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Mediated effect of environmental management on manufacturing competitiveness: An empirical study

  • Yang, Chen-Lung
  • Lin, Shu-Ping
  • Chan, Ya-hui
  • Sheu, Chwen
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    The extant literature has not thoroughly examined the inter-relationships among continuous improvement (CI), supplier management (SM), environmental management (EM), and manufacturing competitiveness. This study posits that environmental management is partially an extension of advanced manufacturing practices, continuous improvement and supplier management, since a significant portion of EM programs is based on the foundations of those practices. Therefore, EM can be regarded as a mechanism through which CI and SM practices reinforce their contribution to manufacturing competitiveness. A meditational regression model is constructed and the statistical results suggest that firms with closer supplier partnerships and solid continuous improvement practices are more likely to develop a proactive EM program, which in turn enhances competitive advantage through cost savings, quality improvement, and process/product innovation. The influences of SM and CI on cost and delivery performance are lessened with the presence of EM programs. Environmental management must not function separately from SM and CI. Finally, the effect of culture and industry is discussed with suggestions for future research.

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    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 123 (2010)
    Issue (Month): 1 (January)
    Pages: 210-220

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    Handle: RePEc:eee:proeco:v:123:y:2010:i:1:p:210-220
    Contact details of provider: Web page: http://www.elsevier.com/locate/ijpe

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    1. Vachon, Stephan & Klassen, Robert D., 2008. "Environmental management and manufacturing performance: The role of collaboration in the supply chain," International Journal of Production Economics, Elsevier, vol. 111(2), pages 299-315, February.
    2. 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.
    3. Sadao Sakakibara & Barbara B. Flynn & Roger G. Schroeder & William T. Morris, 1997. "The Impact of Just-in-Time Manufacturing and Its Infrastructure on Manufacturing Performance," Management Science, INFORMS, vol. 43(9), pages 1246-1257, September.
    4. Araz, Ceyhun & Ozkarahan, Irem, 2007. "Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure," International Journal of Production Economics, Elsevier, vol. 106(2), pages 585-606, April.
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