Impact of environmental management system implementation on financial performance

Watson, Kevin; Klingenberg, Beate; Polito, Tony; Geurts, Tom G.

doi:10.1108/14777830410560700

Cited by 133 publications

(89 citation statements)

References 4 publications

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“…Nevertheless, the theoretical views and empirical research are not conclusive about the competitive consequences of environmental proactivity. While some scholars found a positive relationship (e.g., [43,44]), others did not recognize a positive impact of proactive environmental strategy on firm's financial performance (e.g., [45,46]). Klassen and Whybark proved that preventive technologies instead of control technologies significantly affect operational (manufacturing) performance [47].…”

Section: Proactive Environmental Strategy and Firm Performancementioning

confidence: 99%

Proactive Environmental Strategy, Technological Eco-Innovation and Firm Performance—Case of Poland

Ryszko

2016

Sustainability

105

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Nowadays, scholars exploring the relationship between proactive environmental strategy and firm competitiveness do not focus on the question of whether it pays to be green but rather investigate when, for whom or how it does so. This paper analyzes the links between proactive environmental strategy, technological eco-innovation and firm performance. In particular, it examines the influence of proactive environmental strategy on firm performance and explores this relationship through technological eco-innovation. A research model has been developed and tested using a sample of 292 firms operating in Poland. In order to test the proposed research model and hypotheses, structural equation modeling using partial least squares has been employed. The findings do not confirm that proactive environmental strategy directly affects firm performance. However, the results show the significant mediating role of technological eco-innovation in this relationship. Since the technological eco-innovation reduces environmental impact and improves business performance, this research proves that it simultaneously contributes to environmental and economic pillars of sustainable development.

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Section: Proactive Environmental Strategy and Firm Performancementioning

confidence: 99%

Proactive Environmental Strategy, Technological Eco-Innovation and Firm Performance—Case of Poland

Ryszko

2016

Sustainability

105

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“…This is because, while some studies have documented a positive relationship (e.g. Aragó n-Correa and Rubio-Ló pez, 2007;Galdeano-Gó mez et al, 2008;Nakao et al, 2007;Wahba, 2008), others do not identify a positive impact of environmental proactivity on financial performance (Link and Naveh, 2006;Wagner, 2005;Watson et al, 2004).…”

Section: Introductionmentioning

confidence: 97%

The whole relationship between environmental variables and firm performance: Competitive advantage and firm resources as mediator variables

López‐Gamero

Molina‐Azorín

Claver‐Cortés

2009

Journal of Environmental Management

342

246

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a b s t r a c tThe examination of the possible direct link between environmental protection and firm performance in the literature has generally produced mixed results. The present paper contributes to the literature by using the resource-based view as a mediating process in this relationship. The study specifically tests whether or not the resource-based view of the firm mediates the positive relationships of proactive environmental management and improved environmental performance with competitive advantage, which also has consequences for financial performance. We also check the possible link between the adoption of a pioneering approach and good environmental management practices. Our findings support that early investment timing and intensity in environmental issues impact on the adoption of a proactive environmental management, which in turn helps to improve environmental performance. The findings also show that a firm's resources and competitive advantage act as mediator variables for a positive relationship between environmental protection and financial performance. This contribution is original because the present paper develops a comprehensive whole picture of this path process, which has previously only been partially discussed in the literature. In addition, this study clarifies a relevant point in the literature, namely that the effect of environmental protection on firm performance is not direct and can vary depending on the sector considered. Whereas competitive advantage in relation to costs influences financial performance in the IPPC law sector, the relevant influence in the hotel sector comes from competitive advantage through differentiation.

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“…Some studies have shown a positive relationship between environmental performance and firm performance, for example, Aragón-Correa, Hurtado-Torres, & García-Morales (2008), Klassen and McLaughlin (1996), Nakao, Amano, Matsumura, Genba, & Nakano (2007), and Russo and Fouts (1997). Other studies such as Cordeiro and Sarkis (1997), Wagner (2005), Walley and Whitehead (1994), and Watson, Klingenberg, Polito, & Geurts (2004) argue that there is a conflict between competitiveness of firms and their environmental performance and show a negative relationship. The existing literature therefore provides a mixed message to business managers, policy makers and other stakeholders who are interested in protecting the environment through promoting corporate responsible behaviors (Zeng, Meng, Yin, Tam, & Sun, 2010).…”

Section: Introductionmentioning

confidence: 99%

Exploring the Relationships among Sustainable Manufacturing Practices, Business Performance and Competitive Advantage: Perspectives from a Developing Economy

Russell¹,

Millar²

2014

JMS

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This study aims to empirically test the relationships among the adoption of sustainability practices, business performance and competitive advantage in Caribbean manufacturing firms. Seven dimensions of sustainable manufacturing practices are conceptualized and tested against measures of business performance and competitive advantage. Three hypothesized relationships are tested using the partial least squares structural equation modeling (PLS-SEM) technique. The results show a negative relationship between the adoption of sustainability practices and business performance. We also find that there is no significant relationship between the adoption of sustainability practices and competitive advantage. However, we observe a significant positive relationship between competitive advantage and business performance. Based on these findings, manufacturing firms in developing regions, such as the Caribbean, are advised to pursue sustainability strategy implementation with some vigor, but should base their choices on strategies that will enhance sustainability through improved resource productivity, while improving business performance and competitive advantage.

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Impact of environmental management system implementation on financial performance

Cited by 133 publications

References 4 publications

Proactive Environmental Strategy, Technological Eco-Innovation and Firm Performance—Case of Poland

Proactive Environmental Strategy, Technological Eco-Innovation and Firm Performance—Case of Poland

The whole relationship between environmental variables and firm performance: Competitive advantage and firm resources as mediator variables

Exploring the Relationships among Sustainable Manufacturing Practices, Business Performance and Competitive Advantage: Perspectives from a Developing Economy

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