Complementary assets for effective pollution prevention strategy

Abstract

Pollution prevention strategy is considered as the first strategy to be implemented to deliver sustainable value to achieve cost advantages and reduced exposure to litigation risk in shorter term. The paper presents the detailed empirical study of 60 Indian firms which have implemented this strategy. These firms are chosen from several industrial sectors responsible to deteriorating condition of natural environment. This work helps to identify attributes of innovative capability as complementary assets of an organisation to implement this strategy successfully. The result shows that 'business process' innovativeness and 'behavioural' innovativeness characteristics of innovative capability are required by firms to successfully implement pollution prevention strategy. Development of these traits shall initiate a firm on path of sustainability to deliver sustainable value and to prepare them well against its competitors of industry. Based on the research findings, the paper proposes some important managerial implications to grab the 'low hanging fruit' of pollution prevention strategy.