Resource-based view
Institutional theory does not describe why enterprises undertake different strategies or practices under the same institutional pressures, in a given marketplace and business sector (Delmas and Toffel, 2004). Resource-based view is a theory that investigates firms’ strategies given their internal resources and capabilities.Resource-based view implies that sustainable competitive advantage is achieved through resources that are valuable, rare, inimitable, and non-substitutable (Barney, 1991). Enterprises strive to undertake environmental SC practices to gain competitive advantage (Sharfman et al., 2009).
From the green perspective, RBV is useful to investigate how firms’ resources affect internal green practices and SC performance because firms’ strategies rely on their internal competencies and abilities to sustain them (Wernerfelt, 1984).