The role of green management in creating sustainability performance on the small and medium enterprises

2019 ◽  
Vol 30 (3) ◽  
pp. 557-577 ◽  
Author(s):  
Kusdi Raharjo
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Small And Medium Enterprises ◽  
Numerical Data ◽  
Green Marketing ◽  
Research Approach ◽  
Green Management ◽  
Content Type ◽  
Sustainability Performance ◽  
The Impact

Purpose The purpose of this paper is to analyze the effect of the relationship between stakeholder demand, resources, knowledge and product uniqueness on green marketing and its implication on sustainability performance. Design/methodology/approach This study used a quantitative research approach that explains the phenomenon by collecting numerical data analyzed using mathematically based methods. The research location was Batik Lawean Center of Surakarta, which is the centers of Batik industry and heritage. These locations were chosen because Laweyan and Kedung Baruk have a vision as the center of Batik industry and environment-friendly heritage through sustainable development. Findings Stakeholder demand, resource, knowledge and the uniqueness of the product have a significant effect on the application of green management, and the green management has a significant effect on the sustainability performance. It means that the stakeholder demand, resources, knowledge and product uniqueness have a significant effect on green management, and green management simultaneously shows a significant effect on sustainability performance. The application of green management will also improve sustainability performance. Originality/value The originality of this study is on the testing of simultaneous relationships between the factors making up the application of green marketing, namely stakeholder demand, resources, knowledge and product uniqueness, as well as the impact of green marketing implementation on sustainability performance. This study focuses on the application of green management by involving the measurement of environmental performance and financial performance, as has been investigated by Karagiorgos (2010) and Earnhart and Lizal (2006). On the other hand, this study attempts to review the application of green management in the form of environmental performance as studied by Filbeck and Gorman (2004) and Sarah and Peter (2000), which reveal several determinants of environmental performance, as suggested by Mutamimah and Handoko (2011). However, this study focuses on the qualitative determinants that have been found by researchers (Raharjo, 2016) that the low or high level of green management application is determined by the demand of stakeholders, resources, knowledge, and product uniqueness considering the object of research is the Batik industry, which is certainly different from other industries, such as those that have been investigated by Karagiorgos (2010), Earnhart and Lizal (2006), Mutamimah and Handoko (2011), Filbeck and Gorman (2004), and Sarah and Peter (2000). This study also combines the measurement of financial performance and non-financial performance in the form of sustainability performance variables.

scholarly journals Creating Model of Sustainable Performance based Green Management System on The Small and Medium Enterprises

2020 ◽  
Vol 9 (3) ◽  
pp. 340-349
Author(s):  
Vini Wiratno Putri ◽  
Ketut Sudarma
Keyword(s):  
Structural Equation ◽  
Quantitative Research ◽  
Small And Medium Enterprises ◽  
Numerical Data ◽  
Industrial Sector ◽  
Research Approach ◽  
Competitive Advantages ◽  
Green Management ◽  
Sustainability Performance ◽  
The Impact

The aims of this paper is to analyze the effect of the relationship between knowledge and on green management and its implication on competitive advantage and sustainable performannce. This study used a quantitative research approach that explains the phenomenon by collecting numerical data analyzed using structural equation modelling (SEM) with the WarpPLS program application. The population in this study were small or medium business owners (general managers) in the industrial sector in the city of Semarang. Knowledge and green management have a significant effect on competitive advantages and competitive advantages has a significant effect on the sustainability performance. It means that the knowledge and green management simultaneously shows a significant effect on competitive advantages and sustainability performance. The application of green management will also improve sustainability performance. The originality of this study is on the testing of simultaneous relationships between the factors making up the application of green management, namely knowledge as well as the impact of green management implementation on sustainability performance.

Foundational competencies for enhancing work engagement in SMEs Malaysia

2017 ◽  
Vol 29 (3) ◽  
pp. 165-184 ◽  
Author(s):  
Aliyu Yelwa Haruna ◽  
Govindan Marthandan
Keyword(s):  
Work Engagement ◽  
Service Sector ◽  
Small And Medium Enterprises ◽  
Cross Sectional Study ◽  
Research Approach ◽  
Positive Role ◽  
Cross Sectional ◽  
Content Type ◽  
Additional Support ◽  
The Impact

Purpose This study aims to examine the impact of foundational competencies on work engagement in the context of the Malaysian small and medium enterprises (SMEs) service sector. Design/methodology/approach This is a cross-sectional study conducted in Malaysia, and data were gathered via a survey on 312 employees representing SMEs service sectors. Partial least squares techniques were used in testing the hypothesized linkages. Findings The findings indicated that foundational competencies have a significant positive effect on work engagement. Research limitations/implications Considering the research approach, generalizing the findings of this study must be done with caution. Longitudinal data are recommended, as these could provide additional support to the results. Further studies can as well extend the framework by testing whether job resources play a positive role in enhancing the relationship between foundational competencies and work engagement in Malaysia. Practical implications The findings suggest that foundational competencies positively relate to work engagement. Therefore, training and coaching sessions could be organized by managers/policy makers to enhance these competencies, which will strengthen work engagement and career development of the employee; it may specifically be very helpful for fresh graduates whose careers would have just started. Originality/value To the authors’ knowledge, this is the first attempt to examine the effect of American Society of Training and Development foundational competencies on work engagement in SMEs in Malaysia.

scholarly journals Inclusive environmental disclosure practices and firm performance

2018 ◽  
Vol 38 (9) ◽  
pp. 1815-1835 ◽  
Author(s):  
Annachiara Longoni ◽  
Raffaella Cagliano
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Financial Performance ◽  
Environmental Performance ◽  
Environmental Disclosure ◽  
Conceptual Foundation ◽  
Chain Management ◽  
Content Type ◽  
Positive Effects ◽  
The Impact

Purpose Little empirical work has been done on the effects of inclusive environmental disclosure and green supply chain management (GSCM) on firm outcomes. The literature on environmental disclosure suggests that it is a useful practice to improve a firm’s reputation and its financial performance and also to establish a dialogue with stakeholders improving environmental performance. Recent conceptual contributions in the supply chain management literature state that stakeholder expectations and informational needs increasingly concern firm supply chains. Thus, the authors propose that positive effects of inclusive environmental disclosure practices are enhanced in presence of GSCM practices. The paper aims to discuss these issues. Design/methodology/approach To test these relationships a combination of primary data on environmental disclosure practices, GSCM practices and environmental performance, and secondary data on financial performance was used. A series of hierarchical regression models were performed to test the disclosure-outcome relationships and the moderation of GSCM practices. Findings Results provide empirical support for the impact of inclusive environmental disclosure practices on financial performance but no support for the impact on environmental performance. Specifically, the more inclusive the environmental disclosure practices the greater and positive is the impact on financial performance in presence of GSCM practices. Originality/value This study provides empirical evidence of the joint effects of inclusive environmental disclosure and GSCM practices on environmental and financial performance. Doing so, it reinforces the recent conceptual foundation that firms should align and leverage on supply chain management for disclosure practice effectiveness.

Green marketing and perceived SME profitability: the meditating effect of green purchase behaviour

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Albert Martins
Keyword(s):  
Negative Impact ◽  
Emerging Market ◽  
Mediating Effect ◽  
Green Marketing ◽  
Purchase Behavior ◽  
Research Approach ◽  
Sustainable Competitive Advantage ◽  
Cross Sectional Survey ◽  
Content Type ◽  
The Impact

PurposeThe concept of green marketing has emerged as a panacea for reducing the negative impact of business activities on the environment. Many studies have investigated the impact of green marketing on green purchase behavior, sustainable competitive advantage, etc., without much being explored about how green marketing translates into firms' profitability, particularly among small and medium enterprises (SMEs) in emerging markets. This study, therefore, investigates the influence of green marketing on perceived SME profitability alongside the mediating effect of green purchase behaviour.Design/methodology/approachA quantitative research approach was adopted, where a cross-sectional survey design was employed to collect the data from 400 SME owners/managers in Ghana. Using Statistical Package for Social Science, the data were analysed through descriptive statistics, correlation and macro Process version 3.4.1.FindingsThe results reveal that the dimensions (environmental knowledge, environmental concern, green price, green advertising and green product) of green marketing distinctively have significant positive effect on perceived SME profitability as well as green purchase behaviour. Furthermore, green purchase behaviour significantly mediates the relationship between green marketing dimensions and perceived SME profitability such that the indirect effects are far greater than the direct effects.Practical implicationsSME managers should include the green marketing dimensions in their business plans and develop strategies to implement them in order to enhance green purchase behaviour of their products and services which will, in turn, lead to profitability.Originality/valueIn augmenting green marketing literature, this study provides an insight into how SMEs can leverage on the distinct dimensions of green marketing to influence green purchase behaviour and profitability in an emerging market context.

Nexus of Green Management, Green Marketing, Sustainability, and Financial Performance

2021 ◽  
pp. 353-373
Author(s):  
Adenike Oyelola Soogun
Keyword(s):  
Financial Performance ◽  
Environmental Sustainability ◽  
Financial Services ◽  
Marketing Strategies ◽  
Green Marketing ◽  
Green Management ◽  
Firm Financial Performance ◽  
Long Run ◽  
Holistic Practice ◽  
The Impact

Consumer and organizational awareness of environmental sustainability is ever increasing. In the era of global warming and climate change, organizations need to move away from traditional marketing strategies to green marketing strategies and green management to remain sustainable. The objectives of this chapter are to provide stakeholders with the overview and importance of green marketing, establish the link between green marketing mix and strategic green marketing, and reveal what organizations should focus on in developing green management to remain competitive and profitable. Green marketing strategies activities for financial services were highlighted, and lastly, the authors examined the impact of green management on firm financial performance. The chapter offers a holistic practice and recommendation of going green for both financial services and other businesses. Practical implications for managers were pointed out through commitment to green marketing and management to yield positive outcomes on firm financial performance in the long run.

The impact of environmental performance on capital structure and firm performance: the case of Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Kalash
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Returns ◽  
Environmental Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Ordinary Least Squares ◽  
Content Type ◽  
The Impact ◽  
The Capital Structure

Purpose The purpose of this study is to investigate the effect of environmental performance on the capital structure and financial performance of Turkish listed firms. Design/methodology/approach This study used data of 49 firms listed on Istanbul Stock Exchange during the period between 2014 and 2019, resulting in 205 firm-year observations. The environmental performance data were drawn from the carbon disclosure project Turkey climate change reports. Ordinary least squares and binary logistic regression models were used to examine whether environmental performance impacts the capital structure and financial performance. Findings The findings of this research revealed that environmental performance significantly positively affects the firm leverage. Findings also showed that environmental performance has a significantly positive impact on return on assets, operating profitability and return on equity, but no significant impact on stock returns. Practical implications Given the increased borrowing costs for Turkish firms after the 2018 currency crisis in Turkey, the findings of this study are very important as they enable managers of Turkish firms to make better decisions related to capital structure and to understand the role of environmental performance in reducing the cost of debt and enhancing financial performance. Originality/value To the author’s knowledge, this research is the first to investigate the effect of environmental performance on capital structure in the Turkish context, and is one of few that explained how environmental performance affects the financial performance of Turkish firms.

Types of foreign networks and internationalization performance of Korean SMEs

2016 ◽  
Vol 24 (1) ◽  
pp. 47-61 ◽  
Author(s):  
So Won Jeong
Keyword(s):  
Financial Performance ◽  
Small And Medium Enterprises ◽  
International Markets ◽  
Performance Outcomes ◽  
Business Networks ◽  
Content Type ◽  
Strategic Performance ◽  
Medium Enterprises ◽  
Performance Satisfaction ◽  
The Impact

Purpose The purpose of the study is to empirically analyze how various types of foreign networks influence the internationalization performance of Korean small and medium enterprises (SMEs). The specific aim is to investigate the impact of each network type (family and friends, clients (buyers, vendors, etc.), potential buyers contacted through an Internet search for export, acquaintances from trade shows and fairs and acquaintances from government organizations) on internationalization performance outcomes, such as financial performance, financial performance satisfaction and strategic performance. Design/methodology/approach To identify influential foreign networks, multiple regression analysis was conducted. The sample consisted of 484 exporting Korean SMEs. Findings The results emphasized the role of business networks with clients in enhancing financial performance, financial performance satisfaction and strategic performance of Korean SMEs in international markets. Originality/value The research contributes to the expansion of SME internationalization literature by identifying various types of foreign networks used in international markets and revealing their differential roles on the internationalization performance of Korean SMEs.

Exploring relationship between sustainability and firm performance in travel and tourism industry: a global evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shernaz Bodhanwala ◽  
Ruzbeh Bodhanwala
Keyword(s):  
Stock Market ◽  
Financial Performance ◽  
Market Value ◽  
Tourism Industry ◽  
Content Type ◽  
Sustainability Performance ◽  
Travel And Tourism ◽  
Stock Market Performance ◽  
The Impact ◽  
The Relationship

Purpose The study aims to investigate the relationship between aggregate and individual dimensions of sustainability and financial and stock market performances of the firms in the travel and tourism industry (TTI) across different geographies. Design/methodology/approach The sample under study consists of 146 firms belonging to TTI that have consistently obtained environmental, social and governance (ESG) rating over the period 2011–2017 as a part of Thomson Reuters Asset 4 ESG database. An empirical multivariate panel data model is developed to analyse the impact of sustainability (ESG) on firm profitability and market value within three tourism-related industries (transportation, hotel and leisure). Findings The study extends the existing literature by investigating the impact of each of the vital dimensions of sustainability performance – ESG – and examines how each dimension would affect financial performance and market value among firms within three tourism-related industries (transportation, hotel and leisure). Among the three tourism industries, hotel industry is observed to have the highest ESG compliance, followed by the transportation industry. Based on the agency and stakeholder theory, the authors hypothesized all ESG components to have significant positive effect on the financial and stock market performance; however, the results reveal that each dimension has different impact on financial performance and market value of firms in the tourism industry. Research limitations/implications The study could help firms in the travel and tourism industries to understand which of the dimension of ESG activities is significantly important for their financial and stock market performance. Originality/value The unique contribution of this study is that it considers wider definition of the term “Sustainability” and examines the relationship between financial and stock market performances of the firms and each component of ESG. This is one of the few studies at the global level that provides much needed evidence in the area of sustainability performance by the travel and tourism firms.

Impact of Lean, Six Sigma and environmental sustainability on the performance of SMEs

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yousaf Ali ◽  
Ahsan Younus ◽  
Amin Ullah Khan ◽  
Hamza Pervez
Keyword(s):  
Firm Performance ◽  
Environmental Sustainability ◽  
Six Sigma ◽  
Environmental Performance ◽  
Small And Medium Enterprises ◽  
Management Strategies ◽  
Lean Six Sigma ◽  
Management Styles ◽  
Content Type ◽  
The Impact

PurposeThis paper aims to explore the impact of lean, Six Sigma and environmental sustainability on the performance of small and medium enterprises (SMEs) in Pakistan. The firm performance has been measured in terms of operational, business and environmental performance.Design/methodology/approachA survey-based methodology is adopted for collecting data from the main cities of Punjab, Pakistan. SMEs related to different industries such as service, manufacturing, automotive and retail were targeted. The data gathered were ordinal, and Spearman's correlation test was used as the data analysis technique.FindingsThe findings indicated that the three management styles positively impacted the environmental performance of SMEs. Moreover, no significant relationship was found between the three management styles and the SMEs' business and operational performance.Research limitations/implicationsTo counter the inefficient and wasteful practices of SMEs and their detrimental impact on overall firm performance, SMEs have to refocus and reconfigure their management strategies. It is implied to use lean, Six Sigma and environmental sustainability practices to achieve this goal.Originality/valueThe study empirically investigates the impact of lean, Six Sigma and environmental sustainability on the performance of SMEs in Pakistan, which is the first study to be conducted in the Pakistani context.

scholarly journals Aspirations and environmental performance feedback: a behavioral perspective for green supply chain management

2020 ◽  
Vol 40 (6) ◽  
pp. 729-751 ◽  
Author(s):  
Yongyi Shou ◽  
Shuo Shan ◽  
Anlan Chen ◽  
Yang Cheng ◽  
Harry Boer
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Financial Performance ◽  
Performance Feedback ◽  
Environmental Performance ◽  
Green Supply Chain Management ◽  
Green Supply Chain ◽  
Chain Management ◽  
Content Type ◽  
The Impact

PurposeThis study investigates the relationships between environmental performance feedback and green supply chain management (GSCM). It explores how environmental performance above or below aspirations affects the implementation of GSCM practices (specifically sustainable production [SP] and sustainable sourcing [SS]) through the lens of the behavioral theory of the firm (BTOF), which has received scant attention in the operations management literature.Design/methodology/approachThe study used data from the sixth round of the International Manufacturing Strategy Survey (IMSS). It employed hierarchical linear regression to test the proposed hypotheses. Moreover, the study tested an alternate model to rule out the possible role of financial performance aspirations in explaining the implementation of SP and SS.FindingsThe results indicate that organizations determine their efforts put into the two GSCM practices according to environmental performance feedback: the greater the aspiration–environmental performance discrepancy, the stronger the efforts put into implementing GSCM practices.Originality/valueThis study contributes to the GSCM literature by revealing the impact of environmental performance aspirations on the implementation of GSCM practices through the lens of the BTOF. It also extends the BTOF by applying it in the GSCM context and indicating that performance feedback is based on environmental performance instead of financial performance in this specific context.

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