A Transformational Change Framework for Developing Ecologically Embedded Manufacturing

Coercive pressure has forced firms to take up environmental measures in the last two decades in emerging economies. Under normative pressure, large firms with farsightedness take up the environmental practices as industry leaders. In a little mature emerging economy, such as India, where triple bottom line awareness is growing, the government facilitates the firms to operate in an environment-friendly ecosystem. We investigate how do environmental compliance and environmental practices influence the overall firm performance? The performance was measured in terms of financial, customer, internal business process, and learning and growth performance. A survey instrument was designed using well-established scales and administered to the middle to top-level corporate management executives to gather 240 data from the Indian firms. A rigorous statistical validity, diagnostics, and SEM were used to test the hypotheses. The environmental practices showed a full mediation effect on the effect of environmental compliance on performance. The examination of mediation relationships in an environmental context is limited in the reported literature. This paper is among the initial works that deal with complicated mediation relationships drawn from institutional theory propositions. The study established and argued that environmental practices' ecosystem would turn firms towards voluntary environmental compliance and eventually enjoy the long-term performance.

Section: Introductionmentioning

confidence: 99%

Environment Practices Mediating the Environmental Compliance and firm Performance: An Institutional Theory Perspective from Emerging Economies

Gupta

2021

“…In a similar vein, Bellisario and Pavlov (2018) suggest that lean manufacturing integrated at both operational and strategic levels by using performance management practices that drive organisational outcomes through employee involvement and engagement. Additionally, human critical success factors such as employee involvement, employee commitment, teamwork, culture and communications are found to be critical in adoption of sustainable manufacturing practices (Ahuja et al 2019;Trollman and Colwill 2020). The process by which all this happens however is still a matter of discussion and debate.…”

Section: Lean Manufacturing and People Management Practicesmentioning

confidence: 99%

People Management Practices that Underpin Lean Management Outcomes

Agarwal

Bajada

Brown

et al. 2021

While evidence exists for an association between people management practices (PMP), firm characteristics and lean manufacturing practices (LMP), there is limited research focusing on different sized firms. What is not understood is ( 1) what PMP bundles are chosen by different sized firms which adopt LMP, and (2) what firm characteristics play a role in explaining these choices. The empirical evidence is based on archival data sourced from the world management dataset comprising of 299 Australian and New Zealand manufacturing firms. Using path analysis and disaggregated data on a set of commonly adopted PMP, we test for six PMP, namely, instilling a talent mindset, promoting, rewarding, retaining and attracting high performance as well as removing poor performers; and identify PMP chosen by firms which have a lean manufacturing strategy (LMS) and that adopt LMP. We find that relatively smaller firms that adopt many LMP also chose removing poor performers and promoting high performers to complement their LMS. The education level of management in those same relatively smaller sized firms is found to be a key factor explaining this PMP bundle. Deeper inspection of the results reveals differences between smaller versus larger firms. The study contributes to lean and people management literature that helps identify bundles of PMP chosen by different sized enterprises to complement their lean manufacturing strategy and practices.

“…Several researchers also suppose that eco-innovation achieves both environmental and economic gain (Astuti et al, 2019). Therefore, its adoption may ensure a win-win situation to promote competition and sustainable development (Bossle et al, 2016;Trollman and Colwill 2020;Khamseh 2021).…”

Section: Introductionmentioning

confidence: 99%

Evidence for the Mediating Effects of Eco-Innovation and the Impact of Driving Factors on Sustainable Business Growth of Agribusiness

Amara

Chen

2021

The examination of the drivers of eco-innovation at the micro-level has been the topic of widespread discussion in recent years. However, several issues about these drivers in developing countries with low-tech sectors remain unaddressed. The current paper underlines the impacts of the drivers of eco-innovation on sustainable business growth in the agri-food sector. This study tests a set of hypothesized relationships that focus on a sample of 306 Tunisian enterprises. We harness structural equation modeling to examine the relationship between the driving factors (i.e., regulatory pressure, competitive pressure, customer demand, technological competence, and efficiency) and enterprises' sustainable business growth by analyzing the mediating effects of eco-innovation strategy. The findings reveal that: (1) regulatory pressure is the most influential driver of eco-innovation strategy, followed by competitive pressure and technological competence, (2) there is a positive relationship between eco-innovation strategy and enterprises' sustainable business growth, and (3) eco-innovation strategy fully mediates the relationship between the drivers and sustainable business growth. These results are consistent with the 'Porter Hypothesis' and have great potential for contributing to the achievement of sustainable development objectives.