The changes in the global environmental conditions have placed great challenges on governments, industries, and societies. Business organizations are often blamed for being the sources of theseenvironmental problems. This study aimed to examine the factors influencing the perceived environmental performance of firms certified under the ISO 14001 in Malaysia. A total of 268 manufacturing companies responded to the questionnaires. In this study, structural equation modeling was applied to test the hypotheses. It was found that the “environmental policy”, “environmental training”, “regulatory stakeholder’s pressures”, and “customer pressures”, influence the firm’s perceived environmental performance in which “customer pressures”, was found to be the dominant factor. The measure of environmental performance was self-reported due to the lack of available data. Therefore, perceived environmental performance was employed for this study which is aperceived measure based on the dimensions of the ISO 14001 definition. This study provided a model to synthesize both internal (environmental policy and environmental training) and external (regulatory stakeholder’s pressure and customer pressures) constructs that influenced a firm’sperceived environmental performance. The empirical results and insights from interviews shed lights on the practitioners as to how to enhance a firm’s environmental performance through green practices.
The changes of global environmental conditions have placed great challenges to governments and societies. While it is not easy for the companies to go green, we need a renewed concern for our environment in order to revive the nation’s economic growth, social cohesion and ecological balances. This article identifies the drivers and barriers for the business industry to adopt green practices. A total of 571 business companies from the Perak State participated in this study. Four variables: (1) Regulations (β=0.159, p<0.05); (2) Social responsibility (β=0.201, p<0.05); (3) Pro-environmental organizational culture (β=0.389, p<0.01); and (4) Organizational supports (β=0.369, p<0.01) werefound to significantly affect the company’s green initiatives. The results indicated that the main internal barriers were: it lacked of financial resources (66.2%) and skilled staff (63.9%); whereas the main external barriers were: the penalty imposed were not severe enough for making any extra efforts (64.8%) and the penalty was light for violation of environmental regulations (63.2%). This research had implications for the academics, practitioners and policy makers. It provided greater insights into the green practices in Malaysian firms. The research findings also urged the local governments to greatly enhance regulatory scrutiny on the production and manufacturing industries.
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