Pre- and post-production water treatment in the food processing industry: managerial perceptions of environmental pressure increase adoption of voluntary environmental management

Purpose - This paper examines pre- and post-production water treatment practices among food processors and investigates factors, especially managerial perceptions of environmental pressure that encourage or preclude either process. Design/methodology/approach - To consider potential spillover effects across two water-treatment practices, the bivariate probit model based on random utility theory is used to investigate how practices are influenced by managerial perceptions of environmental pressure and measured by manager perceptions on water costs, water availability, water safety and quality. Findings - Results indicate that firms with a managerial perception that water costs are low are less likely to conduct both pre- and post-production water treatment practices, while the perception of high water quality has a negative effect on water treatment prior to use. This study also confirms the positive correlation of the pre- and post-water treatment practices among food processors. Practices also change with firm features including production scope, scale, target market and expected future sales growth. Practical implications - This study provides unique insights about water treatment practices and generates knowledge to enhance food safety and environmental sanitation in the food industry. Results are helpful to design and provide additional training and educational programs that target the enhancement of environmental and water quality awareness among food company managers and modify food safety policy instruments and environmental regulations pertaining to surface water resources. Originality/value - Research exploring water-treatment practices in the food industry has been limited. Using a representative sample of food processors in the city of Shanghai, this study contributes to the literature on the examination of internal drivers of voluntary environmental management (VEM) with a focus on managerial perceptions of environmental pressure, establishes the correlation between pre- and post-production water treatment practices and identifies and quantifies the effects of relevant factors.