The Interfacebetween Environmental Legislationandstrategiesoforganizationalinnovation: The Case Oftwo Companiesin Thepulp and Paperindustry

Abstract

This study aims to foster discussion about the influence of environmental legislation on innovation strategies adopted by companies in order to prevent and/or control the environmental impacts of their production activities. The central objective is based on the description and analysis of how environmental legislation impacts the incorporation of environmental innovation strategies. This research encompasses an interdisciplinary study between Environmental Law and Strategic Management. We discuss the strategies and innovative technologies, including an examination of the Brazilian environmental legislation, and, analyze the interface strategies and pertaining legislation in two companies studied. To achieve our goals, we used qualitative and descriptive research. This included exploratory interviews and field surveys with two companies from the pulp and paper sector.  As a result, we found the influence of regulations can not only promote the implementation of strategies, but are also reflected in business competitiveness.  In fact, law is often coercive and determines the way firms conduct and establish environmental standards, consequently promoting improvement in production processes by reducing the inefficiency of consumption.