Environmental management systems and environmental product innovation: The role of stakeholder engagement

Abstract

Environmental product innovation (EPI) is an imperative for contemporary business as it enhances firm competitiveness and provides significant societal benefits. Arguments that the use of environmental management systems-such as ISO 14001may enhance EPI have not been empirically supported. In this study, we argue that the environmental management systems-EPI relationship is contingent upon the level of a firm's engagement with three groups of stakeholders, namely, suppliers, customers, and the local community. Using a sample of 1,314 manufacturing firms for the period 2003 and 2014, we find empirical evidence that supports our hypothesis for all three groups of stakeholders. Further analysis reveals that for firms with prior experience with quality management systems, engagement with local communities becomes the critical condition. We discuss the implications of these results for both theory and practice. KEYWORDS environmental management systems, environmental product innovation, ISO 14001, quality management systems, stakeholder engagement

An environmental perspective extends market orientation: Green innovation sustainability

“…This concept suggests that a firm should shift from doing whatever it takes to make money, to a more balance approach whereby firms consider the numerous ways by which a decision may avoid harm to the environment (Manzhynski & Figge, 2020). The core stakeholders considered in this study are competitors, customers, and employees (Papagiannakis, Voudouris, Lioukas, & Kassinis, 2019).…”

Global governance in new public environmental management: An international and intertemporal comparison of voluntary standards' impacts

“…van Dijken et al () find the EMS implementation to be associated with environmental innovations within the implementing firm. Similarly, Montobbio and Solito () and Papagiannakis et al () find some evidence of EMS certification having positive effects on environmental innovation.…”

“…Beyond adoption, the literature has also discussed several possible economic and environmental benefits of EMS implementation and certification (De Jong, Paulraj, & Blome, ; Heras‐ Saizarbitoria et al, 2011; Boiral et al, ). Specifically, this concerns direct benefits in terms of environmental performance improvements derived from activities required by an EMS standard (Boiral, ; Montobbio & Solito, ; Papagiannakis et al, ; Testa et al, ; Testa, Iraldo, & Daddi, ; van Dijken et al, ; Wagner, ).…”

“…This initial phase was followed by a second wave of applying more market‐based instruments, which has been superseded by a third wave from 1993 onwards characterised by voluntary initiatives (Delmas & Toffel, ; Prakash, ), where new public management and related deregulation made standardisation based on voluntary environmental management standards pivotal (Delmas, ; Testa, Heras‐Saizarbitoria, Daddi, Boiral, & Iraldo, ). As part of this third wave, standards for environmental management systems (EMS), especially the European Union (EU) Eco‐Management and Auditing Scheme (EMAS) and the International Organisation for Standardisation (ISO) 14001 standard, have become increasingly relevant since the late 1990s in all EU member states (Glachant, Schucht, Bültmann, & Wätzold, ; Montobbio & Solito, ; Papagiannakis, Voudouris, Lioukas, & Kassinis, ). Therefore, the remainder of the paper focuses on these main voluntary environmental management standards used today, taking into account their differing origin as private decentralised (ISO) and public (EMAS) institutions (King, Lenox, & Terlaak, ).…”

“…EMS have become increasingly relevant over the last two decades as a foundation stone of corporate sustainability management (Fanasch, ), as evidenced by their high corporate adoption across many industries (Eurostat, ; ISO, ; Papagiannakis et al, ). That popularity can at least partly be attributed to the ability of EMS to reduce costs, increase sales, and induce innovation, particularly if the systems are externally audited and certified (Heras‐Saizarbitoria, Arana, & Boiral, ).…”