A relational view of environmental performance: What role do environmental collaboration and cross-functional alignment play?

Abstract

Despite extensive research into the role played by social capital and relational capability in attaining interorganizational advantage, the way in which these resources matter for environmental performance has received scant attention. We investigate how firms' social capital and relational capability influence their environmental performance, by analyzing the mediating role of environmental collaboration and the moderating role of crossfunctional alignment. Based on an analysis of dual responses from 270 Turkish firms, we find that environmental collaboration mediates the impact of social capital and relational capability on environmental performance. We also find that alignment between marketing and supply chain management functions strengthens the effects of relational capability and environmental collaboration on environmental performance. Our study suggests that both environmental collaboration and cross-functional alignment are necessary if the true value of social capital and relational capability for environmental performance is to be realized.