Green Manufacturing: An Evaluation of Environmentally Sustainable Manufacturing Practices and Their Impact on Competitive Outcomes

Abstract

Increasingly, stakeholders are asking or requiring organizations to be more environmentally responsible with respect to their products and processes; reasons include regulatory requirements, product stewardship, public image, and potential competitive advantages. This paper presents an exploratory study of the relationships between specific environmentally sustainable manufacturing practices, and specific competitive outcomes in an environmentally important but under-researched industry, the U.S. commercial carpet industry. In general, empirical research on the impact of environmental practices on organizational outcomes is inconclusive, partly due to limitations of earlier studies. This paper addresses some of these limitations, and surveys the entire U.S. commercial carpet industry; respondents represent 84 of the market. Findings suggest that environmentally sustainable manufacturing practices may be positively associated with competitive outcomes. In particular, different types of environmentally sustainable manufacturing practices (e.g., pollution prevention, product stewardship) are associated with different competitive outcomes (e.g., manufacturing cost, product quality). These specific findings can be helpful to engineering and operations managers as they respond to environmental and competitive demands.