Environmental management systems, practices and outcomes: Differences in resource allocation between small and large firms

Abstract

This paper argues both small and large firms use different resource allocation patterns to benefit from implementing environmental management practices (EMPs) and environmental management systems (EMS). Results from the multi-group structural equation analyses of a survey of manufacturing firms in two countries support the resource allocation arguments - large firms use resource-demanding EMPs such as green product design and green production to improve outcomes in environmental, cost-reduction and business performance, while small firms choose resource-light EMPs such as green logistics and green packaging to gain only environmental and cost-reduction benefits. The paper advances the existing resource-advantage view by revealing different resource allocation patterns and provides meaningful recommendations through which policy makers can address various resource allocation constraints among small and large enterprises.