IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v13y2024i2p357-361.html
   My bibliography  Save this article

Study of Firm Performance: EMS Adopter Firms to Achieve Sustainable Business Goals

Author

Listed:
  • Muhammad Raees Ashraf

    (Muhammad Raees Ashraf)

  • Dr. Kausar Abbas

    (Associate Professor, Department of Business Administration, University of Sialkot, Pakistan)

Abstract

EMS effectiveness is studied concerning financial, environmental, and competitive outcomes among corporations. A comparative analysis of Companies with EMS integrated into their management systems will be made with those Companies without EMS in this research. EMS’s contribution to business sustainability is also analyzed and validated with the help of quantitative research methods including panel data using the Generalized Method of Moments (GMM) and regression analysis. The research focuses on the differences in the financial results, the positive impact on the natural environment, and competitive advantage of enterprises that voluntarily apply the EMS compared to those that do not. The findings of this study shown that EMS adoption enhance environmental performance and offer competitive advantage by enhancing stakeholder relations and market positioning. This alters the nature and benefits that organizations experience while implementing EMS as some companies initially experience cost implications and functioning challenges but in the long run, EMS brings profitability and cost-effectiveness. It may provide more information on how EMS promotes and can sustain responsible business activities and the most effective means of doing so. The above analysis may be useful to firms and policy makers in understanding how to encourage sustainability that will benefit economies and the natural environment in the long-term.

Suggested Citation

  • Muhammad Raees Ashraf & Dr. Kausar Abbas, 2024. "Study of Firm Performance: EMS Adopter Firms to Achieve Sustainable Business Goals," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 357-361.
    • Handle: RePEc:rfh:bbejor:v:13:y:2024:i:2:p:357-361
    DOI: https://doi.org/10.61506/01.00338
    as

    Download full text from publisher

    File URL: https://bbejournal.com/BBE/article/view/854/838
    Download Restriction: no
    File URL: https://bbejournal.com/BBE/article/view/854
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.61506/01.00338?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    2. Francesco Testa & Iñaki Heras-Saizarbitoria & Tiberio Daddi & Olivier Boiral & Fabio Iraldo, 2016. "Public regulatory relief and the adoption of environmental management systems: a European survey," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 59(12), pages 2231-2250, December.
    3. Lo, Chris K.Y. & Yeung, Andy C.L. & Cheng, T.C.E., 2012. "The impact of environmental management systems on financial performance in fashion and textiles industries," International Journal of Production Economics, Elsevier, vol. 135(2), pages 561-567.
    4. Bishawjit Chandra Deb & Md. Mominur Rahman & Muhammad Shajib Rahman, 2022. "The impact of environmental management accounting on environmental and financial performance: empirical evidence from Bangladesh," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 19(3), pages 420-446, July.
    5. Darnall, Nicole & Henriques, Irene & Sadorsky, Perry, 2008. "Do environmental management systems improve business performance in an international setting?," Journal of International Management, Elsevier, vol. 14(4), pages 364-376, December.
    6. Robert D. Klassen & Curtis P. McLaughlin, 1996. "The Impact of Environmental Management on Firm Performance," Management Science, INFORMS, vol. 42(8), pages 1199-1214, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hernandez-Vivanco, Alfonso & Domingues, Pedro & Sampaio, Paulo & Bernardo, Merce & Cruz-Cázares, Claudio, 2019. "Do multiple certifications leverage firm performance? A dynamic approach," International Journal of Production Economics, Elsevier, vol. 218(C), pages 386-399.
    2. Frondel, Manuel & Krätschell, Karoline & Zwick, Lina, 2018. "Environmental management systems: Does certification pay?," Economic Analysis and Policy, Elsevier, vol. 59(C), pages 14-24.
    3. repec:zbw:rwirep:0519 is not listed on IDEAS
    4. Manuel Frondel & Karoline Krätschell & Lina Zwick, 2014. "Environmental Management Systems – Does Certification Pay?," Ruhr Economic Papers 0519, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Lik Man Daphne Yiu & Ka Yui Karl Wu, 2021. "The Interactions of Absorptive Capacity, Buffer Inventory, and Toxic Emissions on Firm Value," IJERPH, MDPI, vol. 18(4), pages 1-18, February.
    6. Suhong Li & Thomas Ngniatedema & Fang Chen, 2017. "Understanding the Impact of Green Initiatives and Green Performance on Financial Performance in the US," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 776-790, September.
    7. Kerstin Lopatta & Thomas Kaspereit, 2014. "The World Capital Markets’ Perception of Sustainability and the Impact of the Financial Crisis," Journal of Business Ethics, Springer, vol. 122(3), pages 475-500, July.
    8. Hammad Riaz & Abubakr Saeed & Muhammad Saad Baloch & Nasrullah & Zeeshan Ahmad Khan, 2019. "Valuation of Environmental Management Standard ISO 14001: Evidence from an Emerging Market," JRFM, MDPI, vol. 12(1), pages 1-14, January.
    9. Fisher-Vanden, Karen & Thorburn, Karin S., 2011. "Voluntary corporate environmental initiatives and shareholder wealth," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 430-445.
    10. He, Wenlong & Liu, Chong & Lu, Jiangyong & Cao, Jing, 2015. "Impacts of ISO 14001 adoption on firm performance: Evidence from China," China Economic Review, Elsevier, vol. 32(C), pages 43-56.
    11. Luca Marrucci & Tiberio Daddi & Fabio Iraldo, 2022. "Do dynamic capabilities matter? A study on environmental performance and the circular economy in European certified organisations," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2641-2657, September.
    12. Biao Li & Kekun Wu, 2017. "Environmental Management System Adoption and the Operational Performance of Firm in the Textile and Apparel Industry of China," Sustainability, MDPI, vol. 9(6), pages 1-11, June.
    13. Taiwen Feng & Dan Wang, 2016. "The Influence of Environmental Management Systems on Financial Performance: A Moderated-Mediation Analysis," Journal of Business Ethics, Springer, vol. 135(2), pages 265-278, May.
    14. Yang, Zhenbing & Shao, Shuai & Yang, Lili, 2021. "Unintended consequences of carbon regulation on the performance of SOEs in China: The role of technical efficiency," Energy Economics, Elsevier, vol. 94(C).
    15. Christin Seifert, 2018. "The Barriers for Voluntary Environmental Management Systems—The Case of EMAS in Hospitals," Sustainability, MDPI, vol. 10(5), pages 1-19, May.
    16. Sergio Manrique & Carmen-Pilar Martí-Ballester, 2017. "Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries," Sustainability, MDPI, vol. 9(11), pages 1-30, October.
    17. Vera Ferrón Vílchez & Nicole Darnall, 2016. "Two are Better Than One: The Link Between Management Systems and Business Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 25(4), pages 221-240, May.
    18. Joan Torrent‐Sellens & Pilar Ficapal‐Cusí & Mihaela Enache‐Zegheru, 2023. "Boosting environmental management: The mediating role of Industry 4.0 between environmental assets and economic and social firm performance," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 753-768, January.
    19. Javier Aguilera-Caracuel & Juan Aragón-Correa & Nuria Hurtado-Torres & Alan Rugman, 2012. "The Effects of Institutional Distance and Headquarters’ Financial Performance on the Generation of Environmental Standards in Multinational Companies," Journal of Business Ethics, Springer, vol. 105(4), pages 461-474, February.
    20. Ding, Li & Lam, Hugo K.S. & Cheng, T.C.E. & Zhou, Honggeng, 2018. "A review of short-term event studies in operations and supply chain management," International Journal of Production Economics, Elsevier, vol. 200(C), pages 329-342.
    21. Tang, Ailie K.Y. & Lai, Kee-hung & Cheng, T.C.E., 2016. "A Multi-research-method approach to studying environmental sustainability in retail operations," International Journal of Production Economics, Elsevier, vol. 171(P3), pages 394-404.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfh:bbejor:v:13:y:2024:i:2:p:357-361. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Irfan Chani (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.