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Demand for ISO 14001 adoption in the global supply chain: An empirical analysis focusing on environmentally conscious markets

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  • Nishitani, Kimitaka

Abstract

This paper analyzes the environmental preferences and pressures of customers in environmentally conscious markets influencing the number of adoptions of ISO 14001--the international standard certified by the International Organization for Standardization (ISO) concerning an Environmental Management System (EMS)--in a country. Customers in different countries have different priorities and ideas with regard to the environment and its management, and therefore it is possible that environmental preferences and pressures of customers in environmentally conscious markets are greater, although many earlier studies suggest that foreign customers generally form a significant stakeholder group encouraging the adoption of ISO 14001. A random-effects Tobit estimation using a sample of 155 countries over eight years supports the view that the environmental preferences and pressures of customers in environmentally conscious markets (including Finland, Japan, Germany and Denmark) are more likely to encourage domestic along with foreign suppliers to adopt ISO 14001. As it is easier for firms in environmentally conscious markets to adopt ISO 14001 because of their better economic performance, they have already adopted certification and consequently require their domestic and foreign suppliers to do likewise in the global supply chain. For this reason, suppliers wishing to access environmentally conscious markets can obtain an advantage with ISO 14001 certification.

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Bibliographic Info

Article provided by Elsevier in its journal Resource and Energy Economics.

Volume (Year): 32 (2010)
Issue (Month): 3 (August)
Pages: 395-407

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Handle: RePEc:eee:resene:v:32:y:2010:i:3:p:395-407

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Web page: http://www.elsevier.com/locate/inca/505569

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Keywords: Adoption of ISO 14001 Environmental preferences and pressures of customers Environmentally conscious markets Economic performance Tobit model Random-effects Tobit model;

References

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  1. Ruihua Joy Jiang & Pratima Bansal, 2003. "Seeing the Need for ISO 14001," Journal of Management Studies, Wiley Blackwell, vol. 40(4), pages 1047-1067, 06.
  2. Nakamura, Masao & Takahashi, Takuya & Vertinsky, Ilan, 2001. "Why Japanese Firms Choose to Certify: A Study of Managerial Responses to Environmental Issues," Journal of Environmental Economics and Management, Elsevier, vol. 42(1), pages 23-52, July.
  3. Arimura, Toshi & Hibiki, Akira & Katayama, Hajime, 2007. "Is a Voluntary Approach an Effective Environmental Policy Instrument? A Case for Environmental Management Systems," Discussion Papers dp-07-31, Resources For the Future.
  4. Boiral, Olivier & Sala, Jean-Marie, 1998. "Environmental management: Should industry adopt ISO 14001?," Business Horizons, Elsevier, vol. 41(1), pages 57-64.
  5. Eric Neumayer & Richard Perkins, 2004. "What explains the uneven take-up of ISO 14001 at the global level? A panel-data analysis," Environment and Planning A, Pion Ltd, London, vol. 36(5), pages 823-839, May.
  6. Shih-Ying Wu & Po-Young Chu & Tzu-Yar Liu, 2007. "Determinants Of A Firm'S Iso 14001 Certification: An Empirical Study Of Taiwan," Pacific Economic Review, Wiley Blackwell, vol. 12(4), pages 467-487, October.
  7. Petra Christmann & Glen Taylor, 2001. "Globalization and the Environment: Determinants of Firm Self-Regulation in China," Journal of International Business Studies, Palgrave Macmillan, vol. 32(3), pages 439-458, September.
  8. Nishitani, Kimitaka, 2009. "An empirical study of the initial adoption of ISO 14001 in Japanese manufacturing firms," Ecological Economics, Elsevier, vol. 68(3), pages 669-679, January.
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Cited by:
  1. Azevedo, Susana G. & Carvalho, Helena & Cruz Machado, V., 2011. "The influence of green practices on supply chain performance: A case study approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 850-871.

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