Environmental technical and administrative innovations in the Canadian manufacturing industry

This paper explores whether the adoption of an EMS and/or TQM, both administrative innovations, lead to the development of cleaner technological innovations. We draw on the stakeholder influence literature and Daft's (1978) dual core model of organizational innovation to determine the factors affecting a facility's decision to undertake cleaner technological innovations. Using Canadian facility level manufacturing data, we find that an EMS reduces the likelihood that a facility will implement environmental technologies that change the production process (clean technologies) while TQM increases the likelihood that the facility will implement clean technologies. We also find that administrative pressures (corporate headquarters and shareholders/investors) have no impact on technological innovations while external stakeholders such as regulators, community groups and environmental groups as well as customers and suppliers each increase the likelihood that facilities will use cleaner technologies. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Seeing the Need for ISO 14001

ABSTRACT    Many firms worldwide have adopted environmental management systems, and some have taken the extra step and had their systems certified for the international standard ISO 14001. While institutional pressures and market demand often motivate firms to adopt an EMS, the reasons why they certify for ISO 14001 are less clear. In this study, we interviewed members of the Canadian pulp and paper industry who had either an EMS or ISO 14001 certification to understand why they may have become ISO 14001 certified. We found that task visibility and environmental impact opacity lead to differences in a firm's approach to ISO 14001 certification in the absence of coercive pressures.     

End‐of‐pipe or cleaner production? An empirical comparison of environmental innovation decisions across OECD countries

While both fundamental types of abatement measure mitigate the adverse environmental impacts of production, cleaner production technologies are frequently more advantageous than end‐of‐pipe technologies for environmental and economic reasons. This paper analyzes a variety of factors that might enhance firms' propensity to implement cleaner production technologies instead of end‐of‐pipe technologies. On the basis of a unique facility‐level data set derived from a recent OECD survey, we find a clear dominance of cleaner production in seven OECD countries: 76.8% of the facilities report that they invest predominantly in cleaner production technologies, above all in new production processes, but not so much in new products. Based on a discrete choice model, our estimation results indicate that regulatory measures and the stringency of environmental policies are more important for end‐of‐pipe technologies, while cost savings, general management systems and specific environmental management tools tend to favor clean production. We conclude that improvements towards cleaner production may be reached by the continuous development and wider diffusion of these management tools. Improvements may also be stimulated by widening the cost gap between the two types of technology, for instance by additionally charging for waste and energy use. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Do stakeholder groups influence environmental management system development in the Dutch agri‐food sector?

This paper presents the results of a survey that included 492 companies in the Dutch agri‐food sector with respect to the influence of stakeholder groups on the companies' level of environmental management system (EMS) implementation. It is concluded that primary stakeholders (government, clients) are more relevant for EMS development than secondary stakeholders (such as environmental organizations). The results suggest that small and medium‐sized companies are able to accommodate to demands with respect to the implementation of internally oriented care systems (I‐EMSs). I‐EMSs focus at the single firm or location. In general, they are predominantly influenced by governmental and other ‘non‐commercial’ stakeholder groups. For the implementation of externally oriented EMSs (E‐EMSs), which focus on the supply chain and network, qualitative rather than quantitative relationship characteristics between companies and the government are important. Moreover, commercial stakeholder groups (such as suppliers, clients and competitors) influence E‐EMS levels significantly. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Sustainability‐oriented capabilities for eco‐innovation: Meeting the regulatory,technology, and market demands

Despite consensus in the literature that regulation, technology push, and market pull drive eco‐innovation (EI), evidence remains limited on the diverse firm capabilities needed to boost EI. Building on the natural‐resource‐based view of the firm and the EI literature, this paper posits that firms need to renew and realign their capabilities, and ultimately develop distinctive sustainability‐oriented capabilities, in order to meet the rapidly changing regulatory, technology, and market demands. Results of the analysis, based on a survey of U.K. firms, reveal that EIs are more likely to arise when firms (a) build capabilities on voluntary self‐regulation (i.e., executive driven environmental management system and corporate social responsibility) because such organizational capabilities allow them to address increasing regulatory pressures; (b) invest in environmental research and development (i.e., eco‐R&D)—instead of generic research and development—because it provides them with the relevant and specific technological capabilities to tackle technology shifts towards sustainability; and (c) develop capabilities in green market sensing as such capabilities allow them to address green consumption needs.     

Environmental business strategy: the Portuguese case

This study focuses on the adoption of environmental management systems and corporate social responsibility reporting as mechanisms for creating a differential advantage, looking at how different stakeholders in an organization perceive the importance of instituting these mechanisms as determinants of market success. The paper then aims to focus on environmental business strategy and corporate social responsibility reporting in companies, rather than prescribing policy for the entire sector. In so doing it postulates that compliance with market requirements on environmentally related issues, by instituting proper environmental management mechanisms and corporate social responsibility reporting, is a pre‐requisite for acceptance of the firm and its products in the market. The paper is methodologically based on a set of 60 interviews conducted with various agents in the Portuguese textile industry, ranging from policy‐makers to industrialists and NGOs, with a view to determining differences in perception between the various stakeholders. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Driving sectoral sustainability via the diffusion of organizational eco‐innovations

Using insights from institutional literature, the resource‐based theory of the firm, and internationalization, we explain variations in the diffusion of organizational eco‐innovations. Studies have previously reported that the drivers of eco‐innovation are regulatory pressures, technology push, market pull, and firm factors. But relatively little attention has been paid to nontechnological forms of eco‐innovation, such as environmental management systems (EMS). Consequently, how exactly to encourage EMS adoption across sectors is still unclear. We attempt to address this question by combining sectoral panel data (2009–2014) from a number of sources in Spain. The econometric analysis reveals that environmental policy is driving the adoption of ISO 14001 largely due to differences across sectors in energy and pollution intensity. In addition, the adoption of ISO 9001 increases the use of ISO 14001 in industry because of complementarities between the two systems. Third, in highly internationalized sectors, firms adopt a greater amount of ISO 14001.     

Responsiveness of industry to eco‐efficiency improvements in the product chain: the case of Akzo Nobel11

Increasingly, arguments are being made concerning the benefits of a marriage between ecology and economy in life cycle management. This article provides insights into the business conditions under which market opportunities and eco‐efficiency improvements in the product chain can indeed go hand in hand. The study focuses on the differences in responsiveness of six different sub‐business units within the chemical company of Akzo Nobel to eco‐efficiency improvements in the product chain and how these differences can be explained. The comparative analysis shows the importance of the following three criteria: (i) the level of environmental pressure; (ii) the room for manoeuvre and (iii) the degree to which the environment can be used to obtain a competitive advantage. These criteria may also be valid for other companies. However, research needs to investigate whether additional factors (e.g. the culture of the company, its technological capabilities and market strength) also influence corporate environmental response. Copyright © 2000 John Wiley & Sons, Ltd and ERP Environment     

LIFE-CYCLE ANALYSIS AND POLICY OPTIONS: THE CASE OF THE EUROPEAN PULP AND PAPER INDUSTRY

As part of the shift in emphasis in environmental policy from clean-up to avoidance, environmental policy instruments that specify preferred technological directions for an industry are increasingly being used. Take-back requirements and mandatory recycling are cases in point. These directly affect the mix of materials and the technologies used by an industry. These effects reverberate throughout the industry and influence market conditions for everyone both up- and downstream in the supplier/client chains. As these chains frequently cross international frontiers, environmental policy-making is becoming increasingly significant in influencing competitive structures and international trade patterns. Concerns are that policy-making may lock in inappropriate technologies and that the policy process may be manipulated for industrial or trading advantage. Using fibre recycling in the European pulp and paper sector as a case study, it is shown how these concerns are manifest and also that materials accounting and operational research techniques exist to mitigate them. It is concluded that there is a need to establish agreed environmental impact evaluation methodologies to provide guidance on the robustness of policy-making and a basis for consistent, predictable and defensible policy-making.     

Outcomes of Environmental Management Systems: the Role of Motivations and Firms’ Characteristics

This article analyzes the influence of the sources of motivation that lead companies to adopt environmental management systems (EMSs) on the outcomes of these systems. A set of hypotheses derived from an extensive review of the literature is analyzed using cluster analysis – in order to identify groups of companies – as well as correlation and regression analyses, with data obtained from a survey of 361 Spanish organizations that have environmental certification. The results reveal that, for the groups identified, companies from the holistic cluster (with high levels of both internal and external drivers) and from the internal focus cluster (with more intensive internal sources of motivation) secure greater benefits from the process of adopting an EMS. This article also sheds light on the influence on the outcomes of some variables that have been under‐researched, such as the economic resources invested in an EMS and whether or not the certified companies belong to a sector with high environmental pressure. The findings help to characterize the firms with environmental certification and may also help managers, policy makers and other stakeholders to anticipate the potential benefits of EMSs. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Environmental management systems,communicative action and organizational learning

In recent years, an increasing number of private as well as public organizations have been engaged with implementation and use of environmental management systems (EMSs). This raises questions as to the reasons for implementing an EMS and, not least, about the roles and contributions of an EMS in an organization. Based in particular on research on contemporary municipal environmental management in Sweden, and also drawing on EMS research and experiences in other countries, this paper argues that an EMS may be understood not only as a technical tool for analytical management, as is traditionally done, but also as a tool for communicative action and organizational learning. Copyright © 2002 John Wiley & Sons, Ltd and ERP Environment.     

Contrasting Institutional and Performance Accounts of Environmental Management Systems: Three Case Studies in the UK Water & Sewerage Industry*

abstract This paper presents results from a longitudinal, qualitative study into the adoption of environmental management systems (EMS) in three companies in the UK water & sewerage industry. Based on institutional theory and the literature on EMS, four factors related to the adoption of EMS are identified: external and internal institutional forces, environmental performance issues, and economic performance issues. While previous literature has often assumed a balance of performance and institutional factors or a preponderance of performance factors, the results of this study indicate that institutional forces are the predominant drivers. The results further indicate that environmental performance issues become less important over time, whereas institutional drivers and economic performance rationales increase in importance over time. While conforming to institutional pressures can result in improved economic performance of a company, adoption of environmental management systems mostly on the basis of institutional and economic factors has wider repercussions for the state of corporate environmental management and progress towards greater ecological sustainability of business.     

New instruments – old practices? The implications of environmental management systems and extended producer responsibility for design for the environment

As the focus of environmental policy and management is shifting from cleaner production at the process level towards greener products, there is a need for new kinds of policy instruments and initiatives. Environmental management systems (EMSs) and extended producer responsibility (EPR) systems are efforts to overcome the limitations of the traditional regulatory approach. In this paper, I illustrate how EMSs and EPR systems have influenced the emergence of greener products in three case companies. These case studies are complemented by results from a survey on design for the environment in the electrical and electronics industry. Both the case studies and the survey indicate that the linkage between EMSs and product development is weak or completely missing. Therefore, the mere existence of an EMS can hardly be used as a convincing indicator of the implementation of an environmentally friendly design process. The results regarding the EPR systems are more positive. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Analysis of conflicts in dynamical environmental systems via catastrophe theory

This paper addresses itself to long-term conflicting issues in environmental policy analysis. After a brief discussion of the ‘new scarcity’ and its subsequent potential perturbations of our economic system in the long run, attention will be paid to some elements of catastrophe theory which may be helpful in gaining insight into the future impacts of inertia and conflicts in environmental management. Next, a fairly simple model for integrating natural resources and production will be constructed so as to illustrate the usefulness of catastrophe theory in economic-energy-environmental systems. The paper will be concluded with a brief judgement of using catastrophe notions in the social sciences.     

Tracing business and environmental effects of environmental management systems—a study of networking small and medium‐sized enterprises using a joint environmental management system

In Hackefors Industrial District in Sweden, 26 small and medium‐sized enterprises (SMEs) have formed an environmental network and implemented a joint environmental management system (EMS) according to ISO 14001. Based on interviews with the environmental co‐ordinators at these enterprises, the effects on business and environmental efforts and impacts are analysed. It can be concluded that the joint EMS has resulted in better relations with important stakeholders, such as existing and potential customers. For example, three‐fifths said that their EMS had made it easier to receive a contract for the sale of products and services. Several environmental improvements have been observed and are presented in the paper, many of which are considered as consequences of the EMSs. Moreover, based on observations during the study, this paper discusses how boundaries and screening affect the connection between EMSs and environmental performance. Copyright © 2003 John Wiley & Sons, Ltd. and ERP Environment     

The environment is free: The quality analogy

This paper argues that quality improvement approaches can be applied in the environmental context. Although environmental issues can occasionally negatively impact an organization's core business, most environmental programs, if properly channeled, can lead to both improved profitability and increased social responsibility. It is argued that time-proven techniques that have helped reduce quality costs and improve market share can provide similar results when applied to many environmental problems. Techniques based on the Total Quality Environmental Management (TQEM) philosophy (which is based on integrating Total Quality Management (TQM) methods and environmental management methods) are already being used by many organizations. This paper builds upon the TQEM concept (which emphasizes four basic elements: customer identification, continuous improvement, do the job right the first time and a systems approach to work) by showing how other principles used in quality management can also be applied to environmental management. The issues are then illustrated through a case study of a leading German manufacturer, Bosch-Siemens Hausgeräte GmbH.     

Leaders and Laggards in Environmental Innovation: An Empirical Analysis of SMEs in Europe

The main purpose of this article is studying the factors influencing eco‐innovative intensity in the European SMEs. Building upon the 'innovation triangle model', business competences, environmental orientation and network involvement are considered as the main determinants of 'greenness' of innovation in a sample of 3852 SMEs. Four categories of eco‐innovators (leaders, followers, loungers and laggards) are identified, and their profiles/driving factors are described using a generalized ordinal logistic model. Our results confirm that the increasing demand for green products and the adoption of eco‐organizational innovation affect positively the level of environmental innovation, while technological lock‐ins have the opposite effect across all categories. Neither leaders nor laggards are influenced by environmental policies. Small firms and those who give importance to financial constraints tend not to achieve upper categories, while valuing technological capabilities, market power and networks are crucial determinants of being in upper categories of eco‐innovation intensity. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Challenges in designing,implementing and operating an environmental management system

Introducing an effective environmental management system (EMS) to an organization is a complex process. This complexity is belied by current EMS models that concentrate on EMS frameworks and components, and present a relatively simple approach to the process, especially the introduction and implementation phases. While these models outline what should be introduced, they provide little guidance on how EMSs may be implemented. Experience indicates that effective EMS introduction may be adversely affected by a number of conditions, but EMS literature has yet to recognize these barriers. There is a significant gap between EMS theory and application. This paper discusses the degree to which current EMS models address practical EMS design and implementation, barriers to successful EMS introduction, strategies and tactics for overcoming these barriers and implications for EMS practice. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.     

Environmental management systems and green supply chain management: complements for sustainability?

Some researchers question the legitimacy of EMSs since organizations can claim to have one when in fact they make no attempt to reduce their environmental harm. In instances where EMSs enhance an organization's environmental performance, critics argue that improvements are likely to occur within the organization's operational boundaries rather than being extended throughout the supply chain. However, previous research suggests that the organizational capabilities required to adopt an EMS may facilitate GSCM implementation and the institutional pressures to adopt both management practices are similar. Consequently, EMS adopters may have a greater propensity to expand their focus beyond their organizational boundaries and utilize GSCM practices to minimize system‐wide environmental impacts. This research illuminates the debate by empirically evaluating the relationship between EMS and GSCM practices. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

The limits and possibilities in designing the environmentally sustainable firm

In the mid-1980s national and international pressures re-emerged on organisations to take responsibility for the environmental externalities created by industrial activities. With the Brundtland Report (1987) strong support for the principle of sustainable development in the protection of the natural environment emerged. This instigated organisations to engage in the development of environmental policies, incorporation of environmental strategies in product development, assessment of environmental impact of products and production activities, and increased green advertising. In spite of promising industrial environmental activities, a recent Swedish study (Arnfalk and Thidell, 1992) shows that the dominant force for environmental efforts remains legislation - or threats thereof - rather than integration of environmental criteria in designing and developing product- and production systems. To understand the limited response to environmental challenges we explored the sources of inertia in relation to environmental change activities in industrial networks (i) theoretically through a review of inter-organisational literature on industrial networks and change, and institutional approaches to organisation; and (ii) empirically through some insights from three case studies of the mobilisation and coordination activities in industrial networks involved in substituting the use of Chlorofluorocarbons, CFCs, in refrigerators, and in the production processes of flexible foam and circuit boards. The theoretical review suggests that organisations are embedded in dependency relationships with other organisations that will restrict the material resources and social relations any given actor has to its relevant environment and, hence, influence possible actions and outcomes of environmental change. Product, production, and administrative systems are highly coordinated and adapted to each other which places considerable limitations on the willingness and ability of network actors and systems, to change. The empirical studies show interdependencies and inertia in the technological as well as the relational systems. Evidence of the internalising of environmental problems into individual or network behaviour was not found. Instead, when forced to change, actors cooperated to find solutions within established relationships that did not alter existing products and production systems. On the firm and network levels of observation the pattern of response that emerged during the change processes was the diffusion of solutions, not by strategic design, but through overlapping and interlocked network relations, i.e., through processes of institutionalisation. Our study suggests that the re-orientation processes towards environmental sustainability in a firm can best be understood in the context of structures and processes on the network rather than on the organisational level.