Does the Eco‐Management and Audit Scheme Foster Innovation in European Firms?

This paper studies whether environmental management systems can spur eco‐innovation, analyzing EMAS (Eco‐Management and Audit Scheme) adoption and patented innovations (at the European Patent Office) at firm level. It uses an original panel database of 30 439 European firms belonging to all sectors from 2003 to 2012. An original instrumental variable is implemented to control for potential endogeneity. The analysis reveals that EMAS adoption is conducive to more innovation at the firm level. The results vary across countries and sectors. In particular, EMAS is positively related to green patents for medium and low technology manufacturing. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

The impact of ISO 14001 on firm environmental and economic performance: The moderating role of size and environmental awareness

This paper analyzes the impact of adopting the ISO 14001 standard on firm environmental and economic performance. In particular, it is argued that the degree of environmental awareness of the society (EAS) and firm size are two factors moderating the effect of ISO 14001 on firm performance. A number of hypotheses are formulated and empirically tested on an international sample of 583 listed companies in 46 countries over the period of 2009–2018. The findings show that (i) ISO 14001 adoption contributes to reducing firm carbon emission intensity and increasing firm profitability; (ii) the impact of ISO14001 on profitability is greater for companies from countries with high EAS and for larger firms; and (iii) the impact of ISO 14001 on carbon intensity is greater for headquartered in countries with low EAS. Managerial and policy implications resulting from the widespread adoption of certifiable environmental standards are also discussed.     

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.     

ISO 14001, EMAS and environmental performance: A meta‐analysis

The adoption of voluntary environmental certifications such as ISO 14001 and Eco‐Management and Audit Scheme (EMAS) has gained momentum in the last two decades. The scholarly literature has analyzed in depth the performance implications of the adoption of these certificates. Yet the findings are scattered and inconclusive. This article aims to shed light on this issue by meta‐analyzing the influence of the adoption of voluntary environmental certifications on corporate environmental performance, drawing on a sample of 53 scholarly studies analyzing a total of 182,926 companies. The findings show a positive influence of ISO 14001 and EMAS certifications on corporate environmental performance. A set of underlying moderating effects are also identified, such as a more pronounced positive effect for adoptions based on environmental innovation and for firms with a more mature certification. Implications for scholars, managers, and other stakeholders are discussed.     

Factors for succeeding in ISO 14001 implementation in Italian construction industry

The main aim of this research is to find the most relevant factors for a successful ISO 14001 implementation in the construction industry. Thousands of companies, including those in the construction industry, are interested in an ISO 14001 environmental management system (EMS). Italy holds one of the largest databases of ISO 14001 certified organisations; in this database, the construction industry represents the second largest sector. Using a questionnaire, the research tested six potential factors that affect the success of an ISO 14001 EMS implementation. Moreover, the quantitative results were discussed together with qualitative notes left by respondents. The results showed that only three out of the six factors really affect ISO 14001 EMS implementation in the construction industry: involvement of employees, top management commitment, and development of environmental technical skills. It seems that the respondents perceived that economic and financial results, identification of environmental aspects and impacts, and the involvement of stakeholders have a limited or null effect on ISO 14001 implementation. Particular issues concerning developing workers' awareness, evaluating all the environmental impacts, and obtaining real economic advantages were raised in the respondents' comments. Conclusions highlight specific contributions for practitioners and other stakeholders involved in EMS.     

ISO 14001 – experiences,effects and future challenges: a national study in Austria

More than 60000 organizations worldwide have implemented environmental management systems (EMSs). About 800 of them are located in Austria. As Austria was one of the leading countries in promoting the EU scheme EMAS, and as there has been no specific study on Austrian experiences with ISO 14001, the purpose of this study is to describe the experiences with and effects of ISO 14001 in Austria. The results show that ISO 14001 often leads to reduced environmental impact, especially in the area of waste. A strong driving force behind implementation is the expected improvement of an organization's image. The average repayment time on an investment in an EMS is less than two years. Legal compliance tends to be difficult to implement, but on the other hand it works well in daily practice. To develop an EMS into a sustainability management system, the two most important challenges are to improve coordination between the EMS and the organization's strategies and to synchronize the EMS with central value chains. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance

Today, firms are faced with a number of environmental challenges, such as global warming, pollution control and declining natural resources. While there is increasing pressure to deliver environmentally friendly products and services, little is known about what drives the many different types of environmental innovation, or how such pursuits' impact firm performance. Using a sample of 2181 firms, this paper examines the factors that drive nine different types of eco‐innovation in Ireland, and assesses how such innovations impact firm performance. We find that, while demand‐side, supply‐side and regulatory drivers impact on the likelihood of a firm engaging in eco‐innovation, the relative magnitudes of these impacts vary across the types of eco‐innovation considered. Moreover, we find that only two of the nine types of eco‐innovation positively impact firm performance. The results point to regulation and customer pressure as viable mechanisms through which firms can be encouraged to eco‐innovate. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Using ISO 14001 to promote a sustainable supply chain strategy

Formally adopted in 1996 by the International Organization of Standardization, ISO 14001 represents a voluntary international environmental standard, which will likely be adopted by a vast majority of corporations. Its major focus is on the structure, implementation and maintenance of a formal environmental management system. Despite its international acceptance, ISO 14001 is surrounded by controversy and criticism. The literature is clearly divided in its assessment of ISO 14001, which is viewed as a variant of total quality environmental management or a paper‐driven process of limited value. In this study, case‐based research is used to address the competing views of the standard to show that ISO 14001 registration can be leveraged across the supply chain into a competitive advantage. By looking at ISO 14001 registered firms, we compare different amounts of integration and sustainability in the supply chain. We then posit several research propositions to provide an empirical framework for the impacts of ISO 14001 on supply chain design and how it will evolve in the future. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

Why do standardized ISO 14001 environmental management systems lead to heterogeneous environmental outcomes?

Institutional theories and resource‐based views have suggested that, although they appear similar externally, standardized management systems may be implemented very differently in different organizations. This variability in implementation may be responsible for the heterogeneous performance of these standardized management systems. The current literature on the environmental impacts of ISO 14001 certification has largely neglected this phenomenon. Drawing on our survey of all US 14001 certificate holders, this study finds that great variability does exist in facilities' implementation of ISO 14001 standards. This heterogeneity has a significant impact on the linkage between ISO 14001 certification and facilities' environmental performance. In particular, we find that facilities that integrate ISO 14001 standards into their daily operations are more likely to report improvements in environmental performance. Environmental improvements are also more likely to occur in facilities that include performance management elements in their ISO 14001 standards. Furthermore, both types of facility are more likely to report that ISO certification contributes to this improvement. Neglecting the heterogeneity in facilities' implementation of ISO 14001 standards may explain the instability of findings from the empirical literature investigating the impacts of ISO 14001 certification. Theoretically, this paper informs the understanding of heterogeneous organizational behavior under isomorphic pressures. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.     

Strategies for Developing an Environmentally Sustainable Supply Chain: Differences Between Manufacturing and Service Sectors

This research illuminates the debate on whether there are differences between the manufacturing and service sectors in the matter of developing a sustainable environmental supply chain. Over the past 5 years a survey has been conducted with 800 large European companies, of which half are in the manufacturing sector and half in the service sector. The hypotheses within the survey are related to strategies for developing an environmental supply chain. They were derived from a literature review and were tested by means of a chi‐square test. The survey questionnaire enabled the respondents to give some viewpoints about the hypotheses. In this way, strategies for developing the supply chain such as ISO 14001, the Eco‐Management and Audit Scheme (EMAS), Life Cycle Assessment (LCA), auditing, waste management systems, reverse logistics, environmental indicators, remanufacturing and reuse have been investigated. Results show interesting and unexpected differences between manufacturing and service sectors that can lead to further research, practical implications and even suggestions for the surveyed companies. For instance, the viewpoints of manufacturing and service industries differ over ISO 14001 and EMAS implementation in the supply chain. In addition, service industries approach the implementation of auditing, reverse logistics, reuse and remanufacturing in a way different from that of manufacturing. Other strategies are considered essential by both sectors. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

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     

Explaining the impact of ISO 14001 on emission performance: a dynamic capabilities perspective on process and learning

I draw upon the dynamic capability model to explore how new process standards influence the ability of manufacturing facilities to improve environmental performance by reducing toxic emissions. The process standards studied are the ISO 14001 environmental management standards, in use since 1996. Hypotheses are developed to account for how early adoption of ISO 14001 and experience with the standards influence emission levels. These hypotheses are tested using a large sample of electronics manufacturing facilities and data from 1996 through 2001. Consistent with theoretical expectations, analyses show that being one of the first facilities to adopt ISO 14001 was associated with lower emissions. Further, a separate effect is due to experience: the longer a facility operated under ISO 14001, the lower its emissions. The paper discusses the implications of these results for theory and policy development. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.     

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     

ISO 14001 and CO2 emissions: An analysis of the contingent role of country features

This study explores whether the association between the aggregate level of ISO 14001 adoption in a country and the reduction of its CO₂ emissions differs across national settings. We analyze potential variations in three country features: intensity of competition, inclination of firms to behave ethically, and the importance that firms attach to relationships with stakeholders. Based on a sample of 53 countries for the period 2007–2017, our results show that the connection between the aggregate level of ISO 14001 adoption and lower levels of CO₂ emissions is stronger in countries where firms tend to behave ethically but is weaker in countries where there is intense competition or where firms place high emphasis on relationships with stakeholders. These findings expand our understanding about the macrolevel consequences of ISO 14001 adoption.     

Combating environmental repercussions through ‘TQEM’ and ‘ISO 14000’

Business is totally dependent on society although we sometimes do not experience it that way. All business, even in their most limited form, confront environmental issues, some more than others. Business leaders will be actively addressing social and environmental issues. These companies will be going for certification to ISO 14001 (EMS) and progressive organizations have moved beyond EMS requirement, seizing control of environmental operations through Total Quality Environmental Management (TQEM). Industry leaders are incorporating environmental thinking into every aspect of their operations. As a long‐range plan towards TQEM, an organization can have a road map and a clear model for achieving excellence in the area of Environmental Management. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment     

The effect of regional factors in the development of eco‐innovations in the firm

This research addresses the study of the effect of regional factors in the development of eco‐innovations in the firm. We assume the hypothesis of regional heterogeneity, that is, geographical factors and the regional heterogeneity play an important role in determining the innovations in the firms. In this line, we will approach our study from the perspective of regional innovation systems (RISs). Therefore, our research question involves the evaluation of regional factors as determinants of eco‐innovation developing in the firm. To examine these questions, the PITEC database that covers the period 2011–2013 was used. Overall, 5,461 firms have been employed for the ordinal logit regression model. This research contributes to the studies of eco‐innovation, extending the investigation into drivers of eco‐innovation, and highlights the impact that RIS has on the eco‐innovative development in the firm. We find that regional interaction and regional characteristics are key elements for the development of eco‐innovation in firms. Thus, the density of companies in the region, the regional per capita income, and the existence of financing mechanisms are key elements for the eco‐innovative development in the firm.     

Environmental management systems and environmental product innovation: The role of stakeholder engagement

Environmental product innovation (EPI) is an imperative for contemporary business as it enhances firm competitiveness and provides significant societal benefits. Arguments that the use of environmental management systems—such as ISO 14001—may enhance EPI have not been empirically supported. In this study, we argue that the environmental management systems–EPI relationship is contingent upon the level of a firm's engagement with three groups of stakeholders, namely, suppliers, customers, and the local community. Using a sample of 1,314 manufacturing firms for the period 2003 and 2014, we find empirical evidence that supports our hypothesis for all three groups of stakeholders. Further analysis reveals that for firms with prior experience with quality management systems, engagement with local communities becomes the critical condition. We discuss the implications of these results for both theory and practice.     

Innovation as a driver of eco‐innovation in the firm: An approach from the dynamic capabilities theory

The aim of this study is to investigate how innovative capabilities of the firm affect eco‐innovation from a dynamic capability lens. We build on OECD research to conceptualise eco‐innovation as the capacity with which firms modify, redesign, and create products, processes, procedures, and organisations in order to reduce environmental impact. We propose and test the temporal and relational properties of eco‐innovation as a capability. We demonstrate that eco‐innovation possesses two properties of innovative capabilities, namely, persistence over time and interrelation with other innovations. We thus shed new light on the mechanism through which firms engage in eco‐innovation. We also provide empirical evidence to the debate on the relationship between the “normal” innovation (technological or nontechnological) and eco‐innovation. We show that eco‐innovation and innovation are interrelated both simultaneously and sequentially. Moreover, we show that innovation capabilities and eco‐innovation are not only related, but they also have a complementary nature, which facilitates the development of future eco‐innovation.     

Navigating through firm–environmental groups' relationships: The impact of societal trust on corporate environmental strategy

This study examines the impact of societal trust on corporate environmental strategy with particular reference to the firm–environmental groups' relationship, which has received very little attention in trust literature. Using data on 2332 firms from 16 countries, we find that societal trust exerts a negative effect on the likelihood of ISO 14001 certification. The negative relationship between societal trust and the likelihood of ISO 14001 is more pronounced for firms having intense collaboration with environmental groups. However, this effect appears to be weak in higher market uncertainty. These findings, besides significantly adding to the literature, have practical and managerial implications.     

The characteristics and attributes of UK firms obtaining accreditation to ISO 14001

Environmental policy in the UK has tended to reflect orthodox textbook responses, focusing upon standard setting and taxation, both impacting upon the supply side of the economy. In addition, economic agents have the option of legal recourse to settle environmental disputes. Complementing this command and control framework is a growing tendency for firms to subscribe to additional voluntary environmental standards by, for example, registering with an appropriate agency, thereby signalling to others that they have adopted a particular scheme. This growing trend has far reaching consequences for future policy decisions and for financial and environmental performance of the firms. We aim here to identify the attributes of many firms which participate in ISO 14001. We use a probit model to determine, from a vector of firm and industry characteristics at one point in time, what factors influence the probability of firms registering with ISO 14001. We then utilize survival analysis to analyse how these characteristics impact upon the ‘hazard’ of accreditation over time. If significant differences exist between 14001 firms and others, important questions arise for academics and practitioners alike. Are certain types of firm hindered by their firm characteristics? Does the scheme favour larger firms over smaller firms, or high tech firms over low tech? Why do some industries have many accreditations whilst others have none? The analysis of such issues is not only an under‐developed area of academic debate, but also of direct relevance to practitioners within the field of environmental management and policy. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment