The fit between environmental management systems and organisational learning orientation

Abstract

With the significant increase in the adoption of environmental management systems (EMSs), it is important to evaluate whether EMSs can improve the business value for organisations that adopt them. However, less is known about whether or not EMSs lead to improved firm performance with only few studies evaluating the broad link between an organisation’s environmental strategies and its business performance. Furthermore, previous studies are inconsistent in their findings about the relationship between environmental strategies and firm performance. We attribute this inconsistency to the misfit between environmental strategies and organisational learning orientation which results in operational inefficiency within the firm. This study tries to find out the proper fit pattern between EMSs and organisational learning orientation by investigating their joint effect on firm performance. Based on survey data from 214 Chinese manufacturing companies, we found that the interactions between EMSs and four dimensions of organisational learning orientation have positive impacts on firm performance. Thus, the proper organisational learning orientation for efficiency and effective EMSs is characterised by high levels of commitment to learning, shared vision, open-mindedness and knowledge sharing.

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