1The Relationship between Exporting Performance and the IntegratedEffect of Sustainability Management R&D and Marketing

Hermann Hrdlicka1, Isak Kruglianskas2Faculty of Economy and Business Universidade de Sao Paulo Management Dept.Av. Prof.Luciano Gualberto, 908 CEP 05508-010 Cidade Universitria S.Paulo (SP)

The paper presents the findings of an empirical research using a sample of 59 large and importantBrazilian firms with the objective to verify if environmental management practices can influence thetheir competitiveness in the international market. Because the sample used was constituted ofBrazilian enterprises, most of them internationalized, it can be considered that the results reflects areality that extrapolates the country borders. Using structural equations modeling techniques it waspossible to conclude that the environmental corporate management when integrated with R&D andmarketing promotion provides a significant, relationship with export performance. Besides theseimportant findings some considerations regarding other relevant characteristics that can influencethe competitiveness are also discussed like: the lack of support from the high level management, theexistence of a very low awareness about the importance of sustainability and also the existence of aweak communication about sustainability with internal and external stakeholders. Somerecommendations for future researches and for practitioners are also presented.

I. Introduction

Two topics of interest are being disseminated in different Brazilian media almost

daily and, with rare exceptions, individually: the concern with the environment and the

internationalization of Brazilian companies, with emphasis on the contribution of annual

exports to the balance of trade balance, the latter being one of the levers of development of

Brazil in recent years.

The first explores the sustainability of the planet, with recurring allusion to negative

externalities caused by business and consumption of an increasingly affluent global society.

In the second, we are notified about the success of the contribution of exports to the

Brazilian trade balance, which in 2008 reached a record $ 198 billion [43]; [3], a growth of

approximately 24% over the previous year, as can be seen in Fig. 1, in a scenario where

international trade has undergone significant transformations to take into account the

concept of sustainable development in agendas of multilateral negotiations by members of

the WTO - World Trade Organization [49].

2Figure 1-- Brazilian Exports (1999-2008) [44]; [2]

Regarding these two high exposure issues, a question arises: is the current success

of Brazilian exports influenced by environmental management practices adopted by

exporting corporations?

This paper presents part of the results of a survey intended to understand whether

the success in internationalization through exports by companies based in Brazil (mostly of

them global companies) may have been influenced by good environmental management

practices. Its structure includes a background on Brazilian exports, the literature on the

subject of environmental management, the methodology used in the research and some of

its results and conclusions.

II. The context of Brazilian export

Success in Brazilian internationalization takes place through exports from companies

of different sizes (micro, small, medium and large), however, the segment of large

companies dominates the export scenario. Official statistics compiled by the authors

(considering the period from 2002 to 2007) indicated the total imbalance between the

segments of exporting companies: the large ones contribute with about 90% of the trading

3of Brazilian exports. In this survey, the biggest contribution was the powerful agribusiness

and food industry (14%), followed by the sectors of mineral fuels (9%), automobiles and

parts (8.8%), minerals (8.1%), which besides other commodities, has been benefitting fromhigh international prices, since 2002 [63]. By comparison, exports of machinery and

mechanical equipment contributed 6.9%.

However, export growth seems to be below its potential. Despite the opportunities

coming from a world that continues to grow and to consume more food and natural

resources, there are global threats as well, such as high volatility in prices caused by the

global financial crisis of 2008. And even though that crisis was somehow absorbed sooner in

Brazil than in comparison with other countries, the Brazilian economy has weaknesses that

limit such growth. Among them, insufficient financial or investment policy of in

infrastructure creates a major problem common to different industries in Brazil [20],

especially in internal transportation, translated by production losses, reduced profit,

overhead costs (logistics, storage port, credit insurance, etc..), in other words, creating

negative externalities for society or environmental impacts.

As an example of that, the agribusiness sector is one of the strategic forces of the

Brazilian economy for its high productivity based on widespread technology, favorable

climate (sunshine, rainfall, lack of snow, and other factors), and plenty of arable land.

However, it is in the countryside that environmental damage is more clearly seen or more

catastrophic than in the mining or processing industries. Although dealing with a green

product can cause major environmental impacts because it involves different factors of

production such as irrigation, machinery, fertilizers, pesticides, lime, vaccinations, genetic

engineering. Each of these factors cause environmental effects, the most visible being the

ones caused by erosion as a result of poor soil management (loss of fertility, degradation of

water quality and siltation of rivers, among others). This sector depends mainly on road

transport, which in itself is another great cause of damage to the environment and to

4human health. Although this means of transport is an essential element to the functioning

of modern societies, it also is one of the biggest emitters of greenhouse gases, noise and air;

Fig. 2 shows the main environmental impacts caused by the food industry which directly

involves the sectors mentioned above - agribusiness and transportation. They represent the

production system and its limits, consumers and the network of support from different

business sectors, and are indicated by squares - different processes in the production chain;

by arrows - the transport of material between the chain; by lines with arrows - transport in a

single direction and by dotted lines - the physical transportation of return for other goods

and materials.

Figure 2 - Environmental impacts of the food production chainSource: Adapted from [24]

Finally, the agenda of Brazilian exports has potential impacts on nature, but those sectors

have responded by seeking to adjust to new national and international environmental

demands, for such, they need to improve environmental management, monitor

environmental performance constantly and develop clear policies reducing the impacts

mentioned. After all, companies are the cause (directly or indirectly) of the major ecological

5challenges, but it becomes more evident each day that they are also the only large and well-

managed institutions with sufficient resources to address these challenges [64].

III. Corporate Environmental Management

The relationship between business and nature is reciprocal: businesses cause effects on

the environment and vice-versa that could impact businesses significantly on their

profitability, reputation, on the morale of their employees, on customer relationships and

on retaining investors. Fig. 3 represents a conceptual model of relations between the

activities of a business and the environment and makes us reflect on why the concern of the

business to better manage their biotic and abiotic elements of their natural environment

creates conditions for measuring national job and business performance of competitive

advantage and corporate social responsibility [1], [9], [15], [21], [30], [33], [52], [57],[58].

Figure 3 - - Relationship between the activities of a business and the environmentSource: [26]

6This way, the search for virtuous relationship between nature and use of resources

(renewable or not) and economic activities: (i) becomes more important every day, and (ii)presents itself in different ways, for example, the growing number of environmental

regulatory frameworks (national and international) and pressures from different

stakeholders that have been causing significant reactive or proactive changes in production

systems, marketing and consumption of products and services [7].

In International Trade, the new requirements push towards the adoption of

standards for environmentally friendly products and processes. The product barriers relate

to restrictions on imports of products not covered by the environmental standards, such as

content, volume of packaging, final disposal/ disposition required after consumption, among

others. The product barriers relate to restrictions on imports of products not covered by the

environmental standards, such as content, volume of packaging, final disposal/ disposition

required after consumption, among others. The barriers of process prevent the importing of

products whose process involve environmental damage higher than previously specified

standards, for example, the level of emissions and effluents. In this case, the barriers serve

as environmental trade-offs (arbitrations) with respect to differences in environmental

standards among exporting countries - more restrictive in one country, more lenient in

another [5]. An article dated Nov. 18, 2009 published in the Brazilian newspaper O Estado

de So Paulo points out emphatically that: "Environmental issues give a pretext for

protectionism in industrial countries.

Therefore, appropriateness of implementation of environmental management in

enterprises is not questioned any longer; the question is: How can it be implemented

successfully? [62].To answer it, companies make use of "a pattern of decisions and actions

that are evident over time" - an organizational environmental strategy[50].

Thus, a new concept arises: the enterprise-oriented environment, whose main

characteristic is the effort to reduce the environmental impacts of business either adapting

7products, processes and organizational structures, or by considering the attitudes of

different stakeholders, and leading business and their performance through activities

environmentally benign [55],[59]. This behavior is reflected in a better position to face

crises: a survey conducted by the consultancy AT Kearney shows that during the global

financial crisis that began in 2008, companies that demonstrate a true commitment to

sustainability and interpret it as a fundamental part of business strategy for long term in the

financial market to create value for shareholders and society, appear to have better results

compared to their peers that are not so committed. Strong corporate governance, best

practice risk management and investments in innovative "green are factors that bring a vital

contribution to prosperity (or rather adaptation to crises) [27], [41],[47], [60].

To bring corporate sustainability maturity concept to a company in the

environmental and competitive terms requires new and necessary capabilities of

managers[16],[22],[31],[32],[61], [62] in (i) identification of opportunities, (ii) creation ofbusiness socio-environmentally oriented, with emphasis on the holistic exercise to

understand the external influences of the legal, cultural, economic, natural and

technological environments as well as (iii) development of employees, enabling them toperform new functions that meet the requirement of corporate sustainability. To Dyllick

and Hockerts [17] sustainability in the corporate field can be defined as to be meeting the

current needs, direct and indirect - of the various stakeholders in the business enterprise

(customers, suppliers, employees, lobbyists, and others), without compromising the needs

of future stakeholders; so, companies must maintain and grow its base of natural capital,

social and economic development while participating and contributing to sustainable

development (the political sustainability). According to the view of these authors, three

critical factors of corporate sustainability can be identified: (a) the integration of economic,ecological and social (b) integration between the short and long term, in order to meet

8future needs and current and (c) the intelligent use of available capital in order to preservethem from risk of collapse or crisis.

Thus, combining business strategy with environmental and social responsibility is a

major focus of corporate management, which seeks to achieve the principle of sustainability

[48], [57]. Fig. 4 represents the range of key areas of a company that are relevant to

corporate sustainability and indicates some of the functions to be performed by

management to generate sustainable value.

It is imperative, therefore, the transformation of business logic to preserve the

business risks involving the environment, showing its commitment to publish the

environmental performance of their corrective and preventive actions (and uplifting as it

takes its differential) and think (and make you think!) the benefits that comes from attitudes

and organizational behavior, environmentally proactive with the three-dimensional view

that includes: business, nature and society.

Figure 4 - Coverage of areas of activity management to corporate sustainabilitySource: Adapted from [56]

9IV. Methodology

With the objective to empirically verify if good environmental management practices

could have influenced the results of major international exporters, between 2005 and 2007,

a theoretical model was developed using structural equations modeling (SEM) based on a

conceptual model that was firstly conceived and is shown in Fig. 5, in which there is a set of

independent and dependent variables supposedly related to each other, respectively the

performance of environmental management and the export success.

Figure 5 Conceptual Model of the Study

The model presents the performance environmental management as the result of

environmental management and Marketing and Technology activities, the correspondent

indicators that can influence the success in exports, measured here by non-economic and

economic indicators. No attempt was made towards a direct connotation of "cause-effect

relationship between independent and dependent variables, but simply one of mutual

influence, and the independent variables, presumably, have precedence in the temporal

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interaction in the case: the environmental management practices in relation to the

dependent variables, success in exports [36].

The 60 independent variables were choose from "EBEB 2001 - Environmental

Barometer European Business 2001" questionnaire1- but only the items related to the scope

of specific environmental management issues - environmental actions and their effects [37],

were grouped as shown in Table 1:Table 1 Independent Variables List

Concept: Independent variables measurement itemsProcurement 1. Selection of suppliers by environmental development; 2.Influences suppliers by theenvironment.

EnviroManagement(EM)actions1. Has a published environmental policy;2. Adopts procedures for environmentallaws;3.Performs environmental evaluation;4. Has measurable environmental goals;5.Has aprogram to achieve goals;6. Adopts procedures to substitute non renewable products;7.Define the responsibilities related to the environment;8.Has training and environmentaleducation;9.Adopt goals as part of a continuous improvement process;10.Present,somehow, environmental information in the annual report ;11.Publish specificenvironmental report;12.Audit the environmental program;13.Have indicators ofenvironmental performance;14.Compare its environmental performance with theperformance of other companies of the same ;15.Have environmental accounting;16.Haveinstruments of environmental contingency in case of accidents.

EM andproduct/Market1. Adopts environmental labeling; 2. Informs the consumer about the environmentaleffects of products and processes; 3. Performs market research about the potential ofgreen products; 4. Performs analysis of the life cycle; 5. Cooperates with clients andsuppliers regarding the environment; 6. Adapts the product according to environmentalregulations of the importing country.EM integration 1. Safety and Health; 2. Development and maintenance of quality; 3. Social responsibility; 4.General strategy; 5. Training of leaders; 6. Development of products and markets; 7.Involvement of parties concerned.EM and Export Degree of contribution of GAE and EXPO.InternalObstacles 1. Lack of support from upper management; 2. Slow update about good practices andenvironmental management; 3. Low number of able stakeholders; 4. Limitations of thefinancial resources; 5. Organizational Structure not aligned with the environmental policy.

ExternalObstacles1. Different environmental regulations in the different markets; 2.Lack of fiscal incentives;3.Low legal demands in the countries to which it exports the most; 4.There aretechnological limitations to mitigate the main environmental; 5.Lack of interest Icooperation from suppliers; 6.Lack of interest I cooperation from internationalbuyes;7.Lack of interest I cooperation from the Sector ;8.There is no demand for moregreen products ;9.Lack of financial incentives from banks ; 10. Inexistence of preferencesfor exporting companies that are environmentally responsible.

EM Effects in thecompany1.Competitive advantage; 2.Corporate image; 3.Value; 4.Retention of Talents;5.Participation in international markets;6.New Opportunities;7.Profitability in shortrange;8.Profitability in long range; 9.Cost Reduction;10.Gains in Productivity;11.Betterinsurance contracts;12.Better access to bank loans;13.Satisfaction ofowners/shareholders;14.Satisfaction of company managers;15.Satisfaction of internalstakeholders.

1The European Business Environmental Barometer 2001 is an international survey on the environmental practices of Europeanmanufacturing companies regularly administered by different European countries. It includes, for example, managementactivities, environmental management systems, impacts on production and others.

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Table 2 shows the dependent variables related to outcome indicators of exports

and, in this study were selected based on data in the literature [34].[6],[65], [10],[40], [42].

Table 2 Dependent Variables listConcept Dependent variables measurement ItemsGrowth andMarket Share 1.Real Growth % Expo; 2.Growth % International Market Share; 3.Growth % World Market Share;4.Noticed Growth % intensity expo; 5. Noticed Growth % profitability expo; 6.Manager level satisfactionwith export.Regionalcontributions 1) Africa; 2) South and Central Americas; 3) North America; 4) Oceania; 5) Asia; 6) CE; 7) Middle East.R&D andPromotion 1. Level of proximity to final consumer; 2.Investment in R&D Percent over Sales; 3. % ofExpenditure Promotion with Sales; 4. Managers Perception of Product Growth in the market.

The data collection questionnaire was: (i) structured, with most consisting of closed

questions and fewer open when seeking more specific data, (ii) not disguised, because the

respondents were introduced to the objectives and importance of the research and (iii) and

self-filled by respondents through web page access. Software was developed in order to

control its validity, data recovery and monitoring of fill, without, however, disabling/

disclosing the security and confidentiality. A sample of Brazils leading exporters was listed

by export value in the period 2005 to 2007, and 331 companies were requested to

participate in the survey but only 59 answered, representing 18% of the number of

companies listed as shown in Table 3, and 23% of the total exported in the period.

For the multiple relationships analysis between the independent and dependent

variables a structural equation modeling (SEM) was used in the analysis and model building,

helped by the software SmartPLS [53]. The SEM is a statistical technique based on

covariance structures that has become popular for testing and estimating causal

relationships by using a combination of statistical and qualitative causal assumptions based

on theory. SEM can create models confirming this theory, or be used as an exploratory

manner for knowledge building [14], [29], [38].

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Table 3 - Sectors, export value and relative share of thefirms participating in the research

INDUSTRY TOTAL FIRMS U.S$ M %Agribusiness and food 15 28,777 42,8Vehicles and Parts 11 13.635 20,3Rubber 2 1.987 3,0Shoes 1 176 0,3International Trade 1 1.323 2,0Leather 1 386 0,6Electronics 2 2.166 3,2Lumber 1 245 0,4Machinery and equipment 3 947 1,4Mechanical 3 1.120 1,7Paper and pulp 5 4.764 7,1Chemicals 6 5.529 8,2Steel and metallurgy 6 6.250 9,3TOTAL 59 67.305 100,0

V. Results

Based on the conceptual model proposed, and on applying the procedure

recommended by the literature when dealing with structural equation modeling, the initial

model composed by 60 manifest variables was estimated and is shown in Fig. 6. Soon after

that, the refining process was started by using the method of direct estimation (Hair JR.etal., 1998) and the independent variables with low factor load were disregarded.

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Figure 6 Initial model estimated directly from dependent and independent variables

In sequence, the model was simplified thru variable reduction method creating 6

composites to the construct Enviro Mgm Best Practices. Inspired by different authors, we

created 3 new second-order latent variables denominated Productivity Gains,

Satisfaction and Financial Issues, which had satisfactory levels of reliability. Fig. 7 shows

the new latent variables and composites created.

A careful analysis of the new model (Fig. 7) shows statistical results with a low

correlation coefficient between the latent variables Enviro Management Effects(0,106),

P&D MKT Investments(0,120) and Export Success. In order to have a better

understanding about these relations we continue to explore and, in sequence, we created a

moderator variable called Enviro MGM Matched with R & D MKT (in purple) from the

multiplication of the variances of the latent variables Enviro Management Effects and R

& D MKT Investments and. Thus, it was the final model presented (Fig. 7), which

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theoretically is not unique, but one of the likely models that can be developed using the

structural equation modeling technique.

Figure 7 Final model estimated thru composites including moderator variable

Table 4 shows the reliability indicators generated by software that surpass, in theirmajority, the parameters of the last line, thus taking the model (i) presenting sufficient

internal consistency without departing from the logic of the business and from theory raised

: (ii) by being the result of a series of modifications for estimating the best possible results

from the latent variables, including the fact a moderator variable was established for this

purpose, and (iii) considering that the model is not unique and other models may be

established using the same technique and the same scope, the generation phase of

competing models was deemed closed.

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Table 4 - Statistical results of the final processed by PLSLatent variable Communality CompositeReliability R

2 CronbachAlpha

EM* Good Practices 0,417210 0,801839 0,700319EM Effects 0,448563 0,905760 0,531985 0,885658

EM Effects * Investments 0,351495 0,923392 0,926239Productivity Gains 0,662712 0,921543 0,821536 0,897139

Investments 0,677679 0,798717 0,686247Satisfaction 0,653334 0,882092 0,477479 0,819341

Export Success 0,786208 0,916815 0,132721 0,865712Financing Conditions 0,764758 0,866699 0,577537 0,692433

Pattern 0,5 0,6 0,2 0,7(*) EM means Environmental Management

As anticipated, the resulting model has been replicated (bootstrapping) and theresults are shown in Fig. 8:

Figure 8 - Final model estimated by bootstrapping replication (n = 150)

We note the occurrence of only two cases with values less than 1.9600 (which is the

cutoff parameter significance level of 5% for the bilateral test T of Student represented bythe associations P&D MKT Investments and Export Success, and between Enviro

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Management Effects and Export Success and which per se have a reasonable level ofimpact. However, the moderator variable produced, Enviro MGM Matched with P&D-

MKT (the purple symbol in the Fig. 7) provides superior results if compared to the cutoffparameter mentioned.

VI. Discussion of results

The various models processed and modified as the procedure suggested in the

literature, the parameters of reliability presented and conceptual model based on the

literature allow the verification of some results of interest to managers.

A first result that does not appear in the final model concerns the little influence

among some of the characteristics of the company on its environmental practices identified

in the first use of the software. The result did not follow the conclusions of some studiesthat found, for example, that company size (the number of employees) affects the practices

of environmental management, where larger companies have better environmental

practices than smaller companies. The logic is the understanding that larger firms have

higher investment capacity and organization to achieve better performance, for example,

better environmental performance. The contrast lies in the economies of scale that we

imagine existing in a large company, and presuppose heavy investments to adapt or change

existing processes by new greener ones, for instance.

Accordingly, export is subject to international regulatory standards, markets

requirements and other external pressures; therefore, without exhausting other

possibilities, to introduce or adapt greener processes export companies demand tax relief,

environmental standards and cooperation with business value chain. This interpretation

finds insight in the estimated model of Fig. 6: the latent variable "Enviro Mgt Best Practices"

reflects satisfactory factor loads of different manifest (independent) variables; but

coefficients of determination (R2) draws attention for the less expressive composites

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"Internal Obstacles "and" External Obstacles. In the latter three variables draw our

attention: i) lack of tax incentives for businesses to reach a better environmentalperformance, ii) the lack of legal environmental standards in international trade and iii) lackof cooperation of suppliers in developing new processes for smaller impact on the

environment.

As a second result, the creation of the third order latent variables, and theircorrelation with the variable "Enviro Mgmt Effects enriched the model and confirmed

different studies [13];[54];[28];[19];[25]. Although there is no consensus on the main

motivations of firms to commit to environmental performance [45],[60], reducing the

number of variables and creating new latent variables, as recommended by the

methodology of SEM, made the model clearer to identify gains about: (i) productivity, (ii) thefinancial conditions (represented by more attractive rates on bank loans and insurance

policies contracted), and (iii) satisfaction of shareholders (and stakeholders) as being effectscaused by good environmental management practices.

As another result of this study, no appropriate level of adequate explanation was

obtained to the construct R&D Mkt investments; R&D and marketing expenditures are

highlighted as accelerators of export performance in different studies [6],[65]. It is

interpreted that there is no significant influence of the effects of environmental

management and the P&D and marketing investments mentioned on exports when

approached individually.

Conversely, in the literature, we know that investments in R & D and Promotion are

associated with results in exports; in other ways, the existence of environmental innovation

strategy involves the performance business (including exports) determined by the practices

adopted, especially concerning those related to environmental aspects [18]. In addition,

they are determinants of environmental innovation, according to Kemp [35] apud Kiperstoket al. (undated): (i) the incentives, which depend on the degree of competition, costs,

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demand conditions and appropriate conditions for economic benefits that may be

appropriate, (ii) the ability to combine knowledge from different sources to produce a newproduct or process, and (iii) the ability to manage this process.

So it would be reasonable to explore the association of the effects of good

environmental management practices and investments in R & D and Promotion through its

covariance in a new moderator variable, which translates the combined influence of these

variables and the environmental management effects. In fact, the result of this association

showed a coefficient of determination somewhat significant on the success in exports, and a

greater level of significance, explaining that this association explains better the imagined

model.

Thus, the interpretation of the final model suggests that good environmental

practices by Brazilian exporters do not influence the success in exports per se, however, bycombining the best environmental practices with investment related to marketing and R&D,

the quality of the association improves greatly.

VII. Conclusions and recommendations

The study provided some conclusions about the influence of good environmental

management practices for the exporting success of Brazilian firms, considering three main

themes: environmental management, corporate investments in R & D and marketing, and

the impact of all these areas as a group.

First, the Brazilian export companies present different levels of effort as far as the

environmental management in its international business is concerned. Good environmental

management practices are best expressed: (i) by the guidance to the product or market, (ii)by the care in selecting (and influencing) suppliers, based on environmental performance in

order to avoid being contaminated by negative externalities caused by these partners, and

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(iii) by the maturity in the environmental actions taken by the companies such as having apublished environmental policy, having goals and programs to achieve those goals, defining

responsibilities, having environmental performance indicators, auditing their programs and

presenting such environmental information, in the balance sheet. It was clear, though, that

the valuable tool of control and communication represented by the environmental

accounting is not widely adopted in the companies included in the sample - which implies a

larger effort to highlight relevant aspects of its performance, the environmental impacts

and, consequently, the performance of environmental management.

Concerning the level of integration with other corporate functions - a maturity

indicator of corporate environmental management function, it seems that there is still no

complete understanding of the role of environmental management in dialogue with

stakeholders, for example, in developing a product with superior environmental

performance, among others. Conversely, although the insertion of an ecological variable in

the overall strategy has been maturing in the sample companies, environmental

management (in the broad sense) is still regarded as a supporting component, although

having a level of participation in board meetings.

Data analysis suggests that there are internal obstacles, such as: (i) lack of supportfrom upper management demonstrated by its commitment not ii) by an environmentally

conscious business still in the stage of reaction to external pressure, and iii) lack of

communication of environmental initiatives for the company's internal or external

stakeholders, here systematized by the use of environmental labeling or information aboutthe environmental effects of products and processes.

Another internal barrier regards the continuity of environmental education as a

strategy for building environmental awareness among employees and external stakeholders.The data collected suggest that training sessions have not been effective, be it due to: (i) thefailure to identify training needs for the tasks that cause environmental damage, or (ii) to

20

communicate the importance of environmental policy of the functions, responsibilities and

consequences regarding the lack of compliance with recommended procedures [8]. In other

words, it seems that training in environmental management in enterprises have pursued,

only as a priority, the ISO 14000 certification [39],[46],[51].

As for the external obstacles to the integration of environmental management in the

business, the survey found the following: (i) a variety of environmental regulations indifferent markets served; (ii) the lack of fiscal or financial incentives, and (iii) low demand formore "green". In fact, the diversity of environmental regulations in different countries

creates obstacles of all kinds, for example, a country with lax environmental laws may make

their market attractive to companies that have lower environmental responsible behavior

(usually by selling at lower prices) or in the opposite case, local laws may create non-tariff

barriers to that market. In turn, fiscal or financial incentives can become elements of

subsidies for exports of green products.

The research confirms that good environmental management practices can

positively impact on: (i) productivity gains, (ii) better credit terms to leverage capital fromthird parties, and (iii) satisfaction of managers, employees and shareholders, either by goodcorporate image or due to better business results. These effects are described in the

literature [4];[7];[11];[12];[19];[33].

Finally, in answer to research adviser (do good environmental management

practices influence export performance?), we observed that there is some influence, but not

statistically significant when considering only the isolated effects of good environmental

management practices.

This is plausible: an exporting company coordinates and harmonizes various

functional efforts guided by strategies consistent with the proposed objectives. But

considers in its establishment: the perceptions about the markets served, the desires of

stakeholders in relation to products that cause less environmental impact, socio-ethical

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factors involved in the entire value chain, in business communications, and especially the

view a common future. This implies that looking only to the effects of best environmental

management practices could not explain export business success. Recalling Demming [23],

the creator of Total Quality Management in [...] a well-organized system, all components

(functions) work together to support each other. Thus, a well-oriented and well managed

production system presents the essential conditions to be successful. It is worth pointing

out that the literature did not find mention of such a holistic relationship between corporate

environmental management and other corporate functions and exports, so it is a point to be

considered in future works.

It is worth emphasizing the importance of the implications of other facts suggested

by the results of the study regarding the effects of good environmental management

practices in the companies surveyed: good environmental management practices create

opportunities and enable share gains in international markets, affect the profitability in the

short and long term, and generate shareholder value.

It should be recognized, however, that the research has limitations that should be

considered in interpreting any generalizations: (i) the search was marked by a field study,quantitative, statistical, descriptive, ex post facto and cross, since it covered the period2005-2007, (ii) due to the large number of variables that were used and which may interferewith the interpretation of results; (iii) was based on respondents' perceptions about eventsin the past, and iv) was based on a sampling by convenience, not probabilistic one. Another

aspect to be considered, concerns the subjectivism that can be introduced by the structural

equation modeling methodology, that despite the advantages, it offers of multiple models

that can be developed from the same data; the final model depends on how the researcher

interprets the conceptual model, or how robust its theoretical foundations are.

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It is recommended that further research be performed for all segments of companies:

large, medium and micro and small that make up the large number of exporting firms,

adjusting accuracy to the model through replication in considerable number of estimates.

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