Complementary Link Between Quality and Environmental Management Systems and Business Performance

Abstract

Little is known about the complementary performance benefits associated with facilities’ combined use of both quality management systems (QMS) and environmental management systems (EMS), and how these performance benefits might differ from those associated with facilities’ use of only one of these management systems (or neither). We suggest that complementarities arise because each management system fosters the development of internal capabilities that facilitates the adoption and routine operationalization of the other, while maintaining differentiated goals that enhance strategic value. We examine these relationships using a sample of 2,619 manufacturing facilities operating within six OECD countries, while controlling for self-selection issues. Our findings support the idea of complementarity in that facilities, that adopt both QMS and EMS, are associated with positive business performance more than facilities that adopt either QMS or an EMS on its own, or no management system.