Green Dimensions, Environment Orientation and Size: Impact Assessment on Operational Performance of Manufacturing Firms

Abstract

Rise in the environmental problems in past few years has led to discussions and debate concerning the actions required from government, corporate sector and society at large. Realizing that espousal of green marketing practices is now inevitable, all concerned stakeholders including the business firms are assuming responsibility to safeguard environment from further degradation by actively engaging in eco-friendly practices. It is in this backdrop that the current research delves into the green practices that specifically hold relevance for manufacturing firms. Using the technique of CFA on the response set obtained from 77 key officials, the study confirms the composition of green dimensions and examines the performance of each of the constituents on operational performance of sample firms. The study additionally contributes to the existing literature by analysing the role of management’s environment orientation and firm size in influencing the aforesaid impact and linkages. The insights provided in the article would be useful for the management of manufacturing firms in formulating appropriate mix of green activities that could enable them in effectively attaining their operational objectives. The limitations acknowledged in the present work pave way for future studies in the area of green marketing.

The Impact of Sustainability Performance on Financial Performance: Does Firm Size Matter? Evidence from Turkey and South Korea

“…They argued that government measures regarding sustainability negatively affect financial performance for large firms, while the opposite is valid for small firms. The authors of [78] determined that firm size moderates the effect between sustainability practices and operational performance.…”

“…In addition, the authors claimed that firm size is an essential determinant of sustainability performance, as large firms have the potential to create economies of scale in their sustainability activities. The authors of [78] asserted that large firms could more easily employ trained personnel to carry out and review plans for sustainability practices. In addition, they are able to overcome the pressures of various stakeholder groups, primarily consumers, shareholders, and non-governmental organizations, in order to move towards sustainability.…”

“…Small firms, on the other hand, tend to use their limited resources primarily to improve financial performance. However, it is stated that companies direct their resources to sustainability activities, provided that they positively impact their performance [78]. Based on the above-mentioned theoretical arguments and research findings, the last hypothesis was constructed as follows:…”

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“…All stakeholders have taken initiatives towards addressing this germane issueC consumers, manufacturers, and government are inclusive [3]. Since consumers are conscious of the environmental effect of the purchased product, manufacturing firms have started taking cognisance and acknowledging their environmental responsibility [4][5]. The present-day society is earnestly desiring a sustainable system that promotes growth without compromising the future generation's capacity to meet their necessities and wants [6].…”