Stakeholders’ involvements in the implementation of proactive environmental practices

Amir H. Abdekhodaee · Romesh Nagarajah

40 citations0/0 files storedManagement of Environmental Quality An International Journal

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Environmental Sustainability in Business Quality and Management Systems Sustainable Supply Chain Management

Abstract

Purpose – The purpose of this paper is to investigate key causal linkages of proactive environmental practices of small and medium enterprises (SMEs). Specifically, this paper studies the ways that the interactions between different stakeholders such as suppliers and customers could intensify the widespread diffusion and implementation of green technologies. Understanding these linkages provide an opportunity to develop a framework that integrates stakeholders’ involvement, environmental practices and environmental/operational performances. Design/methodology/approach – This paper adopts the quantitative methodology. It uses the survey data collected from 232 Malaysian SMEs. The structural equation modelling (SEM) via AMOS 19 was employed to test the hypotheses. Findings – The empirical results suggest that decisions on environmental practices are influenced significantly by interactions between stakeholders but notably in different ways. While customers and employees involvements are targeted at process based changes, senior managers are interested in internal management improvements. Suppliers’ interactions, on the other hand, influence SMEs to improve on operations for product and process based changes at the same time. Interestingly, we did not observe any significant achievement on government partnership programmes aimed at improving SMEs’ environmental practices. Originality/value – The finding in this paper adds to the literature on corporate environmental practices (CEPs), by applying two stages SEM analysis to a survey data for a single industry (electronic and electric industry). The gap of the mainstream CEP literature is bridged by focusing on different types of CEP, namely, internal management systems, process-based changes and product-based changes.

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References

1991Firm Resources and Sustained Competitive Advantage 1988Structural equation modeling in practice: A review and recommended two-step approach.1983The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields 2004Firm resources and sustained competitive advantage 1998Principles and Practice of Structural Equation Modeling 2004The iron cage revisited institutional isomorphism and collective rationality in organizational fields 2010Strategic management a stakeholder approach 1997Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of who and What Really Counts

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2019The interaction between local governments and stakeholders in environmental management: The case of water pollution by SMEs in Thailand 2017Intellectual capital and environmental concern in subsistence small businesses 2020Fostering low-carbon production and logistics systems: framework and empirical evidence 2020Production and supply-chain as the basis for SMEs’ environmental management development: A systematic literature review

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