The attention allocation towards environmental performance in firms

This paper examines the relation between environmental performance and attention allocation in firms. Using the attention based view as theoretical framework and hierarchical regression analysis, we document a positive relationship between the level of competitiveness in the environment, the level of strategic orientation towards social issues, and the environmental performance of the firm. Interestingly, we found no moderating effect of governance on these relations. The paper contributes theoretically through a better understanding of the attention allocation mechanisms in firms and the antecedents of environmental performance.