Abstract

Po-Shin Huang* and Li-Hsing Shih

The aim of this study is to investigate the relationships between environmental strategy, the environmental knowledge circulation process, and corporate performance by the investigation and data sampling of companies approved for International Organization for Standardization 14000 certification in Taiwan prior to December 2007. Data were collected via questionnaires and structural equation modeling was employed to verify the hypothetical construction of the study. The results indicated that (1) environmental strategy is positively associated with the environmental knowledge circulation process and corporate performance; (2) the environmental knowledge circulation process is positively associated with corporate performance. Companies adopt positively proactive strategy which could improve the Environmental Knowledge Circulation Process (EKCP) and corporate performance, including environmental performance and financial performance. EKCP can also help corporation manage tacit and explicit environmental knowledge more effectively through environmental knowledge management. Hence, company with efficient EKCP not only can consistently enhance green knowledge assets and its international competitiveness, but also can create green business opportunity for corporate and environmental sustainable development.