Does ISO 14001 and Green Servitization Provide a Push Factor for Sustainable Performance? A Study of Manufacturing Firms

Abstract

This study contributes to the development of a green servitization framework to achieve manufacturing firms’ sustainable performance using ISO 14001 as a driving factor in their operational management system. Manufacturing firms are becoming concerned due to the associated problem of physical flow of materials and energy through the ecosystem, which can hinder resource sustainability for future generations as a result of the enormous waste and emission of carbon produced by their operations. This is possible due to a lack of implementation of ISO 14001 in the production process, leading to a waste of resources and negative environmental effects on people and the planet, which requires an urgent green solution. Therefore, the present study investigated the adoption and implementation of ISO 14001 as a catalyst of a green initiative towards achieving sustainable performance. After a review of studies in operational and environmental management, a quantitative methodology was adopted in three research design phases that included identifying dimensions for survey measurement instruments, survey validation, a pilot study, as well as data analysis to investigate the mediating effect of ISO 14001 on the relationship between green servitization and sustainable performance. The results show a significant and positive mediation effect of ISO 14001 on the interaction between green servitization and sustainable performance. In conclusion, these findings will enhance the operation and performance of the environmental management system required for the manufacturing firm and improve the practice of green service toward sustainable performance.

Environmental management systems in the architecture, engineering and construction sectors

“…While most participants within this study noted their organisations are using ISO14001 to manage both environment and sustainability objectives within their operations, some are still separating-out issues such as waste management and energy-use into an EMS while another department has responsibility for sustainability matters. It is suggested that this results in a doubling-up on costs, as environment and sustainability are inextricably linked and rationalising these areas could increase benefits (Boiral and Henri, 2012;Oyelakin and Johl, 2022). It is interesting to note the concern expressed in relation to the not achieving objectives and this brings into question whether all objectives should be to be ticked off the to do list in one or two years or being aspirational;…”

A Sustainable Digital Ecosystem: Digital Servitization Transformation and Digital Infrastructure Support

“…Current research has emphasized the role of digital servitization in ecosystems [73], and we enrich the theoretical framework of digital ecosystems by introducing the concept of digital infrastructure. The current research on the improvement of enterprise sustainable performance has been discussed from the perspective of digital technology and services [26,27,38]. We advance the research object of this issue to the strategic transformation of business models brought about by digital technology and service upgrading.…”

“…Environmental performance is achieved not only by establishing a sense of corporate social responsibility, but also by representing the management capability of a firm [70,71]. Firms who have attained ISO14001 can take advantage of their scientific model to improve the efficiency of management systems [26], including the rigor and effectiveness of practices, regulatory compliance, greener supply chain, and documentation control [70,71], so that their management level can be significantly improved and all aspects of control and responsiveness can be optimized [70]. Establishing a macroenvironmental management system is also a process of improving firms' ability to work in synergy with partners [11,32].…”

“…Referring to current studies and relevant reports, we selected ISO14001 certification as an indicator of firms' environmental performance [25,26]. Firms that obtained ISO14001 certification are regarded as private architects with "high" environmental performance, whereas those that have not obtained ISO14001 certification belong to the group with "low" environmental performance.…”

“…We need to conduct further work to build a general framework to express the interaction between digital infrastructure and manufacturing firms. Environmental performance, as part of sustainability, can also affect a firm's profitability [24][25][26] by branding effects from social responsibility, consumer recognition from business ethics, and policy benefits from energy savings and emission reductions [24,25,27]. Although extensive research has been conducted in the area of environmental performance, there is still much to explore concerning the mechanisms of its impact on the digital ecosystem.…”