The Implementation of Environmental Management System to Moderate the Relationship Between the Green Strategy and Company Performance
DOI:
https://doi.org/10.58344/jws.v1i11.109Keywords:
Green Strategy, Environmental Management System, Company PerformanceAbstract
Introduction: The aspects of the highest pollution levels required a green strategy solution and the implementation of an Environmental Management System to improve the company's performance. This study aims to test and analyze environmental management systems' green strategy and implementation. Method: This study uses primary data collected using questionnaires from respondents using the Purposive sampling technique. The number of questionnaires that can be used is as many as 142, with the company analysis unit of State-Owned Enterprises and private companies included in the green industry list from 185 total questionnaires. Data were processed and analyzed using Structural Equation Modeling (SEM) by the alternative Partial Least Square (PLS) method. Result: The green strategy affects the company's performance. Meanwhile, applying the Environment Management System has no effect as a reinforcement of the relationship of green strategy on the company performance. The results of this study are expected to contribute to the company’s strategy, state-owned enterprises, and private companies in determining green-oriented vision and goals. Conclusion: The Green strategy impacts the company's performance; it is proven that a good green plan will increase the company's performance produced by state-owned enterprises. A low green method will decrease the performance of the company made by state-owned enterprises and private industrial companies. The implementation of Environmental Management Systems cannot increase the impact of the green strategy on the productivity of industrial organizations, state-owned enterprises, and private companies.
References
Agoes, S., & Ardana, I. C. (2009). Business and professional ethics. Jakarta: SalembaEmpat.
Ahmed, S. A., & Karanis, P. (2018). An overview of methods/techniques for detecting Cryptosporidium in food samples. Parasitology Research, 117(3), 629–653.
Albort-Morant, G., Henseler, J., Cepeda-Carrión, G., & Leal-Rodríguez, A. L. (2018). Potential and realized absorptive capacity as complementary drivers of green product and process innovation performance: Sustainability, 10(2), 381.
Ambec, S., & Lanoie, P. (2008). Does it pay to be green? A systematic overview. The Academy of Management Perspectives, 45–62.
Banerjee, S. B. (2002). Corporate environmentalism: The construct and its measurement. Journal of Business Research, 55(3), 177–191.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Barney, J. B., & Arikan, A. M. (2005). The resource?based view: origins and implications. The Blackwell Handbook of Strategic Management, 123–182.
B?çakc?o?lu, N., Theoharakis, V., & Tanyeri, M. (2019). Green business strategy and export performance: An examination of boundary conditions from an emerging economy. International Marketing Review.
Boiral, O., Henri, J., & Talbot, D. (2012). Modeling the impacts of corporate commitment on climate change. Business Strategy and the Environment, 21(8), 495–516.
Castka, P., & Prajogo, D. (2013). The effect of pressure from secondary stakeholders on the internalization of ISO 14001. Journal of Cleaner Production, 47, 245–252.
Chen, Y.-S., Lai, S.-B., & Wen, C.-T. (2006). The influence of green innovation performance on corporate advantage in Taiwan. Journal of Business Ethics, 67(4), 331–339.
Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4–5), 303–327.
D’Aveni, R. A. (1995). Coping with hyper-competition: Utilizing the new 7S’s framework. Academy of Management Perspectives, 9(3), 45–57.
Dangelico, R. M., & Vocalelli, D. (2017). “Green Marketing”: An analysis of definitions, strategy steps, and tools through a systematic literature review. Journal of Cleaner Production, 165, 1263–1279.
David, F. R., David, F. R., & David, M. E. (2017). Strategic management: concepts and cases: A competitive advantage approach. Pearson.
Dimond, P. F. (2013). Targeting Deranged Metabolism to Treat Cancer: Scientists Are Investigating How Genes Controlling Metabolism Are Connected with Cancers. Genetic Engineering & Biotechnology News, 33(13), 6–8.
Ergun, S. J., Owusu, P. A., & Rivas, M. F. (2019). Determinants of renewable energy consumption in Africa. Environmental Science and Pollution Research, 26(15), 15390–15405.
Etzion, D. (2007). Research on organizations and the natural environment, 1992-present: A review. Journal of Management, 33(4), 637–664.
Galpin, T., & Hebard, J. (2018). Strategic management and sustainability. In Business Strategies for Sustainability (pp. 163–178). Routledge.
Gazpersz, V. (2011). Lean Six Sigma for Manufacturing and Service Industries–Waste Elimination and continuous cost reduction. Bogor: Vinchristo Publication.
Gray, R., Kouhy, R., & Lavers, S. (1995). Corporate social and environmental reporting: a review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal.
Hahn, T. (2014). Green Economy, economic growth and sustainable development. Access to Resources and Urban Agenda, 338–357.
Hart, S. L., & Dowell, G. (2011). Invited editorial: A natural-resource-based view of the firm: Fifteen years after. Journal of Management, 37(5), 1464–1479.
Kasih, A. . (2021). Persen Sungai Indonesia Tercemar Limbah. Kompas.Com. https://edukasi.kompas.com/read/2021/08/10/110406171/46-persen-sungai-indonesia-tercemar-limbah-peneliti-up-beri-solusi
Kirchoff, J. F., Tate, W. L., & Mollenkopf, D. A. (2016). The impact of strategic organizational orientations on green supply chain management and firm performance. International Journal of Physical Distribution & Logistics Management.
Leonidou, L. C., Katsikeas, C. S., & Samiee, S. (2002). Marketing strategy determinants of export performance: a meta-analysis. Journal of Business Research, 55(1), 51–67.
Liang, C., Bruell, C. J., Marley, M. C., & Sperry, K. L. (2004). Persulfate oxidation for in situ remediations of TCE. I. Activated by ferrous ions with and without a persulfate–thiosulfate redox couple. Chemosphere, 55(9), 1213–1223.
Lin, C.-C., Wu, H.-Y., & Chang, Y.-F. (2011). The critical factors impact online customer satisfaction. Procedia Computer Science, 3, 276–281.
Lin, C., Koval, A., Tishchenko, S., Gabdulkhakov, A., Tin, U., Solis, G. P., & Katanaev, V. L. (2014). Double suppression of the G? protein activity by RGS proteins. Molecular Cell, 53(4), 663–671.
Masoumik, S. M., Abdul-Rashid, S. H., Olugu, E. U., & Ghazilla, R. A. R. (2015). A strategic approach to developing green supply chains. Procedia Cirp, 26, 670–676.
Negara, K. B. U. M. (2018). Peraturan Menteri Badan Usaha Milik Negara Republik Indonesia Tentang Prinsip Tata Kelola Teknologi Informasi Kementerian Badan Usaha Milik Negara. Indonesia.
Newbert, S. L. (2007). Empirical research on the resource?based view of the firm: an assessment and suggestions for future research. Strategic Management Journal, 28(2), 121–146.
Nothnagel, K. (2008). Empirical research within resource-based theory: A meta-analysis of the central propositions. Springer Science & Business Media.
Olson, E. G. (2008). Creating an enterprise?level “green” strategy. Journal of Business Strategy.
Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24(3), 403–441.
Penrose, E. T., & Pitelis, C. (2002). The growth of the firm: the legacy of Edith Penrose. Oxford University Press on Demand.
Porter, M. E., & Van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97–118.
Rahayu, E. S., & Rahmadwiati, R. (2021). Analysis of income distribution as prevention of environmental damage in agribusiness management of cassava in Bengawan Solo watershed, Wonogiri regency. IOP Conference Series: Earth and Environmental Science, 637(1), 12076.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. John Wiley & sons.
Selznick, P. (1957). Leadership in Administration. Evanston, Illinois: Row-Peterson. Of Special Interest Are, 5–28.
Sharma, S., & Starik, M. (2002). Research in corporate sustainability: The evolving theory and practice of organizations in the natural environment. Edward Elgar Publishing.
Soebarjo, S., & Permana, A. R. (2014). Dampak Kinerja Perusahaan Dengan Strategi Hijau Pada Budaya Organisasi: Fenomena Indonesia. Jurnal Perilaku Dan Strategi Bisnis, 2(2).
Soedjatmiko, S., Tjahjadi, B., & Soewarno, N. (2021). Do Environmental Performance and Environmental Management Have a Direct Effect on Firm Value? The Journal of Asian Finance, Economics, and Business, 8(1), 687–696.
Soewarno, N., Tjahjadi, B., & Fithrianti, F. (2019). Green innovation strategy and green innovation: The roles of green organizational identity and environmental, organizational legitimacy. Management Decision, 57(11), 3061–3078.
Song, W., & Yu, H. (2018). Green innovation strategy and green innovation: The roles of green creativity and green organizational identity. Corporate Social Responsibility and Environmental Management, 25(2), 135–150.
Sugiyono, D. (2013). Metode penelitian pendidikan pendekatan kuantitatif, kualitatif dan R&D.
Tila, S. M., & AGUSTINE, Y. (2019). The Effect Of Corporate Governance, Green Strategy And Carbon Risk Management Toward Carbon Emission Disclosure (Listed Company in and out on Calculation Indeks Sri Kehati in IDX Periode 2016–2017). European Journal of Business and Management, 11(23), 41–51.
Tseng, M.-L., Tan, R. R., & Siriban-Manalang, A. B. (2013). Sustainable consumption and production for Asia: sustainability through green design and practice. Journal of Cleaner Production, 40, 1–5.
Wernerfelt, B. (1984). A resource?based view of the firm. Strategic Management Journal, 5(2), 171–180.
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Journal of World Science
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
