IDEAS home Printed from
   My bibliography  Save this paper

Voluntary Action Of A Firm On Enviroment Management: An Empirical Assessment On Sri Lankan Food Processing Firms’ Response To The Private And Regulatory Incentives


  • Jayasinghe-Mudalige, Udith K.
  • Udugama, J.M.M.
  • Ikram, S.M.M.


The effect of a set of private/market (i.e. financial implications, internal efficiency, market response) and public/non-market (i.e. government regulation, judiciary/legal system) incentives for a firm to act voluntarily on environmental quality is examined. It uses the levels of adoption of five solid waste management practices [SWMPs], namely: (1) 3R system; (2) Composting; (3) Good manufacturing practices; (4) Biogas unit, and (5) ISO 14000 by food processing sector in Sri Lanka in response to the prevalence of each incentive at the firm as the case. The data collected from 325 firms through in-depth interviews and site inspections and supported by a validated structured questionnaire were analyzed using the principles of Structural Equation Modeling. The “Analysis of Moment Structures” (AMOS) software was used to establish the relationships between the levels of adoption of SWMPs and the strength of each incentive. The results show that firms‟ response to environment is relatively low, i.e. 49.2% did not adopt a single practice, while only 28%, 12%, 7.4%, 3.1% and 0.3%, respectively, have adopted 1, 2, 3, 4 or all practices. Firms tend to adopt a higher number of SWMPs as the relative strength of an each incentive perceived by the decision maker of firm gets increases. Firms put a higher weight on the impact on regulation and legal system than the private incentives and the firm size has a substantial impact on its response to the environment. The results highlight the importance of bringing the current public regulatory regimes in developing countries like Sri Lanka towards co-regulation, which is practiced by developed countries like Australia and Canada to facilitate businesses to come up with own solutions for environmental and food quality, as the outcome of this analysis points out that firms‟ compliance to the recommended SWMP was not triggered satisfactorily by the private/voluntary action.

Suggested Citation

  • Jayasinghe-Mudalige, Udith K. & Udugama, J.M.M. & Ikram, S.M.M., 2011. "Voluntary Action Of A Firm On Enviroment Management: An Empirical Assessment On Sri Lankan Food Processing Firms’ Response To The Private And Regulatory Incentives," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100567, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare11:100567

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. D. W. Kinkini Hemachandra, 2015. "Adoption of Voluntary Environmental Practices: Evidence from the Textile and Apparel Industry in Sri Lanka," Working Papers id:7134, eSocialSciences.

    More about this item


    Environment management; Food processing sector in Sri Lanka; Incentives; Regulation; Solid waste management; Voluntary adoption; Farm Management;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:ags:aare11:100567. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.