Abstract
Because it has become more and more urgent for organizations to implement environmental strategies with the support of organizational culture, this study considers it necessary to conduct an empirical study to examine the impact of organizational culture on environmental performance. Synthesizing the perspectives of organizational culture and environmental performance, we applied a theoretical model in the manufacturing industry of Pakistan linking an organizational culture that supports environmental practices for better environmental performance. Based on a survey of 314 manufacturing firms, using Smart-PLS, the current study found that adaptability, mission and consistency positively affect environmental performance. However, involvement does not have an effect on environmental performance. Additionally, organizational culture as a latent variable has a strong impact on environmental performance. The study is one of the first, to the author’s knowledge that links OC and EP in a developing economy, in this case Pakistan.
Highlights
The rapid development of industries in recent years has created problems of environmental degradation
CB-structural equation model (SEM) uses a maximum likelihood (ML) function to minimize the difference between the sample covariance and those predicted by the theoretical model when the data distribution is normal [62]
CB-SEM endeavors to estimate the parameters of the model through loadings and the path values to minimize the difference between sample covariance and those anticipated by the theoretical model [63]
Summary
The rapid development of industries in recent years has created problems of environmental degradation. To understand and quantify the relation between industrial development and environmental deterioration, many researchers have developed different theoretical frameworks and models including studies concerning organizational culture (OC) and environmental performance. Previous researchers have emphasized the organizational culture (OC) and its significance to many aspects related to a firm’s performance in terms of job satisfaction, productivity, employee turnover, adoption of environmental activity management [2,3], or effect on performance measurement systems [4]. There has been less emphasis on the importance of organizational culture in developing a firm’s environmental performance. This study, intends to fill the existing gap by adopting an approach with a quantitative framework based on resource-based view (RBV) theory to address the importance of OC regarding environmental performance
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