KIT - Institute of Management - Teaching - Chair of Management Accounting - Theses - Completed Theses - Which Non-Financial Factors Influence Corporate Environmental Investment Decisions?

This systematic literature review (SLR) examines non-financial factors that influence corporate environmental investment decisions. The analysis is based on 30 studies identified through structured searches in Scopus and Web of Science. Five categories of factors are synthesized in the review: resources and capabilities, culture and leadership, market and stakeholder dynamics, regulatory and institutional conditions, and collaboration and networks. Findings indicate that these factors consistently align along two dimensions, Structural Enablers and Motivational Drivers, which shape firms’ capacity and willingness to invest in environmental action. Three overarching patterns emerge across the literature. First, environmental investment is most likely when both dimensions are aligned. Second, structural conditions provide the necessary foundation for environmental action but do not lead to investment on their own. Third, the effect of individual factors further depends on the specific organizational and institutional context. Overall, the review offers a clearer explanation for differences in environmental behavior across firms and highlights implications for practice, policy, and future research.