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Do Environmental Management Systems Improve Business Performance in an International Setting?

Journal of International Management 14(4), 364-376

41 Pages Posted: 27 Aug 2007 Last revised: 25 Jun 2014

Nicole Darnall

Arizona State University - School of Public Affairs & School of Sustainability

Irene Henriques

York University - Schulich School of Business

Perry Sadorsky

York University - Schulich School of Business

Abstract

While the adoption of proactive environmental strategies has increased worldwide, there has been little research evaluating why facilities adopt these strategies across different countries. Moreover, the link between the adoption of a proactive environmental strategy and an organization's business performance has yet to be demonstrated. This study draws on institutional theory and the resource-based view of the firm to determine when an organization's environmental strategy may lead to improved environmental and business performance. We analyze these relationships using survey data from manufacturing facilities operating in Canada, Germany, Hungary, and the United States and structural equation modelling techniques. Our results support the notion that facilities whose environmental strategies are driven mainly by institutional pressures may improve their environmental performance. On the other hand, facilities that are driven primarily by their resources and capabilities observe both positive environmental and business performance.

Keywords: Institutional theory, resource-based view of the firm, environmental strategy, environmental management system, environmental performance, business performance

JEL Classification: L60, M14, L21

Suggested Citation

Darnall, Nicole and Henriques, Irene and Sadorsky, Perry, Do Environmental Management Systems Improve Business Performance in an International Setting?. Journal of International Management 14(4), 364-376. Available at SSRN: https://ssrn.com/abstract=1009265

Nicole Darnall (Contact Author)

Arizona State University - School of Public Affairs & School of Sustainability ( email )

411 N Central Avenue, Ste. 400, MC 3720
Phoenix, AZ 85004-0687
United States
602.496.0445 (Phone)

Irene Henriques

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

Perry Sadorsky

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

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