Abstract
Companies constantly thrive to enhance their performance in order to achieve their environmental, social, and economic goals. One way to achieve these goals is to integrate some effective management tools, such as an environmental management system (EMS), that can support sustainable development and value creation. Based on the literature, in this study some EMS integration dimensions were identified that can be used to assess its influence on business performance. The study was conducted on SMEs listed on the AeRO-Bucharest Stock Exchange that voluntary apply the ISO 14001 EMS, using a quantitative approach. To assess the EMS integration score, principal component analysis was used. Using logistic regression analysis, business performance probability (quantified by return on assets) was estimated for each company included in the final sample. Fuzzy logic was further used for modelling the influence of EMS integration on business performance probability. The research results showed that EMS integration has different effects on business performance probability, considering the influence of activity field and environmental management experience. This research assertion could be extended for all the listed Romanian companies or for major companies at the EU level.
Highlights
Sustainability issues could be considered the future of tomorrow [1,2,3]
We propose a new approach in quantifying environmental management system (EMS) integrations, using (i) principal component analysis—PCA—and its influence on business performance, based on return on assets (ROA); (ii) logistic regression analysis; and (iii) fuzzy logic
Starting from the model proposed [5] in Figure 2, regarding ISO 14001 EMS integration customized dimensions, the variables included in the analysis are grouped according to the 8 dimensions organization policies (OP), resources allocation (RA), operational control and documentation (OCD), support and information systems (SIS), training and development (TD), OSR, ARS, and monitoring systems (MMS) [5,56,68]
Summary
Sustainability issues could be considered the future of tomorrow [1,2,3]. Organizational sustainability approaches can be defined as “a consensual solution of stakeholders who are involved in the business decision-making process” [4], taking into account the synergy between enhancing (i) ecological resilience, (ii) people, and (iii) profit [5]. The strengths of ISO 14001 are (i) compliance with regulatory requirements, (ii) increase human resource involvement, (iii) improve company reputation due to strategic communication, (iv) achieve strategic business aims by integrating environmental issues into business management, (v) provide a competitive and financial advantage, and (vi) encourage better environmental performance of suppliers [18]. Boiral and his collaborators [19], with regard to ISO 14001 adoption and outcomes, mention a set of main themes and subthemes associated to it. The research results revealed that EMS integration has a positive significant influence on business performance, by activity field and by environmental management experience
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