“…For example, a study of Chinese firms showed that compliance with ISO14000 standards increased a firm's profitability (Yang and Yao, 2012). An empirical analysis of firms in India found a significant positive relationship between voluntary compliance and environmental performance (Prasad and Mishra, 2017). Another study, of Mexican firms, further revealed that compliance improves economic and environmental performance (Sánchez-Medina et al, 2015).…”
Section: Compliance/commitment and Sustainable Performancementioning
Purpose
As supply chain sustainability has become more urgent than ever before, this study aims to provide a more nuanced understanding of how supplying firms’ sustainability motives influence their compliance and commitment, as well as sustainable performance, as they respond to buyers’ sustainable supplier management programs.
Design/methodology/approach
To investigate the intriguing links among sustainability motives, compliance/commitment and sustainable performance of supplying firms, this paper draws on multidisciplinary literature and collects empirical data from 281 supplying firms in China to test the proposed model and hypotheses using structural equation modeling.
Findings
Instrumental and moral motives make comparable contributions to compliance; moral motives exert stronger influence on firms’ commitment to sustainable practices. In addition, although compliance has a greater impact on economic and environmental performance, commitment is far more robust in improving environmental and social performance.
Research limitations/implications
Unlike most research on motives that has been theoretical, this study represents one of the few empirical analyses of how motives may affect sustainable performance. Examining the challenges from the perspectives of supplying firms, it also adds to the SSCM literature by making clear how compliance and commitment may differentially predict sustainable performance.
Practical implications
Although instrumental and moral motives can be complementary in advancing sustainable practices, it is imperative for firms to integrate moral considerations into sustainability decision-making and move beyond compliance, if they are to contribute meaningfully to a better society and cleaner environment.
Originality/value
This is the first large-scale empirical investigation on the links among motives, compliance, commitment and sustainable performance from the perspectives of suppliers.
“…For example, a study of Chinese firms showed that compliance with ISO14000 standards increased a firm's profitability (Yang and Yao, 2012). An empirical analysis of firms in India found a significant positive relationship between voluntary compliance and environmental performance (Prasad and Mishra, 2017). Another study, of Mexican firms, further revealed that compliance improves economic and environmental performance (Sánchez-Medina et al, 2015).…”
Section: Compliance/commitment and Sustainable Performancementioning
Purpose
As supply chain sustainability has become more urgent than ever before, this study aims to provide a more nuanced understanding of how supplying firms’ sustainability motives influence their compliance and commitment, as well as sustainable performance, as they respond to buyers’ sustainable supplier management programs.
Design/methodology/approach
To investigate the intriguing links among sustainability motives, compliance/commitment and sustainable performance of supplying firms, this paper draws on multidisciplinary literature and collects empirical data from 281 supplying firms in China to test the proposed model and hypotheses using structural equation modeling.
Findings
Instrumental and moral motives make comparable contributions to compliance; moral motives exert stronger influence on firms’ commitment to sustainable practices. In addition, although compliance has a greater impact on economic and environmental performance, commitment is far more robust in improving environmental and social performance.
Research limitations/implications
Unlike most research on motives that has been theoretical, this study represents one of the few empirical analyses of how motives may affect sustainable performance. Examining the challenges from the perspectives of supplying firms, it also adds to the SSCM literature by making clear how compliance and commitment may differentially predict sustainable performance.
Practical implications
Although instrumental and moral motives can be complementary in advancing sustainable practices, it is imperative for firms to integrate moral considerations into sustainability decision-making and move beyond compliance, if they are to contribute meaningfully to a better society and cleaner environment.
Originality/value
This is the first large-scale empirical investigation on the links among motives, compliance, commitment and sustainable performance from the perspectives of suppliers.
“…Even in Indian context, there is evidence for example that implementation of ISO 14001 standards may lead to lower pollution (e.g., Singh et al, 2015;Prasad and Mishra, 2017).…”
Voluntary environmental initiatives (VEIs) by firms are often viewed as important for environmental management in developing countries such as India with weak regulatory institutions and poor enforcement of environmental laws. Past research shows that while VEIs may not be able to fully substitute for strong regulation, they could be useful complements to reduce environmental degradation in developing countries. In India, new government initiatives such as "Make in India" are geared towards significantly increasing the manufacturing output in the next few years. In this context, our paper studies the adoption of a widely employed VEI -the ISO 14001 standards certification -among the Indian manufacturing industries. Using the theoretical framework of Earnhart, Khanna, and Lyon ( 2014) on the drivers of corporate environmental strategies in emerging economies, we hypothesize that the likelihood of adoption of ISO 14001 standards among Indian manufacturing industries is a function of internal firm characteristics, input and output market pressures, and regulatory pressure. We test our hypotheses using a survey of 1000 (large, medium, and small) manufacturing firms across the country, conducted under the aegis of the World Bank in 2016. Results show that internal firm characteristics such as large size and firm innovation have a positive association with the likelihood of adopting ISO 14001 standards. Output market pressures, such as exporting to foreign markets, also positively impact the likelihood of obtaining ISO 14001 certification. In particular, exporting to China, which is ranked first in the number of ISO 14001 adoptions, has a statistically significant impact on probability of adoption. There is no evidence, however, that predominantly consumer-facing firms, another potential indicator of output market pressure, are more likely to adopt ISO 14001 standards. We also find state-fixed effects, potentially capturing the variation in both formal and informal regulatory pressure across states. Thus, consistent with other research in developing countries, we find that pressure to meet the environmental standards of countries to which firms in developing countries export their products acts as a strong incentive to adopt VEIs such as ISO 14001 standards. The lack of evidence that consumer-facing firms are no more likely to adopt ISO 14001 standards potentially indicate that firms in India do not yet find the green consumer markets large enough to adopt VEIs.
“…Recently, researcher has investigated the role of total factor productivity as a proxy of technological advancement in the reduction of energy intensity (Haider & Ganaie, ; Sahu & Sharma, ). Prasad and Mishra () have taken managerial perspective and find out the linkage between ISO‐14001 certification and carbon emission through panel regression of firm‐level data of iron and steel industry. They found the statistically significant relationship and role of ISO certification in low‐carbon emission growth.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Energy efficiency becomes one of the critical factors in enhancing firm performance and environmental sustainability. Higher energy‐efficient firms have low‐cost production and provide a competitive advantage over inefficient energy firms (Prasad & Mishra, ). Energy efficiency provides one of the best solutions for reducing pollution from energy‐intensive firms.…”
This article aims at estimating the energy efficiency of the iron and steel industry in production theoretic approach. Taking a regional perspective, we have done a meta‐frontier analysis combined with the slack‐based measure of data envelopment analysis (DEA). The results depict huge energy efficiency gap exists across four regions. The northern region is the best performer under group frontier than meta‐frontier DEA. South and west regions are relatively well‐performed under meta‐frontier than group frontier while the eastern region performs moderately well under both frontiers. The results show the significant energy efficiency improvement opportunities available across regions can be realised through technological advancement and energy management.
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