Linking manufacturing firms with environment: role of green manufacturing and environmental management on firm’s environmental performance with moderating effect of external environmental regulations

Abstract

Purpose

The purpose of this study is to examine the vital link between manufacturing firms and the environment, delving into the intricate connections among factors affecting these firms. Specifically, it investigates how the environmental performance of manufacturing firms is shaped by their adoption of environmental management practices and the regulatory environment in which they operate.

Design/methodology/approach

Data are currently being collected through a structured questionnaire from employees working in manufacturing firms in Pakistan. Random sampling was used to select the participants. The hypotheses were tested using PLS-SEM analysis.

Findings

The study reveals a positive correlation between green manufacturing practices and superior environmental performance. Effective environmental management systems further help firms reduce their environmental footprint. External environmental regulations play a significant role as moderators, influencing the strength and direction of the relationship between green manufacturing, environmental management and environmental performance.

Practical implications

The practical implications offer valuable insights and guidance for manufacturing companies seeking to improve their environmental responsibility and performance. Additionally, policymakers gain insights into how regulatory frameworks can be designed or modified to better support sustainability efforts within the manufacturing sector.

Originality/value

This study offers timely insights for sustainable business practices, aligning with corporate responsibility efforts. It contributes to both academic knowledge and provides actionable guidance for fostering environmentally responsible practices in the manufacturing sector.