Environmental performance and competitive advantage in Canada's paper industry

Abstract

Abstract A new environmental performance model is developed, explained and subsequently applied to a study of the Canadian recycled paper industry. The strategic position of the industry is explored as it takes the progressive steps needed to improve its environmental performance and competitive advantage in response to this rising regulatory agenda. Three policy options facing the Canadian pulp and paper industry are examined: the status quo, process technology innovation and product development. The strategic position of the industry is also examined using measurement of stance, attitude, government response, values, planning horizon and environmental integration. The supplier‐consumer relationship, capital‐technology and locational factors are also used to further discuss the links between competitive advantage and environmental performance. From this discussion, conclusions are drawn on competitive environmentalism: ethics and profit are compatible; newsprint mills must improve their locational, technology and market actions; the industry must proactively seek out environmental market and stakeholder opportunities and; further management research is needed to demonstrate the links between environmental performance, innovation and competitiveness.