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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.

Suggested Citation

  • Nishitani, Kimitaka, 2010. "Demand for ISO 14001 adoption in the global supply chain: An empirical analysis focusing on environmentally conscious markets," Resource and Energy Economics, Elsevier, vol. 32(3), pages 395-407, August.
  • Handle: RePEc:eee:resene:v:32:y:2010:i:3:p:395-407
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    References listed on IDEAS

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    1. Arimura, Toshi H. & Hibiki, Akira & Katayama, Hajime, 2008. "Is a voluntary approach an effective environmental policy instrument?: A case for environmental management systems," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 281-295, May.
    2. 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.
    3. 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.
    4. Petra Christmann & Glen Taylor, 2001. "Globalization and the Environment: Determinants of Firm Self-Regulation in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 439-458, September.
    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. Ruihua Joy Jiang & Pratima Bansal, 2003. "Seeing the Need for ISO 14001," Journal of Management Studies, Wiley Blackwell, vol. 40(4), pages 1047-1067, June.
    7. Boiral, Olivier & Sala, Jean-Marie, 1998. "Environmental management: Should industry adopt ISO 14001?," Business Horizons, Elsevier, vol. 41(1), pages 57-64.
    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. Bin Ni, 2015. "Productivity, Capital Intensity and ISO14001 Adoption \Theory and Evidence from Vietnam," Discussion Papers in Economics and Business 15-26, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    2. Kimitaka Nishitani & Munehiko Itoh, 2014. "Product Innovation in Response to Environmental Standards and Competitive Advantage: A Hedonic Analysis of Refrigerators in the Japanese Retail Market," Discussion Paper Series DP2014-30, Research Institute for Economics & Business Administration, Kobe University.
    3. Jayaram, Jayanth & Avittathur, Balram, 2015. "Green supply chains: A perspective from an emerging economy," International Journal of Production Economics, Elsevier, vol. 164(C), pages 234-244.
    4. Kimitaka Nishitani & Katsuhiko Kokubu & Takehisa Kajiwara, 2016. "Does low-carbon supply chain management reduce greenhouse gas emissions more effectively than existing environmental initiatives? An empirical analysis of Japanese manufacturing firms," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 33-60, February.
    5. Reif, Christiane & Rexhäuser, Sascha, 2015. "Good enough! Are socially responsible companies the more successful environmental innovators?," ZEW Discussion Papers 15-018, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. McGuire, William, 2014. "The effect of ISO 14001 on environmental regulatory compliance in China," Ecological Economics, Elsevier, vol. 105(C), pages 254-264.
    7. Barbara Fura & Qingfang Wang, 2017. "The level of socioeconomic development of EU countries and the state of ISO 14001 certification," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(1), pages 103-119, January.
    8. 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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