The effects of green management practice on organizational performance success: An empirical study in HK building industry

Abstract

Building development has been causing adverse environmental effects with emissions of greenhouse gas in the range of about 40% and consumed energy of about 35% in 2018 in developing countries. Expediting green management practices in an environmental, economic, and social manner becomes crucial in the building industry. Guiding from the systematic literature review, a whole building life cycle engagement of Green Marketing Strategy (GMS) and Green Technology Development (GTD) as green management practices to achieve organizational performance success in terms of Green Performance Success (GPS) & Finance Performance Success (FPS) lacks scholars’ studies. From a theoretical point of view, the pre- and post-building phases’ critical factors should be further explored and investigated. Few research studies can be identified for the conventional construction projects in selecting critical organizational performance success factors in their pre- and post-project stages. This research aims to provide an understanding into the effects of the green management practices on organizational performance success through a questionnaire survey follows by post-survey interviews, case studies, and green expert interviews so as to incentivize the promotion of the green management practices to combat global warming and greenhouse gas emissions. The results of a moderated hierarchical regression analysis revealed that green management practices in terms of green marketing strategy and green technologies development have a significant impact on firm performance in terms of green performance success and financial performance success. Further investigations of how the supplier cooperation and green building uncertainty moderate green management practices on organizational performance are studied. The experts’ interviews directed that the government take a leading role in asserting green management practices implementation, particularly in making green building development mandatory. Advanced construction information technology (e.g., building information modeling) should be used to inspire the building process to generate and manage building data to improve the green building technological design incorporation to recycle the building elements with waste reduction. Above all, the instituting of a robust and operational market platform for the green materials and products with a performance index would enhance the vision and mission of green marketing strategy to reduce the materials costs progressively. Commitment and cooperation of suppliers to deliver suitable green performance materials and products is also beneficial to the building industry. As the study indicated, the higher level of technological and logistical integration with the suppliers’ base will lead to higher levels of environmental collaboration and building firms’ performance.