Analysis of the Influence of Customer Heterogeneity on the Firm's Environmental Commitment

ABSTRACT To attain sustained economic development, organizations need to commit resources to proactive environmental measures. The purpose of this paper is to analyze the influence of customer heterogeneity on proactive environmental strategies (PES). Specifically, we study whether the type of customers, along with other customer factors such as concentration, internationalization, and cooperation, impacts a firm's spending policies on environmental protection. Empirical research has been conducted on a sample of 798 Spanish industrial firms. Our results confirm that the type of customer, whether a company or a final consumer, influences environmental protection policies. However, this was not the case for public entities. Furthermore, internationalization and cooperation with clients are other factors to consider in environmental protection decisions, yet customer concentration is not significant. Finally, we present our key conclusions along with insightful contributions for managers, public administrators, and final consumers as relevant agents under social pressure to support sustainable development.