment in marketing strategies which create competitive assets for enhanced business performance (Dickinson & Anderson, 2008). According to Yang et al. (2013), environmental strategies contribute to the increase in relational and intellectual MBA. This reinforces the argument of Sacui and Drumitru (2014) that marketing strategies are investments that create MBA. Therefore, MBA, as a marketing strategy, provides capabilities for firms to translate their EP into sustained competitive advantage towards superior FP. It is important that companies make the best out of their environmental investment by first reorienting their perceptions and attitudes of stakeholders towards EP management, and second linking environmental marketing strategies, such as MBA, to the performance of the firm (Baker & Sinkula, 2005). 83 University of Ghana http://ugspace.ug.edu.gh Therefore, firms that regard their environmental achievements as critical and marketable resources (Kozlenkora et al., 2014; Dangelico & Vacolleli, 2017) in the dynamic environment build MBA to reconfigure and realign their products and services to meet the environmental expectation of their salient stakeholders (Teece et al., 1997). Accordingly, firms with resources and capabilities that are valuable, rare, inimitable and non-substitutable have sustained competitive advantages (Barney, 1991; Shu et al., 2014), and are able to outperform their competitors and enhance their profitability (Wojcik, 2015). Leonidou et al (2013) prove that effective green marketing strategies are conducive capabilities to obtaining competitive advantage, which subsequently increases the potential to achieve superior market and financial performance. In the argument of Miles and Covin (2000), a good environmental stewardship helps create a reputational advantage that leads to enhance marketing and financial performance. It is also demonstrated extensively in extant literature that MBA enhances shareholder value and profitability through sustained competitive advantage and stable cash flow (Srivastava, 2016). The study postulates therefore that: H2: MBA significantly mediates the relationship between EP and FP. 4.6.2.2 Individual mediation with IMC The second individual mediator variable used in the study is IMC. According to Britt (1978), doing business without advertising it is like winking at a girl in the dark, where only the company knows what it is doing but nobody else does. In this context, embarking on environmental protection activity without creating awareness about it is like doing something potentially beneficial which nobody, except the company, is aware of. Dangelico and Vocalleli (2017, p.1264) state that “developing green products/services would be useless for environmental sustainability unless these get widespread in the market”. The need for 84 University of Ghana http://ugspace.ug.edu.gh marketing EP was created as a result. This is because, “marketing is essential and plays a critical role for the creation of green markets by communicating with consumers to increase their aware awareness about environmental sustainability and informing them about the benefits of environmental sustainability products and services.” (Dangelico & Vacolleli, 2017, p.1264). Marketing of EP, as a brand, is situated within the context of DCT, defined as the “firm’s ability to integrate, build and reconfigure internal and external competencies to address rapidly changing environment” (Teece et al., 1997, p.516). In the argument of Madu (2012) and Gonzalez‐Benito and Gonzalez‐Benito (2006), stakeholders are environmental conscious and will align themselves to organisations they perceive to be environmentally friendly. Therefore, relating the firm’s EP to the consciousness of the stakeholders and markets is crucial. IMC is considered a firm’s specific capability appropriate for linking the EP and its potential benefits thereof to markets for enhanced FP. IMC is very crucial in marketing and promotion of EP (Dangelico & Vocalelli, 2017) because the development and implementation of successful EP strategies depend upon good communications (Prothero et al., 1997). Polonsky and Rosenberg (2001) argue that IMC strategies are deployed to communicate environmental sponsorships, environmental-driven product modifications and tangible environmental actions. IMC is very important marketing tool used to educate and inform consumers about a firm’s EP, and is a strong pillar of environmental business excellence (Papadas & Avlonidis, 2014). Zauskova et al. (2015) mooted that EP must be supported with the appropriate communication strategies in order to build environmental awareness among customers. They believe that this will help customers choose the right commodities which are in line with environmental sustainability and sustainable development. Communication with customers is thus an important factor in the success of green production, a critical component 85 University of Ghana http://ugspace.ug.edu.gh of EP. Miklencilova and Capkovicova (2014) observed that firms, through IMC, disclose to their customers and other stakeholders that they offer products and offerings that satisfy their environmental needs. It is established and confirmed that IMC is linked to EP (Skiltere & Bormane, 2018) and to FP (Luxton, Reid & Mavondo, 2017). This implies that EP, to some extent, determines the content and consistency of an organisation’s campaign messages, the media through which the messages are delivered and probably the key stakeholders the messages are targeted at. In turn, the IMC increases the brand value of a firm’s environmental achievements through awareness creation, persuasion, education, and information (Sellahvarzi et al., 2014). This translates into an enhanced overall firm performance (Porcu et al., 2012). The link between IMC and EP, on one hand, and IMC and FP, on the other, creates a breeding ground to mediate the relationship between EP and FP with IMC. Hence, the study hypothesizes that: H3: IMC significantly mediates the relationship between EP and FP 4.6.2.3 Multiple mediation with MBA and IMC Contrary to simple mediation model in which there is only one mediator variable, multiple mediation model occurs when there are two or more mediator variables in a model (Hair et al., 2017; Cepada et al., 2018; Hayes, 2019). This study is structured on MBA and IMC as its mediator variables, and is thus a multiple mediation model. The analysis of the indirect effects of the mediators together (MacKinnon et al., 2012), could be done in parallel (concurrently), serial (sequentially) or combined manner (Hair, et al., 2017; Cepada et al., 2019, Hayes, 2019). To simultaneously test the mediation effects of both MBA and IMC, the study theorises that: H4: MBA and IMC concurrently mediate the relationship between EP on EP H5: MBA and IMC sequentially mediate the relationship between EP and FP 86 University of Ghana http://ugspace.ug.edu.gh H6: MBA and IMC concurrently and sequentially mediate the EP-FP relationship. 4.6.3 Controlled relationships Marketing and environmental sustainability are critical fields of scientific inquiry because they capture the opinion of a large number of organisational scholars (Gardner et al, 2010). Scholars from these domains predominantly use survey research designs to capture marketing and environmental sustainability phenomena of interest (Hiller et al, 2011). Survey studies are exposed to extraneous variables which, if not checked, produce distortions in the observed or theoretical relationships (Spector & Brannick, 2011). According to Bernerth et al. (2018), control variables contaminate measures of interest by influencing theoretical constructs and relationships and how individuals respond to survey items. Consequently, spurious and confounding relationships are produced, hampering the extension, replicability and generalisation of research findings. It is important, therefore, that the distortions and contaminations created by extraneous variables are removed and that the results are purified to establish the intended relationship (Atinc, Simmering & Kroll, 2012). The removal of distortions associated with extraneous variables, from the observed intended relationship, requires the application of a purification principle (the use of the statistical approach to control for extraneous variables) (Nielsen & Raswant, 2018). Researchers believe that the inclusion of control variables in a study yields more accurate relationship estimates between independent and dependent variables, and purifies the results of alternative explanations. The inclusion of control variables in this study is justified with the recommendations chronicled by Bernerth et al. (2018) in the form of questions as follows: 1. What variables are controlled for? 2. Is the inclusion of control variables grounded in theory? 3. Are control variables included in the hypotheses of the study? 87 University of Ghana http://ugspace.ug.edu.gh 4. Are the results of all descriptive statistics and correlations for control variables reported? 5. Is the reliability of control variables assessed? 6. Are the results of the study compared with and without control variables? An attempt is made to provide answers to the first three (1, 2, and 3) questions in this section of the chapter. The other last three (4, 5, and 6) questions are addressed in subsequent chapters. This study focusses predominantly on the impact EP has on FP, directly and indirectly. However, it is predictable that there are a host of other extraneous organisational variables that also affect FP. It is important that these variables are identified and that their estimated impacts on FP are controlled. This is to ensure that intended and hypothesised impact of EP on FP are accurately assessed, and not mixed with the impacts of non-focal variables. In this regard, this study incorporates in its conceptual framework and controls for age of company (Amores-Salvadó, Martín-de Castro & Navas-López, 2014) size of company (Anning- Dorson, 2018), origin of company and ownership of company (Darnall & Edwards, 2006), industry of company (Dangelico & Pontrandolfo, 2015) and location of company (Zhao & Zou, 2002) as the control variables. 4.6.3.1 Age of firm It is argued in extant literature that age of firm distorts the estimated relationship between EP and FP (Amores-Salvado et al., 2014; Dangelico & Pontrandolfo, 2015; Anning-Dorson, 2018). Older firms can leverage their greater experience to better their environmental management processes to improve EP (Autio, Sapienza, & Almeida, 2000). Age of firm has also been used as a control variable in several studies (Bernerth & Aguinis, 2016). In this 88 University of Ghana http://ugspace.ug.edu.gh study firm age is measured by the range of years of the firm’s establishment (Anning-Dorson, 2018; Horbach, 2008). It is estimated therefore that firm age casts a confounding influence on direct, moderated and mediated relationships between EP and FP, creating the need for its control. It is therefore hypothesised that how long a firm has been in existence influences its overall performance. 4.6.3.2 Size of firm It is expected that firm size, measured base on the number of organisational employees (Anning-Dorson, 2018; Amores-Salvado et al., 2014), produces a spurious relationship (direct or indirect) between EP and FP. Large firms can execute more developed environmental processes and achieve a better EP due to the extra resources at their command (Benitez-Amado & Walczuch, 2012). In support, Anning Dorson (2018), notes that larger firms may possess a superior pool of resources, capabilities and competencies that enable them to undertake environmental conservation and protection activities. It is the belief of this study, therefore, that firm size contaminates the hypothesised relationships between EP and FP, hence the need to control for firm size. The study postulates that the number of employees a firm has determines its performance level. 4.6.3.3 Origin of firm The study also controls for firm origin, which measures whether a firm is Ghanaian incorporated or has a foreign origin. It is believed that foreign firms have higher environmental inclination and engage more in environmental sustainability than Ghanaian incorporated firms. It is important that firm origin is controlled for because the impact of a firm’s origin on its EP and EP is not one of the hypothesised relationships intended in this study. It is the proposition of the study that where a company is incorporated impacts its performance. 89 University of Ghana http://ugspace.ug.edu.gh 4.6.3.4 Ownership of firm It is proposed that the ownership structure taints the hypothesised relationship between EP and FP. This is in line with the proposition that the ownership structure can affect how firms pursue environmental sustainability (Darnall & Edwards, 2006). However, the ownership structure is measured differently by different scholars. While some scholars like Annong- Dorson (2018) measures it using whether the company is publicly owned or privately owned, other scholars like Du and Boateng (2015) control for ownership structure through dummy variables that represent whether the company is state owned or non-state owned. This study comprehensively measures the ownership structure with three dummy variables that represent whether the company is privately owned, publicly owned or state owned. Therefore, the ownership of a company is linked to its performance. 4.6.3.5 Industry of firm The framework controls for the industry in which the firm operates. It is anticipated that the industry a firm operates in may spuriously influence the relationship between the company’s EP and FP. The impacts and measures of companies’ activities on the physical environment differ from one industry to another (Mazzi et al., 2016). To check and control for industry effect, dummy variables are used to represent the extractive industry, manufacturing industry and service industry (Dangelico & Pontrandolfo, 2015). The study assumes that the performance of a firm is dependent on whether or not the firm is an extractive firm, a manufacturing firm, or a service firm. 4.6.3.6 Location of firm The impact of the location of the companies on the performance of the firm is controlled for in the study. This is because, according to Zhao and Zou (2002), firms located in coastal areas 90 University of Ghana http://ugspace.ug.edu.gh have higher probabilities of committing to exporting than do firms located inland, and exporters located in coastal areas have a higher export intensity than do those located in inland areas. This implies that the location of a firm impacts its performance. If not assumed and controlled for, the location of the companies in this study may distort the relationship between EP and EP. It is therefore theorised that the location of the firm has no impact on the performance of the firm. 4.7 Chapter summary This chapter exhibited a diagram of the conceptual framework and indicated its development through the stages of literature review, dimensionality and hypothesis development. Literature review and dimensionality focussed on the key constructs that underpinned the study: environmental performance (EP), firm performance (FP), market-based assets (MBA) and integrated marketing communication (IMC). In the review and dimensionality of EP, the chapter identified the objective and non-objective perspectives from which EP is looked at, and highlighted the need to have a combined view of EP. On this basis, the chapter reconceptualised and defined EP as: the formulation, implementation, evaluation and analysis a firm’s environmental processes aimed at enhancing positive environmental gains as well as minimizing negative environmental impacts of the firm’s environmental inputs and outputs. The chapter enumerated the measures of EP as environmental legal requirement, hazardous and toxic waste management, compliance with environmental safety and quality standards, environmental quality data monitoring and reporting, best environmental management practices, environmental conflict resolution, and environmental corporate social responsibility policies, which were AKOBEN measures of EP. 91 University of Ghana http://ugspace.ug.edu.gh Reviewing literature and dimensionality on FP, the chapter indicated the predominant use of FP as depended variable in most studies and justified the need for the use of both financial and non-financial indicators in this study. The chapter enumerated the financial measures as profitability, growth, market value, cash flows and cost efficiency, and summarised non- financial measures as stakeholder satisfaction, stakeholder loyalty and social performance. These measures were used subjectively using stakeholder approach. The chapter traced the development and conceptualisation of MBA in the review of MBA. In the chapter, MBA was conceptualised as: ‘Off-the balance sheet strategic intangible resources and capabilities a firm develops by interacting with its internal and external stakeholders through inside-out and outside-in mechanisms in order to improve and sustain its competitive advantages for enhanced overall firm performance’. Relational (trust and commitment), intellectual (exploration and exploitation) and brand equity (brand awareness and brand association) MBA were identified and explained as the dimensionality of MBA. IMC, as one of the key constructs, was also discussed in the chapter. The discussion focussed on the various conceptualisations and measures of IMC. It was defined as: ‘…the stakeholder- centred integrative process of cross-functional planning and alignment of organisational, analytical and communication processes that allow for possibility of continuous dialogue by conveying consistent and transparent messages via all media to foster long-term profitable relationships that create value.’ The measures outlined in the chapter included message consistency, interactivity, stakeholder-centred strategic focus, and organizational alignment. The hypothesised direct and indirect interrelationships among the constructs were stated. Directly, it was hypothesised that EP would significantly predict FP. Indirectly, MBA and 92 University of Ghana http://ugspace.ug.edu.gh IMC were postulated to significantly transmit the effects of EP on FP both individually and simultaneously. Lastly, firm specific variables such as ownership, origin, size, age, industry and location, which have the potency to directly affect FP or moderate the relationship between EP and FP, were assumed to be constant for all firms and, as a result, were controlled. 93 University of Ghana http://ugspace.ug.edu.gh CHAPTER FIVE METHODOLOGY 5.1 Introduction This chapter describes how the study was carried out. Broadly, it describes the philosophical assumption of the study, indicates the research design approach followed to carry out the study. The chapter also explains issues pertaining to population and sampling. Instrumentation and its validity and reliability are highlighted in the chapter. This is followed by data handling which focusses on data collection through questionnaire administration. The chapter is ended with a chapter summary section. 5.2 Philosophical assumptions Research is guided by philosophy assumptions, defined as a system of beliefs about how knowledge is developed (Saunders, Lewis, & Thornhill, 2015). The philosophical assumption a researcher holds therefore defines the researcher’s paradigm. A research paradigm is an assumption that a researcher holds about what will be discovered and how it will be studied during the research process (Antwi & Hamza, 2015; Creswell & Creswell, 2018). Henn, Weinstein and Foard (2006) define a paradigm as a set of assumptions about how the issue of concern to the researcher should be studied. Thus, a research paradigm delineates the philosophical position of a researcher in the research process. According to Crewell (2009), researchers make ontological (what is knowledge), epistemological (how it is known), axiological (what values go into it), rhetorical (how we write about it), and methodological (the processes for studying it) philosophical claims. 94 University of Ghana http://ugspace.ug.edu.gh 5.2.1 Ontological assumptions Ontology, as a research viewpoint, concerns itself with the study of the nature of social reality (Saunders et al., 2009). Ontology explores the nature of social reality and considers how a given social reality came to be constituted as it is (Given, 2008). Schwandt (2007) concludes that ontology is all about the nature of what it is that the researcher seeks to study. To Blaikie (2010), ontological assumptions make claims about what kinds of social phenomena exist, the condition under which they exist, and how they are related. Ontology, therefore, explains whether a research hold objective view and/or subjective view about how the world operates. 5.2.1.1 Objectivism Objectivism is a philosophical assumption that postulates that social phenomena exist in reality outside of the social actors who are interested in their existence (Braimah, 2014). That is, social reality exists ‘out there’ and is independent of the knower. Kusi (2012) argues further that social reality exists independently of how researchers think of the phenomena. The objectivists believe that there is only one true social reality that can be discovered by all researchers. As a result, the objectivist researchers only seek to discover that true social reality (Saunders et al., 2015). Therefore, the understanding the researchers make of that reality does not influence the existence of the social world. This implies that objectivist researchers study a phenomenon using the assumptions of the natural sciences (Saunders et al., 2015). 5.2.1.2 Subjectivism Subjectivism is a philosophical assumption that asserts that social reality depends on the perceptions and actions of researchers (Saunders et al., 2015). Subjectivism embraces the argument that social reality is created by researchers through their perceptions and actions (Burrell & Morgan 1979). This implies that what the researchers attribute to the social reality is what it is. 95 University of Ghana http://ugspace.ug.edu.gh 5.2.1.3 Ontological assumption of the study The ontological orientation of this study is objectivism, which believes that social phenomena exist in reality (Braimah, 2014), external to the social actors who think of it, label it, or even claim awareness of it. (Kusi, 2012) and is studied following natural science research process (Saunders et al., 2015). This research is purposed to study social reality, the relationship EP and firm FP as it exists. The investigator’s interpretations and experiences do not influence the existence of the relationship (direct or indirect) between EP and FP because there is only one true social reality that can be experienced: how EP impacts FP (Saunders et al., 2015). 5.2.2 Epistemological assumptions Epistemological assumption is about what constitutes acceptable knowledge (Saunders et al., 2015) in terms of validity, legitimacy and communication (Burrell & Morgan, 1979). Variety of legitimate knowledge (numerical figures, text and visual data, stories, narratives and interpretations) exist, making the choice of methodology flexible (Saunders et al., 2015). Epistemology, thus, defines what researchers consider legitimate, whether positive or interpretive, for their research (Thakurta, 2015). 5.2.2.1 Positivism The principles of positivism states that researchers are separate from and independent of the outcome of their research (Remenyi, Williams, Money & Swartz, 1998). This implies that the researchers cannot influence and/or be influenced by the results of their research. As a result, they have nothing or little to do to alter the research process and the outcomes. Positivist researchers choose facts over impressions, have regard for quantifiable and observable social reality, develop testable theories using hypotheses and have concern for replication and generalisation (Gill & Johnson, 2002; Chetty, 2016). Therefore, positivism is characterised by hypothesis testing, and is enshrined in the use of quantitative methods. 96 University of Ghana http://ugspace.ug.edu.gh 5.2.2.2 Interpretivism Interpretivism is an epistemology that postulates that humans are different social actors and interpret social reality differently based on their own understanding (Saunders et al., 2015). It is important therefore that the differences between humans as social actors are understood. This means that social reality is both meaningful and socially constructed. Social reality is created jointly through meaningful interaction between the researcher and the research participant on agreement (Grbich, 2012; Rugg & Petre, 2007) in the participant’s socio- cultural context. The interpretivist researchers are empathetic and try to understand their world from the perspective of the objects they study (Chipangura, Van Niekerk & Van Der Waldt, 2016). Interpretivist researchers therefore create new and richer understandings and interpretations of social reality (Saunders et al., 2015) 5.2.2.3 Epistemological assumption of the study The study thrives on positivism epistemology. A set of theories (RBT, DCT and SST) and hypotheses (H1 to H6) are developed and tested. This is in congruous with the positivist researchers whose stance is to adopt the natural scientist approach to observe social reality by using existing theory to develop hypotheses which are tested and confirmed, in whole or part, or refuted, in which case further testable hypotheses and theories may be developed (Chetty, 2016). As the positivists are concerned with facts rather than impressions, so it is with this research which aims at digging for the facts as they relate to the relationships between EP and FP, whether direct or indirect, whether positive or negative and whether significant or insignificant. The study employed structured methodology in data collection through the use of a highly structured self-administered questionnaire. Data collection, analysis and interpretation were aimed at generalization and replication, leading to the adopted of probability sampling technique, and quantitative methods that allow for generalisation and replication. This is in tandem with the positivism epistemology which frequently uses a highly 97 University of Ghana http://ugspace.ug.edu.gh structured methodology in order to facilitate replication (Gill & Johnson, 2002) and generalization. Positivism is characterized by hypothesis testing, and is embedded in the use of quantitative methods, and is considered more suitable for this study. 5.2.3 Axiological assumptions Axiological assumptions make judgments about value, possessed through aesthetics, ethics and process of social enquiry (Saunders et al., 2015). Axiology is therefore linked to the role of values and ethics within the research process. Human actions are guided by values (Heron, 1996). While some researchers are value-laden, other are value-free. It is important, therefore, that researchers articulate their values because values impact the credibility of research results (Chetty, 2016). 5.2.3.1 Axiological assumption of the study The axiological consideration of the study is enshrined in a value-free paradigm. This agrees with the claim of Saunders et al., (2015) that the positivists conduct research in a value-free manner, based on the assertion that the researcher is independent of and neither affects nor is affected by the subject of the research, and has nothing or little to do to alter the research processes and the outcomes (Remenyi et al., 1998). This research is also premised on the contention that the researcher is independent of the corporate EP of organisation and how that impacts the overall financial and non-financial performance of the organisation and that will not influence or be influenced by the outcome of the research. 5.3 Methodological approaches Creswell (2014) refers to research methodological approaches as the plans and procedures for research that span the steps from broad assumptions to detailed methods of data collection, 98 University of Ghana http://ugspace.ug.edu.gh analysis, and interpretation. Creswell (2018) identifies three research approaches: quantitative approach, qualitative approach and mixed method approach. 5.3.1 Quantitative approach A quantitative study evaluates the relationship among variables in order to verify objective theories (Creswell & Clark, 2007). A quantitative approach uses predominantly structured methodological approach of the natural science (Myers, 2013). Generally, quantitative researchers emphasize the use of numbers which, most often than not, represent values and levels of theoretical constructs. In a quantitative research, the participants usually take part in a large-scale survey in the form of either a questionnaire or a structured interview. This type of study aims at generalization of conclusions, and so depends on a large number of sample or population (Bryman & Bell, 2015). The quantitative research is deployed more in theory testing than in theory generating. Quantitative researchers are ontologically objectivists, epistemologically positivists and axiologically value-free. 5.3.2 Qualitative research approach Qualitative research is an approach that researchers use to study social and cultural phenomena. (Myers, 2013). According to Kitto, Chesters and Grbich (2008), ‘qualitative research most commonly involves the systematic collection, ordering, description and interpretation of textual data generated from talk, observation or documentation’ (p. 1). Qualitative research relies heavily on action research, case study research, grounded theory and ethnography (Staller, 2013). Data for qualitative research are usually gathered through observation, interview and focus group discussion (Kitto et al., 2008). This type of research enables researchers to understand people and social reality in the social and cultural context (Blaikie, 2010). The focus of qualitative research is on the relationship between contextualised elements in relation to a relatively few cases. That is, creating a deeper 99 University of Ghana http://ugspace.ug.edu.gh understanding of the social reality on the basis of how the participants interpret reality in a particular environment. Theoretically, qualitative research is deployed more in theory generating than in theory testing (Kitto et al., 2008). Qualitative researchers are ontologically subjectivists, epistemologically interpretivists and axiologically value-bound. 5.3.3 Mixed method approach Researchers of mixed methods combine elements of both quantitative and qualitative approaches in one study (Sedofia, Antwi-Danso & Nyarko-Sampson, 2018). Cameron (2011) defines mixed methods enquiry as study in which the investigator collects, analyses, mixes, and draws inferences, relying on both quantitative and qualitative data in a single study. The goal of the mixed method research approach may be to have a deeper and better understanding of a phenomenon (something that may not be possible in quantitative or qualitative studies alone), or to make up for the weaknesses in using only one of the two research traditions. As noted by Creswell (2018), mixed methods research helps to broaden researcher’s understanding of phenomena by incorporating both quantitative and qualitative data in one and the same study. The focus of this study is on quantitative data collection and analysis, and the generalisation of findings do not make it practicable for an incorporation of a mixed methods approach into the study. 5.3.4 The methodological approach of the study The quantitative approach best suits the current study. The study aims to test hypotheses by analysing the causal relationship between EP and FP. This was done through the administration of questionnaires to gather a large volume of data and analyse with quantitative statistical instruments, and the finding thereof generalized. The research questions posed in Chapter One can best be answered using a quantitative approach. In addition, the ontological, epistemological and axiological orientations of the quantitative researchers are objectivism, 100 University of Ghana http://ugspace.ug.edu.gh positivism and value-free respectively, which are in agreement with the philosophical inclination of the research, hence the selection of quantitative research approach. 5.4 Research designs Kerlinger (1986) describes research design as a plan and structure of research, designed to obtain answers to research questions. According to van Wyk (2012, p. 4), ‘Research design is the overall plan for connecting the conceptual research problems to the pertinent (and achievable) empirical research’. Research design, therefore, serves as a blue print for the study and provides a link between the research objectives (questions/hypotheses) and the methods used to collect and analyse data. In order to obtain an in-depth and a comprehensive understanding of the research problem, this study on explanatory study design. 5.4.1 Explanatory design Researchers seek causal explanations that reflect tests of hypotheses. ‘Causal effects occur when variation in one phenomenon, an independent variable, leads to or results, on average, in variation in another phenomenon, the dependent variable (Kerlinger, 1986, p. 23). Van Wyk (2012) argues that explanatory research is structured in nature, and is aimed at identifying any causal effects independent variables have on dependent variables in a particular research problem. Therefore, explanatory design focuses on developing causal explanation (causality), which indicates that one phenomenon (Y) is directly or indirectly affected by another phenomenon (X). An explanatory design is imperative in this study because the study is interested in investigating whether or not EP of Ghanaian companies impact on their FP (and the magnitude of the impact), directly or indirectly (through which medium). Of course, an explanatory design is best suited in providing answers to the above research objectives. 101 University of Ghana http://ugspace.ug.edu.gh 5.5 Sampling design According to Churchill and Peter (1995), as cited in Braimah (2014), the sampling design follows a six-step process as follows: defining the study population, identifying the sampling frame, selecting the sampling procedure, determining the sample size, selecting the sample elements and collecting data from the designated sample elements. In this study, the sampling design embraces the first-five steps in the Churchill’s sampling design process. The sixth step is considered more appropriate under data collection than under sampling design. 5.5.1 Defining the study population Braimah (2014) defines a study population as the totality of all the elements that share common features. Target population, in this regard, can be described as all the elements that possess the attribute of or information of interest to the researcher. To specify the population of this research, the list of all mining companies, manufacturing companies and star rated hotels were obtained from the Minerals Commission (MC) of Ghana, Association of Ghana Industries (AGI) and Ghana Tourism Authority (GTA) respectively. The lists were obtained with introductory letters (see Appendices M, I and K) from the researcher’s department of study (Department of Marketing and Entrepreneurship) and letters (see appendices N, J and L) from the researcher, requesting information about the mining companies, manufacturing companies and star rated hotels respectively. The population of this research, therefore, comprises all mining companies regulated by the MC, all manufacturing companies registered with the AGI and all star-rated hotels regulated by the GTA. The population of this study, drawn from the extractive, manufacturing and services industries, shown in table 5.1 below, is finite and known. 102 University of Ghana http://ugspace.ug.edu.gh Table 5.1: Industry classification of the population Industry No of Source companies Extractive (Mining 14 Mineral Commission, (2018) companies) Manufacturing 298 Association of Ghana Industries (AGI), (2018) Services (Star rated Hotels) 705 Ghana Tourism Authority (GTA), 2018 Total 1017 Source: Compiled from the lists obtained from MC, AGI and GTA This finite population of 1,017 companies from extractive (mining), manufacturing and service (star-rated hotels) industries are spread all over the country. The table 5.2 below gives a brief summary of the regional classification of mining companies, manufacturing companies and star rated hotels in Ghana. Conducting a census of the population of interest in a research is an effective way of obtaining results that are representative of the population of the study. However, considering the population of this study, it is not practicable to conduct a census of the population. This creates the need for a sampling frame to be designed. Table 5.2: Regional and industry classification of the population Region Extractive Manufacturing Service Total Percentage (Mining) (Hotels) Greater Accra 0 226 243 469 46.12% Ashanti 2 15 123 140 13.76% Western 9 13 109 131 12.88% Eastern 1 11 85 97 9.54% Central 1 5 52 58 5.70% Volta 0 7 34 41 4.04% Brong Ahafo 1 7 26 34 3.34% Northern 0 6 18 24 2.36% Upper East 0 5 8 13 1.28% Upper West 0 3 7 10 0.98% Total 14 298 705 1017 100% Percentage 1.38% 29.30% 69.32% 100% Source: compiled from AGI, (2018); MC (2018); GTA (2018) 103 University of Ghana http://ugspace.ug.edu.gh 5.5.2 Identifying sampling frame Babbie (2005) defines sampling frame as a list or quasi list of units that make up a population from which a sample size may be drawn. It represents a list of all eligible sampling units (Malhotra, 2007). A sampling frame, therefore, represents that portion (or all) of the population from which the sample for the study will actually be drawn. The sampling frame in this study is drawn from five regions of Ghana. The study concentrates on mining companies, manufacturing firms and star rated hotels drawn from the Greater Accra, Ashanti, Western, Eastern and Central regions of Ghana. The exclusion criterion used is materiality of industry concentration. Applying the materiality concept criterion, regions that have less than 5% (<5%) of industries in Ghana are excluded from the study. As indicated in table 5.2 above, the Upper East, Upper West, Northern, Brong Ahafo and Volta regions are excluded from the study sampling frame because their respective industry concentration of 0.98%, 1.28%, 2.36%, 3.34% and 4.04% fell below the 5% threshold. Table 5.3: Regional and industry classification of the sampling frame Region Extractive Manufacturing Service Total Percentage (Mining) (Hotels) Greater Accra 0 226 243 469 46.11% Ashanti 2 15 123 140 13.77% Western 9 13 109 131 12.88% Eastern 1 11 85 97 9.54% Central 1 5 52 58 5.70% Sample Frame 13 270 612 895 88.00% Percentage 92.86% 90.60% 79.43% 86.80% Population 14 298 705 1017 100% Source: Extracted from table 5.3, based on data from AGI (2018); GTA (2018); MC (2018). The industry concentration of the five regions included in the sampling frame are given in table 5.3. The five regions (Greater Accra, Ashanti, Western, Eastern and Central) included in the research accounted for 92.86% of mining companies, 90.60% of manufacturing companies and 79.43% of star rated hotels in Ghana. Together, they control 895 (representing 86.80%) out of the total of 1017 companies. This is consistent with the findings of Lawson 104 University of Ghana http://ugspace.ug.edu.gh (2016) that over three-quarter of all businesses in Ghana are concentrated in the southern regions. Therefore, limiting the scope of the present study to regions that control over 80% of companies in Ghana is considered an excellent representation of the population. 5.5.3 Determining sample size The sample size is defined as the total number of elements or units to be included in a study (Saunders, Lewis & Thornhill, 2009). The sample size therefore explains the adequacy of the elements or units that can effectively and adequately be representative of the population of interest. Accurately estimating the required sample size is fundamental to the success of any research and is important in producing meaningful results (High, 2000). Several formulas (Islam, 2018; Israel, 1992; Bartlett, Kotrlik, & Higgins, 2001) as well as rules of thumb (Hair, Black, Babin, Anderson & Tatham, 2006) exist for determining sample size adequacy. The adequacy of the sample size in this study is determined using the sample size adequacy table (see Table 5.4) constructed by Krejcie and Morgan (1970) based on a formula developed by the Research Division of the National Education Association (NEA) of USA in 1960 as an efficient method of determining the sample size needed to be representative of a given population. X2 NP (1-P) Sample Size = d2 (N-1) + X2P (1-P) X2 represents: The value of chi-square for 1 degree of freedom at the desired confidence level N represents: Population size P represents: Proportion of population that provides maximum sample size d represents: Degree of accuracy According to Krejcie and Morgan (1970) this formula is applicable if the population of the study is finite and is known. Duo-Chuan (2006) notes that estimation of sample size in 105 University of Ghana http://ugspace.ug.edu.gh research using Krejcie and Morgan’s (1970) table of sample size determination is a commonly employed method. In this study, although the population comprises different industries (extractive, manufacturing and service), the number of registered companies in each category can be determined with precision, making the adoption of the NEA (1960) suitable and applicable. From Table 5.4, as the population increases, the sample size increases, but at a decreasing rate. From the table, 285 sample size corresponds to the population of 1,100 (approximated to 1,017). The study therefore relies on 285 companies drawn from extractive, manufacturing and services industries as its sample size. Table 5.4: Table for determining sample size for known population Retrieved from https://qhaireenizzati.wordpress.com/2017/10/05/sample-size- determination-using-krejcie-and-morgan-table/ on 13th August, 2018. 5.5.4 Selecting sampling procedure Sampling is adopted when it is difficult to obtain information from the entire population or the sampling frame. However, it is important that the sample selected is representative of the 106 University of Ghana http://ugspace.ug.edu.gh population from which the sample is drawn (Hair et al., 2003). The approach that ensures that the sample selected is representative of the population or sampling frame is described as sampling procedure (Babbie, 2005). Therefore, the sampling procedure describes the procedure the researcher adopts to effectively identify and select elements from the sampling frame for inclusion in the study. Sampling procedures are classed into two major categories: probability and non-probability sampling procedures (Babbie, 2005). In a probability sampling procedure, each element in the population or the sampling frame has an equal chance of being selected (Malhotra & Birks, 2007). Non-probability, which relies heavily on personal judgment, is used in instances where the probability of the elements being selected into the sample is not known (Malhotra & Birks, 2007). Researchers claim that that probability procedure has a greater potential of producing a representative sample of the population of interest than non-probability procedure (Babbie, 2005). On the basis of this argument, the study adopts a probability sampling procedure. Specifically, the study relies on multi-stage stratification. A stratification sampling approach is relied on when the population is in different categories and the researcher is interested in representation from each category (Kumar, 2019). The multi-stage stratification is adopted because the population has different bases of categorisation which are of paramount importance for the researcher (Brown, Richardson, Hargrove & Thomas, 2016). These categories include industry categorization, regional categorisation and rating categorisation. However, because rating categorization does not apply to all the industry of concern, the study focuses on industry stratification and regional stratification. 5.5.4.1 Industry stratification The population of this study embraces extractive industry (represented by mining companies), manufacturing industry and service industry (represented by star-rated hotels). Industry stratification is operationalised in this study as the selection of sample size to represent all the industries that make up the study population (Brown et al., 2016). Industry stratification in 107 University of Ghana http://ugspace.ug.edu.gh the current study is, however, limited to manufacturing and service industries only. This is because these industries have a relatively large number of companies (270 manufacturing companies and 612 hotels). There are only 14 mining companies representing the entire extractive industry in this study. The study therefore adopts the census approach and selects all the 14 mining companies as the sample size. This is to ensure that the extractive industry is also adequately represented in the study. Table 5.5 illustrates industry stratification of the study. Table 5. 5: Industry classification of the sample size Industry Population Sample Frame Calculation Sample Size Extractive 14 13 13 Manufacturing 298 270 [(270/8821) x 2722] 83 Service 705 612 [(612/8821) x 2722] 189 Total 1017 895 285 8821 = 895-13; 2722 = 285-13 5.5.4.2 Regional stratification Regional stratification is conceptualised in the study as a procedure for determining a sample size representative of all the geographical regions (areas) a study population extends to (Brown et al., 2016). This study, as indicated earlier, covers five regions of Ghana, namely the Greater Accra, Ashanti, Western, Eastern and Central regions. It is important that the sample size is chosen in a manner that will allow all the geographical regions of the study population to be sufficiently represented. Regional stratification is suitable for this purpose. It is depicted in Table 5.6 below: Table 5.6: Regional classification of the sample size Region Population Calculation Sample Size Greater Accra 469 [(469/882a) x 272b] (144+0) = 144 Ashanti 140 [(138c/882a) x 272b] (42+2) = 44 Western 131 [(122d/882a) x 272b] (38+9) = 47 Central 58 [(57e/882a) x 272b) (18+1) = 19 Eastern 97 [(96f/882a) x 272b] (30+1) = 31 Total 895 285 a = 895-13; b = 285-13; c = 140-2; d = 131-9; e = 58-1; f= 97-1 108 University of Ghana http://ugspace.ug.edu.gh 5.5.5 Selecting sample elements Sample element selection involves explanation of how a particular sampling procedure is applied in drawing the required sample size from the sampling frame (Iowa State University, n.d.). In this study, after industry and regional stratification, a simple random sampling technique is adopted to draw samples from each stratum. For each stratum, every company in the sample frame is coded with a unique number on a piece of paper, packed in a container and shuffled thoroughly to achieve a perfect mix. Then, one after the other, without replacement, a coded piece of paper is drawn from the container until the required number of sample size for a stratum is exhausted. This activity is repeated until the required sample size is selected from all the strata. A list of the sampled companies, with their codes and contact particulars, was compiled. The required sample size drawn from each stratum is shown in table 5.7. The simple random sampling technique used in selecting the participating companies is triangulated with purposive sampling method in selecting the respondents from the chosen companies. The study is a firm-level survey targeted at Chief Executive Officers (CEOs), Managing Directors (MDs) or Top Managers (TMs). World Bank Group (2019) reports that a firm-level survey is better answered by top managers. Therefore, by virtue of their positions and roles, CEOs, MDs and TMs are better positioned to provide managerial information on behalf of their companies. Each company is represented by one respondent, in the capacity of CEO, MD or TM, purposively chosen. The respondents (per stratum and total) are presented in table 5.7. 109 University of Ghana http://ugspace.ug.edu.gh Table 5.7: Regional and industry classification of the sample size Region Industry Population Calculation Sample Size Greater Accra Extractive (Mining) 0 Entire population 0 Manufacturing 226 [(226/469) x 144] 69 Service (Hotels) 243 [(243/469) x 144] 75 Sub-total 469 144 Ashanti Extractive (Mining) 2 Entire population 2 Manufacturing 15 [(15/138a) x 42b] 5 Service (Hotels) 123 [(123/138a) x 42b] 37 Sub-total 140 44 Western Extractive (Mining) 9 Entire population 9 Manufacturing 13 [(13/122c) x 38d] 4 Service (Hotels) 109 [(109/122c) x 38d] 34 Sub-total 131 47 Eastern Extractive (Mining) 1 Entire population 1 Manufacturing 11 [(11/96e) x 30f] 3 Service (Hotels) 85 [(85/96e) x 30f] 27 Sub-total 97 31 Central Extractive (Mining) 1 Entire Population 1 Manufacturing 5 [(5/57g) x 18h] 2 Service (Hotels) 52 [(52/57g x 18h] 16 Sub-total 58 19 Grand Total 895 285 a = 140-2; b = 44-2; c= 131-9; d = 47-9; e = 97-1; f = 31-1; g = 58-1; h = 19-1 5.6 Data collection Data collection spans the strands of data collection methods, data collection instrument and questionnaire administration. 5.6.1 Data collection method The data collection method(s) used in a study depend(s) on the data type(s) (Macalester College, 2019). This study relies on primary data, information collected for the specific purpose of a study (Kumar, 2019). The quantitative primary data were collected through a survey. This was based on the argument of Babbie (2005) that surveys are research techniques 110 University of Ghana http://ugspace.ug.edu.gh used for descriptive, explanatory and exploratory purposes, which are in line with the purpose and design of this study. 5.6.2 Data collection instrument Data type influences choice of data instruments (Macalester College, 2019). Quantitative primary data were gathered using a questionnaire. A questionnaire is described as a structured technique, consisting of a series of questions, used for collecting data (Malhotra, 2007). Questionnaires request respondents to answer the same set of questions in a predetermined order (Saunders, 2009). Using a five-point Likert scale, ranging from “1 – strongly disagree” to “5 – strongly agree”, the questionnaire used in this study (see appendix A) was divided into 5 sections (A, B, C, D and E). Section A elicited firm-specific information (origin, size, age, ownership, industry and region of location) which were controlled for in the study. Section B centred on items relating to the dimensions of corporate EP. The measures of corporate EP were adapted from Sakyi (2011), and included legal requirements, hazardous waste management, toxic and non- toxic releases, monitoring and reporting environmental quality standards, environmental best practices, responsiveness to community complaints and corporate social responsibilities (Darko-Mensah & Okereke, 2013). Section C highlighted items measuring FP. FP measures (stakeholder satisfaction, stakeholder loyalty, and social performance, profitability, growth, cost efficiency and cash flow) were adapted from Anning-Dorson (2017), Katsikeas, Morgan, Leonidou, and Hult (2016), Santos and Brito (2012), and Srivastava et al. (1998). Section D focussed on indicators that measure IMC. The IMC dimensions used comprised message consistency, stakeholder interactivity, stakeholder-focus and organizational alignment. These indicators were adapted from Porcu et al. (2017). MBA indicators, adapted from Srivastava et al. (1998), Said et al. (2015), Keller (2016), and Morgan and Hunt (1994) were the 111 University of Ghana http://ugspace.ug.edu.gh concentration of section D of the questionnaire. The dimensions used in measuring MBA encompassed exploration, exploitation, trust, commitment, brand awareness and brand association. 5.6.2.1 Instrument validity It is important that the primary data collection instruments are valid and reliable. Validity refers to the extent to which an empirical measure adequately reflects the real meaning of the concept under consideration (Babbie, 2005). This means that the instrument should measure exactly what it intends to measure. To achieve this, the study adopted multiple validity measures to ensure robustness of the questionnaire. These include face validity, content validity, construct validity and predictive validity (Kumar, 2019). Face and content validities were checked before the initial reliability test, while construct and predictive validities were measured after the initial reliability test. Face validity check was performed with two non-marketing and four marketing PhD candidates and three non-marketing lecturers from Lancaster University, Ghana, St. Francis College of Education, and University of Cape Coast. Their task was to check for ambiguity and simplicity of items and also to establish if there were links between the items of the questionnaire and the objectives of the study. Their comments were incorporated into the revised version of the questionnaire. Content validity was established using expert knowledge from marketing scholars (supervisors) and an official from EPA in charge of environmental performance rating and disclosure. The experts verified the adequacy, comprehensiveness, balance and relevance of the dimensions and the items contained in the questionnaire. Based on their 112 University of Ghana http://ugspace.ug.edu.gh recommendations, a number of items were added, some deleted and others modified, leading to the second revised edition of the questionnaire. After pretesting the questionnaire, the data gathered were used to test for construct and predictive validity. Construct validity involves ascertaining the contribution of each construct to the total variance observed in a phenomenon (Kumar, 2019). Factor loadings and total variance explained in eigenvalue were used to determine the construct validity of the questionnaire used in data collection. Predictive validity of the questionnaire was established through correlation analysis and regression analysis of the data gathered through pretesting of the questionnaire. According to Kumar (2019), predictive validity is determined by the extent to which the questionnaire can predict an outcome, expressed in terms of the correlation coefficient between the predicted status and the criterion. Some items that did not load well were deleted and the questionnaire revised ready to be administered. 5.6.2.2 Instrument reliability Touching on reliability, Kumar (2019) asserts that the concept of reliability in relation to a research instrument means that the instrument is consistent and stable, hence predictable and accurate. The reliability of a scale indicates how free it is from random error (Pallant, 2011). It is a measure of the degree of accuracy or precision in the measurements made by a research instrument. That is, the questionnaire is reliable only to the extent that repeat measurements made by it under constant conditions will give the same result. Therefore, the greater the degree of consistency and stability in an instrument, the greater its reliability. 113 University of Ghana http://ugspace.ug.edu.gh The questionnaire was pilot tested on 23 managers of hotels and guest houses and 12 persons in management position of manufacturing firms, all in Greater Accra. This was done to ascertain the reliability of the questionnaire. Another way of establishing reliability of the questionnaire is the test of internal consistency. Internal consistency is defined as the degree to which the items that make up the scale are all measuring the same underlying attribute (Odoom, 2016). In this study, internal reliability was established with Cronbach alpha, pegged at values not less than 0.70, obtained from SPSS. The Cronbach alpha is the most commonly used indicator of reliability. 5.6.2.3 Questionnaire administration After the potential respondents were determined and selected (section 5.5.5), and the data collection instrument was designed and validated (section 5.6.2), the next step was to solicit responses from the respondents using the designed instruments. This was done through the use of questionnaire administration. The questionnaire administration describes the steps taken to distribute and retrieve questionnaires from the respondents. The questionnaire administration in this study followed a four-step procedure, briefly described below. 5.6.2.4 Preliminary calls The researcher made preliminary calls to inform the sampled companies about the intended research and to inquire about their willingness to participate in the study. However, the researcher was not able to reach all the sampled companies through the preliminary calls. It must be noted also that a good number of companies declined to participate in the research, and were replaced through the same process of simple random selection (see Table 5.8) 114 University of Ghana http://ugspace.ug.edu.gh 5.6.2.5 Permission and introductory letters The second stage in the questionnaire administration process was the presentation of permission and introductory letters to the sampled companies which agreed to take part in the study. The researcher wrote generic permission letter (see appendix C) addressed to the companies, explaining to them the purpose of the research, what was expected from them, the benefits they stand to gain as well as ethical assurances. Attached to the permission letter was a ‘to whom it may concern’ introductory letter, obtained from the Department of Marketing and Entrepreneurship (see appendix B). This letter introduced the researcher to the sampled companies, requested their cooperation with and assistance to the researcher, and assured them of the use to which the information they would provide would be put. The researcher hand-delivered these letters (together with the questionnaires in some instances) to the sampled companies across the five regions. The companies the researcher could not reach due to difficulty in locating them (particularly those in regions other than Greater Accra) were replaced through the simple random sampling technique. However, the replacement at this stage was limited to companies in the Greater Accra region. This was based on the reasoning that out the five regions, Greater Accra controls more than 50% (144 out of 285) of all the sampled companies, in addition to logistical constraints. 5.6.2.6 Questionnaire distribution This research, as indicated earlier, was a firm level study where CEOs, MDs or TMs at the top echelon of their companies were the targeted respondents. Having access to them at the time permission and introductory letters were being distributed was a major challenge. Appointments were then booked with their secretaries and/or receptionists. In most instances, it was during the appointment meetings that the questionnaires were distributed to the respondents or their appointed representatives. This was accompanied with an explanation of 115 University of Ghana http://ugspace.ug.edu.gh the purpose of the research and expected role of the company in the research process. At this stage, a few companies indicated their unwillingness to participate in the research. These companies were also replaced using the simple random selection approach. The replacement strategy was pursued vigorously with the view to ensuring that the sample size was not compromised. 5.6.2.7 Dealing with common method bias This study relied on data collection processes to reduce the possibility of common method bias to the barest minimum (Podsakoff et al., 2012). Different respondents within the various firms were used in answering the independent and outcome variables. Specifically, finance managers responded to the firm performance measures while other managers who were deemed more knowledgeable in the other parts of the questions were contacted. Determining the most appropriate manager for the independent measures was done within the firms after the rationale of the study had been introduced to the administrative manager or its equivalent. Additionally, respondents’ confidentiality was assured to reduce the potential for social desirability. This thereby reduced the likelihood of respondents modifying their answers due to social desirability or how they thought others might expect them to answer. In most instances, the researcher was either present when the questionnaire was being filled or went over the responses with the respondents to ensure that the right person answered the right set of questions. 5.6.2.8 Questionnaire retrieval Apart from three companies that answered the questionnaires instantly, all firms contacted demanded that the researcher picked the questionnaires up at later dates. This resulted in a number of follow- ups which were subsequently made via phone contacts and personal visits. 116 University of Ghana http://ugspace.ug.edu.gh The number of follow-ups ranged from one to five times. Questionnaire retrieval was on a piecemeal basis. Each follow-up saw some questionnaire retrieved both filled and unfilled. Seven companies indicated their intension to withdraw from participating in the research. While some gave the reason that it was the companies’ policies not to disclose certain kind of information, others simply opted out without stating their reasons. It was too late to have such companies replaced. In all, 199 questionnaires (accounting for 69.82% response rate) out of a total of 285 questionnaires distributed were retrieved for analysis but 194 (representing 68.07%) were used for analysis. Table 5.8 summarised the questionnaire administration process. Table 5. 8: Summary of questionnaire administration Details No of Firms Percentage Contact Firms contacted 285 100% Unwilling to participate (but replaced) 113 39.45% Willing to participate 285 100% Distribution Questionnaires distributed 285 100% Unwilling to continue (not replaced) 7 2.50% Participated 278 97.50% Retrieval Questionnaires not retrieved 79 27.72% Questionnaires retrieved filled 199 69.82% Unusable questionnaires 5 1.75% Usable questionnaires 194 68.07% Source: compiled from questionnaires administered Regarding the adequacy of the response rate (RR), the 69.82% RR of this is considered adequate. This is based on the justification provided by Baruch (1999) that the RR for a firm level survey targeted at CEO and MDs are generally low. According to him, a 36% +/- 13% 117 University of Ghana http://ugspace.ug.edu.gh RR is adequate and reasonable for academic research. Therefore, the 69.82 % RR of this study is adequate and representative of the sampling frame from which the sample size was drawn. 5.7 Ethical considerations The study was conducted taking into consideration ethical issues that guide the conduct of a research. Research ethics guide and govern how scientific research should be conducted in order not only to ensure the credibility of the research information, but also to guarantee the protection of the participants. According to Reame (2013), ethical issues in research are the principles that are followed to guarantee that all participants chosen to participate in a research are fully informed of the research and any potential risk involved. Before embarking on field data collection, the researcher was introduced to and obtained ethical clearance from Ethics Committee for Humanities (ECH) of the University of Ghana (UG) (see appendices D and H). This research is therefore guided by the right to privacy and informed consent, and anonymity and confidentiality. 5.7.1 Right to privacy and informed consent The privacy rights of the participants were respected throughout the study. The researcher sought permission from the participants (see Appendix C) before collecting data from them. Informed consent means that, participants knowingly, voluntarily and intelligently and in a clear and manifest way, give their consent to be involved in a study (Reame, 2013). Only individuals capable of deciding for themselves (CEOs, MDs or TMs) whether or not to participate in a research were considered competent and were contacted to participate in the study. To ensure that such individuals are not coerced but voluntarily take part in the study, preliminary calls were made to enquire about their willingness to participate in the study. It was also made clear to them that they were under no obligation to take part in the research, 118 University of Ghana http://ugspace.ug.edu.gh and that their participation was entirely their personal decision. This information was contained in the questionnaire and in the introductory letter. In addition, the participants were informed that they could withdraw from the study at any time without any consequence to them. To fully and simply understand the detailed information about what the research was about, what was expected of them and when, was disclosed to the potential respondents during the preliminary calls, in the cover and introductory letters and on the questionnaires. This was done to enable the participants make informed decision about their participation in the study. 5.7.2 Anonymity and confidentiality Under the confidentiality ethical principle, it is the obligation of the researcher(s) to safeguard entrusted information from unauthorised access, use, disclosure, modification, loss or theft (Reame, 2013). The participants were assured that their identity would not be disclosed to any third party and that the information they provided was for academic purposes and would be used for nothing else. The questionnaires bear no name or any form of identify of the respondents. The information provided by the respondents were coded, stored in a computer system, locked with a password and the hard copy of questionnaires destroyed. Confidentiality of the respondents was thus held in high esteem in this research. 5.8 Chapter summary The chapter highlighted the ontological, epistemological, axiological and methodological perspectives of the study as objectivism, positivism, value-free, and quantitative methods respectively. Research design, which links the research objectives to the methods of data collection and analysis were elaborated upon in the chapter. The chapter justifies the use of explanatory research designs. 119 University of Ghana http://ugspace.ug.edu.gh The chapter discussed thoroughly the sampling design, in which the population, sampling frame, sample size, and sample selection techniques were explained. The chapter also indicated that the study covered extractive, manufacturing and service industries. The companies sampled were stratified at two stages (regional and industry levels) and were randomly chosen to ensure that each industry and region was represented and had an equal chance of participating in the research. Data collection, which encompassed data collection method (survey), instrumentation (questionnaire design and validation) and questionnaire administration (through preliminary calls, presentation of permission and introductory letters, questionnaire distributions, follow-ups and questionnaire retrieval), were also elaborated upon in the chapter. Ethical considerations that concentrated on rights of privacy and informed consent and anonymity and confidentiality were highly respected and upheld throughout the study. 120 University of Ghana http://ugspace.ug.edu.gh CHAPTER SIX DATA ANALYSIS 6.1 Introduction The previous chapter presented the methods of data collection. This chapter continues where the previous chapter ended and presents how the data gathered in the previous chapter is analysed. The chapter is structured in four sections: descriptive statistics, multivariate data analysis, measurement models analysis and structural model analysis. 6.2 Descriptive analysis Descriptive statistics is performed with SPSS, and focussed on the demographic characteristics of the companies that participated in the study. The main constructs – EP, MBA, IMC and FP – were descriptively analysed using measures of central tendencies (mean), measures of dispersion (standard deviation) and measures of shape (kurtosis and skewness). The starting point for analysing data was to organize, summarize and display it effectively (Jaggi, 2003), and this is the main purpose of descriptive statistics (Mordkoff, 2016). Descriptive statistics, therefore, simplifies a large data in a meaningful way. Descriptive statistics is defined as a branch of statistics that is concerned with procedures that summarize variables both numerically and graphically to provide statistical information about the location (centre), spread (variability), and shape (distribution) of the variables (NCSS, 2019). Pallant (2010) posits earlier that data validation and inferential statistical analysis should be preceded by a descriptive analysis of data. In this regard, data collected for this study is organized, summarized and displayed, using numerical approach of descriptive statistics. 121 University of Ghana http://ugspace.ug.edu.gh Mordkoff (2016) asserts that descriptive statistics focuses on three aspects of data description by providing answers to the following questions: 1. Where is the distribution located? 2. How spread out are the values? and 3. How does the distribution look like? He explains further that answers to the above questions relate to centre, spread and shape of the values. Jaggi (2003) affirms that there are three major aspects of variables that need to be summarized and described statistically. He itemizes them as central tendency, dispersion and distribution. This research, in line with these arguments, presents the demographic characteristics of participating firms in Table 7.2, and illustrates in Table 7.3, the location and frequencies of EP indicators. In addition, the study describes the location (central tendency), variability (dispersion) and shape (distribution) of data collected about FP (Table 7.4), IMC (Table 7.5) and MBA (Table 7.6). 6.2.1 Central tendency of the distribution Jaggi (2003) defines central tendency as an estimate of the ‘centre’ of a distribution of values. According to Brown (1982, p.7), ‘the traditional indicators of central tendency (a central value) are the mean (the average), the mode (the most frequent value) and the median (the value midway between the lowest and the highest values).’ Jaggi (2003) supports this argument and indicates that ‘there are three major types of estimates of a central tendency: the mean, the mode and the median’ (p. 12). Jaggi’s (2003) assertion that mean is the most common measure of a central tendency is a confirmation of what Brown (1982) states that 122 University of Ghana http://ugspace.ug.edu.gh the mean has greater convenience and flexibility for many purposes. The central tendency of the responses relating to FP, IMC and MBA are, thus, measured with reliance on the mean. 6.2.2 Variability of the distribution Brown (1982) stated that an index of dispersion is created by the differences of each value of a data set from the mean of the values. This is an indication that anytime there is a noticeable difference between the mean of values and each value of the data set, there is the concept of variability. NCSS (2019) describes variability as the pattern of values around the centre. That is, after the centre of a data set is established through the mean, it is crucial to also determine how close or far the rest of the data spread about the mean. Variability is thus a measure of how close or far the individual values of a distribution are from the mean. Lane (n.d.) defines it as an analysis of how data points are spaced out from or squeezed in together with the mean. Simplifying the definition, Jaggi (2003) indicates that dispersion is a measure of the ‘scatterness’ of observations from their average. Measures such as range, interquartile range, variance and standard deviation are used to determine how far or close individual data points are away from the mean (NCSS, 2019). Mordkoff (2016) classifies the measures of variability into two categories: those in parallel with the median and those relating to the mean. Mordkoff (2016) avows that the range and interquartile range are measures of dispersion that relate to the median. He defines the interquartile range as the difference between the upper quartile (75% of the data set) and lower quartile (25% of the data set). The range, on the other hand, is simply the difference between the highest value and the least value in the data set (Jaggi, 2003). Both the range and interquartile range are very susceptible to the influences of outliers and are thus weak measures of dispersion. 123 University of Ghana http://ugspace.ug.edu.gh A set of variability measures that are parallel to the mean are the variance and the standard deviation (Mordkoff, 2016). Lane (n.d.) defines variance as a measure of how much, on average, each data point diverges from the mean. She explains further that the larger the variance, the larger the range of the entire data set. Standard deviation, defined as the square root of the average square deviations from the mean (Brown, 1982), measures how the values of a distribution deviate from the mean of the distribution (NCSS, 2019). In the argument of Lane (n.d.), while smaller standard deviation indicates that the values in the data set are close to the mean, larger standard deviation means that the data set has more spread out of values. The supremacy of standard deviation over variance and median related measures of spread makes it an obvious choice in determining the dispersion of constructs in this study. In relation to the median related measures (range and interquartile range), Jaggi (2003) posits that the standard deviation is a more accurate and detailed estimate of dispersion because outliers can greatly exaggerate both the range the interquartile range. Brown (1982) also alleges that the standard deviation is more preferred to variance because, while the variance is in different units than the mean, the standard deviation is in the same units as the mean and the original values. Convinced of this argument, the study uses the standard deviation as a descriptive measure of variability in the values that form the distribution for FP, IMC and MBA. 6.2.3 Shape of distribution Neither the measures of central tendency nor the estimators of dispersion have been able to describe patterns of values that form a data set in terms of symmetry or clumping. Consequently, the need for shape as an aspect of descriptive statistics is emphasized. According to NCSS (2019), the shape of the distribution describes the pattern of the values along a number line, and is critical in determining the normality of the data set. The most popular measures of shape are skewness and kurtosis (NCSS, 2019). 124 University of Ghana http://ugspace.ug.edu.gh Skewness is defined as the measure of the direction of a distribution. Mordkoff (2016) defines skewness as a measure of symmetry, which may be positive, negative or zero. This means that a distribution (data set) may skew to the left, to the right, or may not skew at all. Numerically, if a distribution has the value of its skewness to be equal to zero, it means that the distribution is normal and symmetric. While a positive skewness is an indication that the distribution has a long right (upper) tail, distribution with negative skew has a long left (lower) tail (Mordkoff, 2016). NCSS (2019) states in support that positive skewness indicates a ‘longtailedness’ to the right while negative skewness indicates ‘longtailedness’ to the left. In general, if the absolute value of skewness is greater than 2.00, then the distribution will differ significantly from normal. The symmetry, or the otherwise of it, of the data set relating to FP, IMC and MBA is delineated using the skewness as a descriptive measure of their shapes. Kurtosis, defined as the standardized fourth population moment about the mean, is composed of ‘peakedness’ and ‘tailedness’ (DeCarlo, 1997). Kurtosis thus measures peak and/or the heaviness of the tails of a distribution (Mordkoff, 2016). Similar to skewness, kurtosis, when computed numerically, may produce positive, negative or zero values. According to DeCarlo (1997), positive kurtosis indicates heavy tails and high peak relative to the normal distribution. On another hand, negative kurtosis signals light tails and flatness in comparison with the normal distribution. A zero kurtosis is a demonstration of normality of the distribution. However, NCSS (2019) reports that a kurtosis with value less than three indicates lighter tails than a normal distribution, while kurtosis with values greater than three indicate heavier tails than a normal distribution. Cox and Wermuth (1994) opine that a complete statistical analysis should include an evaluation of assumptions, including any distributional assumptions. Skewness and kurtosis reportedly have excellent properties not only for detecting departures, but also for providing 125 University of Ghana http://ugspace.ug.edu.gh information about the type and the magnitude of departures from normality (D’Agostino, Belanger & Dagostino Jr., 1990). They have become the recommended strategies for assessing the normality and non-normality of a distribution (DeCarlo, 1997). It is important, therefore, that the assumption of normality of the distribution of key constructs (EP, FP, IMC and MBA) of this study are checked. The usefulness and the relevance of shape (skewness and kurtosis) to the choice of robust analytical test and estimator alternatives cannot be underestimated in any statistical analysis. Skewness and kurtosis are relevant to issues of robustness, outliers and modified tests and estimators (DeCarlo, 1997). With respect to robustness, Mardia (1974) states that shape of distribution has different effects on different tests and estimators. According to him, tests of mean are affected by skewness more than by kurtosis, and tests of variance and covariance are more sensitive to kurtosis than to skewness. Barnett and Lewis (1978) add that kurtosis reflects tail behaviour and detects outliners. The robustness of kurtosis and skewness in the generalization of normality for multivariate distributions with heavy and light tails justified their inclusion in structural equation modelling (Tremblay & Gardner, 1996). Knowledge about the shape of distribution, therefore, is relevant in determining robust statistical tests and estimators to deploy if the distribution is non-normal and replete with outliers. In addition, DeCarlo (1997) hints that skewness and kurtosis are frequently not reported in research reports. On the basis of this research gap and the potency of kurtosis and skewness in determining normality and robustness of studies, the research incorporates measures of shape (skewness and kurtosis) in the descriptive statistics of FP, IMC and MBA. 6.3 Multivariate data analysis (MDA) The design of this study (see conceptual framework in Figure 4.1) requires the use of multivariate data analysis (MDA) technique. MDA refers to the use of statistical methods that 126 University of Ghana http://ugspace.ug.edu.gh concurrently examines multiple constructs (Hair, Sarstedt, Hopkins & Kuppelwieser, 2014). MDA technique is a powerful statistical approach for data analysis because of its unique and versatile features (Hair, 2009). Most statistical experiments, including this research, are multivariate by nature (Liu, Parelius & Singh, 1999) and requires a multivariate analysis approach (Hair et al., 2017). Statistical methods for analysing multivariate data are classified into two general techniques: first-generation techniques and second-generation techniques (Hair et al., 2017). Table 6.1 shows the classification and types of statistical techniques associated with MDA. Table 6.1: Categories of multivariate analysis techniques Classification of MDA Exploratory Confirmatory First-Generation Techniques Cluster Analysis Analysis of Variance Exploratory Factor Analysis Logistic Regression Multidimensional Scaling Multiple Regression Confirmatory Factor Analysis Partial Least Square Second-Generation Structural Equation Modelling Covariance-Based Structural Techniques (PLS-SEM) Equation Modelling (CB-SEM) Source: Hair et al. (2017) It is important that the most appropriate MDA technique, based on the needs of a particular study, is selected. Hair (2009) outlines a set of guidelines researchers should follow to select the most suitable MDA technique for their studies. The questions he asks are as follows: i. Can the variables be divided into independent and dependent? ii. How many variables are treated as dependent in a single analysis? iii. How are the variables measured? He concludes that when the research problem involves several relationships of dependent and independent variables, Structural Equation Modelling (SEM) is one of the most suitable MDA techniques. This study is replete with multiple dependent variables, multiple independent variables and multiple intervening variables. A greater need for SEM was thus created, hence its adoption in the study. 127 University of Ghana http://ugspace.ug.edu.gh This study is explanatory in nature and has relied on second-generation (partial least square structural equation modelling – PLS-SEM) MDA techniques to comprehensively analyse the data. These analyses were performed using SmartPLS version 3.2.8 as the statistical analytical instrument. The SmartPLS is extensively used statistical analytical instrument (Asamoah, 2014; Roy & Banerjee, 2008. SmartPLS was used for PLS-SEM, an aspect of structural equation modelling (SEM). 6.3.1 Structural equation modelling (SEM) The current research direction in social science disciplines involves more complex relationships (Diesing, 2017). As a result, researchers’ reliance on univariate and bivariate analysis to understand data and relationships in social science is highly ineffective (Mertler & Reinhart, 2016). There is, therefore, the need to apply multivariate analysis techniques, defined as the application of statistical methods that can simultaneously analyse multiple variables (Hair et al., 2017), in social science research. Structure equation modelling (SEM) is one of such multivariate analysis techniques that is commonly used in social science research. The adoption of SEM in this study is justified on the ground that the research is a multivariate study, involving multiple (4) first-order constructs and (14) second-order dimensions with several (88 indicators) items. As depicted by the conceptual framework (see figure 4.1), the study is anchored in multiple independent constructs (EP, MBA and IMC), multiple dependent constructs (FP, MBA and IMC) and multiple mediator constructs (MBA and IMC). The complexity of the study is further explained by the multiple roles played by MBA and IMC. Both MBA and IMC serve as dependent constructs to be predicted by EP, act as independent constructs predicting FP, and behave as intervening variables mediating the relationship between EP and FP. Therefore, to effectively analyse these multiple relationships 128 University of Ghana http://ugspace.ug.edu.gh model, it was necessary to employ the use of multivariate analysis technique, hence the choice of SEM. SEM is a collection of statistical techniques that allow a set of relationships between one or more independent variables, either continuous or discrete, and one or more dependent variables, either continuous or discrete, to be examined (Henseler et al., 2014; Ullman, 2006). Two types of SEM are named in extant literature: covariance-based structural equation modelling (CB-SEM) and variance-based partial least square structure equation modelling (PLS-SEM) (Henseler et al., 2014; Hair et al., 2017). The study used PLS-SEM to analyse data. 6.3.2 Partial least square structural equation modelling (PLS-SEM) The choice of PLS-SEM was informed by the explanatory nature of this study, and the robustness of PLS-SEM in explanation, (Henseler, Ringle & Sarstedt, 2016), prediction (Shmueli, Ray, Estrada & Chatla, 2016) and theory testing and development (Hair et al., 2017). Henseler et al. (2014) contend that PLS-SEM is good for explanatory research, and has superiority in the following areas: 1. PLS-SEM is a robust SEM technique because it is a collection of different statistical tools used to evaluate multiple relationships among multiple independent, dependent, moderator and mediator variables. 2. PLS-SEM reduces substantially the effects of measurement error through bootstrapping, thereby making PLS-SEM constructs’ score more reliable. 3. PLS-SEM detects a wide spectrum of measurement model specifications as composite factor models and validates the models through Standardized Root Mean Square Residual (SRMR). 129 University of Ghana http://ugspace.ug.edu.gh 4. PLS-SEM is generally suitable for non-hypothesis significance testing (NHST) and is useful for path coefficient analysis. 5. PLS-SEM demonstrates better convergence behaviour in the case of small sample sizes and is the last stop if all other statistical tools fail due to small sample size. PLS-SEM focusses on matrices to indicate the predictive capabilities aimed at maximizing the explained variance (R2) of the endogenous latent variables in the path model (Hair et al., 2017). PLS-SEM, thus, has peculiar features that are relevant for the study and which necessitated its choice as a SEM technique for multivariate analysis in this study. Hair et al. (2017) state that PLS-SEM has two elements: measurement (outer) models and structural (inner) models. According to them, the measurement model displays the relationship between the constructs and their indicators, and structural models, on the other hand, indicate the relationships (paths) between different constructs. 6.4 Analysis of measurement models SmartPLS 3, a PLS-SEM analysis tool, was used in the analysis of measurement models. The measurement models were evaluated to assess the reliability and validity of the constructs. The measurement models evaluation focussed on composite reliability (Cronbach’ alpha and composite reliability) for internal consistency, indicator outer loading for indicator reliability, average variance extracted for convergent validity, hetotrait - monotrait for discriminant validity and p-values for significance level of dimensions. The measurement model evaluation is defined as an empirical measure or estimation of the relationship between constructs and their indicators (Hair et al, 2017). The model assessment in this research therefore describes: 130 University of Ghana http://ugspace.ug.edu.gh 1. the relationship between EP and its dimensions and indicators, 2. the relationship between FP and its dimensions and indicators, 3. the relationship between IMC and its dimensions and indicators, and 4. the relationship between MBA and its dimensions and indicators. The measurement models provide evidence of the quality of the measures (Hair et al., 2017). The examination of measurement model estimates therefore, facilitates evaluation of the validity and reliability of the measures of constructs. The most important metrics used in evaluating the quality of the measurement models in PLS-SEM include reliability measures and validity measures. 6.4.1 Reliability measures The reliability is a measure of the degree of accuracy or precision in the measurements made by a research instrument (Pallant, 2011). Reliability measures in PLS-SEM include internal consistency reliability (ICR) and indicator reliability. Internal consistency is defined as the degree to which the items that make up the scale are all measuring the same underlying attribute (Odoom, 2016). Internal consistency in PLS-SEM is mostly measured using Cronbach alpha (α) values and composite reliability (CR) (Hair et al., 2017). Hair et al. (2017) define Cronbach’s alpha as a measure of the reliability based on the inter-correlations of the observed indicator variables. If the Cronbach alpha values are 0.7 and above (α ≥ 0.70), the scale is said to be reliable and acceptable. But for preliminary and exploratory research, a Cronbach alpha value of 0.5 and above (α ≥ 0.50) is acceptable as an indication of scale reliability (Hair et al., 2014). Composite reliability, as a measure of reliability, takes into account different outer loadings of the indicator variables. It ranges from 0 to 1 (0 ≤ CR ≤1). Hair et al. (2017) gave the threshold of CR value as 0.70 or greater (CR ≥ 0.70). 131 University of Ghana http://ugspace.ug.edu.gh 6.4.2 Validity measures Babbie (2005) describes validity as the extent to which an empirical measure adequately reflects the real meaning of the concept under consideration. It implies that the indicators and dimensions used to measure a construct should measure exactly what they intend to measure. The validity of the measurement models in this study is evaluated using convergent validity and discriminant validity (Hair et al., 2017). Convergent validity is defined as the extent to which a measure correlates positively with alternative (different) measures of the same construct (Hair et al., 2017). This is based on the assumption that the items that are indicators (measures) of a specific construct should converge and share a high proportion of the construct’s variance. PLS-SEM relies on indicator outer loadings (IOL) and average variance extracted (AVE) to evaluate the convergent validity of measurement models. Indicator Outer Loadings (IOL) indicate the association indicators (and dimensions) have in common with the constructs they measure (Hair et al., 2017). In this study, the IOL establishes the relationships that EP, FP, IMC and MBA establish with their respective dimensions and indicators. The IOL’s threshold is established to be equal to 0.70 and above (IOL ≥ 0.70). However, indicators that have their IOL less than 0.70 but greater than 0.40 should be deleted only when the indicator is not statistically significant and when the deletion increases composite reliability or AVE (Hair et al., 2017). The average variance extracted (AVE), according to Hair et al. (2017), is the grand mean value of the squared loadings of the indicators associated with the constructs. The AVE is used in this study to measure how EP, FP, IMC and MBA are associated with by their 132 University of Ghana http://ugspace.ug.edu.gh respective dimensions and indicators. Hair et al. (2017) pegged AVE in PLS-SEM at 0.50 and above. Another measure of validity is discriminant validity. Hair et al. (2017) define discriminant validity (DV) as the extent to which a construct, by empirical standards, is truly distinct from other constructs. This implies that every construct in a model should uniquely capture a phenomenon not represented by other constructs in the same model. In the context of this research, discriminant validity indicates that the EP, FP, IMC and MBA are different constructs and uniquely relate to different phenomena. That is, what EP explains is radically different from what is explained by FP, for example. PLS-SEM uses cross-loadings (CL), Fornell-Larcker Criterion (FLC) and Heterotrait - Monotraint (HTMT) to assess the discriminant validity of measurement models. The CL criterion states that an indicator’s or a dimension’s outer loadings on an associated construct should be greater than any of its cross loadings on another constructs (Hair et al., 2017). FLC, on the other hand, compares the square root of AVE values with the construct’s correlations. The FLC states that square root of each construct’s AVE should be greater that its highest correlation with any other construct in the model. However, Henseler, Ringle, and Sarstedt (2015) criticized CL and FLC for not being able to effectively detect discriminant validity issues in measurement models. The authors claimed that while the CL fail to indicate lack of discriminant validity when two constructs perfectly correlate, FLC could not indicate lack of discriminant validity when indicator loadings of a construct differ only slightly. As a result, they proposed the use of HTMT for assessing discriminant validity in PLS-SEM, which is adhered to in this study. HTMT is conceptualised as the mean of all correlations of indicators across constructs measuring different constructs (Hair et al., 2017). Henseler et al. (2015) defined HTMT as an estimate of what the true 133 University of Ghana http://ugspace.ug.edu.gh correlation between two constructs should be if they are perfectly measured. According to them, if the HTMT value is close to 1, or the bootstrapped confidence interval (BCI) of the indicators or dimensions contain value equal to 1, then there is a clear indication of discriminant validity problem. However, a threshold of HTMT less than 1, less than 0.90 and less than 0.85 have been proposed, with an explanation that the smaller the HTMT value the better the discriminant validity (Henseler et al., 2015). This study assessed discriminant validity of the dimensions using the strict HTMT less than 0.85 threshold. 6.5 Analysis of structural models Structural models are analysed with a PLS-SEM analysis tool, SmartPLS 3. Structural model evaluation is the examination of the predictive capabilities of path models and the relationships between the constructs that established the path models (Hair et al., 2017). Structural models are therefore primarily evaluated in terms of how well the independent constructs predict the dependent constructs. In this regard, PLS-SEM was used to estimate the parameters of the structural models in a manner that maximized the explained variance of the constructs. In PLS-SEM, structural models are assessed following systematic procedures. These procedures as followed in this study, are as outlined by Hair et al. (2017) and include: 1. Assessing the direction and magnitude of structural model relationships 2. Assessing the significance and relevance of the structural model relationships 3. Assessing the level of coefficient of determination (R2) It was observed, however, that the application of these procedures is influenced greatly by the purpose of the study, and the type and nature of the structural model. The structural models in this study are classified into two categories: simple cause-effect structural model and mediation structural models. 134 University of Ghana http://ugspace.ug.edu.gh 6.5.1 Analysis of simple cause-effect structural model Simple cause-effect relationships in PLS-SEM path models, according to Hair et al. (2017), imply that a construct directly affects another construct without any systematic influence of other construct(s). This means that simple cause-effect models present direct effect relationships between the exogenous and endogenous variables. In this study, the relationship between EP and FP, between EP and MBA, between EP and IMC, between MBA and FP and between IMC and FP are analysed based on simple cause-effect structural model. However, the focus of the study in relation to hypothesised simple cause-effect structural model is the relationship between EP and FP. The structural relationship between EP and FP is done using SRMR, path coefficient, coefficient of determination, p-values and t-values. SRMR, defined as the root mean square discrepancy between the observed correlations and the model-implied correlations (Hair et al., 2017), was used to measure the absolute fit of a structural model. A model in PLS-SEM is perfectly fit if SRMR is zero (SRMR = 0), is a good fit if SRMR is less or equal to 1.2 (SRMR ≤ 1.2) and is a bad fit if SRMR is above 1.2 (SRMR > 1.2). The direction and the magnitude of the hypothesized relationships among the constructs were estimated using path standardized coefficients. Hair et al. (2017) hint that a model’s path standardized coefficient lies in a range of values from -1 to +1 (-1 ≤ β ≤ +1). Estimated path standardized coefficient equal to negative one (β = -1) indicates the presence of perfect negative relationship, and standardized coefficient equal to positive one (β = +1) signifies a perfect positive relationship. Estimated path coefficients close to -1 (-0.9 ≤ β ≤ -0.5) suggests there are strong negative relationship and path coefficient close +1 (0.5 ≤ β ≤ 0.9) indicates a strong positive relationship between the independent and the dependent variables. The closer the estimated path coefficients are to 0 (-0.5 < β < 0), the weaker the negative relationships 135 University of Ghana http://ugspace.ug.edu.gh are, and the closer the standardized path coefficients are to 0 (0 < β < 0.5), the weaker the positive relationships are. No relationships can be established if the estimated path coefficients are zero (β = 0). Coefficient of determination (R2), described as the combined effects of the independent constructs on the dependent construct (Hair et al., 2017), measures the amount of variance in the dependent construct explained by all the independent constructs linked to it. The R2 indicates the path model’s predictive capabilities. R2 values, in most instances, range from 0 to 1 (0 ≤ R2 ≤ 1) such that R2 values equal to or closer to 0.75 (R2 ≥ 0.75), closer to 0.50 (0.25 < R2 ≤ 0.50), and closer to 0.25 (0 < R2 < 0.25), respectively indicate substantial, moderate and weak level of predictive accuracy (Hair et al., 2011; Henseler et al., 2009) The significance level of the simple cause-effect relationship models in this study is evaluated using t-values and p-values criteria. At the 95% confidence internal level, as it is the case in this study, a t-value greater than a critical value of 2.57 (t > 2.57) and a p-value less than 0.05 (p < 0.05) are considered significant. 6.5.2 Analysis of mediation models It is not always the case that, in a structural model, the independent construct directly affects the dependent constructs. A structural model relationship may also include a third variable that transmits the effect(s) of the independent variable(s) unto the dependent variable, creating the concept of mediation. Mediation occurs when a third variable, referred to as a mediator variable, intervenes between two other related constructs (Hair et al. (2017). When this happens, a change in the independent construct results in a change in the mediator variable which, in turn, leads to a change in the dependent construct. Mediation analysis is usually 136 University of Ghana http://ugspace.ug.edu.gh deployed for the purposes of explanation (Henseler et al., 2016) and prediction (Shmueli et al., 2016). In the analysis of mediation models, Hair et al. (2017) identify a number of effects worth analysing. These include direct effects, indirect effects and total effect. A direct effect is the path of relationship between the independent constructs and the dependent construct. A direct relationship links two constructs with a single headed arrow (Hair et al., 2017). An indirect effect, also known as a mediation effect, is the product of the paths linking the mediator variable to both the independent and the dependent construct. Hair, et al. (2017) describe it as a sequence of two or more direct effects depicted by multiple arrows. Scholars also recommend the determination of the total effect an independent variable has on a dependent variable through direct and indirect paths (Hayes, 2009; Zhao, Lynch & Chen, 2010). Total effect is the sum of direct and indirect effects. It is important also that the type of mediation effect that exists in a mediation model is determined after the presence of the mediation effect is established and confirmed. This is achieved by comparing the significance of both the direct effect and the indirect effect of the mediation model. Nitzl, Roldan and Cepeda (2016), Kenny (2018), Hair et al. (2017) and Cepeda, Nitzl and Roldan (2018) identify two types of mediation: full mediation and partial mediation. If the indirect effect is significant but the direct effect, which hitherto was significant, becomes insignificant, due to the presence of a mediator variable, the mediation effect is said to be full (Hair et al., (2017). Partial mediation, on the other hand, occurs when both the direct effect and the indirect effect in a mediation model are significant (Cepeda et al., 2018). 137 University of Ghana http://ugspace.ug.edu.gh Partial mediation may be complimentary or competitive (inconsistent) depending on the relationship between the direction of the indirect effect and the direction of the direct effect. If both the direct and the indirect relationships are headed towards the same direction, then the partial mediation is said to be complimentary (Hair et al., 2017). If, however, the direct and indirect relationships head in opposite directions, the partial mediation is inconsistent or competitive (Cepeda et al., 2018). Complementarity or inconsistency of the partial mediation is also determined using the product of the direct and indirect effects. If the product of the direct and indirect effects is positive, the partial mediation is complimentary; and if negative, the partial mediation is inconsistent (Cepeda et al., 2018). The path standardized coefficient estimates (β) were used to examine the direction and magnitude of the direct and indirect relationships between the variables. A bias corrected bootstrap confidence interval (BCCI) was used to establish the significance level of the mediated relationship between the constructs, and variance accounted for (VAF) to ascertain the portion of total effect between constructs that is mediated. Cepada et al. (2018) hint that when determining the significance and magnitude of mediation effects, researchers should bootstrap the sample of the indirect effects in order to obtain necessary information about the population distribution. They define bootstrapping procedure as a non-parametric inferential technique that randomly withdraws several subsamples with replacement from the original dataset, which are used to estimate the indirect path models. According to Cepada et al. (2018), the information about the characteristics of the distribution of mediation effect is obtained by calculating a confidence interval for the indirect effects. This is done by selecting a specific alpha (standard) error which is used in determining the confidence interval. In this study, the specific alpha error used is 5%, indicating a probability 138 University of Ghana http://ugspace.ug.edu.gh of error of 5% and a 95% confidence interval. The study relied on two-tail and therefore determined the 95% confidence interval with 2.5% at the lower bound and 97.5% at the upper bound (2.5% probability of error at each tail). They concluded that ‘if zero is not included in the confidence interval, a researcher can assume that there is a significant indirect effect.’ (p.4). However, when the mean of the bootstrapped distribution for the indirect effect is not equal to the estimated indirect effect, researchers should correct for bias in PLS-SEM (Chernick, 2011). According to Hayes and Scharkow (2013), the bias-corrected bootstrap confidence interval is the best approach for detecting mediation effects when mediation is present. Therefore, the study used a bias-corrected bootstrap confidence interval to determine the significance (presence) of mediation effect in the structural models. Hair et al. (2017) and Kenny (2018) recommend that, in a mediation model, the portion of the relationship that is mediated should be determined and reported. This was ascertained through the calculation of indirect-to-total effect ratio, also known as variance-accounted for (VAF). The VAF, expressed in percentage (%), determines the extent to which a mediation mechanism explains the variance of the dependent variable (Cepeda et al., 2018). According to Hair et al. (2017), a VAF of 80% and above (VAF ≥ 80%) signifies a full mediation, a VAF of less than 20% (VAF < 20%) indicates no mediation at all, and a VAF less than 80% but greater than 20% (20% < VAF < 80%) implies the presence of a partial mediation. 6.6 Chapter summary Data analysis techniques focus on descriptive statistics using central tendency, dispersions and shape of the key constructs. Multivariate data analysis techniques, PLS-SEM, were used to evaluate measurement models and structural models. 139 University of Ghana http://ugspace.ug.edu.gh In the evaluation of the measurement models in this study, reliability and validity of the indicators and dimensions of the key constructs – EP, FP, IMC and MBA – were critically and comprehensively examined. Through internal consistency reliability metrics, such as Cronbach’s alpha and composite reliability, it was established that all the constructs, their dimensions and indicators are predictably stable, consistent and reliable. Through convergent validity, measured with indicator outer loadings (IOL) and average variance extracted (AVE), and discriminant validity, measured with Heterotrait – Monotrait (HTMT), the study concludes that the indicators and the dimensions used in measuring the constructs are not only reliable, but also valid and dependable. The structural models were examined statistically with standardized root of square mean residual (SRMR) to test the fitness of the models; path standardized coefficients (β) to examine the direction and magnitude of the relationship among EP. FP, MBA and IMC; coefficient of determination (R2) to determine the variations in one variable explained by another construct(s); t-values and p-values to establish the significance level of the direct relationships between the constructs bias-corrected 95% two tail bootstrap confidence interval to test the significance of the indirect relationships and variance accounted for to analyse the portion of total effect mediated by the mediator variables. 140 University of Ghana http://ugspace.ug.edu.gh CHAPTER SEVEN RESULTS OF DATA ANALYSIS 7.1 Introduction This chapter presents the results of data analysis. The chapter focusses on the presentation of the findings in descriptive statistics, on measurement models analysis and on the analysis of structural models. It begins with the description of the characteristics of the participating companies, using frequency distribution tables. It delineates also the descriptive statistics of the key constructs – EP, FP, IMC and MBA – of the study – with specific focus on central tendency, dispersion and shape. In addition, the chapter indicates the outcomes of measurement models evaluation and structural model examination. The chapter presents also the results of the measurement models which focus on reliability and validity of the constructs and their dimensions. The structural models are analysed and the findings presented in the chapter in two sections: the cause-effect structural model (direct relationship) and the mediation structural model (indirect relationships). 7.2 Results of descriptive analysis The results of the descriptive analysis of demographic characteristics of the participating companies and the key constructs are presented in this section. 7.2.1 Descriptive analysis of demographic characteristics of participating firms Table 7.1 contains information about the demographic characteristics of the companies that took part in the survey. 141 University of Ghana http://ugspace.ug.edu.gh Table 7.1: Demographic characteristics of the respondent companies Frequency Percent Demographic characteristics of the participating firms (number) (%) Origin of company Ghanaian 116 59.8 Foreign 78 40.2 Total 194 100 Size of company Small (up to 20) 70 36.1 (No of employees) Medium (21-100) 87 44.8 Large (101-500) 28 14.5 Very Large (>500) 9 4.6 Total 194 100 Age of company Less than 5 years 22 11.3 (Years of existence) 5-19 years 75 38.7 20-34 years 85 43.8 35-49 years 12 6.2 50 and above 0 0 Total 194 100 Ownership of company Private 179 92.3 Public 15 7.7 State 0 0 Total 194 100 Industry Extractive 5 2.6 Manufacturing 85 43.8 Service 104 53.6 Total 194 100 Location (Region) Greater Accra 136 70.1 Ashanti 18 9.3 Western 21 10.8 Eastern 12 6.2 Central 7 3.6 Total 194 100 Source: constructed from field data One hundred and ninety-four (194) companies participated in the study (Table 7.1). Out of the number, 116 (representing 59.8%) are Ghanaian incorporated. The remaining 78 (40.2%) companies have foreign origin. The surveyed companies are varied in sizes. Their sizes are measured using the number of employees, based on AGI’s classification of companies. AGI classifies firms into small, medium, large and very large. If a firm employs up to 20 employees, from 21 to 100 employees, between 100 and 500 employees or more than 500 employees, then the firm is respectively described as small, medium, large or very large. The 142 University of Ghana http://ugspace.ug.edu.gh majority of firms that participated in this survey are small (70 firms, representing 36.1%) and medium (87 firms, representing 44.8%) firms. This represents over 80% of all firms surveyed. Not many large firms (14.5%, representing 28 firms) and very large firms (4.6%, representing 9 firms) participated in the study. Together, both large and very large firms accounted for less than 20% of the firms surveyed. Regarding the age of the firms, that is, how long they have been in the existence, table 7.1 shows that the majority of firms that took part in the study have been in operation between 4 and 35 years. Those firms that have been in business between 4 and 20 years accounted for 38.7% and those between 19 and 50 years stood at 43.8%. The two categories of age brackets (5-19 and 20-34) represented 93.8% of all firms surveyed. While 22 (11.3%) infant firms with less than five years of existence took part in the study, 12 (6.2%) middle-aged firms, from 35 to 49 years, participated in the survey. Interestingly, no participating firm has been in operation for 50 years and above. Table 7.1 indicates that a large proportion of firms that responded to the questionnaires administered are private firms. They are 179 out of the total number of 194 firms. Private firm participation, thus, accounted for 92.3%. Only 15 (7.7%) public companies, listed on stock exchange, took part in the survey. No state-owned enterprise participated in the research. Table 7.1 reveals that very few extractive (five companies, representing 2.6%) companies participated in the study. The dominant participating firms are from the service industry. The service industry accounted for 53.6% (104 firms) of all firms surveyed. This is followed closely by the manufacturing industry which represented 43.8% of all firms that participated in the research. 143 University of Ghana http://ugspace.ug.edu.gh The study covers five geographical regions of Ghana (Greater Accra, Ashanti, Western, Eastern and Central). According to Lawson (2016), over three-quarter of companies in Ghana are concentrated in southern regions. As evident in table 7.1, most companies that responded to the questions are located in the Greater Accra region (136 firms, representing 70.1%). Ashanti, Western, Eastern and Central regions accounted for 9.3% (18 firms), 10.8% (21 firms), 6.2% (12 firms) and 3.6% (seven firms) respectively. 7.2.2 Descriptive analysis of environmental performance (EP) Corporate environmental performance was measured on 38 items with dichotomous variables ‘Yes (Y)’ or ‘No (N)’with an inclusion of ‘Not applicable (N/A)’, and were coded on 1, 2 and 3 respectively. These categorical (nominal) variables were descriptively analysed using frequency table as shown in table 7.2. The study includes mode (the most frequently occurring value in a data set) in Table 7.2. This is on the basis of Jaggi’s (2003) recommendation that, in a categorical data, the mode makes sense, not the mean and the median, in measuring the central tendency of the data set. 144 University of Ghana http://ugspace.ug.edu.gh Table 7.2: Descriptive statistics: Environmental performance (EP) Centre Number of firms Percentage (%) of firms Scale items (indicators) Mode Yes No N/A Total Yes No N/A Total Complies with standards for effluent quality 1 135 21 38 194 69.8 10.8 19.6 100 Defines environmental waste management policies 1 120 74 0 194 61.9 38.1 0.0 100 clearly Communicates environmental waste management 1 120 74 0 194 61.9 38.1 0.0 100 policies clearly Sets procedures for handling environmental wastes 1 121 69 4 194 62.4 35.6 2.1 100 Registers environmental complaints about wastes 1 134 54 6 194 69.1 27.8 3.1 100 Tracks environmental waste complaints 1 134 54 6 194 69.1 27.8 3.1 100 Systems for managing air quality 1 121 69 4 194 62.4 35.6 2.1 100 Complies with standards for noise pollution 1 134 54 6 194 69.1 27.8 3.1 100 Has SOP for handling environmental waste 1 139 49 6 194 71.6 25.3 3.1 100 Complies with standards for ambient air quality 1 118 38 38 194 60.8 19.6 19.6 100 Systems for managing noise pollution 1 99 91 4 194 51.0 46.9 2.1 100 Treats properly toxic wastes on site 1 138 45 11 194 71.1 23.2 5.7 100 Reports air quality data 2 67 89 38 194 34.5 45.9 19.6 100 Reports air emission data 2 21 135 38 194 10.8 69.6 19.6 100 Notifies EPA about waste management systems and 1 150 44 0 194 77.3 22.7 0.0 100 policies Reports noise pollution data 1 84 100 10 194 43.3 51.5 5.2 100 Systems for managing effluent quality 1 100 94 0 194 51.5 48.5 0.0 100 Has data on annual expenditure on ECSR 1 125 61 8 194 64.4 31.4 4.1 100 ECSR policies recommend community environmental 1 127 59 8 194 65.4 30.4 4.1 100 protection Advertises all environmental opportunities to local 1 110 56 28 194 56.7 28.9 14.4 100 communities ECSR policies support consultation with local 2 75 111 8 194 38.7 57.2 4.1 100 communities ECSR policies support environmental training of local 2 65 121 8 194 33.5 62.4 4.1 100 communities Makes ECSR policies public 2 35 151 8 194 18.0 77.8 4.1 100 Valid environmental permit 1 125 63 6 194 64.4 32.5 3.1 100 Submits environmental report on time 1 103 85 6 194 53.1 43.8 3.1 100 Applies for EMP on time 1 128 60 6 194 66.0 30.9 3.1 100 Notifies EPA about hazardous wastes generated 1 127 56 11 194 65.5 28.9 5.7 100 It is mandatory for us to address environmental 1 188 6 0 194 96.9 3.1 0.0 100 complaints Formulate wastes recycling policies 2 21 173 0 194 10.8 89.2 0.0 100 Reports energy generation and consumption 2 23 171 0 194 11.9 88.1 0.0 100 Conducts third-party environmental audit 2 38 156 0 194 19.6 80.4 0.0 100 Average 1 104 80 10 194 54 41 5 100 Source: Constructed from field data Table 7.2 summarizes that 54% of firms surveyed adhered to the indicators that measure their EP, 41% did not adhere to them and 5% were of the view that some indicators were not, at all, applicable to their industries. It is concluded from table 7.2 that all the 31 indicators measure EP across extractive, manufacturing and service industries, but only 23 indicators were usually complied with and the rest 8 indicators were most often not undertaken by many firms. 145 University of Ghana http://ugspace.ug.edu.gh 7.2.3 Descriptive analysis of firm performance (FP) Table 7.3 numerically summarizes the location (central tendency), variability (dispersion) and shape (distribution) of the responses for items measuring the firm performance of the respondents. The results displayed in the table indicate the extent to which the firms considered the various indicators to be important in measuring their FP. Table 7.3: Descriptive statistics of firm performance Descriptive Statistics - Firm Performance Location Variability Shape Mean Std. Deviation Skewness Kurtosis Attracts more environmentally oriented stakeholders 4.23 0.987 -1.155 0.242 Increases environmental benefits for stakeholders 3.92 0.797 -1.152 1.374 Stakeholders are satisfied with our environmental performance 3.72 1.123 -0.353 -1.246 Creates environmental opportunities for all stakeholders 4.06 0.877 -1.089 0.841 Enhances the efficiency of our stakeholders in assessing 3.11 1.399 0.048 -1.500 environmental offerings We are commended for our environmental achievements 4.07 1.161 -0.915 -0.707 Our cash flow is less vulnerable to competitive activities 3.27 1.305 -0.18 -1.383 NPV of cash flow is enhanced 3.38 1.169 -0.054 -1.539 Customer base for our offerings increases 4.19 1.174 -1.154 -0.258 Return on our environmental investment increases 3.70 1.309 -0.566 -1.147 Cost of fixed capital reduces 3.02 1.384 0.330 -1.361 Need for working capital reduces 2.82 1.514 0.410 -1.419 Need for fixed capital reduces 2.99 1.261 0.166 -1.382 Operational costs reduce 2.77 1.476 0.104 -1.554 Cost of working capital reduces 2.90 0.979 0.198 -1.942 Net income increases 3.70 1.211 -0.422 -1.397 ROE improves 3.85 1.325 -0.816 -0.636 Return on capital improves 3.37 1.261 -0.265 -1.164 EBIT increases 3.51 1.148 -0.285 -1.417 Source: Constructed from field data From table 7.3, the mean scores, from the range of values of 1 to 5 scale, lie between 2.77 and 4.23 inclusive. Relatively, the mean scores are high. This signifies that there is a good fit to the distribution. The implication is that all firms perceive the indicators of their FP well. The extent of variability, as measured by standard deviation, is low (see Table 7.3). The range of values of standard deviation is between 0.797 and 1.514. This implies that the individual 146 University of Ghana http://ugspace.ug.edu.gh responses do not deviate significantly from the average of responses. This supports the stand of Renner (2018) that smaller standard deviation is an indication that the values in the data set are close to the mean. Table 7.3 shows the shape of the distribution of firm performance indicators, measured with skewness and kurtosis. The values of skewness of the distribution range from -1.155 to 0.410 in the table. This range of values indicates that the distributions do not have any significant skewness. This is based on the submission of Mordkoff (2016) that if the absolute value of skewness is greater than 2.00, then the distribution will differ significantly from normal. It is concluded therefore that the skewness of the indicators of firm performance in the study is more symmetrical than asymmetrical. In addition to skewness, table 7.3 also exhibits the values of kurtosis, which is a measure of the peak and the tail weight of the distribution (DeCarlo, 1997). The range of absolute values that measure the kurtosis of the firm performance fall between 0.242 and 1.942. in line with the argument advanced by NCSS (2019) that a kurtosis with value less than 3 indicates lighter tails than a normal distribution and kurtosis with values greater than 3 indicate heavier tails than a normal distribution, the study concludes that the kurtosis of firm performance indicators have lighter tails and are closer to normality than non-normality. 7.2.4 Descriptive analysis of integrated marketing communication (IMC) The descriptive statistics of IMC focusses on location, measured by the mean; variability, measured by the standard deviation; and shape measured by skewness and kurtosis. Ten (10) items are used to elicit data from the respondents. Each item is assessed on a scale of 1 to 5. The results are displayed in table 7.4. 147 University of Ghana http://ugspace.ug.edu.gh Table 7.4: Descriptive Statistics – Integrated Marketing Communication (IMC) Descriptive Statistics - Integrated Marketing Communication Location Variability Shape Std. Mean Skewness Kurtosis Deviation Ensures that the same environmental information flows through all 4.09 1.359 -1.184 -0.134 hierarchical level of the company Trains our staff in environmental coordination skills 3.61 1.414 -0.944 -0.503 Ensures that consistency of information on stakeholders' 3.57 0.807 -1.386 -0.007 environmental enquiries Reviews planned environmental messages to determine their level of 3.65 0.977 -1.000 0.121 consistency Nourishes relationships with external partners to provide consistent 3.71 1.157 -1.050 0.186 environmental solutions for stakeholders -Our external partners contact one another on environmental issues 3.59 1.108 -0.120 -1.321 Gathers all stakeholders' environmental information into a unified 4.12 0.968 -1.081 0.283 database Promotes environmental objectives among stakeholders 3.42 1.006 -1.359 0.237 Promotes cross-functional environmental coordination for 3.70 1.104 -0.729 -0.578 stakeholder benefits Collaborates with stakeholders in maintaining environmental 4.32 0.646 -0.895 1.734 relationships Our operations are guided by our environmental goals aimed at 3.52 1.139 -0.304 -1.390 meeting stakeholders’ needs Source: Constructed from field data Table 7.4 indicates that relatively, the rage of value of the mean scores (3.42 to 4.32) are high. The majority of the respondents agree with the indicators that measure their IMC. On the score of variability, expressed in standard deviation, low level of dispersion (0.646 to 1.414) among the distribution, and deviation from the mean (Lane, n.d.) are indicated. Skewness and kurtosis measure the shape of the distribution of the firms’ IMC. While skewness records values, in absolute terms, ranging from 0.120 to 1.386, the absolute values of kurtosis fall between 0.007 and 1.734 (see Table 7.4). Juxtaposing these values with the standard thresholds of 2 for skewness and of 3 for kurtosis (Mordkoff, 2016), the distribution of IMC has symmetrical skewness and light tail with flat peak kurtosis. Together the skewness and kurtosis demonstrate that the data set is closer to normality than they are to non-normality. 148 University of Ghana http://ugspace.ug.edu.gh 7.2.5 Descriptive analysis of market-based assets (MBA) Twenty items measure MBA, scored on the scale of 1 to 5. Table 7.5 presents the descriptive statistics of all these 20 items. The aspects of descriptive statistics reported in the table are central tendency (mean), dispersion (standard deviation) and shape (skewness and kurtosis). Table 7.5: Descriptive statistics – market-based assets (MBA) Descriptive Statistics - Market-Based Assets Location Variability Shape Std. Mean Skewness Kurtosis Deviation Disseminates stakeholder environmental information to all 3.59 1.136 -1.152 0.326 units of the company Identifies the need for stakeholder environmental information 4.02 0.801 -1.136 1.476 Stakeholder information facilitate our environmental progress 4.13 0.740 -0.210 -1.147 Synthesises stakeholder environmental information from 4.09 0.993 -1.054 0.137 different sources Stores stakeholder environmental information in the memory 3.17 1.488 -0.296 -1.446 of the company Stakeholders’ environmental claims are trustworthy 3.81 1.082 -0.729 -0.657 Provides stakeholder information in a form that is 3.65 1.246 -0.925 -0.273 understandable to all Develops agreed application of stakeholder environmental 3.82 1.068 -0.496 -0.989 information Stakeholders readily provide us with environmental 4.44 0.674 -0.797 -0.499 information Stakeholders have a strong bonding with us in providing 4.04 0.810 -1.129 1.397 environmental information Stakeholders have positive attitudes towards our environmental 3.93 1.005 -1.122 0.697 offerings Our environmental offerings are relevant to the needs of 4.06 0.995 -1.016 0.061 stakeholders Stakeholders can distinguish our environmental offerings from 4.41 1.060 -1.546 0.773 those of other companies Stakeholders can accurately remember the features of our 3.78 1.100 -0.589 -0.969 environmental offerings Stakeholders give us environmental offerings improvement 4.38 0.674 -1.147 1.065 advice Stakeholder use our environmental information in their 4.13 0.654 -1.941 1.252 purchasing decisions Stakeholder environmental information influences our 3.96 1.040 -1.100 0.486 environmental decisions Justifies environmental decisions with stakeholder 3.71 1.142 -0.679 -0.744 environmental information Relies on stakeholders for environmental information to solve 3.32 1.125 -0.723 -0.191 immediate environmental challenges Ensures that stakeholder relationship is respected by all 4.08 1.025 -1.013 -0.079 Source: Constructed from field data From table 7.5, the largest value of mean reported is 4.44 (Stakeholders readily provide us with environmental information). The smallest mean value reported is 3.17 (Stores stakeholder environmental information in the memory of the company). The implication is that although stakeholders readily provide the large majority of companies with 149 University of Ghana http://ugspace.ug.edu.gh environmental information, the companies are not too keen in storing this environmental information in the memory of their organizations. Nevertheless, on average, the mean values are high (3.17 to 4.44), signifying the acceptance of the indicators of MBA by most respondents. The values of standard deviation, which measured the dispersion of the distribution of the MBA, are exhibited in table 7.5. The range of standard deviation values, as shown in the table, are 0.654 and 1.488. These relatively small values of dispersion, in the words of Renner (2018), do not only tell the story of the absence of outliers in the data set, but also indicate that the variation of the individual responses from their average is low. The shape of the data set of MBAs is represented by skewness and kurtosis of the distribution. Kurtosis values from table 7.5 shows an absolute least value of 0.061 (our environmental offerings are relevant to the needs of stakeholders) and an absolute highest values value of 1.476 (we identify the need for stakeholder environmental information). The highest absolute value of the distribution’s skewness is 1.941 (stakeholders use our environmental information in their purchasing decisions) while the least skewness value in absolute terms is 0.210 (stakeholder information facilitates our environmental progress). The low range of values for both skewness and kurtosis is suggestive that the MBA dataset is symmetrical (skewness), has light tail weight (kurtosis), and is thus close to normality 7.3 Results of measurement models assessment Under the measurement models, the quality of the indicators and dimensions of the constructs were assessed and presented in table 7.6, focussing on reliability and validity of the measures of the key constructs. 150 University of Ghana http://ugspace.ug.edu.gh Table 7.6: Reliability and Validity of the dimensions of the constructs Discriminant Sig. Variable Internal Consistency Convergent Validity Validity Indicator Average Constructs Composite Cronbach's Outer Variance and Reliability Alpha Loading Extracted Dimensions (CR) (α) (IOL) (AVE) HTMT P-Value Threshold CR ≥ 0.70 α ≥ 0.70 IOL ≥ 0.70 AVE ≥ 0.50 HTMT<0.85 p ≤ 0.05 EVNT_PERF 0.804 0.967 0.528 Compl_Stands 0.928 0.885 0.823 0.812 0.829 0.000 Best_Mgt_Prac 0.898 0.951 0.853 0.754 0.698 0.000 Leg_Rqts 0.886 0.845 0.881 0.565 0.784 0.000 Waste_Mgt 0.975 0.816 0.830 0.647 0.569 0.000 Compts_Handl 0.791 0.869 0.791 0.733 0.682 0.000 Envt_CSR 0.805 0.744 0.686 0.555 0.790 0.000 Stan_Mon_Rep 0.771 0.823 0.681 0.587 0.523 0.000 FIRM_PERF 0.842 0.848 0.750 Cash_Flow 0.824 0.814 0.741 0.877 0.783 0.000 Cost_Effic 0.949 0.931 0.755 0.790 0.522 0.000 Prof_lity 0.772 0.791 0.756 0.774 0.415 0.000 Stake_Satis 0.912 0.882 0.708 0.836 0.423 0.000 Growth 0.781 0.901 0.880 0.524 0.446 0.000 Stake_Loy 0.786 0.808 0.906 0.747 0.706 0.000 IMC 0.758 0.854 0.514 Mess_Cons 0.970 0.961 0.641 0.866 0.451 0.000 Stake_Focus 0.856 0.751 0.666 0.667 0.719 0.000 Stake_Inter 0.894 0.822 0.830 0.738 0.377 0.000 Org_Align 0.849 0.946 0.695 0.544 0.563 0.000 MBA 0.770 0.818 0.530 Intel_Asset 0.925 0.902 0.825 0.673 0.802 0.000 Bran_Equit 0.711 0.877 0.705 0.582 0.534 0.000 Relat_Asset 0.888 0.830 0.653 0.668 0.715 0.000 Source: Constructed from analysis of field data 7.3.1 Reliability of measurement models The reliability of the measurement model was established using an internal consistency reliability test. 7.3.1.1 Internal consistency reliability (ICR) It was indicated earlier that internal consistency is a measure of the degree to which the items that make up the scale are all measuring the same underlying attribute (Odoom, 2016). The 151 University of Ghana http://ugspace.ug.edu.gh study relied on Cronbach alpha (α) values and composite reliability (CR) (Hair et al., 2017) to measure internal consistency. From table 7.6, the Cronbach’s alpha values for all dimensions and constructs range from 0.651 to 0.961. With the exception of environmental management practices dimensions with a Cronbach’s alpha of 0.651, which is acceptable in an exploratory study, the Cronbach’s alpha values for all other dimensions and indicators are greater than the recommended threshold of 0.70. It is concluded on this note that the indicators and scales used in this research are highly reliable. Table 7.6 indicates that the CR of EP, FP, IMC and MBA, as key constructs in this study, are 0.804, 0.842, 0.758 and 0.750 respectively. These values are greater than the required threshold of 0.70, an indication of the reliability of the indicators and dimensions that measure the key constructs in the study. The study, based on the advice of Hair et al. (2017), reports both Cronbach’s alpha values and composite reliability values for the constructs and their dimensions. The authors argue that while Cronbach’s alpha results in relatively low reliability values, composite reliability results in comparatively high reliability values. This position of the authors is confirmed by the Cronbach’s alpha values and composite reliability values in table 8.1. However, an extract, which is comparative values of Cronbach’s alpha and composite reliability of EP, FP, IMC and MBA are shown in Table 7.7. It can be observed from Table 7.7 that there is a marginal difference (values ranging from 0.020 to 0.128) between the composite reliability values and Cronbach’s alpha values. Hair et al. (2017) explain that the true reliability measure always lies between Cronbach’s alpha values and composite reliability values. As displayed in the last column of table 7.7, the true reliability values of EP (0.740), FP (0.830), IMC (0.738) and MBA (0.760) were computed 152 University of Ghana http://ugspace.ug.edu.gh as the mean (average) of both composite reliability values and Cronbach’s alpha values. Using the reliability threshold of 0.70 as a benchmark, it is concluded that the constructs in this study are reliably measured by their indicators and constructs. Table 7.7: True reliability values of EP, FP, IMC and MBA True Composite Cronbach's Reliability Constructs Reliability Alpha Difference Value Environmental Performance (EP) 0.804 0.676 0.128 0.740 Firm Performance (FP) 0.842 0.818 0.024 0.830 Integrated Marketing Communication (IMC) 0.758 0.718 0.040 0.738 Market-Based Assets (MBA) 0.770 0.750 0.020 0.760 Source: Constructed from table 7.6 7.3.2 Validity of measurement models The validity of the measurement models in this study is evaluated using convergent validity and discriminant validity (Hair et al., 2017). 7.3.2.1 Convergent validity The study relied on indicator outer loadings (IOL) and average variance extracted (AVE) to measure the convergent validity (Hair et al., 2017). These values are exhibited in Table 7.6. The results of IOL indicate that two dimensions, message consistency (0.641) and stakeholder focus (0.666) did not load adequately on IMC. Similarly, two dimensions, relational assets (0.653) and stakeholder orientation (0.695) did not sufficiently load on MBA. This notwithstanding, all these four dimensions are statistically significant (p ≤ 0.000) and are retained. All other dimensions loaded well on their respective constructs. From the table, the AVE value of EP is 0.528. FP has an AVE value of 0.750, IMC records AVE of 0.514 and MBA reports an AVE of 0.530. The AVE values of the four constructs in this study are greater than the 0.50 threshold. The IOL and AVE both confirm the convergent validity of the measurement models of this research. 153 University of Ghana http://ugspace.ug.edu.gh 7.3.2.2 Discriminant validity This study assessed discriminant validity of the dimensions using HTMT less than 0.85 threshold. The results, as shown in table 7.6, indicate an absence of HTMT value greater or equal to 0.85. It is therefore argued that there is a discriminant validity of the measurement models of this study. 7.4 Results of structural model analysis The structural model analysis result was presented first without mediation and then with mediation (simple and multiple), based on the objectives of the study. 7.4.1 Objective 1: The impact of EP on FP The simple cause-effect direct relationship model in this study delineates the direct relationship between EP and FP. The results of the analysis of the relationship between EP and FP are displayed figure 7.1 and in table 7.1. Figure 7.1: Direct relationship between EP and FP R2=0.858 Source: Imported from SmartPLS 3 used to analyse field data. Table 7.8: Results of the analysis of the relationship between EP and FP Hypothesis Path model SRMR Effect (β) R2 t-Value p-Value H1 ENVT_PERF -> FIRM_PERF 0.108 -0.927 0.858 47.156 0.000 Source: constructed from field data analysis result The SRMR value of EP-FP relationship reported in table 7.8 indicates that the model fits well (SRMR = 0.108). The standardized path coefficient (β = -0.927), as shown in both table 7.8 and figure 7.1, indicates that there is a very strong negative relationship between EP and FP, 154 University of Ghana http://ugspace.ug.edu.gh such that a unit increase in EP will lead to a 0.927 decrease in FP. It must be noted also that EP explained about 86% (R2 = 0.858) of variation in FP (See table 7.8 and figure 7.1). Both the p-value (p ≤ 0.000) and t-value (t = 47.156) elucidated that the relationship between EP and FP is statistically significant and supports the hypothesis that EP significantly influences FP. 7.4.2 Objective 2: The mechanisms through which EP affects FP Mediation models are tested individually as simple mediation models and simultaneously as multiple mediation models (MacKinnon et al., 2012; Hair et al., 2017; Cepada et al., 2018 & Hayes, 2019). 7.4.2.1 Results of simple mediation models According to Hair et al. (2017), in a simple mediation model, there is only one mediator variable. The study argues that the relationship between EP and FP is, at one end, intervened by MBA and, at another end, mediated by IMC. This creates a mediating EP-FP relationship with MBA and with IMC. 7.4.2.1.1 Hypothesis 2: Mediating effect of MBA Figure 7.2 illustrates simple mediation structural model in which MBA transmits the effects of EP (ENVT_PERF) on FP (FIRM_PERF). The results are displayed in Table 7.2. 155 University of Ghana http://ugspace.ug.edu.gh Figure 7.2: Simple mediation with MBA R2= 0.651 R2=R 2 0.8=604. 864 Source: Imported from SmartPLS 3 on field data analysis The coefficient of determination (R2), as indicated in figure 7.2, illustrates that EP explains 65.1% of variations in MBA. The EP, together with MBA, accounted for 86.4% of variations in FP. The direct relations in the MBA mediated model (figure 7.2) are identified and reported in table 7.2. Table 7.9: Direct effects of EP on FP through MBA Direct Effects Coefficient p-Value t-Value ENVT_PERF -> FIRM_PERF -0.109 0.186 0.948 ENVT_PERF -> MBA -0.878 0.000 20.997 MBA -> FIRM_PERF 0.917 0.000 7.740 Source: constructed from field data analysis with SmartPLS 3 From figure 7.2 and table 7.9, the coefficient and p-value of the direct effect of EP on FP (ENVT_PERF -> FIRM_PERF) established that EP casts a very weak (β = -0.109) and insignificant (p ≤ 0.186) direct effect on FP, (β = -0.109, p ≤ 0.186). Other effects that meet the single headed arrow condition for direct effect worth mentioning in this simple MBA mediation model are the relationships between the independent construct and the mediator variable (ENVT_PERF -> MBA), and between the mediator variable and the dependent construct (MBA -> FIRM_PERF). The coefficients of these direct effects and their p-values, 156 University of Ghana http://ugspace.ug.edu.gh contained in table 7.9 and figure 7.2, show that there is a strong negative (β = -0.878) and strong positive (β = 0.917) significant (p ≤ 0.000) relationships between EP and MBA (ENVT_PERF -> MBA), and between MBA and FP (MBA -> FIRM_PERF) respectively. Reference to the simple mediation model in figure 7.2, the product of the relationship between EP and MBA (ENVT_PERF -> MBA) and the relationship between MBA and FP (MBA -> FIRM_PERF) established an indirect relationship (ENVT_PERF -> MBA -> FIRM_PERF). This indirect (mediation) effect is calculated as [(ENVT_PERF -> MBA) x (MBA -> FIRM_PERF)] and displayed in table 7.10. Table 7.10: Indirect effects of EP on FP through MBA Indirect Effects Coefficient 95% BBCI VAF Mediation Β 2.5% 97.5% % -0.629 88 Full ENVT_PERF -> MBA -> FIRM_PERF -0.805 -0.951 mediation Source: constructed from field data analysis with SmartPLS 3 It was established that the indirect effect between EP and FP through MBA (ENVT_PERF - > MBA -> FIRM_PERF), as shown in table 7.10, is strong and negative (β = -0.805). The significance of the indirect effect is tested with 95% two-tail bias-corrected bootstrap confidence interval (BBCI). The bias-corrected bootstrap confidence interval of the indirect of EP on FP via MBA does not contain zero (95% BBCI [-0.951, -0.629]), indicating a significant indirect relationship between EP and FP through MBA. There is therefore a mediation effect in the theoretical framework presented in figure 7.2. The presence of a mediation effect is claimed based on the argument that ‘having a significant indirect effect is the basis to determine the presence of mediation’ (Wong, 2016, p. 16). Therefore, the hypothesis that MBA significantly transmits the effect of EP to FP is supported. 157 University of Ghana http://ugspace.ug.edu.gh Comparing the significance of both the direct effect and the indirect effect of the mediation model based on the recommendation of Nitz et al. (2016), Kenny (2018), Hair et al. (2017) and Cepeda et al. (2018), it is concluded that MBA mediates the EP and FP relationship fully. While the direct effect of EP on FP (ENVT_PERF -> FIRM_PERF) is weak and insignificant (β = -0.109, p ≤ 0.186), there is a strong and significant indirect effect of EP on FP through MBA (β = -0.805, 95% BBCI = [-0.951, -0.629]). Both the direct and indirect effects satisfy the condition of full mediation. MBA therefore fully mediated the relationship between EP and FP. The portion of the relationship that is mediated was ascertained through the calculation of indirect-to-total effect ratio, also known as variance, accounted for (VAF). It is evident in table 7.10 that 88% of the effect on EP on FP is mediated by MBA. This reiterates that MBA fully mediates (VAF ≥ 80%) the relationship between EP and FP. The result of total effect, the sum of direct and indirect effects (Hayes, 2009; Zhao et al., 2010), is shown in table 7.11. Table 7.11: Total effect of EP on FP through MBA Direct Effects Indirect Effect Total Effect -0.109 (11.93%) -0.805 (88.07%) -0.914 (100%) Source: constructed from field data analysis with SmartPLS 3 It is deduced from table 9.3 that the total effect (β = -0.914) of EP on FP was transmitted both directly (β = -0.109) and indirectly through MBA (β = -0.805). That is, while 88.07% of the effect was transmitted indirectly, only 11.93% (insignificantly though) was transmitted directly. 7.4.2.1.2 Hypothesis 3: Mediating effect of IMC The analysis of using IMC as a mediating variable in the transmission of the effect of EP on FP is presented in Figure 7.3 and tables 7.12 to 7.16. 158 University of Ghana http://ugspace.ug.edu.gh Figure 7.3: Simple mediation with IMC RR2² = =00..883366 R²=0.569 R2=0.569 Source: Imported from SmartPLS 3 on field data analysis The simple mediation model in figure 7.3 demonstrates that 83.6% of variation in FP is explained by EP directly and indirectly through IMC (R2 = 0.836). Directly, the EP explains 56.9% of the variations in the IMC (R2 = 0.569). Three direct relationships (relationships with single-headed arrow) noticeable in figure 7.3 include relationship between EP and FP (ENVT_PERF -> FIRM_PERF), relationship between EP and IMC (ENVT_PERF -> IMC), and relationship between IMC and FP (IMC -> FIRM_PERF). The results of the analysis of the direct effect of this simple mediation model appear in both Figure 7.3 and Table 7.12. Table 7.12: Direct effects of EP on FP through IMC Direct Effects Coefficient p-Value t-Value ENVT_PERF -> FIRM_PERF -0.492 0.000 5.935 ENVT_PERF -> IMC -0.754 0.000 33.929 IMC -> FIRM_PERF 0.485 0.000 5.691 Source: constructed from analysed field data While the relationship between EP and FP (β = -0.492), and between EP and IMC (β = -0.754) are negative, the relationship between IMC and FP (β = 0.485) is positive. The relationship between EP and IMC is strong (β = -0.754). Contrarily, the relationship between EP and FP, and between IMC and FP are moderately strong with their coefficient values approaching 159 University of Ghana http://ugspace.ug.edu.gh 0.50 (β = -0.492 and β = 0.485 respectively). However, irrespective of the differences in direction and in magnitude, all the three direct effects are significant (p ≤ 0.000) (see Figure 7.3 and Table 7.12). Table 7.13 is constructed to exhibit the indirect effect of EP on FP through IMC. Table 7.13: Indirect effects of EP on FP through IMC Indirect Effects Coefficient 95% BBCI VAF Mediation β 2.5% 97.5% % ENVT_PERF -> MBA -> FIRM_PERF -0.366 -0.494 -0.282 42.66 Partial Source: constructed from field data analysis with SmartPLS 3 The coefficient of the indirect effect EP has on FP via IMC is weak and negative (β = -0.366). The 95% two-tail bias corrected bootstrap confidence interval of the indirect effect of EP on FP through IMC did not straddle over zero [-0.494, -0.282]. This confirmed the statistical significance of the mediated effect of EP on FP through IMC. This result suggests and supports the hypothesis that IMC significantly mediates the relationship between EP and FP (Wong, 2016). Comparing the direct effect (β = -0.492, p ≤ 0.000) and indirect effect (β = -0.366, 95% BBCI = [-0.494, -0.282]) EP has on FP, the study concludes that there is a partial mediation through IMC. This is consistent with the conditions outlined by scholars (Cepeda et al., 2018; Hair et al., 2017; Kenny, 2018; Hayes, 2009) that, for partial mediation to be present, both the direct effect and the indirect effect must be significant. There is therefore an indication that IMC mediates the EP-FP relationship partially. The calculated VAF, as shown in table 7.13, indicates that 42.66% of the total effect of EP on FP was partially mediated through IMC. That is, EP transmits 42.66% of its effect on FP 160 University of Ghana http://ugspace.ug.edu.gh through IMC, and transmits the rest of its effect directly onto FP. It is confirmed, therefore, that IMC mediates EP and FP relationship partially. The partial mediation that IMC transmits from EP to FP is complimentary. From table 7.12, the coefficient of the direct effect (β = -0.492) and the point estimate of the indirect effect (β = -0.366) shown in table 7.13 point to the same (negative) direction. Alternatively, the product of direct and indirect effects (-0.492 x -0.366) is positive (0.180). The total effect of EP on FP in this simple mediation model is assessed as the sum of its direct effect (ENVT_PERF -> FIRM_PERF) and indirect effect (ENVT_PERF -> IMC -> FIRM_PERF). Table 7.6 shows the result of the total effect of EP on FP in a mediation model shown in figure 7.3. Table 7.14: Total effect of EP on FP Direct Effect Indirect Effect Total Effect -0.492 (57.34%) -0.366 (42.66%) -0.858 (100%) Source: constructed from field data analysis with SmartPLS 3 The result suggests that EP, through direct and indirect mechanism, strongly and negatively predict FP (β = -0.858). While β = -0.492, representing 57.36%, of the effect of EP on FP was transmitted directly, β = -0.366, accounting for 42.66% was diffused indirectly via IMC. 7.4.2.1.3 Simple mediation model differential The mediation effects of the different mediation models are compared, and the results presented in table 7.15. Table 7.15: Differences among the multiple mediation models Point of decision MBA Mediation Model IMC Mediation Model Point estimate -0.805 -0.366 Significance [-0.951, -0.629] [-0.494, -0.282] VAF 88.00 % 42.66 % Mediation type Full mediation Partial mediation Source: Constructed from tables 7.12 and 7.13 161 University of Ghana http://ugspace.ug.edu.gh While MBA mediated the relationship between EP and MBA fully, IMC mediated it partially and complimentarily. That is, 88% of the effect of EP on FP is transmitted through MBA. Through IMC, EP transmitted 42.66% of its effect on FP and transmitted the rest of its effect directly on FP. MBA thus has a greater mediation effect that IMC. 7.4.2.2 Evaluation of Multiple Mediation Model As opposed to the simple mediation model in which there is only one mediator variable, the multiple mediation model, as defined by Hair et al. (2017) and elaborated by Cepeda et al. (2018), occurs when there are two or more mediator variables in a mediation model. This study is regarded as a multiple mediation model because it is structured on two mediating constructs, mediating concurrently (parallel mediation), sequentially (series mediation) and in a combined manner (combined parallel and series mediation) (Cepada et al., 2018). 7.4.1.2.1 Hypothesis 3: Concurrent mediation via MBA and IMC In concurrent (parallel) multiple mediation, the effect of the independent variable passes through more than one mediator variables, creating two or more indirect parallel paths. The effect of the independent variable passes through the two or more mediator variables at the same time before predicting the dependent variable. In the case of this study, the effect of EP, the explanatory variable, passed through two mediator variables (MBA and IMC) at the same time in parallel indirect paths to predict FP, the explained construct. The results of this concurrent multiple mediation model are depicted in figure 7.4. 162 University of Ghana http://ugspace.ug.edu.gh Figure 7.4: Concurrent multiple mediation with MBA and IMC R2= 0.685 R2=0.68 R2=0.85 R2 =0.537 2 R =0.53 Source: Imported from SmartPLS 3 on analysis of field data EP, the main independent construct in the concurrent multiple mediation model, explained 53.7% of variations in IMC and 68.5% of variations in MBA. In conjunction with IMC and MBA, the EP accounted for 85.7% of variations in FP. The direct effects exhibited in Figure 7.4 include: EP-FP relationship, EP-MBA relationship, EP-IMC relationship, MBA-FP relationship and IMC-FP relationship. The direction, magnitude and significance of these direct relationships are depicted in both Figure 7.4 above and Table 7.16 below. Table 7.16: Direct effects of EP on FP through MBA and IMC concurrently Direct Effects Coefficient p-Value t-Value ENVT_PERF -> FIRM_PERF -0.268 0.016 2.198 ENVT_PERF -> IMC -0.757 0.000 25.619 ENVT_PERF -> MBA -0.827 0.000 29.434 IMC -> FIRM_PERF -0.216 0.172 0.949 MBA -> FIRM_PERF 0.889 0.001 3.203 Source: constructed from field data analysis with SmartPLS 3 The direction, magnitude and significance of the direct effects in table 7.16 are as follows: relationship between EP and FP (β = -0.268, p = 0.014), between EP and IMC (β = -0.757, p 163 University of Ghana http://ugspace.ug.edu.gh = 0.000), between EP and MBA (β = -0.827, p = 0.000), between IMC and FP (β = -0.216, p = 0.172) and between MBA and FP (β = 0.889, p = 0.001). Except MBA-FP relationship which reports a positive relationship (β = 0.889), other direct effects in this multiple mediation model are negative. In a similar argument, except for the IMC-FP relationship which is statistically insignificant (p = 0.172, t = 0.094), all other direct effects are statistically significant (p ≤ 0.05). In a concurrent mediation model with two mediators as the one in this study, two specific indirect effects – effect of EP on FP through IMC and impact of EP on FP via MBA – were created. The point estimates (coefficient) of the indirect effects, which explained the direction and magnitude of the specific indirect effects, and total indirect effect are reported in table 7.17. Table 7.17: Indirect effects of EP on FP through MBA and IMC concurrently Indirect effects Coefficient 95% BBCI VAF Β 2.5% 97.5% % ENVT_PERF -> MBA -> FIRM_PERF -0.735 -0.936 -0.346 87.61% ENVT_PERF -> IMC -> FIRM_PERF 0.164 -0.134 0.406 -19.55% Total Indirect Effect -0.571 -0.704 -0.432 68.06% Source: constructed from field data analysis with SmartPLS 3 As demonstrated in table 7.17, the effect of EP on FP through MBA has a point estimate of β = -0.735 which is the product of direct paths between EP and MBA and between MBA and FP ( -0.827 x 0.889). The indirect effect of EP on FP via IMC has a point estimate of β = 0.164, also a product of direct paths between EP and IMC, and between IMC and FP (-0.757 x -0.216). While the effect of EP on FP through MBA is reportedly negative, the effect of EP on FP through IMC is observably positive. Together, the indirect effects of EP on FP through MBA and through IMC result is strong and negative (β = -0.571). 164 University of Ghana http://ugspace.ug.edu.gh The indirect effect of EP on FP via MBA in this concurrent mediation model is significant. This is because, the 95% bias-corrected bootstrap confidence interval did not overlap zero (95% BBCI = [-0.936, -0.346]). This is a sign that in the multiple mediation model, MBA mediates the relationship between EP and FP. However, the study did not find evidence of IMC mediating the relationship between EP and FP in the concurrent mediation model. This conclusion is reached based on the 95% two-tail bias-corrected bootstrap confidence interval values extracted from the indirect effect of EP on FP through IMC (95% BBCI = [-0.134, 0.406]), which bestride zero. Nevertheless, the indirect effect of EP on FP concurrently via MBA and IMC is strong (β = -0.571) and statistically significant (95% BBCI = [-0.704, - 0.432]). Therefore, the hypothesis that the relationship between EP and FP is mediated concurrently by MBA and IMC is supported. It is observed also that the indirect effect of EP on FP concurrently through MBA and IMC is partial. This is because both the direct effect, (β = -0.268) and concurrent indirect effect, (β = -0.571) are statistically significant at (p = 0.014, t = 2.198) and (95% BBCI = [-0.704, - 0.432]) respectively. It is to be noted further that the partial mediation determined in the concurrent mediation with MBA and IMC is complimentary in nature. This is because the concurrent indirect effect (β = -0.571) as well as the direct effect (β = -0.268) has a negative coefficient. Affirming this stance, the product of the direct effect and indirect effect (-0.268 x -0.571) is positive (0.153), (Cepada et al., 2018). The types of partial mediation in the concurrent multiple mediation of an EP-PF relationship with MBA and IMC are summarized in table 7.18 165 University of Ghana http://ugspace.ug.edu.gh Table 7.18: Type of partial mediation in the IMC and MBA mediation model Indirect Direct Mediation Type Mediation Effects Effect Product ENVT_PERF -> MBA -> FIRM_PERF -0.735 -0.268 0.197 Complementary partial mediation ENVT_PERF -> IMC -> FIRM_PERF 0.164 -0.268 -0.044 Inconsistent partial mediation Total Indirect Effect -0.571 -0.268 0.153 Complementary partial mediation Source: Constructed from table 9.9 and table 9.10 The amount of effect of EP on FP that is mediated concurrently by MBA and IMC is evaluated by calculating VAF, which stood at 68.06% (see Table 7.17). This means that EP transmitted about 68% of its effect concurrently through MBA and IMC mechanisms on FP. The VAF value of the concurrent mediation effect of MBA and IMC model, in the lens of VAF criteria (20% < VAF < 80%), confirms the partiality of the mediation effect. Taken individually, EP significantly transmitted 87.61% and insignificantly transmitted 19. 55% of its effect indirectly through MBA and IMC respectively. However, because the direct effect is statistically significant (β = -0.268, p = 0.016), full mediation cannot be argued in favour of MBA even though its VAF (VAF = 87.61%) is greater than the 80% threshold for full mediation. Instead, the focus is on total indirect effect transmitted concurrently through MBA and IMC with a VAF of 68.06%, hence the presence of partial mediation (20% < VAF < 80%) in the concurrent or parallel mediation model. Cepeda et al. (2018) posit that in a multiple mediation model evaluation, researchers should indicate the different mediation effects by comparing the specific indirect effects. The reason is to identify which mediator construct has the strongest mediator effect on the model. Heeding the recommendation, the absolute VAF of the indirect effect through IMC mechanism is subtracted from the VAF of the indirect effect through MBA mechanism [(ENVT_PERF -> MBA -> FIRM_PERF) – (ENVT_PERF -> IMC -> FIRM_PERF)] and 166 University of Ghana http://ugspace.ug.edu.gh the result displayed in table 7.19. This was done to determine which of the mediator variables (MBA or IMC) has the greater mediation impact on the relationship between EP and FP. Table 7.19: Simple model indirect effects differential Indirect effect via MBA Indirect effect via IMC Indirect differential effect (a) (b) (a-b) VAF = 87.61% VAF = 19.55% VAF = 68.06% Source: constructed from field data analysis results in table 9.8 The result suggests that MBA has over 68% greater and significant mediation impact than IMC in their concurrent mediation of the relationship between EP and FP. The 68.06% VAF differential implies that the partial mediation in the parallel mediation model results from mediation through MBA, not via IMC. The results of the total effect of the parallel multiple mediation model presented in the study indicates that the total direct effect (ENVT_PERF -> FIRM_PERF) and the total indirect effect [(ENVT_PERF -> IMC -> FIRM_PERF) + (ENVT_PERF -> MBA -> FIRM_PERF)] combined to define the total effect of EP on FP through the mechanisms of MBA and IMC. It is concluded from the table that through MBA and IMC mechanisms in parallel manner, EP negatively and strongly impacted FP (β = -0.859) (see Table 7.20). Table 7.20: Total effect of EP on FP through IMC and MBA Indirect Effects Effect of Total Effect Effect of EP on EP on FP via Total Indirect Direct Effect FP via IMC MBA Effect -0.268 (31.94%) 0.164 (-19.54%) -0.735 (87.60%) -0.571 (68.06%) -0.839 Source: Constructed from tables 7.16, and 7.17 7.4.1.2.2 Hypothesis 4: Sequential mediation via MBA and IMC Contrary to concurrent multiple mediation in which there are two or more parallel indirect paths between the independent variable and the dependent variable, in a sequential multiple 167 University of Ghana http://ugspace.ug.edu.gh mediation, there is only one indirect path through more than one mediator variables between the independent variable and the dependent variable. The effect of the independent variable on the dependent variable passes through more than one mediator variable, not at the same time, but one after the other in a sequential manner, thereby creating only one indirect path. The sequential mediation is also known as series mediation (Hayes, 2018). Figure 7.5 illustrates the theoretical framework of the sequential multiple mediation model of this study. Figure 7.5: Sequential multiple mediation with MBA and IMC R2 = 0.628 R2 = 0.916 R2 = 0.848 Source: Imported from PLS-SEM 3 on field data analysis EP explains 62.8% of the variations in MBA (R2 = 0.628), which in turn explains 91.6% of the variations in IMC (R2 = 0.916). EP, direct and indirectly through MBA and IMC, accounts for 84.8% of the variations in FP (R2 = 0.848). Four direct paths are identifiable in the sequential mediation model presented in figure 7.5. These include EP-FP relationship, EP- MBA relationship, MBA-IMC relationship and IMC-FP relationship. The effects of these direct paths, as shown in figure 7.5, are summarised in table 7.21. 168 University of Ghana http://ugspace.ug.edu.gh Table 7.21: Direct effects of EP on FP through MBA and IMC sequentially Direct Effects Coefficient p-Value t-Value ENVT_PERF -> FIRM_PERF -0.518 0.000 5.948 ENVT_PERF -> MBA -0.783 0.000 33.474 MBA -> IMC 0.957 0.000 5.136 IMC -> FIRM_PERF 0.463 0.000 26.330 Source: constructed from field data analysis with SmartPLS 3 Table 7.21 demonstrates that EP negatively, strongly and significantly influences FP (β = - 0.518, p < 0.000), and influences MBA in a similar manner (β = -0.783, p < 0.000). The relationship between MBA and IMC is positive, strong and significant (β = 0.957, p < 0.000), and the relationship between IMC and FP is positive, significant and moderately strong (β = 0.463, p < 0.000). However, only EP-FP relationship is required in this study. Three specific indirect paths (effects) are identifiable with a sequential multiple mediation model involving two mediator variables. In figure 7.5, the identified indirect paths are the effect of EP on IMC through MBA, the effect of MBA on FP through IMC and the effect of EP on FP through MBA and IMC. These indirect paths are displayed in table 7.22. Table 7. 22: Indirect effects of EP on FP through MBA and IMC sequentially Indirect effects Coefficient 95% BBCI VAF β 2.5% 97.5% % ENVT_PERF -> MBA -> IMC -0.749 -0.789 -0.701 86.59 MBA -> IMC -> FIRM_PERF 0.443 0.250 0.600 -51.21 ENVT_PERF->MBA->IMC-> FIRM_PERF -0.347 -0.478 -0.199 40.12 Source: constructed from field data analysis with SmartPLS 3 It is indicated in table 7.22 that the effect of EP on IMC through MBA is negatively strong and statistically significant (β = -0.749, 95% BBCI = [-0.789, -0.701]). The indirect effect of MBA on FP via IMC has a point estimate of β = 0.44.3 and significant value of 95% BBCI 169 University of Ghana http://ugspace.ug.edu.gh [0.250, 0.600]. These values explain that the impact of MBA on FP through IMC is positively moderate but statistically significant. However, these two indirect effects (effect of EP on IMC via MBA and effect of MBA on FP via IMC) were not hypothesised because they either do not begin the path relationship with EP as the independent variable (MBA -> IMC -> FIRM_PERF) or they do not end the path relationship with FP as the dependent variable (ENVT_PERF -> MBA -> IMC). The hypothesised indirect effect of EP on FP sequentially through MBA and IMC, as exhibited in table 7.22, elucidate a negatively weak but statistically significant impact (β = -0.347, 95% BBCI = [-0.478, -0.199]). It is further demonstrated that EP, sequentially through MBA and IMC, accounted for 40.12% of the total effect it has on FP (VAF = 0.4012). In other words, 40.12% of the effects of EP on FP is indirect. This suggests the presence of partial mediation in this sequential multiple mediation model in which the EP-FP relationship is intermediated with MBA and MBA (20 ≤ VAF ≤ 80). The claim of partial mediation is affirmed by the statistical significance of both the direct effect (p < 0.000, t = 5.948) and the indirect effect (β = -0.347, 95% BBCI = [- 0.478, -0.199]). This position is backed by the argument of Kenny (2018) that partial mediation is reported where the direct effect and indirect effects in a mediation model are statistically significant. The partiality of the mediation effect in this sequential multiple mediation model is recognizably complimentary in nature, supported by the assertion that the product of the direct effect and the indirect effect (-0.518 x -0.347) is positive (0.180) (Nitzl et al., 2016). In furtherance of the complimentary partial mediation claim, the negative direction of the coefficients of both the direct effect (β = -0.518) and the indirect effect (β = -0.347) are also relied upon (Hair et al., 2017). 170 University of Ghana http://ugspace.ug.edu.gh Following the recommendations of Hair et al. (2017) and Nitzl et al. (2016), the total effect of EP on FP is determined. The total effect is this sequential multiple mediation model that is assessed by summing up the direct effect and the indirect effect. The result, as indicated in table 7.23, indicates that EP, in total, through direct and indirect mechanisms, has a strong negative effect on FP (β = -0.867). Table 7. 23: Total effect of EP on FP through IMC and MBA sequentially Direct Effect Indirect Effect Total Effect (ENVT_PERF -> FIRM_PERF) (ENVT_PERF->MBA->IMC-> FIRM_PERF) (a + b) (a) (b) -0.518 (59.88%) -0.347 (40.12%) -0.865 (100%) Source: Constructed from tables 7.21 and 7.22 7.4.1.2.3 Hypothesis 5: Combined parallel and series mediation via MBA and IMC In a combined multiple mediation model, both the concurrent and sequential mediation effects are examined simultaneously, and the results depicted in figure 7.6 and table 7.24. Figure 7. 6: Combine multiple mediation with MBA and IMC R2=0.62 R 2=0.85 4 7 R2=0.83 1 Source: Imported from PLS-SEM on field data analysis EP explains 62.4% of the variations in MBA (R2 = 0.624). EP and MBA together account for 85.7% of the variations in IMC (R2 = 0.857). EP, MBA and IMC record a predictive power of R2 = 0.857 on FP, indicating that 85.7 % of the variations in FP is explained by the combined effect of FP, MBA and IMC. 171 University of Ghana http://ugspace.ug.edu.gh The combined multiple mediation model presented in figure 7.6 contains six direct effect relationships. These include a significant EP-FP relationship (β = -0.492, p < 0.000), a significant EP-MBA relationship (β = -0.790, p < 0.000), an insignificant EP-IMC relationship (β = -0.046, p < 0.349), a significant MBA-IMC relationship (β = 0.899, p < 0.000), an insignificant MBA-FP relationship (β = 0.233, p < 0.355), and an insignificant IMC-FP relationship (β = 0.248, p < 0.266). The effects of these direct paths, as shown in figure 7.6, are summarised in table 7.24. Table 7.24: Direct effects of EP on FP via MBA and IMC in a combined model Direct Effects Coefficient p-Value t-Value ENVT_PERF -> FIRM_PERF -0.492 0.000 5.026 ENVT_PERF -> IMC -0.046 0.349 0.938 ENVT_PERF -> MBA -0.790 0.000 37.817 MBA -> IMC 0.899 0.000 21.550 MBA-> FIRM_PERF 0.233 0.355 0.927 IMC -> FIRM_PERF 0.248 0.266 1.113 Source: constructed from field data analysis with SmartPLS 3 Shown in Figure 7.6 and Table 7.25 are five specific indirect effects in the combined concurrent and sequential multiple mediation model involving the two mediator variables, MBA and IMC. These include the effect of EP on FP through IMC, the effect of MBA on FP through IMC, the effect of EP on FP via MBA and then via IMC, the effect of EP on FP through MBA, and the effect of EP on IMC through MBA. Table 7.25: Indirect effects of EP on FP through MBA and IMC sequentially Indirect effects Estimates 95% BBCI VAF β 2.5% 97.5% % ENVT_PERF -> IMC -> FIRM_PERF -0.011 -0.076 0.011 1.27 MBA -> IMC -> FIRM_PERF -0.068 -0.068 0.692 7.88 ENVT_PERF -> MBA -> IMC -> FIRM_PERF -0.176 -0.591 0.049 20.39 ENVT_PERF -> MBA -> FIRM_PERF -0.184 -0.472 0.376 21.32 ENVT_PERF -> MBA -> IMC -0.710 -0.780 -0.642 82.27 Source: constructed from field data analysis with SmartPLS 3 172 University of Ghana http://ugspace.ug.edu.gh With the exception of the effect of EP on IMC through MBC which is strong (β = -0.710) and statistically significant (95% BBCI = [-0.780, -0.642]), all other mediation effects are not statistically significant (see table 7.25). In the determination of the combined indirect mediation effect, two indirect effects were excluded because they did not include either EP as the independent variable (MBA -> IMC -> FIRM_PERF) or FP as a dependent variable (ENVT_PERF -> MBA -> IMC). This means that, out of the five specific indirect effects in the combined multiple mediation model, three specific indirect effects are included in the determination of the combined indirect effect. This is because the included specific indirect effects transmit the effect of EP on FP, which is consistent with the conceptualisation of the combined hypothesis. Table 7.26 illustrates the determination of the combined indirect effect. Table 7.26: Combined indirect effect of MBA and IMC on EP-FP relationship Indirect effects Estimates 95% BBCI VAF Β 2.5% 97.5% % Mediation through MBA only -0.184 -0.472 0.376 21.32 Mediation through IMC only -0.011 -0.076 0.011 1.27 Concurrent mediation via MBA and IMC -0.195 -0.014 0.051 22.60 Sequential mediation via MBA and IMC -0.176 -0.591 0.049 20.39 Combined mediation -0.371 -0.497 -0.201 42.99 Source: Constructed from table 7.25 It is acknowledged that the specific indirect effects through MBA (β = -0.184, 95% BBCI = [-0.472, 0.376]) and through IMC (β = -0.011, 95% BBCI = [-0.076, 0.011]) are not statistically significant. Similarly, the specific indirect effects concurrently through MBA and IMC (β = -0.195, 95% BBCI = [-0.014, 0.051]) and sequentially through MBA and IMC (β = -0.176, 95% BBCI = [-0.591, 0.049]) are statistically insignificant. However, the combined mediation effect is statistically significant (β = -0.371, 95% BBCI = [-0.497, -0.201]). Comparing the significance (95% BCCI = [-0.497, -0.201]) of the combined indirect effect (β = -0.371) to the significance (p = 0.016) of the direct effect (β = -0.492), it is concluded 173 University of Ghana http://ugspace.ug.edu.gh that the combined mediation effect of MBA and IMC is partial. The partial mediation argument is supported by the calculated VAF (VAF = 42.99%), which is within the threshold for partial mediation (20 ≤ VAF ≤ 80). Describing the type of partial mediation in the combined mediation of MBA and IMC, the study found evidence of a complimentary partial mediation. This is because, the product of the direct effect and the indirect effect is positive [(-0.492 x -0.371) = 0.183] (Nitzl et al., 2016). In addition, the coefficient of the direct effect (-0.492) and the point estimate of the combined indirect effect (-0.371) point in the same negative directions, confirming the presence of complimentary partial mediation in the combined mediation model (Hair et al., 2017). The direct and indirect effects in the combined mediation model are added to determine the total effect in accordance with the recommendations of Hair et al. (2017) and Nitzl et al. (2016). Table 7.27 presents the results of the total effect of EP on FP in the combined mediation model. Table 7.27: Total effect of EP on FP through IMC and MBA sequentially Indirect Effects Total Effect Effect of EP Effect of Effect of EP Direct on FP via EP on FP via on FP via Total Indirect Effect MBA IMC MBA & IMC Effect -0.492 -0.184 -0.011 - 0 . 176 - 0 .371 - 0 . 8 63 (57.01%) (21.32%) (1.27%) (20.39%) (42.99%) (100%) Source: Constructed from tables 7.25 and 7.26 Table 7.27 clearly shows that out of the total effect of β = -0.863, β = -0.371, representing 42.99%, this was mediated and the remaining β = -0.492 (57.01%) was transmitted directly and not through any mechanism. 174 University of Ghana http://ugspace.ug.edu.gh 7.4.1.2.4 Multiple mediation differential The differences among the parallel multiple mediation model, the series multiple mediation model and the combined multiple mediation model are reported in table 7.28 below. This is to determine which of the three multiple mediation effects impact the relationship between EP and FP better. In the table, it is reported that the use of MBA and IMC concurrently mediates the relationship between EP and FP better than by using them sequentially or combining them. Table 7.28: Differences among the multiple mediation models Point of decision Parallel Mediation Series Mediation Combined Mediation Model Model Model Coefficient -0.571 -0.347 -0.371 Significance [-0.704, -0.432] [-0.478, -0.199] [-0.497, -0.201] VAF 68.06 % 40.12 % 42.99 % Mediation type Partial complimentary Partial complimentary Partial complimentary Source: Constructed from Tables 7.17, 7.22 and 7.26. 7.5 Controlling for the effect of demographic variables As a continuity of discussion in Chapter Four, section 4.6.3, the relationships of the control variables with FP and their effects on FP were determined using correlation analysis (Table 7.29) and regression analysis (Table 7.30). Table 7.29: Pearson Correlation matrix of FP and demographic (control) variables 1 2 3 4 5 6 7 1. Origin of company 1 2. Size of company .019 1 3. Age of company .036 .396** 1 4. Ownership of company .123 .138 -.043 1 5. Industry of company -.161* -.169* -.029 -.375** 1 6. Location of company -.282** -.021 -.057 .042 .275** 1 7. FIRM PERFORMANCE 0.132 -0.129 -.021 .071 .134 .005 1 *. Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.01 level (2-tailed). Source: Constructed from field data analysis Apart from the size and age of company that correlate negatively with FP, all other control variables (origin, ownership, industry and location of company) relate positively to FP (Table 175 University of Ghana http://ugspace.ug.edu.gh 7.29). However, the correlations of the control variables with the FP are not statistically significant. Table 7.30: Pearson Correlation matrix of FP and demographic (control) variables Unstandardized St. Coefficients Coef. t Sig. Model Std. B Beta Error (Constant) 2.958 0.438 6.757 0.000 Origin of company 0.159 0.082 0.143 1.938 0.054 Size of company -0.083 0.081 -0.075 -1.02 0.309 Age of company -0.016 0.042 -0.031 -0.382 0.703 Ownership of company 0.012 0.157 0.006 0.077 0.939 Industry of company 0.124 0.079 0.152 1.566 0.119 Location of company 0.009 0.038 0.018 0.245 0.807 a. Dependent Variable: FIRM PERFORMANCE b. 2 R = 0.094 The regression results (Table 7.30) indicate that though company’s origin, size, age, ownership, industry and location have an impact on FP, the impact is not statistically significant. Collectively, the control variables account for less than 10% (R2 = 0.094) of variation in FP. 7.6 Summary of hypothesis and findings The examination of the structural models, based on the hypothesised relationships, indicates that all the hypotheses are supported and accepted. Table 7.29 gives a summary of the results of the hypothesised relationships. 176 University of Ghana http://ugspace.ug.edu.gh Table 7.31: Summary of hypotheses and findings Summary of hypotheses and findings Hypothesis (Cause-Effect) Coefficient R2 p-Value t-Value Status H1: EP predicts FP -0.927 0.858 0.000 47.156 Supported Estimates VAF 95% BBCI Hypotheses (Mediation) Status β (%) 2.5% 97.5% H2: MBA mediates EP-FP relationship -0.805 0.880 -0.951 -0.629 Supported H3: IMC mediates EP-FP relationship -0.366 0.427 -0.494 -0.282 Supported MBA and IMC concurrently mediate H4: -0.571 0.681 -0.704 -0.432 Supported EP-FP relationship MBA and IMC sequentially mediate H5: -0.347 0.401 -0.478 -0.199 Supported EP-FP relationship MBA and IMC concurrently and H6: -0.371 0 . 4 3 0 - 0.497 -0.201 Supported sequential mediate EP-FP relationship Source: Constructed from field data analysis 7.7 Chapter summary This chapter presented the results of the data analysis by focussing on descriptive statistics, and the assessment of measurements and structural models. Descriptively, the specific characteristics of the participating firms in terms of age, size, origin, industry, location and ownership were described in the chapter. The central tendencies, dispersions and shapes of the key constructs (EP, FP, MBA and IMC) were also described. The chapter demonstrated that the study is multivariate in nature and thus required the application of multivariate analysis techniques such as structural equation modelling, defined as the application of statistical methods that can simultaneously analyse multiple variables. The chapter indicated the two main types of SEM: covariance-based SEM (CO-SEM) and variance-based SEM (PLS-SEM), and also justified the choice of PLS-SEM over CO-SEM by highlighting the peculiar features of PLS-SEM. The chapter examined the quality of the constructs and dimensions by checking the relationship between the constructs, their dimensions and indicators through reliability and validity. While reliability was checked with Cronbach’s alpha and composite reliability, 177 University of Ghana http://ugspace.ug.edu.gh validity was examined with specific focus on convergent validity (IOL and AVE) and discriminant validity (HTMT). These measures indicated that the measures of the constructs were not only reliable but were valid as well. The assessment of the direct effect of EP on FP demonstrated that EP strongly and negatively affects FP. The indirect effect of EP and FP was examined in different mediation models. Mediating the relationship with MBA indicated that MBA fully mediated the relationship between EP and FP. IMC also mediated the relationship between EP and FP, but partially and complimentarily. In a parallel mediation model where MBA and IMC concurrently mediated the relationship between EP and FP, the mediation effect was complimentarily partial. A similar complimentary partial mediation effect was noticed when the relationship between EP and FP was mediated sequentially with MBA and IMC. In a combined mediation model where MBA and IMC mediated the relationship between EP and FP concurrently and sequentially, there was a partial mediation that was complimentary in nature. 178 University of Ghana http://ugspace.ug.edu.gh CHAPTER EIGHT DISCUSSION OF FINDINGS 8.1 Introduction The results of empirical data analysis were presented in the previous chapter. This chapter discusses the findings as reported in the previous chapter. The discussion of the findings is structured according to the stated research objectives in Chapter One and the formulated hypotheses in Chapter Five. The chapter begins with the highlight of the research objectives. This is followed by the discussion of the findings relating to each research objective in sequential order. The research objectives were guided by a set of hypotheses which were tested to answer each research objective. This chapter ends the discussion of results with a chapter summary. 8.2 Highlights of research objectives This study is designed to achieve the following set of objectives. i. To re-examine the relationship between EP and FP ii. To explore mechanisms through which EP predicts FP 8.3 Research Objective 1: Relationship between EP and FP One of the major research gaps that necessitated this study was the inconsistencies and contradictions that characterized the relationship between EP and FP (Mazzi et al., 2016; Albertini, 2017). This led to the formulation of a research question that sought to re-examine the relationship between EP and FP. The re-examination indicates that there is a strong negative relationship between EP and FP, with a very high predictive accuracy (Hair et al., 2017). 179 University of Ghana http://ugspace.ug.edu.gh Several researchers have found similar results in their empirical studies. A pioneer in this direction of research is Wagner (2005) who investigated the relationship between EP and economic performance and found a negative relationship between EP and economic performance. Lioui and Sharma (2012) assessed the impact of what they called environmental corporate social responsibility (ECSR) on EP and found that the relationship between them is negative and statistically significant. A similar result, a significant negative relationship, was discovered when Chang (2014) explored the impact of EP on financial performance. Other scholars who also investigated and found negative relationship between EP and FP include Horvathova (2010), Salama et al. (2011), McPeak et al. (2010), Hassel et al. (2005). The findings of the present research are thus consistent with the results of earlier researchers. The negative relationship between EP and FP seems to be a perfect reflection of the perception and attitude of managers of most companies towards the environment. Generally, most managers perceive that improvement in their EP dwindles the FP of their companies because investment in environmental conservation and protection activities is capital intensive (Wagner, 2005). As a result, many managers do not incorporate EP issues in their business decisions and strategies. This confirms the claim of McDonagh and Prothero (2014) that a large number of companies regard environmental sustainability as an optional add-on, rather than an essential element of corporate and national economic success. The results of this study are also in tandem with the observation of Kuada and Hinson (2012) that firms contribute little to address environmental problems. Therefore, the paucity of environmental sustainability interest in businesses may be occasioned by the negative association between simultaneous improvement in EP and enhancement of FP. However, investing in environmental protection and sustainability is becoming a necessary evil for businesses. Even though improvement in their EP does not seem to correspond to 180 University of Ghana http://ugspace.ug.edu.gh improvement in their overall FP (as revealed by the findings of this study), companies are compelled to undertake environmental sustainability activities. This is informed by the fact that stakeholders are constantly demanding that businesses institute measures to mitigate the negative impacts of their operations on the environment (Linder et al., 2014). Improvement in EP cannot therefore be taken for granted and overlooked by businesses. In addition, the adoption of certain global reporting standards, such as Global Reporting Initiative (GRI) Standards, has made it mandatory for firms to report on their environmental sustainability (GRI, 2016). This means, businesses have to invest in environmental protection and management to be able to report on their environmental sustainability. The concern, however, for businesses, is: how profitable will incorporating environmental sustainability issues in their corporate decisions and strategies be? It must be noted, however, that this finding (negative relationship between EP and FP) is inconsistent with the findings of scholars led by Porter (1995) in what has come to be known as the Porter Hypothesis. The Porter hypothesis postulates that strict environmental regulation (an aspect of EP) triggers the discovery and introduction of cleaner technologies and environmental improvement, thereby inducing efficiency and innovation, leading to commercial competitiveness and improved financial performance. Other scholars have also found a positive relationship between EP and FP. Testa et al. (2013) investigated the relationship between environmental management systems (an aspect of EP) and firm FP. They found that EP has a clear influence on FP. Similarly, Shu, Zhou, Xiao and Ga (2016) found a positive relationship between green management and FP through production innovation. These findings are at variance with the findings of this study which established a negative relationship between EP and FP in Ghana. 181 University of Ghana http://ugspace.ug.edu.gh It is clear that a positive relationship between EP and FP is established through environmental regulations (Porter, 1995), environmental innovation (Shu et al., 2016) and environmental management systems (Testa et al., 2013). It means also that undertaking environmental conservation activities for the sake of it will not lead to an improvement in FP, unless it is done strategically and purposively. It is concluded, therefore, that EP is not only a valuable resource (asset) (Yang et al., 2013; Barney and Mackey, 2016) but also a competitive brand for companies (Shu et al., 2016). 8.4 Research Objective 2: Mechanisms through which EP predicts FP It is important to go beyond assessing the effect EP has on FP to understand how the EP predicts FP. This requires the study of mechanisms through which the effect of EP is transmitted. This study, therefore, mediated the relationship between EP and FP using specific marketing capabilities (MBAs and IMC) both individually and simultaneously. This section of the discussion is thus focussed on the individual and simultaneous mediation roles of MBA and IMC. 8.4.1 Individual Mediation role of MBA in EP-FP relationship Mediating the EP-FP relationship with MBA, it was established in Chapter Eight that MBA fully mediates the relationship. This means that the MBA drastically reduced the negative effect of EP on FP to a statistically not significant level. EP relates negatively to MBA, meaning: if EP is increased, MBA decreases. This is justified by the argument that environmental protection is capital intensive (Wagner, 2005). However, if a company rises above the fear of the negative impact and builds MBA through environmental brand equity, environmental intelligence gathering, environmental relationship building and becoming environmental stakeholder oriented, the company eventually increases its overall FP. This is because, MBA, as demonstrated by this research, relates positively to FP. The positive 182 University of Ghana http://ugspace.ug.edu.gh contributions of MBA to FP and shareholder value was long established by scholars such as Srivastava et al. (1998), Srivastava, Fahey and Christensen (2001), Ramaswami, Srivastava and Bhargava (2006), Ramaswami, Srivastava and Bhargava (2009), Tsiotsou (2010), Green, Toms and Clark (2015). Therefore, the question of how can firms translate their EP into sustained competitive resources, and what capabilities are there for them to turn their negative EP into positive FP depends on the lens through which firms view their environmental improvement activities. It is important that companies make the best out of their environmental investment by first reorienting their perceptions and attitudes towards EP management. In the start, it is advisable that firms, in the context of a resource-based theory (RBT), regard their environmental achievements as critical resources (Kozlenkora et al. (2014) that can be marketed (Dangelico & Vacolleli, 2017), and in the context of dynamic capability theory (DCT), view building MBA as competencies and capabilities (Makadok, 2001) that can be deploy to reconfigure and realign their products and services to meet the environmental expectation of their salient stakeholders (Teece et al., 1997). Because, according to Barney (1991) and (Shu et al., 2014).), firms with resources and capabilities that are valuable, rare, inimitable and non- substitutable have sustained competitive advantages. Consequently, firms are able to outperform their competitors and enhance their profitability (Wojcik, 2015), and shareholder value (Srivastava, 1998). This mediation effects of MBA in this study supports the findings of previous scholars. Sacui and Drumitru (2014) explored the building of business value through marketing investment. They posited that companies develop a differentiating competitive advantage through MBA which creates value at the firm level. Jaakkola at al. (2010) also examined the interplay 183 University of Ghana http://ugspace.ug.edu.gh between MBA, innovation capabilities and profitability. They found and concluded that MBA drives the innovation process which, in turn, contributes to FP outcomes. It is demonstrated extensively in extant literature that MBA enhances shareholder value and profitability through sustained competitive advantage and stable cash flow (Srivastava, 2016). In the argument of Berchicci, Dowell and King (2017), differences in observed EP reflects different bundles of resources and capabilities held within organisations. They concluded that environmental capabilities drive corporate strategies, which, in turn, influence corporate performance. It is concluded, therefore, that for firms to turn the negative impact of their EP into positive gains, or to reduce it to the barest minimum, they should invest in the marketing of their environmental investment (Dangelico & Vacolleli, 2017), build strategic environmental relationships with key and salient environmental stakeholders; gather, generate and deploy strategic environmental insight (Said et al., 2015); build brand equity (Keller, 2016) for their environmental activities, investment and achievements and place at the centre of their operations, the environmental needs of all their salient stakeholders (Elsayed, 2006; Shahidullah & Haque, 2014). Doing so will enable companies to create environmental MBA which will eventually impact their FP positively or, at best, lower the negative impact of their EP on FP. 8.4.2 Individual mediation role of IMC in EP-FP relationship Comparatively, both the direct and the indirect effects of IMC on FP are significant, suggesting the presence of partial mediation (Kenny, 2018). The understanding is that EP predicts FP both indirectly through IMC and directly. The complimentary partial mediation of IMC on the EP-FP relationship conforms to the findings of Patricia, Aila and Ondoro 184 University of Ghana http://ugspace.ug.edu.gh (2017) who examined the mediating effect of IMC on the relationship between entrepreneurial orientation and enterprise performance and found that IMC partially mediated the relationship. Hanninen and Karjaluoto (2017) also investigated the effect of marketing communication on business relationship loyalty and found that marketing communication partially mediates the relationship between customer perceived value and customer loyalty. Their findings and the findings of this research are consistent with each other. The implication is that when firms deploy IMC to market their environmental waste management, environmental management practices, environmental regulatory compliance and voluntary environmental initiatives, the negative impact on the FP reduces drastically. EP advertising should highlight environmental benefits of products and services, promote sustainable lifestyles, improve the green image of the brand, and reduce the information asymmetry typical of green products (D'souza et al., 2007). This appears to be a response to the fear expressed by Dangelico and Vocalelli (2017) that information asymmetry may arise if acquiring information on EP is costly and time consuming for customers, leading to green products and services not being purchased and patronised. Regarding the effectiveness of EP communication, Davis (1993) posit that specific, real, and useful environmental claims have a greater effectiveness than vague EP messages. It is advisable therefore that messages associated with EP should be clear (Pranee, 2010), easy to remember, understandable, customized to the target audience (Bickart and Ruth, 2012), and generate emotional commitment (Hartmann & Ibanez, 2013). Papadas and Avlonidis (2014) highlight that green claims should be honest, transparent, and credible, in order to help companies to build trustful and long-lasting relationships with stakeholders. Communication of EP to customers using IMC is thus an essential part of business processes and environmental sustainability agenda. Companies should therefore use IMC to provide 185 University of Ghana http://ugspace.ug.edu.gh complete, correct and easy-to-understand information on the lifetime EP of their products (Testa et al., 2015). This conclusion is not radically different from the recommendations of Oluwafemi and Adebiyi (2018) that IMC should be used as a strategic tool for targeting stakeholders to patronize the environmental offerings of a company and also to retain them with the company’s environmental offerings. Comparing the mediation effects of MBA and IMC on the relationship between EP and FP, it is realised that while MBA mediated the EP-FP relationship fully, IMC mediated the relationship partially. The implication is that mediating the relationship with MBA has better mediation effect and is more profitable than using IMC to mediate the relationship. An argument is therefore made in favour of MBA as a better mediator than IMC in the decision of management in their quest to reduce the negative impact of their environmental protection activities on their overall business performance. 8.4.3 Simultaneous mediation with MBA and IMC Simultaneously, MBA and IMC mediated EP-FP relationship concurrently (in parallel), sequentially (in series) and in a combined manner. The analysis of the parallel multiple mediation model reveals that an increase in EP leads to a reduction in FP and a decrease in both MBA and IMC. However, improvement in MBA would improve FP while IMC intensification adds to the negative effect of EP on FP. Even though an increase in EP would lead to an overall fall in FP, if MBA is improved the negative effect of EP and IMC on FP would be reduced. This is because the mediation effect of MBA on FP is stronger than that of the indirect effect of IMC on FP. Therefore, when MBA and IMC intervene concurrently in the way EP relates to FP, their parallel mediation effects reduce the negative effect of EP on FP, thereby mediating the relationship partially and complimentarily. 186 University of Ghana http://ugspace.ug.edu.gh This suggests that concurrently, if EP is translated into MBA and IMC is deployed as a strategic marketing tool to market EP at the same time, the negative impact of EP on FP would decrease, at least in the short term. In the short term, the slow rate of response to IMC messages and general scepticism about a company’s environmental claims would affect the early adoption and the rate of use of the company’s environmental offerings, which subsequently would affect the rate of FP enhancement. It is believed, however, that a continual conversion of EP into MBA and a persistent adoption of IMC in marketing EP will, in the long run, affect FP positively, because a wider scope of environmental protection awareness would have been created and the rate of adoption of the firm’s environmental claims and offerings would have increased. Sequentially mediating the relationship between EP and FP with MBA and IMC discloses an overall reduction in the negative impact of EP on FP. EP reduces EP and MBA, but MBA, when built and marketed with IMC capabilities, improves FP greatly. The sequential mediation effect implies that companies significantly reduce the negative impact of their environmental waste management, environmental regulation compliance, environmental management practices and voluntary environmental initiatives on FP. There is therefore urgent need for managers to build environmental relationships with salient stakeholders, deploy stakeholders’ environmental information into the design of their environmental offerings to meet the environmental needs of key stakeholders, and build brand equity for their environmental offerings. In addition, the built MBA must be supported with aggressive IMC, seen in consistency of message, the focus of the message on stakeholder needs and interactivity and reciprocity with the stakeholders. Concurrently and sequentially, both MBA and IMC simultaneously mediated the relationship between EP and FP. This combined mediation of MBA and IMC is partial and 187 University of Ghana http://ugspace.ug.edu.gh complimentary. The implication is that when combined sequentially and concurrently to mediate the relationship between EP and FP, MBA and IMC significantly lower the negative impact of EP on FP. Managers should therefore build environmental relationships with stakeholders, design environmental offerings based on stakeholder environmental information and back them up with consistent environmental messages fixated on the environmental needs of the stakeholders. It must be noted that the parallel, sequential and combined mediation effects of MBA and IMC on the relationship between EP and FP are partial and complimentary. However, the concurrent (parallel) mediation effect is greater and stronger than that of a sequential and combined effect. This means that companies are better off in reducing the negative impact of EP on FP if they mediate the relationship with MBA and IMC in a more parallel manner than in a sequential or a combined manner. 8.5 Chapter summary This chapter discussed the findings of this study based on the research objectives and hypotheses formulated. In relation to hypothesis 1 which sought to re-examine the relationship between EP and FP, the chapter discussed that the negative relationship between EP and FP is a confirmation of Wagner’s (2005) argument (Wagerian School of Thought) and a contradiction of Porter’s (1995) argument (Porterian School of Thought). The chapter discussed extensively the mediation effects of MBA and IMC individually and simultaneously. Individually, the chapter concluded that while MBA mediated the EP-FP relationship fully, IMC mediated it partially and complimentarily. Comparing the two mediation effects, the chapter hinted that MBA mediated the relationship between EP and FP better than IMC. Simultaneously, the chapter emphasised the complimentary partial 188 University of Ghana http://ugspace.ug.edu.gh mediation of MBA and IMC in parallel, series and combined multiple mediation models involving two mediator variables (MBA and IMC). The chapter concluded that the negative effect of EP on FP could be absorbed or reduced significantly if companies translate their EP into MBA and deploy IMC to market it. 189 University of Ghana http://ugspace.ug.edu.gh CHAPTER NINE SUMMARY, CONTRIBUTIONS AND CONCLUSIONS 9.1 Introduction On the assumption that the activities and operations of businesses affect the physical environment, at times negatively, this study set out to investigate what businesses are doing to protect the environment, the extent to which what they do to protect the environment affects their overall performance, and the mechanisms through which that happens. So far, how this study had been approached (the research process), the facts discovered (research findings), the contributions made, the conclusions reached, the limitations encountered, and the recommendations thereof (for future research) are presented in this concluding chapter. 9.2 Summary of research process There has been an increasing pressure on businesses to protect the environment. This is on the backdrop that the activities of business firms impact the physical environment, in some cases negatively. However, reluctance of businesses in taking steps to protect the environment is of a major concern for many stakeholders and has attracted scholars who investigate the relationship between a firm’s environment protection activities and their impact on their overall firm performance. The inconsistencies and contradictions of the findings of previous researches, captured as the Porter-Wagner Dilemma, became the basis of this study. In an attempt to resolve the Porter-Wagner Dilemma conflict, the study sought: 1. To re-examine the impact of EP of business firms on their overall firm performance and 2. To explore the mechanisms through which environmental performance impacts the firm performance. 190 University of Ghana http://ugspace.ug.edu.gh To be able to effectively achieve these research objectives, the study was structured into 9 sequentially arranged chapters, which were organised into two main sections: theoretical section and empirical section. 9.2.1 Theoretical section The theoretical section of the study begins with Chapter One, which laid the foundation for the study and ends with Chapter Four, which presented the conceptual framework and hypothesis development. The literature for this study covers the contextual review, the theoretical foundation and the literature review. The contextual review situates the entire study in a broader framework of sustainability, following a concentric approach, which scales the sustainability from macro (global) level, through meso (national) level down to micro (firm) level. The theoretical foundation focusses on the resource-based theory (RBT), the dynamic capability theory (DCT) and the stakeholder salience theory (SST) as the underpinning theories. A review of RBT reveals the non-competitiveness of a firm’s environmental performance, suggests the need to translate it into a competitive market-based asset, and conceptualises EP and MBA as brands that need to be marketed. Effective translation of EP into MBA and their subsequent marketing require application of certain competencies, processes and capabilities, hence the choice and review of DCT. Integrated marketing communication (IMC) was deployed both as a marketing tool and an organisational capability to enhance the competitiveness and the value of both EP and MBA. The measurement of EP, its transformation into MBA, and their onward marketing for enhanced firm performance, must be undertaken from the perspective of key and relevant stakeholders. In this regard, SST is integrated with RBT and DCT in this research. Literature review is based on the key 191 University of Ghana http://ugspace.ug.edu.gh constructs, EP as the independent construct, FP as the dependent construct, MBA and IMC as mediator variables. Chapter Four, which ends the theoretical part of the study, threads together the key concepts (EP, FP, MBA and IMC) and the relevant theories (RBT, DCT and SST) into a conceptual framework that delineated the interrelationships among the constructs. Based on the developed conceptual framework, the following set of hypotheses were developed to guide the study into the realisation of the stated research objectives. H1: EP significantly predicts FP H2: MBA significantly transmits the effect of EP to FP H3: IMC significantly intervenes the relationship between EP and FP H4: MBA and IMC concurrently intermediate the association between EP and FP H5: MBA and IMC sequentially mediate EP-FP relationship H6: MBA and IMC concurrently and sequentially mediate EP-FP relationship 9.2.2 Empirical section The empirical section of the study journeys from methodology through data analysis and presentation of results to discussion of findings. The study is exploratory in nature, operates from a positivist stance and is carried out quantitatively. Questionnaires were designed based on adapted items from previous researches, validated through reliability and validity tests and were finally used to gather data from 194 respondents from five regions of Ghana across extractive, manufacturing and service industries. These issues were covered in Chapter Five: Methodology. Chapter Six discussed how data were analysed. The data gathered were first analysed descriptively with Statistical Package for Social Sciences (SPSS), focussing on the measures 192 University of Ghana http://ugspace.ug.edu.gh of central tendencies, dispersions and shapes of the dataset. The dataset was then subjected to further analysis with the SmartPLS 3.2.8 version. The analysis of data under PLS-SEM was divided into two sections: measurement models and structural models. The measurement models were carried out to access the quality of the dimensions of the constructs. This was achieved with reliance on statistical tests such as Cronbach’s alpha and composite reliability for internal consistency, AVE for convergent validity and HTMT for discriminant validity. Structural models were examined based on the hypotheses which sought to investigate the direct and indirect relationships between EP and FP. The statistical tests used in the evaluation of the measured models include: SRMR to test the fitness of the models, path standardized coefficients (β) to examine the direction and magnitude of the relationship between the variables, coefficient of determination (R2) to determine the variations in one variable explained by another construct(s), t-values and p-values to establish the significance level of the direct relationship between the constructs, and 95% bias-corrected bootstrap confidence interval (BBCI) to test the significance levels of the indirect (mediated) effects of MBA and IMC on the relationship between EP and FP. 9.3 Summary of research findings The study found that when firms engage in environmental protection activities, the overall performance of the firm dwindles. This is because investment in environmental protection activities is capital intensive and performance impacts are not immediate. The study revealed that MBA fully mediate the relationship between EP and FP. This suggests that companies can develop differentiating competitive advantage with their environmental protection activities by building and deploying MBA (intimate relationship with stakeholders, environmental brand equity and environmental intelligence gathering), which in turn creates value at the firm level. 193 University of Ghana http://ugspace.ug.edu.gh The study established also that IMC partially mediates the relationship between EP and FP. This implies that, to some extent, a firm’s ability to effectively deploy IMC to craft consistent messages about its environmental achievements, disseminates the messages through appropriate media to key stakeholders translates EP into FP. Between MBA and IMC as mediation strategies, MBA translates a greater portion of a firm’s environmental protection activities and achievements into overall firm performance. This suggests that MBA fully mitigates the negative effects of EP on FP, whilst IMC only does so partially. The study showed that environmental protection activities of firms dwindle overall performance. Notwithstanding, by deploying marketing capabilities such as MBA and IMC, firms are able to generate value from their environmental protection activities, which mitigates the negative effects of EP on FP. 9.4 Contributions of the study The study made a number of significant contributions, classified into theoretical contributions and managerial contributions. 9.4.1 Theoretical contributions The study made specific strides in advancing knowledge. This is seen in the areas explained below: 194 University of Ghana http://ugspace.ug.edu.gh 9.4.1.1 Corporate environmentalism continuum (CEC) The result of the study show a bi-relationship between EP and FP, as illustrated on a continuum (figure 9.1), christened corporate environmentalism continuum (CEC), and explained below: Figure 9.1: Corporate environmentalism continuum (CEC) Perfect Negative Perfect Positive Relationship (β = -1) No Relationship (β = 0) Relationship (β = 1) Negative Relationship (-1 < β < 0) Positive Relationship (0 < β < 1) The company undertakes The company sees environmental environmental protection activities protection activities as brands that for the sake of it, or because it is could be transformed into high- legal to do so, or because valued brands, and be marketed, stakeholders demand for it, etc. deploying organisational strategies and marketing capabilities such as eco-innovation, IMC, MBA, etc. -1 0 1 Source: Constructed based on the findings of the study As indicated earlier, the corporate environmentalism continuum postulates that there are both negative and positive relationships between EP and FP (-1 ≤ β ≤ 1). The negative relationship (-1 ≤ β < 0) occurs when a firm, which protects the environmental by embarking on a series of environmental protection activities, does it for the sake of it. That is, the firm undertakes environmental protection activities because it is obligatory to do so, or because it is a pressure mounted by stakeholders (e.g. local communities). Undertaking environmental protection with this mind-set means that the management will not explore the benefits inherent in whatever environmental activities being undertaken. However, protecting the environment requires huge outlay of (financial) resources. Therefore, spending resources to take care of the environment without tapping the inherent benefits will result in an inverse relationship between firm (financial) performance and investing in environmental protection. 195 University of Ghana http://ugspace.ug.edu.gh The positive relationship between EP and FP (0 < β ≤ 1), on the other hand, occurs when firms purposively and strategically invest in environmental protection activities with an aim of ripping from it. In this regard, the firm explores all benefits associated with undertaking environmental protection activities. In addition, the environmental activities the firm engages in, the environmental products it produces, and the environmental services it renders are seen as unique brands, profitable only if backed by the necessary marketing and strategic campaigns. Environmental protection is perceived, in this case, as an environmental business opportunity. Resultantly, resources and capabilities are deployed to exploit these environmental protection opportunities. The benefits from these environmental protection technologies, innovation, and skills will go a long way to augment the overall value of the firm, hence the positive relationship between EP and FP. The corporate environmentalism continuum depicts also that there are instances where there will be no relationship (β = 0), perfect negative relationship (β = -1) or perfect positive relationship (β = 1) established between EP and FP. The occurrences of no established relationship between EP and FP is theoretical possible with such beta values, which agrees with the findings of Yamaguchi and Van-Kooten (2008), Dragomir (2013), Guenther and Hoppe (2014), Muhammad et al. (2015), Yu et al. (2009), Iwata and Okada (2011), Darnall (2009), King an Lenox (2001) and Christmann (2000) who have all argued that the relationship between EP and FP cannot be established. However, this finding is rare in practice. There are always environmental regulations to comply with, which in itself is a measure of the firm’s EP. The resources (materials, water and energy) used by firms in their operations come from the environment and are measures of environmental performance. Companies always generate waste (used material waste, waste water, etc.), which in one way or the other needs to be disposed of, treated or recycled. All these activities are measures of a firm’s EP. Therefore, in practice, companies will always consciously or unconsciously 196 University of Ghana http://ugspace.ug.edu.gh embark on EP activities, except that they may not be statistically significant. Even though resources are needed to undertake environmental protection activities, it is difficult to assume that every unit of EP measure will dwindle firm performance by 100%, or increase it by 100%, thereby creating the situation of perfect positive or negation relationship between EP and FP in practice, as oppose the theoretical possibilities. At best, the measure of the association EP has with FP will lie between two ends of a continuum. The proposition of the corporate environmentalism continuum as a mechanism that explains the bidirectional (both negative and positive) relationship between EP and FP is in tandem with the findings of Miles and Covin (2000) who argued that two distinct environmental management system (EMS) orientations emerged in corporations: compliance and strategic model of EMS. The compliance model, according to the Authors, views EMS as a cost of doing business, and may result in negative outcome, unless it is used to create cost-based competitive advantage through the adoption of continuous improvement strategies. The strategic model of EMS, on the other hand, suggests that firms invest in environmental capabilities and create lower cost structure (cost leadership) and/or focus/differentiated-based competitive advantage. Miles and Covin (2000) concluded that while the compliance model of EMS is adopted by firms that rely on price as the primary competitive tool, the strategic model of EMS is adopted by firms that compete with non-price marketing mix variables, such as product, distribution and communication. The proposition of corporate environmentalism continuum, as a theory, thus, resolves the Porter-Wagner dilemma conflict. 9.4.1.2 A hub of mediation analysis Theoretically, the study distinguished itself as a hub of mediation analysis. The study, from the onset sought to explore the mechanisms through which EP affects FP. That is, the study steps beyond the relationship between EP and FP to investigate how the relationship exists. A series of mediation analyses, ranging from the simplest mediation models to very complex 197 University of Ghana http://ugspace.ug.edu.gh (multiple) mediation models were performed. It is critical to mention also that the analyses in this study embrace all categories of mediation types, full mediation, complementary (progressive) partial mediation and competitive (inconsistent) partial mediation. The extensive coverage of discussions on these types of mediation analysis in a single study is a humble contribution the study adds to the stock of knowledge and mediation literature. 9.4.1.3 Translation of EP into marketable brands Within the context of BRT, the study has screened a firm’s EP and concluded that EP, in composite form, although valuable, lacks the competitive features of rarity, inimitability and non-substitutability. That is, even though EP is a critical resource (asset) of a company, it is not a competitive resource and cannot produce sustained competitive advantage on its own. However, the study has clearly demonstrated that using DCT and SST, EP can be transformed from a lower level asset to a higher order MBA through building of environmental stakeholder relationship, gathering strategic stakeholder environmental intelligence, building environmental performance brand equity, and becoming environmental stakeholder focused. Through these processes, EP is translated into a competitive marketable brand that has the capacity to generate sustained competitive advantages for the company. 9.4.1.4 CIMIT research This research is conducted as a CIMIT research because it operates from different disciplines and domains. A CIMIT research is cross-disciplinary, intra-disciplinary, multi-disciplinary, inter-disciplinary and trans-disciplinary in nature. An argument is advanced that sustainability issues, such as the one in this study (environmental sustainability) are multifaceted and require several approaches to be able to comprehensively address them. As a cross- disciplinary research, the knowledge of EP measurement is transferred from extractive and manufacturing industries to intersect measures of EP in the services industry. The study is considered an intra-disciplinary study because, within the marketing discipline, different 198 University of Ghana http://ugspace.ug.edu.gh domains – integrated marketing communication, relationship marketing and brand equity management – collaborate to better explain marketing capabilities and resources, and their impact on FP. The study is also regarded as a multi-disciplinary study because the research problem is viewed from marketing, sustainability, finance and strategic management perspectives. As an inter-disciplinary study, the research does not only study EP from different perspectives, but it also represents a synthesis of knowledge from environmental management, sustainability and marketing disciplines. Finally, the study transcends the boundaries of marketing to relate strategic management, performance management, sustainability, environmental management and marketing disciplines into a coherent whole, thereby making it a trans-disciplinary study. This study, within the ambit of CIMIT, combines marketing with environmental management, strategic management and sustainability. This combination of different domains and disciplines makes the study a CIMIT research. 9.4.1.5 Theory integration One of the research gaps the study aimed at addressing was the issue of weak theoretical foundation that characterized EP-FP relationship research. Theory integration was recommended as a way of strengthening the theoretical base of a study. Along this line, this research successfully integrated resource-based theory, dynamic capability theory and stakeholder salience theory in the exploration of the relationship EP and FP. As a result, the theoretical underpinning of the EP-FP relationship, an environmentalism continuum, is strengthened. The study is therefore countable among theory integration literature. 9.4.2 Managerial contributions The study is helpful to managers in several ways, including but not limited to the following: 9.4.2.1 Inducement of responsible environmental behaviour Courtesy this study, managers of firms understand and appreciate the need to be environmentally responsible. Knowing very well that stakeholders are becoming 199 University of Ghana http://ugspace.ug.edu.gh environmentally conscious and demanding environmental accountability from companies, and that environmental regulations are getting stricter by the day, companies have no choice but to comply with environmental regulations and even go beyond to undertake voluntary environmental initiatives. In the effect, positive environmentalism behaviour from companies will be induced. 9.4.2.2 Knowledge of relationship between EP and FP The study also enriched the managerial knowledge on the relationship between Ep and FP. Under the proposed theory of corporate environmentalism continuum, managers are aware that investment in environmental protection could result in negative or positive outcomes, depending on how they perceive and approach it. Therefore, the knowledge of the relationship between EP and FP enables managers to approach environmental protection with the right mind-set and attitude. For example, the study made it clear that investment in environmental protection must be strategic and purposive, not because it is legal to do so, if any positive outcome is to be expected. 9.4.2.3 Value addition to EP The study reveals that environmental protection activities are resources and capabilities (brands) that are marketable. Specifically, managers are guided on how to translate their waste management, voluntary environmental initiatives, environmental regulatory compliance and environmental management systems and practices into competitive market-based assets by building strategic relationships with key environmental partners, gathering environmental intelligence and developing environmental brand equity. By this, managers will be able to add value to their environmental activities, which will improve the performance of the firm, and which will subsequently result in enhanced stakeholder value. 200 University of Ghana http://ugspace.ug.edu.gh 9.4.2.4 Information to enrich policy formulation and implementation Policy makers can benefit tremendously from this study. The study makes available vital environmental information that will go a long way to enrich environmental policy formulation and implementation, and environmental regulation enactment and enforcement. The study provides the basis for identifying and rewarding ‘best’ environmental performing organizations. This will stir up environmental competitiveness among businesses, leading to overall environmental protection. 201 University of Ghana http://ugspace.ug.edu.gh Table 9.1: A heuristic model of research objective, gaps and contributions Research Research Gaps Contributions of the Study Objectives To re-examine Use of unidimensional The study adopted multidimensional the relationship measures to measure measures to measure key constructs (EP, FP, between EP multidimensional concept, MBA and IMC) and FP EP The study is both inter-disciplinary and intra- disciplinary in nature, making it a multidisciplinary study required to address complex environmental sustainability marketing issues To veracity of indicators for The study successfully converged divergent measuring EP indicators for measuring EP across extractive, manufacturing and service industries Reliance of financial The study included and validated non- indicators to measure FP financial indicators in the measurement of firm performance Objective vs. subjective Reconceptualization of EP to embrace the conceptualisation of EP entire spectrum of objective and non- objective perspectives Ambiguous definition of EP Comprehensive operational definition of EP which covers objective and subjective views across extractive, manufacturing and service industries Inconsistent and Corporate environmentalism continuum, contradictory relationship which asserts that there is bi-directional between EP and FP (both positive and negative) relationship between EP and FP, depending on how a firm perceives and approaches its environmental protection activities To explore the Possibility of indirect MBA (developing intimate environmental mechanisms relationship between EP relationship with key stakeholders, gathering through which and FP, hence the call by environmental intelligence from them and EP impacts FP scholars on researchers to building environmental brand equity) enables mediate the EP-FP firms to generate value from their relationship environmental engagement, which offsets costs of environmental protection activities. IMC (incorporating stakeholders’ environmental needs into the firm’s strategic goals and operations, crafting environmental messages that resonate with key stakeholders and consistently communicating same to them across communication media) enables firms to drastically reduce the negative implications of their environmental engagements. A hub of mediation analysis, as the study discussed thoroughly simple and multiple mediation models, and explained several mediation concepts such as full mediation, 202 University of Ghana http://ugspace.ug.edu.gh partial mediation, serial (sequential) mediation, parallel (concurrent) mediation, complimentary mediation and inconsistent mediation. Weak theoretical foundation Successful integration of resource-based of EP-FP relationship theory (to explain the competitiveness of EP), dynamic capability theory (to explain how lower order EP can be translated into a higher order MBA and be marketed using IMC) and stakeholder salience theory (to indicate key stakeholders in sustainability marketing agenda) Death of literature on the A pioneering study to have extended relationship between EP AKOBEN measures to the service industry, and FP in the Ghanaian star rated hotels, specifically. context A maiden study to have explored environmental sustainability marketing of extractive, manufacturing and service industries simultaneously in the same study Source: Constructed based on the research objective, gaps and contributions 9.5 Conclusions The motivation for this study originated from the Porter-Wagner dilemma, which describes the inconsistencies and contradictions reported in earlier researches that investigated the relationship between EP and FP. The key objective is to contribute to resolving the Porter- Wagner dilemma: exploying if a firm’s level of environmental performance impacts its overall performance. It further aims at determining whether MBA and IMC mediate the competitive outcome of the EP-FP relation across different industries (extractive, manufacturing and service) in Ghana. The findings of the cause-effect model evaluation in this study indicate that there is a negative relationship between EP and FP (Wagnerian school of thought). Contrarily, the examination of mediation models (mechanisms through which EP impacts FP) reveals a reduction in the negative relationship (and by extension, a positive relationship) between EP and FP (Porterian school of thought). This means that the relationship between EP and FP is not uni-directional, but bidirectional. It is both positive and negative, implying that EP can derail and/or improve 203 University of Ghana http://ugspace.ug.edu.gh FP. However, the direction of the relationship at any point in time depends on whether or not the relationship is mediated or not, and with what kind of capabilities. On the basis of the findings, this study supports the arguments of both ‘Porterian’ school of thought and ‘Wagnerian’ school of thought. The study concludes therefore that environmental protection activities of firms dwindle overall performance. Notwithstanding, by deploying marketing capabilities such as MBA and IMC, firms are able to generate value from their environmental protection activities, which mitigates the negative effects of EP on FP. The study asserts that there is both negative and positive relationships between EP and FP, depending on how a firm perceives and approaches its environmental protection activities. The implication of the findings of this study are rather disheartening. Firms that are focusing on improving their EP by devoting resources to protect the environment are rather “punished” with negative competitive performance. This realisation is a wake-up call for stakeholder enlightenment in advocacy to use their “cedi power” to save the environment. 9.6 Limitations of the study This study presented empirical evidence that contributes significantly to knowledge on the direct and indirect relationships between EP and FP. Nevertheless, the result of this study cannot be said to be absolute and should be interpreted within its limitations. The susceptibility of the study is evident in its high level of exploration, adaptability and contextualization, which are shrouded in the methodology of the study. The study is explorative in nature and its measures adapted from studies conducted in other geographical contexts across industries. The limitations, and their respective suggestions for future studies, that characterized the study are discussed below. 204 University of Ghana http://ugspace.ug.edu.gh 9.6.1 Subjective design of questionnaire The study relied on the use of questionnaire to gather data from the respondents. Contextually, a large number of Ghanaian companies are reluctant to show evidence (certificates, reports, accounts) of their claims, and as a result choose not to participate in a study that demands evidence of their responses. Therefore, to induce high rate of participation from these companies as the respondents, the questionnaires were deliberately designed subjectively. As a result, verification and authentication of claims made by companies are difficult, if not impossible. In interpreting the findings of this research, readers are made aware that the study is a perception survey, measured subjectively. 9.6.2 Southern sector focus The study sought to examine the relationship between EP and FP across Ghana. Ghana has 10 administrative regions at the time data was being collected. However, out of the 10 regions only five regions were covered in the study. These five regions were chosen from the southern belt of the country, based on the fact that these regions have the largest number of companies. Clearly, companies located in the northern belt of the country were left out of the study. Therefore, a claim, for example, that EP impact FP negatively in Ghana may suffer some generalisability issues. In addition, the concentration of the study on Ghanaian companies limits its generalisability beyond the geographical boundaries of Ghana. 9.6.3 The use of composite measures The study basically seeks to examine the relationship between EP and FP, whether directly or indirectly through mediators. Several dimensions measure both EP and FP. Individually, the dimensions of EP may relate differently to FP as a whole or to its individual dimensions. These individual relationships are, however, not studied in this work. Instead, the study consolidates the measures of EP into a single construct and relate to FP, also as a consolidated 205 University of Ghana http://ugspace.ug.edu.gh single construct. The implication is that the individual impacts of the dimensions of EP on FP and its dimensions are not known. 9.7 Suggestions for future research The study relied on MBA and IMC as marketing capabilities that promote environmental sustainability of companies. Marketing has a huge array of capabilities worth exploring in environmental sustainability research. It is therefore recommended that future studies explore the influences of other marketing capabilities (innovation for example) on the relationship between EP and FP. It was emphasised that the data collection instrument used in this study was subjectively designed, making verification of claims difficult if not impossible. It is recommended that the questionnaires be designed objectively, or at best a blend of objective and subjective measures. Other data collection instruments (e.g. interviews) could be used to collect data from the respondents or to complement the use of questionnaires. This will help address the weaknesses in the use of only questionnaires to collect data. The study made extensive coverage of manufacturing industry’s representativeness. The same cannot be said of the representativeness of extractive and services industries. While mining companies represent the extractive industry, services industry is represented by star-rated hotels. Future researchers should consider extending a similar study to other extractive companies such as oil and gas companies and service firms such as hospitals and educational institutions. It is recommended that the study be replicated in the remaining regions outside the scope of this study. As stated earlier, the catchment area of this study focussed on the Greater Accra, 206 University of Ghana http://ugspace.ug.edu.gh Ashanti, Western, Eastern and Central regions of Ghana. At the time of the study, Ghana had 10 regions (but now 16). It is recommended, therefore, that the regions that were not covered in the survey are considered in future studies. Additionally, it is recommended that the study be extended to outside the boundaries of Ghana to strengthen the generalisability of the findings. This study was interested in establishing (confirming) the relationship between EP and FP. this was done with composite measures of EP and FP. the study did not consider the impact of the individual dimensions of EP on FP, the impact of EP on the individual dimensions of FP, and the impact of individual dimensions of EP on the individual dimensions of FP. As a recommendation for future research, the impact of the individual dimensions of EP on FP construct and its measures should be investigated. The study was conducted as a cross-sectional survey, making it a study of a moment. The study was unable to capture and detect the EP of companies over time and also establish the relationship that existed between EP and FP over a period of time. Trend analysis of these issues cannot therefore be explained by the study. A longitudinal study is advised in order to establish trends of EP measures and its relationship with FP over time in future studies. The study investigated the relationship between EP and FP and found that there is both negative and positive relationship between EP and FP (corporate environmentalism continuum). This investigation was carried out using a quantitative approach which was unable to explain the reasoning behind this relationship. It is recommended that future studies consider a qualitative approach that may be more helpful in discovering what accounts for the corporate environmentalism continuum. 207 University of Ghana http://ugspace.ug.edu.gh BIBLIOGRAPHY Aaker, D. A., & Equity, M. B. (1991). Capitalizing on the value of a brand name. New York, 28, 35-37. Aaker, D. A. (1996). Measuring brand equity across products and markets. California Management Review, 38(3). Ajzen, I. (1985). From intentions to actions: A theory of planned behavior. In Action control (pp. 11-39). Springer, Berlin, Heidelberg. Albertini, E. (2013). Does environmental management improve financial performance? 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Total Quality Management and Business Excellence, 16(8-9), 1041-1052. 231 University of Ghana http://ugspace.ug.edu.gh APPENDICES Appendix A: Questionnaire QUESTIONNAIRE Dear Respondent, The purpose of this questionnaire is to collect information from you as a Chief Executive Officer (CEO), Managing Director (MD), Director (D) or Manager (M) in your company. The information you provide will be used to explore “the role of integrated marketing communication (IMC) and market-based assets (MBA) in corporate environmental performance (CEP) and firm performance (FP) relationship”. The questionnaire is divided into five (5) sections: A, B, C, D, and E. You are kindly entreated to provide as frank answers as possible to all the questionnaire items. There are no right or wrong answers. Although you are requested to answer each and every question, you have the right to refrain from answering any one question, a group of questions, or the entire questionnaire without any consequence to you. Please do not write your name on the questionnaire. Be assured also that the information you provide will be confidential and used for academic purposes only. On request, the result of this study can be made available to you. Please tick the box at the end of the statement below if you agree to participate in the study: ‘I have read and understood the information above and willingly agree to complete the questionnaire under the stated conditions’ [ ]. Thank you for your readiness to assist in completing this questionnaire. SECTION A: FIRM-SPECIFIC INFORMATION DIRECTIONS Please tick  the item that best explains your organisation. 1. Origin: Ghanaian incorporated Foreign incorporated 2. Size: up to 20 workers 21-100 workers 101-500 workers more than 500 workers 3. Age: less than 5 years 5-19 years 20-34 years 35- 49 years 50 years and above 4. Ownership: Privately owned Publicly owned State owned 5. Industry: Extractive Manufacturing Service 6. Location: Greater Accra Ashanti Western Eastern Central 232 University of Ghana http://ugspace.ug.edu.gh SECTION B: CORPORATE ENVIRONMENTAL PERFORMANCE (CEP) Directions For each of the following statements tick () the appropriate box, labelled “Yes (Y)” or “No (N)” as it relates to your company. Environmental Legal Requirement (ELR) Y N N/A 1: The company has valid environmental permit 2: The company submits Environmental Report (ER) on time 3: The company applies for Environmental Management Plan renewal on time Toxic Waste Management (TWM) Y N N/A 4: The company generates hazardous wastes 5: The company notifies EPA about its toxic wastes 6: Toxic chemicals are properly stored on site 7: Toxic wastes are properly treated on site Compliance with Environmental Quality Standards (CEQS) Y N N/A 8: We comply with the standard for effluent quality 9: We comply with the standards for ambient air quality 10: We comply with the standards for air emissions 11: We comply with the standards for noise pollution Environmental Monitoring and Reporting (EMR) Y N N/A 12: We report our effluent quality data 13: We report our air quality data 14: We report our air emission data 15: We report our noise pollution data Environmental Complaints Management (ECM) Y N N/A 16: We have Standard Operating Procedure for handling environmental complaints 17: We register public environmental complaints 18: We track public environmental complaints 19: We report public environmental complaints to EPA 20: We address public environmental complaints 233 University of Ghana http://ugspace.ug.edu.gh Best Environmental Management Practices (BEMP) Y N N/A 21: We have systems for managing effluent quality 22: We have plans for managing air quality 23: We have systems for managing solid wastes 24: We have systems for managing noise pollution 25: We set environmental performance objectives 26: Environmental management roles are clearly defined 27: Environmental management roles are clearly communicated 28: We set procedures for communicating environmental issues 29: Environmental staffs are regularly trained 30: We conduct third party environmental audit 31: We report our water usage to EPA 31: We report our energy consumption to EPA 32: We record the energy we generate on site 33: We use energy from renewable sources Environmental Corporate Social Responsibilities (ECSR) Y N N/A 34: We have environmental corporate social responsibility (ECSR) policies 35: We make our ECSR policies public 36: Our ECSR policies recommend community environmental protection 37: Our ECSR policies support consultation with local communities 38: Our ECSR policies support environmental training of local communities 39: We have data on annual expenditure on ECSR 40: We advertise all environmental job opportunities to local communities 234 University of Ghana http://ugspace.ug.edu.gh DIRECTIONS FOR SECTION C, D AND E For each of the following statements show the extent to which you agree or disagree by ticking () the appropriate box, labelled “Strongly Disagree (SD)”, “Disagree (D)”, “Not Sure (NS)”, “Agree (A)” and “Strongly Agree (SA)”. SECTION C: FIRM PERFORMANCE (FP) Profitability (PROF) SD D NS A SA 41: Our returns on assets (ROA) improved 42: Our earnings before interest and tax (EBIT) increased 43: Our returns on investment (ROI) increased 44: There is an improvement in return on equity (ROE) Growth (GROW) SD D NS A SA 45: Our market share in terms of customer base increased 46: There is a growth in the company’s assets 47: Our net income increased 48: The company’s capital increased 49: We attracted more environmentally conscious employee. Cash Flow (CAF) SD D NS A SA 50: Customers respond to our marketing efforts quickly 51: We generate high revenue from brand extension 52: We have fast stakeholder referrals of our brands 53: We have a more stable cash flow 54: Our cash flow is less vulnerable to competitive activities 55: The net present value of our cash flow is enhanced Cost Efficiency (CEFF) SD D NS A SA 56: Our operational costs are lowered 57: Our need for working capital reduced 58: Cost of our working capital reduced 59: Our need for fixed capital reduced 60: Our fixed capital costs reduced 61: General efficiency of our operations improved Stakeholder Satisfaction (SSAT) SD D NS A SA 62: Our stakeholders are satisfied with our environmental offerings 63: Environmental complaints reduced 64: We attract more environmentally oriented stakeholders 65: We create environmental opportunities for all stakeholders 66: We make a lot of environmental investments in our stakeholders 67: Our stakeholders are environmentally empowered 68: Our customers are satisfied with our environmental performance Stakeholder Loyalty (SLOY) SD D NS A SA 69: Stakeholders frequently request for our environmental products and services from our company 235 University of Ghana http://ugspace.ug.edu.gh Interactivity (INTER) SD D NS A SA 79: We facilitate stakeholders’ inquiries and complaints about our environmental issues. 80: We gather stakeholders’ environmental information from all departments into a unified database. 81: We respond quickly to environmental messages received from our stakeholders. 82: We incorporate stakeholder-generated environmental messages into our environmental communication strategies. 83: We promote environmental dialogue with our stakeholders. Stakeholder- Focus (STAKE) SD D NS A SA 84: We promote environmental goals among stakeholders. 85: We assess the consistency of our environmental communications with stakeholders. 86: We strengthen environmental communication with stakeholders 87: We create social media platforms for stakeholders to contact the company about environmental issues. 88: WE collaborate in maintaining environmental stakeholder relationships 89: We provide stakeholder-centred environmental solutions. 90: We nourish relationships with external partners to achieve high- value environmental solutions for stakeholders. 70: Stakeholders strongly bond with our friendly environmental products, services and practices 71: Different stakeholders work together to support our EP 72: Stakeholders willingly get involved in our environmental decision making and activities 73: We reward stakeholders for their environmental loyalty 74: Stakeholders willingly invest in our environmental activities Social Performance (SPER) SD D NS A SA 75: We invest in social environmental projects 76: We take active part in community environmental protection activities 77: We are commended for our environmental achievements 78: We cooperate with environmental protection agencies SECTION D: INTEGRATED MARKETING COMMUNICATION (IMC) 236 University of Ghana http://ugspace.ug.edu.gh Commitment (COMIT) SD D NS A SA 101: We meet our environmental commitments to our stakeholders 102: We maintain good environmental relationship with stakeholders 103: Our stakeholders care about our environmental progress 104: Our stakeholders give us environmental improvement advice 105: Our stakeholders associate with us on environmental issues Trust (TRUST) SA D NS A SA 106: Our environmental claims are trustworthy 107: We provide accurate environmental information 108: The environmental benefits to our stakeholders are our priority 109: We deal with stakeholders earnestly on environmental issues 110: On environmental issues, we are dependable SECTION E: MARKET-BASED ASSETS (MBA) Message Consistence (CONS) SD D NS A SA 91: We coordinate all the environmental messages originated by all departments. 92: Periodically, we review all planned environmental messages to determine their level of consistency 93: We maintain consistency between environmental messages inferred from our stakeholders Organizational Alignment (ALIGN) SD D NS A SA 94: We ensure that all departments acknowledge the environmental goals pursued by the organization. 95: We ensure that environmental information flows through all the hierarchical levels of the organization 96: Our partners contact each other on environmental issues. 97: Cooperation about environmental issues are crucial to us 98: Our tasks are guided by the environmental our goals 99: We promote cross-functional environmental coordination. 100: We train our staff in environmental coordination skills 237 University of Ghana http://ugspace.ug.edu.gh Brand Association (BASS) SD D NS A SA 132: Stakeholders have a strong bonding with our environmental offerings 133: The benefits of our eEnxvpirloonrmateinotna l( XofPfeLr)in gs resonate strongly SD D N S A SA 1w1it1h: oWuer sidtaeknetihfoyl dtheers n eed for stakeholder environmental information (1S3E4I: )S takeholders have positive attitudes towards our environmental o1f1f2e:r i nWges acquire SEI from external sources 111353:: WStaek geehnoeldraetres SpEroIu idnltyer ansaslolyc i ate with our environmental offerings 111346:: WOuer setnovreir SonEmI ienn ttahle o mffeemrinogrys oarfe t hreel eovrgaannt itzoa tthioen n eeds of 1st1a5k:e Whoeld perrosv ide SEI in a form that is understandable to all 116: We synthesise SEI from different sources 117: We disseminate SEI to all units of the firm 118: We ensure that SEI is readily accessible to all Exploitation (XPT) SD D NS A SA 119: We align SEI with our overall objectives 120: We ensure that SEI is used for the intended purpose 121: We develop shared interpretation of SEI 122: We develop agreed application of SEI 123: We use SEI to solve immediate environmental challenges 124: SEI influences our environmental decisions 125: We justify our environmental decisions with SEI 126: Our environmental performance evaluation is based on SEI 238 University of Ghana http://ugspace.ug.edu.gh Brand Knowledge (BK) SD D NS A SA 127: Stakeholders can easily identify our environmental offerings 128: Stakeholders can identify the similarities in our environmental offerings and those of other firms 129: Stakeholders can distinguish our environmental offerings from those of other firms 130: Stakeholders can accurately remember our environmental offerings 131: Stakeholders can recall the environmental benefits of our offerings 239 University of Ghana http://ugspace.ug.edu.gh Appendix B: Introductory letter to participating companies 240 University of Ghana http://ugspace.ug.edu.gh Appendix C: Permission letter to participating companies November 5, 2018 ……………………………………….. ……………………………………….. ………………………………………. ………………………………………. Dear Sir/Madam, PERMISSION TO ADMINISTER QUESTIONNAIRE IN YOUR COMPANY I am a PhD candidate of University of Ghana (an introductory letter attached). As indicated in the introductory letter, I am required to submit thesis. I am therefore writing under the thesis: ‘Environmental Performance and Firm Performance: The Role of Market-Based Assets and Integrated Marketing Communication’, which is a firm-level study. As part of the requirement for the submission of thesis, I am required to collect and analyse data from selected (sampled) companies in Ghana. I am pleased to inform you that your company, through a stratified random sampling, was selected as one of the respondent companies. I would be glad if you could permit me to administer a questionnaire and collect information from the Chief Executive Officer (CEO), Managing Director (MD), Director (D) or Manager (M) of your company. According to University of Ghana’s ethical requirements in research, you are assured that information you provide will be used for academic purpose only; that is to explore the role of integrated marketing communication (IMC) and market-based assets (MBA) in corporate environmental performance (CEP) and firm performance (FP) relationship. Thank you in anticipation. Yours faithfully Francis Fonyee Nutsugah 241 University of Ghana http://ugspace.ug.edu.gh Appendix D: An introductory letter to EPA 242 University of Ghana http://ugspace.ug.edu.gh Appendix E: Permission letter to EPA March 3, 2018 THE EXECUTIVE DIRECTOR, ENVIRONMENTAL PROTECTION AGENCY ACCRA – GHANA Dear Sir, REQUEST FOR DATA ON ENVIRONMENTAL PERFORMANCE OF GHANAIAN COMPANIES I write to request for data on the environmental performance of companies in Ghana. I am a PhD student of University of Ghana (an introductory letter attached), writing under the thesis: Environmental Performance and Firm Performance: ‘The Role of Market-Based Assets and Integrated Marketing Communication’. As part of the requirement for the submission of thesis, I am required to collect and analyse data on the environmental performance assessment of Ghanaian companies. I would be very glad if you could furnish me with the following set of information: 1. Indicators used to measure the environmental performance of: i. Extractive companies in Ghana, if any ii. Manufacturing companies in Ghana, if any iii. Service firms in Ghana, if any 2. The methodology used in evaluating or rating them environmentally. 3. Brief history, purpose and objectives of the Agency, and 4. Any other information you consider very relevant to make this study robust I am counting on your consideration and timely response. Thank you. Yours faithfully Francis Fonyee Nutsugah 243 University of Ghana http://ugspace.ug.edu.gh Appendix F: Request for introductory letter to Ethics Committee 244 University of Ghana http://ugspace.ug.edu.gh Appendix G: Introductory letter to Ethical Committee for Humanities 245 University of Ghana http://ugspace.ug.edu.gh Appendix H: Ethical Clearance Approval Letter 246 University of Ghana http://ugspace.ug.edu.gh Appendix I: Introductory Letter to AGI 247 University of Ghana http://ugspace.ug.edu.gh Appendix J: A letter requesting for data from AGI October 5, 2018 THE CHIEF EXECUTIVE OFFICER, THE ASSOCIATION OF GHANA INDUSTRIES (AGI) ACCRA – GHANA Dear Sir, REQUEST FOR DATA ON MANUFACTURING COMPANIES IN GHANA I write to request for data on manufacturing companies in Ghana. I am a PhD student of University of Ghana (an introductory letter attached), writing under the thesis: Environmental Performance and Firm Performance: “The Role of Market-Based Assets and Integrated Marketing Communication”. As part of the requirement for the submission of thesis, I am required to collect and analyse data on the environmental performance of manufacturing companies in Ghana. I would be very glad if you could furnish me with the following set of information: 1. Lists of manufacturing companies, classified based on: i. Sector ii. Location by region iii. Size 2. Address of contact persons I am counting on your cooperation and timely response. Thank you. Yours faithfully Francis Fonyee Nutsugah 248 University of Ghana http://ugspace.ug.edu.gh Appendix K: Introductory Letter to GTA 249 University of Ghana http://ugspace.ug.edu.gh Appendix L: A letter requesting for data from GTA October 5, 2018 THE CHIEF EXECUTIVE OFFICER, GHANA TOURISM AUTHORITY ACCRA – GHANA Dear Sir, REQUEST FOR DATA ON STAR RATED HOTELS IN GHANA I write to request for data on star rated hotels in Ghana. I am a PhD student of University of Ghana (an introductory letter attached), writing under the thesis: Environmental Performance and Firm Performance: ‘The Role of Market-Based Assets and Integrated Marketing Communication’. The thesis, among other things, seeks to explore the environmental performance of Extractive, Manufacturing and Service (represented by star rated hotels) firms in Ghana. As part of the requirement for the submission of thesis, I am required to collect and analyse data on star rated hotels in Ghana. I would be very glad if you could furnish me with the list of star-rated hotels in Ghana, their addresses and contact persons, classified based on Region (Greater Accra, Ashanti, Western, etc.) of location. I am counting on your consideration and timely response. Thank you. Yours faithfully Francis Fonyee Nutsugah 250 University of Ghana http://ugspace.ug.edu.gh Appendix M: Introductory Letter to Minerals Commission 251 University of Ghana http://ugspace.ug.edu.gh Appendix N: A letter requesting for data from MC October 5, 2018 THE CHIEF EXECUTIVE OFFICER, MINERALS COMMISSION ACCRA – GHANA Dear Sir, REQUEST FOR DATA ON EXTRACTIVE COMPANIES IN GHANA I write to request for data on club the extractive (mining and oil and gas companies in Ghana. I am a PhD student of University of Ghana (an introductory letter attached), writing under the thesis: Environmental Performance and Firm Performance: ‘The Role of Market-Based Assets and Integrated Marketing Communication’. As part of the requirement for the submission of thesis, I am required to collect and analyse data. It was agreed among my supervisors that I collect data the Oil & Gas as well as Mining companies in Ghana. The thesis, among other things, seeks to explore the environmental performance of Extractive, Manufacturing and Service companies in Ghana. I would be very glad if you could furnish me with the following set of information 1. Lists of extractive companies, classified based on Region (Greater Accra, Ashanti, Western, etc.) 2. The indicators/criteria and the entire methodology used in evaluating or rating them environmentally, if any 3. Brief history, purpose and objectives of the Minerals Commission, and 4. Any other information considered very relevant to make this study robust I am counting on your consideration and timely response. Thank you. Yours faithfully Francis Fonyee Nutsugah 252