You are on page 1of 18

ROLE OF ENVIRONMENTAL PROACTIVITY IN PERFORMANCE OF

MANUFACTURING FIRMS: A MODERATING EFFECT OF FIRM SIZE

By

Kashif Munir
211 MSBA/Lhr/F 14

A Research Proposal Submitted to the Faculty of Management Sciences,


National University of Modern Languages, Islamabad
in partial fulfillment of the requirements for the degree of
(MSBA)

Supervisor Name:
Mr. Saif Ullah

DEPARTMENT OF MANAGEMENT SCIENCES


NATIONAL UNIVERSITY OFMODERN LANGUAGES
ISLAMABAD
SEPTEMBER, 2015
Role of Environmental Proactivity in Performance of Manufacturing Firms: A Moderating
Effect of Firm Size

1. Introduction
Today all types of manufacturing firms rather they are small or large, polluting the
environment. It is need to work actively to environmental proactivity. Environmental
Proactivity is very important as it is considered as strategic position by
accepting the challenges of the new sustainability standards. However,
Porter and Linde (1995) said that adoption of environmental proactive approaches leads to be
beneficial for the companies while giving importance to green technology. Those benefits can
be ascertain from proper environmental management. Environmental proactivity mean
voluntary employment of practices and initiatives aimed at improving environmental
performance. This can become visible through different strategies and these strategies are
characterized by a series of environmental practices.The purpose of this study is to
investigate the impact of firm environmental proactivity on the firm
performance. Moderating effect of firm size will be checked between
environmental proactivity and firm performance.

In this era many manufacturing firms are working on the environmental management
practices. This enables organizations to contribute sustainable development in the
environmental management through redesigning the manufacturing procedures (Shrivastava,
1995). However Waddock, Bodwell, Graves (2003) said that increasing transparency required
from companies in matters of social responsibility forces them to inform not only about their
financial performance but also about their environmental and social impact. To compliance
with the environmental regulations of the government they take proactive measures. In the
whole world it is compulsory for manufacturing concerns to adopt proactive approaches to
the environment (Swain, 2006).

The communicational practices aim at communicating to the companys social and


institutional environment. The actions taken in favor of the natural environment. These type
of practices have been considered as one more side of the environmental commitment
(Florida and Davison, 2001). These practices are well appreciated by stakeholders.

These practices are the main way through which some of them form an opinion about
the environmental performance of the company. Discharge of solid waste and wastewater of
manufacturing process have become the significant reason of degrading the environment
quality (Pizer, Morgenstern, Shih, 2011). This has become the reason of proactive role of
environment in running businesses. The worsening environmental conditions owing to
emission of greenhouse gases and other polluting substance during manufacturing processes.
There are different reasons leading to climate change. Energy inefficiency and inefficient
supply chain becomes the reason of more waste and it affects the perceived financial
performance of the manufacturing concerns. Organizations want to reduce cost, increase
revenue and reduce the risk associated with high energy costs.

The owners of firms are concerned whether environmental proactive approaches are
positively related with the perceived financial performance of the companies or not. This
study aims at finding the said relation. They can also be derived from improved operational
performance of the organizations like reduction in the production cost (Porter and Linde,
1995). Several factors can indicate a firm to adopt environmental management practices
(Berry and Rondinelli, 1998). According to Gonzlez (2006) stakeholder pressure is driving
companies toward more advanced environmental management. The more progressive
environmental management can also improve a companys perceived financial performance
(Molina, Azorin, Claver, Lopez, Tari, 2009). This results in an increase in the companys
manufacturing effectiveness, promoting reduction in cost, quality improvements and the
generation of new products and processes (Yang, Lin, Chan, Sheu, 2010).

With the increase of the populations environmental awareness, those corporations


investing in environmental management may increase in worth through green marketing
initiatives (Woolverton and Dimitri, 2010). According to Darnall, Henriques & Sadorsky,
(2010) the firm size also have effect on the environmental management. Larger firms allocate
more proportion of resources for environmental proactivity. Bowen (2002) found that the
smaller enterprises generally invest its limited resources towards environmental practices. In
doing so, larger firms allocate a greater proportion of resources towards environmental
lobbying activity and other activities that resist environmental change.

By contrast, when faced with external pressure for environmental consideration,


smaller firms are less likely to invest their scarce resources in political resistance. Rather, the
smaller enterprises generally invests its limited resources to address the immediate
environmental concern (Bowen, 2002). Pakistan is developing nation in South Asia.
Manufacturing is important part of economy of Pakistan. Government of Pakistan (2006-07)
organizations are working to develop their environmental system in Pakistan. Manufacturing
is the second largest sector of the economy of Pakistan after agriculture sector and it accounts
for 19.1% of GDP.

It was stated in economic survey (2006-07) that industry grew by 8.4 percent during
2007 and 10 percent last year. In the manufacturing sector, large scale manufacturing plays a
vital role and accounts for approximately 70 percent of overall manufacturing (Government
of Pakistan, 2006-07). Economic Survey of Pakistan, (2012-2013) further classified
manufacturing sector into three sub groups i.e. Large Scale Manufacturing (LSM), Small
Scale Manufacturing. Manufacturing accounts 13.5 percent of Gross Domestic Product
(GDP) and 14.1 percent of total employed labor force.

So manufacturing sector take significant part of the gross domestic product of


Pakistan (Government of Pakistan, 2012-2013). Large Scale Manufacturing (LSM) at 10.9
percent of GDP dominates the overall sector accounting 81 percent of the sectoral share
followed by Small Scale Manufacturing which accounts 1.7 percent of total GDP and 12.3
percent share in Manufacturing (Government of Pakistan, 2012-2013).

1.1 Problem Statement


Whether the environmental proactivity ha impact on firm performance. So this study
is designed to investigate the impact of environmental proactivity on the performance of
the firms. It will also check the moderating effect of firm size on the firms performance
and environmental proactivity.

1.2 Research Questions


RQ-1 Does Environmental Proactivity has an impact on the firm performance?
RQ-1.1 Does Environmental Proactivity has an impact on the operational performance?
RQ-1.2 Does Environmental Proactivity has an impact on the perceived financial
performance?
RQ-2 Does the Firm Size moderates the relationship between Environmental Proactivity and
Firm Performance?

1.3 Research Objectives


The objectives of this study are

To investigate the relationship between Environmental Proactivity and Firm Performance.


To investigate the relationship between Environmental Proactivity and Operational

Performance.
To investigate the relationship between Environmental Proactivity and Perceived Financial

performance.
To investigate the moderating role of Firm Size between Environmental Proactivity and
Firm Performance.

1.4 Significance of the Study


A huge discussion on previous studies has been described regarding firms performance
with respect to other countries. But no study was found regarding environmental proactivity
and firms performance relating to Pakistan. So, this study might be unique because it will
discuss the impact of environmental proactivity on firm performance.
Moderating effect of firm size between Performance and Environmental Proactivity will
add in existing literature. From the practical point of view the government environment
protection department can make effective policies according to size of firm due to moderating
affect. It will improve the stakeholders involvement in organizational policies. On the basis
of this study the better environmental practices can be implemented in the country.

Firms will get benefit from this study. On the basis of this study firms will be able to improve
their performance by reorganizing their policies regarding the environment. The corporate
policy makers will get help from this study. They will be able to make better policies based
on this study.

2. Literature Review
2.1 Environmental Proactivity:
Environmental Proactivity is very important in the context of manufacturing firms.
Newton and Harte (1997) consider that the literature on environmental management adopts a
linguistic position which is based on questionable ideas. Aragon (1998) has given
environmental proactivity concept in the management literature. Environmental practices are
very important in relation to the environmental proactivity. Sharma and Vredenburg (1998)
said that a firm is environmentally proactive if there exist regular environmental practices in
overall production processes. In current competitive period environmental commitment of the
companies becomes very important. However one of the most cited predictors of the
implementation of green supply is the proactivity of the firms towards environmental
management (Bowen, Cousins, Lamming, Faruk, 2001). Following Simpson, Power, Samson
(2007) environmental commitment is measured through the firms policies, values and
employee awareness of environmental programs.

Reducing raw material and water consumption not only helps to prevent rapid
depletion of natural resources but also helped the manufacturing firms to work financially
better (Jayal, Badurdeen, Dillon Jr., Jawahir, 2010). Another means of increasing worth
occurs when firms announce their adoption of ISO 14001 environmental management
systems. This system tended to generate an increase in share value traded on stock exchanges
(Jacobs, Singhal, Subramanian, 2010). With the advancement of the populations
environmental awareness, companies that invest in environmental management may increase
in worth through green marketing initiatives (Woolverton and Dimitri, 2010). Environmental
proactivity often got reflected in the planning of manufacturers to get ISO 14001 certificates
(Jabbour, Govindan, Teixeira, Freitas, 2013). They also found that the manufacturing firm
performance is affected through environmental proactivity.
5

2.2 Operational Performance:


The operational performance on eco-friendly procedures considered economical
approach. Operational practices are important as they used to reduce and control negative
effects of waste and pollution in the manufacturing process. Authors such as Murphy, Poist
and Braunschwieg, (1994), Wu and Dunn (1995), discussed these practices. The operational
practices which leads to operational performance imply changes in the production and
operations system, which plays an essential role in environmental issues (Klassen and Angell,
1999). Operational practices leads to reduction and fall in the wastages which are linked with
the disposal of all type of materials and products (Curkovic, 2003).

Firms operational performance affected with the implementation of environmental


proactivity. However other practices affect external processes, and influence supply and
distribution activities and, in general, company interactions with other elements of the value
chain. Decision about environment friendly product are taken by the top management of the
manufacturing enterprises to improve environmental performance by applying the principles
of sustainability (Vachon and Klassen, 2008).

Environmentally conscious customers demanded those products which are designed


according to environmental regulations. Customers demand these products because those
products do not harm environment. Those products are environment friendly (Smith and Yen,
2010). Operational performance considers the prevention or controlling activities against
environmental pollution occurred other than the manufacturing process. Operational
performance leads to improve the overall quality of the enterprises while gaining financially
(Silva, Reno, Sevegnani, Sevegnani, Truzzi, 2013). Operational performance is related with
the environmental proactivity. As majority of researches have found that environmental
proactivity is positively related to the operational performance (Gonzalez and Gonzalez,
2005; Sambasivan, Saiku, Bah, Ho, Jo-Ann, 2013).

2.3 Perceived Financial Performance:


Perceived financial performance is most important criteria from the perspective of any
enterprise as the ultimate goal of any manufacturing enterprise is making money. When firms
grows then it will lead to betterment of the economy as well. Walley and Whitehead, (1994)
conclude that there is no significant relationship between environmental proactivity and
financial performance. Recent studies (Claver, Lopez, Molina, Tari, 2007) argued that there is
a positive relationship between the environmental proactivity and financial performance.
Environmental proactivity can also lead to improve the perceived financial performance
through operational performances (Toke ,Gupta, Dandekar, 2012).

In case of limited financial resources how environmental proactivity influences


financial performance, it is found controversial among the researchers (Sambasivan, Saiku,
Bah, Ho, Jo-Ann, 2013; Iwata and Okada, 2011). Researchers like Sambasivan, Saiku, Bah,
Ho, Jo-Ann, (2013) and Jabbour, Jabbour, Govindan, Teixeira, Freitas (2013) have proposed a
number of constructs (latent variables) and variables (manifest variables) that can influence
the financial performance of the manufacturing enterprises through environmental
proactivity.

2.4 Firm Size:


Firm size is important in respect to the environmental proactivity. Some researchers
said that large firms are more responsive to environmental regulations. Arora and Cason
(1996) found that there is a positive and significant relationship between firm size and
participation in voluntary environmental programs. Smaller firms seek competitive
advantage. Because the smaller firms generally have significantly different resources from
the larger firms (Dean, Brown and Stango, 1998). Firms response to the environmental
requirements of its stakeholders is influenced by its existing level of environmental
commitment (Henriques and Sadorsky, 1999). Another study by Alvarez, Burgos, Cespedes
(2001) also found a positive relationship between size and environmental proactivity in a
service sector. Min and Galle (2001) established the importance of size in the adoption of
environmental practices in the purchasing function.

Bowen, Cousins, Lamming, Faruk, (2001) found a positive and direct impact of
environmental proactivity on greening the supply process, a construct that shares similarities
with our green supplier assessment approach. Etzion, (2007) said that larger firms were
associated with environmental proactiveness to a greater extent than smaller firms. In their
study Darnall, Henriques and Sadorsky, (2010) said that size moderates the relationship
between stakeholder pressures and the adoption of proactive environmental practices such
that the relationship is stronger for small firms.

2.1 Theoretical Framework

Firm Size

Firm Performance
Environmenta
l Proactivity

a) Operational
Performance
b) Perceived
Financial

2.2 Hypotheses
H-1 Environmental Proactivity has an impact on firm performance.
H-1a Environmental Proactivity has relationship with operational performance.
H-1b Environmental Proactivity has impact on perceived financial performance.
H-2 Firm size moderate the relationship between environmental proactivity and firm
performance.
H-2a Firm size moderate the relationship between environmental proactivity and operational
performance.
H-2b Firm size moderate the relationship between environmental proactivity and perceived
financial performance.
8

3. Research Design and Methodology


3.1 Nature of the Study
Data will be collected from the manufacturing firms. Generally, current study has been
conducted through quantitative research as it is appropriate to provide extensive information,
acquisition and analysis of numerical data, prediction of variables, hypothesis testing and
evaluating cause and effect relationship. Questionnaire contained closed ended questions.
Purpose of research is explanatory as well as descriptive. Research design for current study is
cross-sectional as data is collected at a single point of time.
3.2 Population
The population of this study will consist of large and small firms involved in
manufacturing in Pakistan.

3.3 Sampling
Questionnaires will be got filled from 150 companies. There will be two
questionnaires filled from each company. The companies will be selected on basis of
convenient sampling (Alvi, Adil, Ahmed, Veinhardt, 2014). The sample size will be 300
(Silk and Urban, 1977).

3.4 Unit of Analysis


Unit of analysis will be firms and the unit of observation will be management level
employees.

3.5 Measures
The participants will have to answer the questions on five point Likert scale where the
degrees of 1,2,3,4,5 will be used to represent not at all, to little extent, to some extent, to
a moderate extent and to large extent respectively.

3.6 Model
To study relationships following model will be used.
Yi = 1 + 1i +

Based on above equation, three equations will be developed for each dependent variable.
Firm Performance =

+ 1 EP +

Firm Performance =

+ 1 EP + 2 FS + 3 (FS)(EP) +

Operational Performance =

+ 1 EP + 2 FS + 3 (FS)(EP) +

Perceived Financial Performance =

+ 1 EP + 2 FS + 3 (FS)(EP) +

Where
FS=

Firm Size

EP= Environmental Proactivity

3.7 Measurements
Selection of variables is strongly influenced by the previous studies on subject under
discussion. The mentioned variables will be used to test the hypotheses of the study. There
are independent variables, dependent variable and a moderating variable.

Environmental Proactivity: Environmental Proactivity helps firms to improve their


operational performance based on manufacturing and non-manufacturing activities. That is
called performance. It also leads to improve financial performance through operational
performance (Sambasivan, Saiku, Bah, JoAnn, 2013). 10 Important items regarding
Environmental Proactivity will be used and measured on five point Likert. Sample items
include Top management of my company supports the environmental training and
Regulations imposed by the government are followed by my company.

10

Operational Performance: To measure operational performance, each surveyed manager


will asked to score the relative position of his firm with respect to competitors according to
the competitive objectives considered in (Slack, Chambers, Harland, Harrison, Johnston,
1998). It considers the prevention and controlling activities against the environmental
pollution occurred other than the manufacturing process (Toke, Gupta, Dandekar, 2012). 7
Important and relevant items regarding Operational Performance will be used and measured
on five point Likert. Sample items include My Company is focused on reduction of emission
to air and My Company is focused on reduction of raw material consumption.

Perceived Financial Performance: Perceived Financial Performance is most important


criteria for any organization. Because it is ultimate goal of every company to gain profit
(Toke, Gupta, Dandekar, 2012). 5 Important and relevant items regarding Perceived financial
Performance will be used and measured on five point Likert. Sample items include In my
company revenue is increased due to implementation of environmental regulations and In
my company production cost is decreased due to better environmental practices.

Firm Size: Firm size will be used as dummy variable. And the size of firms will be based on
number of employees working in the organization (Russo and Fouts, 1997; Christmann P.
2000).

11

4. References
lvarez Gil MJ, Burgos Jimnez J, Cspedes Lorente JJ. (2001). An analysis of environmental
management, organizational context and performance of Spanish hotels. Omega, Vol
29, pp-457471.
Alvi, H. A., Hanif, M., Adil, M. S., Ahmed, R. R., & Vveinhardt, J. (2014). Impact of
Organizational Culture on Organizational Commitment and Job Satisfaction.
European Journal of Business and Management , 6 (27).
Arago n-Correa, J.A. (1998), Strategic proactivity and firm approach to the natural
environment, Academy of Management Journal, Vol. 41 No. 5, pp. 556-67.
Arora, S., Cason, T.N. (1996). Why do firms volunteer to exceed environmental regulations?
Understanding participation in EPA's. Land Economics, Vol 74 (4), pp-413432.
Avolio, B. J., Gardner, W. L., Walumbwa, F. O., Luthans, F., & May, D. R. (2004). Unlocking
the mask: A look at the process by which authentic leaders impact follower attitudes
and behaviors. The Leadership Quarterly, 15, pp. 801823.
Angell LC ,Klassen RD,. (1998). An international comparison of environmental management
in operations: the impact of manufacturing Hexibility in the US and Germany, Journal
of Operations Management, Vol 16(2/3), pp-17794.
Berry, M.A., Rondinelli, D.A. (1998). Proactive environmental management: a new
industrial revolution. The Academy of Management Executive, Vol 12 (2), pp.38-50.
Bowen, F., Cousins, P., Lamming, R., Faruk, A. (2001). The role of supply management
capabilities in green supply. Production and Operations Management, Vol 10(2),pp
174189.
Claver, E., Lopez, M.D., Molina, J.F., Tar, J.J. (2007). Environmental management and firm
performance: a case stu. Journal of Environmental. Management. Vol 84, pp.60-619.
Christmann P. (2000). Effects of best practices of environmental management on cost
advantage: the role of complementary assets. Academy of Management Journal, Vol
43(4), pp-66380.
Curkovic, S. (2003). Environmentally responsible manufacturing: the development
and validation of a measurement model. European. Journal Operations. Vol 146,
pp.130-155.
Darnall, Henriques & Sadorsky, (2010). Adopting Proactive Environmental Strategy: The
Influence of Stakeholders and Firm Size. Journal of Management Studies Vol 47(6),
pp. 1072-1094.
Dean, T. J., Brown, R. L. and Stango, V. (2000). Environmental regulation as a barrier to the
formation of small manufacturing establishments: a longitudinal examination. Journal
of Environmental Economics and Management, Vol 40, pp-5675.
Economic Survey of Pakistan, (2012-13, 2006-7). Finance Division,
Government of Pakistan.
12

Etzion, D. (2007). Research on organizations and the natural environment, 1992present: a


review. Journal of Management, Vol 33, 63764
Florida R, Davison D. (2001). Gaining from green management: environmental systems inside
and outside the factory. California Management Review, Vol 43(3), pp.6484.
Gonzlez-Benito, J. (2006). Environmental proactivity and business performance: anempirical
analysis. Omega, The International Journal of Management Science, Vol 33, pp.1-15.
Gonzalez-Benito, J., Gonz alez-Benito, O. (2005). Environmental proactivity and business
Henriques, I. and Sadorsky, P. (1999): The Relationship between Environmental
Commitment and Managerial Perceptions of Stakeholder Importance, Academy of
Management Journal, Vol. 42(1), pp. 87-99.
Iwata, H., Okada, K. (2011). How does environmental performance affect financial
performance? Evidence from Japanese manufacturing firms. Ecological Economy, Vol
70, pp.1691-1700.
Jabbour, C.J.C., Jabbour, A.B.L.S., Govindan, K., Teixeira, A.A., Freitas, W.R.S. (2013).
Environmental management and operational performance in automotive companies in
Brazil: the role of human resource management and lean manufacturing. Journal of
Cleaner Production, Vol 47, pp-129-140.
Jacobs, B.W., Singhal, V.R., Subramanian, R. (2010). An empirical investigation of
environmental performance and the market value of the firm. Journal of Operations
Management, Vol 28 (5), pp.430-441.
Jayal, A.D., Badurdeen, F., Dillon Jr., O.W., Jawahir, I.S. (2010). Sustainable manufacturing:
modeling and optimization challenges at the product, process and system levels. CIRP
Journal of Manufacturing Science., Vol 2, pp.144-152.
Min H, Galle WP. (2001). Green purchasing practices of US firms. International Journal of
Operations and Production Management, Vol 21(9/10), pp-1222 1238.
Molina-Azorin, J.F., Claver-Corts, E., Lpez-Gamero, M.D., Tar, J.J. (2009). Green
management and financial performance: a literature review. Management Decision, Vol
47 (7), pp.1080-1100.
Murphy, P.R., Poist, R.F. and Braunschwieg, C.D. (1994). Management of Environmental
Issues in Logistics: Current Status and Future Potential, Transportation Journal, Vol.
34(1), pp. 48-56.
Smith, S., Yen, C.-C. (2010). Green product design through product modularization
using atomic theory. Robot. CIM-Int. Manufacturing, Vol 26, pp-790-798.
Newton T, Harte G.( 1997). Green business: technicist Kitsch? Journal of Management
Studies, Vol 34(1), pp.75 98.
Pizer, W.A., Morgenstern, R., Shih, J.S.(2011). The performance of industrial sector
voluntary climate programs: climate wise and 1605(b). Energy Policy, Vol 39,
pp-7907-7916.

13

Porter, M., Linde, C. (1995). Towards a new conception of the environmental competitiveness
relationship. Journal of Economical Perspective. Vol 9 (4), pp.97-118.
Russo MV, Fouts PA.(1997). A resource-based perspective on corporate environmental
performance and profitability. Academy of Management Journal,Vol 40(3),pp-53459.
Simpson, D., Power, D., Samson, D. (2007). Greening the automotive supply chain: a
relationship perspective. International Journal of Operations and Production
Management, Vol 27 (1), pp.1848.
Sambasivan, M., Saiku, M., Bah, S.M., Ho, Jo-Ann H. (2013). Making the case for operating
Green: impact of environmental proactivity on multiple performance outcomes of
Malaysian firms. Journal of Cleaner Production, Vol 42, pp.69-82.
Silk, A. J., & Urban, G. L. (1977). Pre-test market evaluation of new packaged goods:a
model and measurement methodology . Journal of marketing Research .
Sharma S, Vredenburg H. (1998). Proactive corporate environmental strategy and the
development of competitively valuable organizational capabilities. Strategic
Management Journal, Vol 19(8), pp.72953.
Shrivastava P. (1995). The role of corporations in achieving ecological sustainability.
Academy of Management Review, Vol 20(4), pp.936960.
Silva, D.A.L., Reno, G.W.S., Sevegnani, G., Sevegnani, T.B., Truzzi, O.M.S. (2013).
Comparison of disposable and returnable packaging: a case study of reverse logistics
in Brazil. Journal of Cleaner Production, Vol 47, pp.377-387.
Slack N, Chambers S, Harland C, Harrison A, Johnston R. (1998.).Operations Management,
2nd ed. London: Pitman Publishing.
Swain, A., July. (2006). Climate Change Connection. Winnipeg, Manitoba, Canada, Version 1
Toke, L.K., Gupta, R.C., Dandekar, M. (2012). An empirical study of green supply chain
management in Indian perspective. International Journal of Applied Science.
Engineering. Vol 1 (2), pp.372-383.
Vachon, S., Klassen, R.D. (2008). Environmental management and manufacturing
performance: the role of collaboration in the supply chain. International Journal of
Productive Economy. Vol 111, pp.299-315.
Waddock SA, Bodwell C, Graves SR. (2003). Responsibility: the new business imperative.
Academy of Management Executive, Vol 16(2), pp.132148.
Walley, N., Whitehead, B. (1994). It's not easy being green. Harv. Bus. Rev. 46-2.May June.
Woolverton, A., Dimitri, C. (2010). Green marketing: are environmental and social objectives
compatible with profit maximization? Renewable Agriculture and Food Systems, Vol
25 (2), pp.90-98.
Wu, H. and Dunn, S.C. (1995): Environmentally Responsible Logistics Systems,
International Journal of Physical Distribution and Logistics Management, Vol 25(2),
pp. 20-38.
14

Yang, C., Lin, S., Chan, Y., Sheu, C. (2010). Mediated effect of environmental management on
manufacturing competitiveness: an empirical study. International Journal of
Production Economics, Vol 123, pp.210-220.

15

Appendix
SURVEY QUESTIONNAIRE
Dear Sir/Madam!
This survey is being conducted to understand Role of Environmental Proactivity in
Performance of Manufacturing Firms. Your responses are voluntary and will be confidential.
Responses will not be identified by individual. All responses will be compiled together. The
results will be used for research purposes only. Thank you for your valuable input and
cooperation.
1. Personal Information
a) Name:

b) Gender:

c) Age: ( )Below 25 ( )26-35 ( )36-45 ( ) Above


45
g) Marital Status
Single ( ) Married (
)

f) Designation:

2.7
2.8
2.09
2.10

16

Extent To Large

2.6

Extent To Moderate

2.5

Extent To Some

2.4

Extent To Little

2.3

Top management of my company supports the


environmental training.
The management of my company is following an
approach to increase environmental expenditure.
Regulations imposed by the government are followed by
my company.
The employees of my company are devoted to
environmental management.
My company have system for measuring and assessing
environmental performance.
The management of my company made environmental
emergency plans.
My company identifies environmental issues as an
opportunity to innovate and improve.
My company gives regular voluntary information about
environmental management to customers and institutions.
My company have ISO 14001 certification.
My company is working with production planning by
reducing waste.

Not at all

(Tick only one number for every statement )

2.2

( )F

h) Total Experience (in years):

2. Given below the statements about Environmental


Proactivity

2.1

( )M

1
1

2
2

3
3

4
4

5
5

3.6
3.7

perceived financial performance.


4.1

In my company revenue is increased due to


implementation of environmental regulations.
4.2 In my company production cost is decreased due to
better environmental practices.
4.3 Due to environmental proactivity there
are new market opportunities led to
economic benefits.
4.4 In my company improved environmental
performance of firm leads to improve
market share.
4.5 Profitability is improved by following
environmental policies.
4. Following statement indicate Firm Size.
5.1 How many employees are working in your
organization?

17

To Large
Extent

To Moderate
Extent

To Some
Extent

To Little
Extent

3. Below are a number of statements that describe

5
To Large Extent

3.5

Extent To Moderate

3.4

To Some Extent

3.3

To Little Extent

3.2

wing
state
ments
My company is focused on reduction of emission to
air.
My company is focused on reduction of energy
consumption.
My company is focused on reduction of raw
material consumption.
My company is focused on reduction of water
consumption.
My company is focused on reduction of wastes by
recycling.
My company achieved overall cleaner
manufacturing system.
Due to environmental proactivity there is sale of
scraps in my company.

Not at all

3.1

Not at all

2. Follo

No of Employees

You might also like