Determining Factors for ISO14001 EMS Implementation among SMEs in Malaysia: A Resource Based View

This research aimed to find out the determining factors for ISO 14001 EMS implementation among SMEs in Malaysia from the Resource based view. A cross-sectional approach using survey was conducted. A research model been proposed which comprises of ISO 14001 EMS implementation as the criterion variable while physical capital resources (i.e. environmental performance tracking and organizational infrastructures), human capital resources (i.e. top management commitment and support, training and education, employee empowerment and teamwork) and organizational capital resources (i.e. recognition and reward, organizational culture and organizational communication) as the explanatory variables. The research findings show that only environmental performance tracking, top management commitment and support and organizational culture are found to be positively and significantly associated with ISO 14001 EMS implementation. It is expected that this research will shed new knowledge and provide a base for future studies about the role played by firm-s internal resources.

Authors:



References:
[1] SME Annual Report (2009/2010). Chapter 2: SMEs Development and
Outlooks, Retrieved July 30,2011from http://www.smecorp.gov.my/.
[2] MS ISO 14001 (2004). Malaysian standard: environmental
management system: requirements with guidance for use (first
revision), Department of Standards Malaysia.
[3] Jabbour, C. J. C. & Santos, F. C. A. (2008). Relationship between
human resources dimensions and environmental management in
companies: proposal of a model, Journal of Cleaner Production, 16,
1922-1925.
[4] Lefebvre, E. Lefebvre, L. A. & Talbot, S. (2003). Determinants and
impacts of environmental performance in SMEs, R & D Management,
33(3), 263-283.
[5] Barney, J. (1991). Firm resources and sustained competitive advantage.
Journal of Management, 17(1), 99-120.
[6] Wu, S. J., Melnyk, S. A. & Calantone, R. J. (2008). Assessing the core
resources in the environmental management system from the resource
based perspective and the contingency perspective, IEEE Transactions
on Engineering Management, 55(2), 304-315.
[7] Del Brío, J. A., Fernández, E., Junquera, B., & Vázquez, C. J. (2001).
Motivations for adopting the ISO 14001 standards: a study of Spanish
industrial companies, Environmental Quality Management, 13-26.
[8] Chin, K.S., Chiu, S. & Tummala, V. M. R. (1999). An evaluation of the
success factor using the AHP to implement ISO 14001-based EMS.
International Journal of Quality and Reliability Management, 16(4),
341-361.
[9] Zutshi, A. Sohal, A. S. & Adams, C. (2008). Environmental
management system adoption by government department/agencies.
International Journal of Public Sector Management, 21(5), 525-539.
[10] Curkovic, S., Sroufe, R. & Melnyk, S. (2005). Identifying the factors
which affect the decision to attain ISO 14000, Energy, 30, 1387-1407.
[11] Davidson, W. N. & Worrell, D. L. (2001). Regulatory pressure and
environmental management infrastructure and practices. Business and
Society, 40(3), 315-342.
[12] Wee, Y. S. & Quazi, H. A. (2005). Development and validation of
critical factors of environmental management. Industrial Management
and Data Systems, 105, 1/2, 96-114.
[13] Sammalisto, K. & Brorson, T. (2008). Training and communication in
the implementation of environmental management system (ISO 14001):
a case study at the University of Gävle, Sweden, Journal of Cleaner
Production, 16, 299-309.
[14] Del Brío, J. A., Fernández, E., Junquera, B., & Vázquez, C. J. (2001).
Motivations for adopting the ISO 14001 standards: a study of Spanish
industrial companies, Environmental Quality Management, 13-26.
[15] Cheremisinoff, N. P. & Haddadin, M. (2006). Beyond compliance: the
refinery manager-s guide to ISO 14001 implementation, Golf
Publishing Company: US.
[16] Jabbour, C. J. C. & Santos, F. C. A. (2008). Relationship between
human resources dimensions and environmental management in
companies: proposal of a model, Journal of Cleaner Production, 16,
1922-1925.
[17] Daily, B. F. & Huang, S.C. (2001). Achieving sustainability through
attention to human resource factors in environmental management,
International Journal of Operations & Production Management,
21(12), 1539-1552.
[18] Choueke, R. & Armstrong, R. (2000). Culture: a missing perspective on
small and medium sized enterprise development? International Journal
of Entrepreneurial Behaviour & Research, 6(4), 227-238.
[19] Hair, J. F. Wolfinbarger, M., Ortinau, D. J. & Bush, R. P. (2008).
Essentials of Marketing Research. 1st Edition, New York: McGraw-Hill.
[20] Zutshi, A. & Sohal, A. (2004a). Adoption and maintenance of
environmental management system: critical success factors.
Management of Environmental Quality: An International Journal,
15(4), 399-419.
[21] Zhang, Z. H., Waszink, A., & Windgaard, W. (2000). An instrument for
measuring TQM implementation for Chinese manufacturing companies.
The International Journal of Quality & Reliability Management, 17(7),
730.
[22] Ahire, S. L., Golhar, D. Y. & Waller, M. A. (1996). Development and
validation of TQM implementation constructs, Decision Sciences,
27(1), 23-56.
[23] Daily, B. F., Bishop, J. W. & Steiner, R. (2007). The mediating role of
EMS teamwork as it pertains to HR factors and perceived
environmental performance, Journal of Applied Business Research,
23(1), 95-109.
[24] Zainudin, D. (2008). Critical success factors and performance outcomes
of ISO 9000 implementation: the case of small and medium enterprises
in Malaysia. Unpublished DBA thesis, Graduate School of Business,
Universiti Sains Malaysia.
[25] Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E. & Tatham, R. L.
(2006). Multivariate data analysis. 6th edition, Upper Saddle River:
Pearson Education International.
[26] Matthews, T. H. (2003). Environmental management system for internal
corporate environmental benchmarking. Benchmarking: An
International Journal, 10(2), 95-106.
[27] Quazi, H. A. (1999). Implementation of an environmental management
system: the experience of companies operating in Singapore. Industrial
Management and Data System, 99/7, 302-311.
[28] Darnall, N. & Edwards, D. (2006). Predicting the cost of environmental
management systems: the role of capabilities, resources and ownership
structure, Strategic Management Journal, 27, 301-320.
[29] Koberg, C.S., Boss, R. W., Senjem, J.C. & Goodman, E. A. (1999).
Antecedents and outcomes of empowerment, Group and Organization
Management, 24(1), 71-92.
[30] Heinz, U. Baga., T. Gebert, D. & Kearney, E. (2006). Leadership and
cooperation as success factors in innovative R & D projects on
electronic platform. Team Performance Management, 12 (3/4), 66-76.
[31] Hoegl, M. (2005). Smaller teams - better teamwork: How to keep
project teams small, Business Horizons, 48, 209-214.
[32] Pattit, J. M. & Wilemon, D. (2005). Creating high-performing software
development teams, R & D Management, 35 (4), 375-393.
[33] Von Malmborg, F. B. (2002). Environmental management systems,
communicative action and organizational learning. Business Strategy
and the Environment, 11, 312-323.
[34] Eltayeb, T. K. (2009). Adoption of green supply chain initiatives by ISO
14001 certified manufacturing firm in Malaysia: key drivers, outcomes
and moderating effect of relationship orientation. Unpublished PhD
thesis, School of Management, University Sains Malaysia.
[35] Razuan Zainol, M. (2006). Determinants factors for EMS ISO 14001
adoption in Malaysia. Unpublished MBA thesis, School of Management,
Universiti Sains Malaysia.
[36] Balzarova, M.A., Castka, P., Bamber, C. J. and Sharp, J. M. (2006).
How orgnizational culture impacts on the implementation of ISO
14001:1996 - a UK multiple case views, Journal of Manufacturing
Technology Management, 17(1), 89-103.
[37] Sambasivan, M. & Ng, Y. F. (2008). Evaluation of critical success
factors of implementation of ISO 14001 using analytic hierarchy
process (AHP): a case study from Malaysia. Journal of Cleaner
Production, 16, 1424-1433.