Abstract

The purpose of this research is to examine the association between strategic environmental management, i.e. environmental strategic focus, shared vision and financial performance in manufacturing companies. Data were collected from 124 Malaysian manufacturers with ISO 14001 EMS certification. Structural equation modelling analysis was carried out using SEM-PLS software Version 3.2.7. The findings indicated that environmental strategic focus had contributed positively to environmental performance. Likewise, environmental performance also affected the companies’ financial performance positively. On the contrary, environmental shared vision showed no effect on environmental performance. The results empirically endorsed the role of environmental strategic focus as the driver in improving environmental performance, and the role of environmental performance in driving superior financial performance. On the contrary, the study could not validate environmental shared vision as a driver of performance.

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