Nursyazwani Mohd Fuzi, N. Habidin, S. Adam, S. Ong
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The relationship between environmental cost on organisational performance and environmental management system: a structural equation modelling approach
Purpose
This study aims to examine the relationship between environmental cost (EC) on organisational performance (OPM) through an environmental management system (EMS) as the mediating variable.
Design/methodology/approach
A total of 2,600 manufacturers were identified and consequently selected as the entire study population. Additionally, this study used the structural equation modelling technique to identify the mediator effects of EMS between EC and OPM.
Findings
The EC and EMS relationship on OPM produced direct and indirect consequences. Hence, it is concluded that manufacturing industry in Malaysia are focused on the OPM when implementing EC and EMS.
Originality/value
The model would incorporate EC and EMS implementation on OPM in the Malaysian manufacturing industry. This study could also be advantageous to the industry in improving EC, EMS and OPM.
期刊介绍:
Measuring Business Excellence provides international insights into non-financial ways to measure and manage business performance improvements and company’s value creation dynamics. Measuring Business Excellence will enable you to apply best practice, implement innovative thinking and learn how to use different practices. Learn how to use innovative frameworks, approaches and practices for understanding, assessing and managing the strategic value drivers of business excellence. MBE publishes both rigorous academic research and insightful practical experiences about the development and adoption of assessment and management models, tools and approaches to support excellence and value creation of 21st century organizations both private and public.