Examining green policy and sustainable development from the perspective of differentiation and strategic alignment

Abstract The study seeks to explain the influence of green policy on sustainable development from the perspective of differentiation and strategic alignment. The study examined the relationships among a divergent green management strategy, green competencies, and firm performance. The results indicate that a divergent green management strategy is associated with higher firm performance and that such relationship is moderated by green competencies. The study confirms that a differentiation strategy pays off for firms that implement green management. The study also confirms that green policy should consider the strategic alignment between green management strategy and green competencies.