The effects of pollution prevention on performance

Stephanie Graham, Rodney McAdam

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

Purpose
As pressure for companies to improve their environmental performance has intensified in recent years, research attention has shifted away from establishing a link between environmental practices and performance towards consideration of other factors that might facilitate performance improvements. The purpose of this paper is to: first, to investigate whether internal support processes interact with pollution prevention by positively moderating the relationship between pollution prevention and environmental performance; and, second, to assess whether the relationship between pollution prevention and cost performance is mediated by environmental performance.

Design/methodology/approach
It uses a cross-sectional survey of 1,200 UK-based food processing firms to gather information on environmental practices and performance. Regression analysis was conducted on a sample of 149 responding firms to assess the hypothesised relationships.

Findings
Support was found for two of the four moderated relationships hypothesised namely, suggesting that internal support processes support the environmental performance of some pollution prevention practices. Strong support for a mediated relationship between pollution prevention, environmental performance and cost performance was provided by the results.

Originality/value
This study provides an original contribution to the literature on the performance outcomes of environmental practices by considering a number indirect relationships between environmental practices and performance. This has implications for the interpretation of the relationship between environmental practices and performance.
LanguageEnglish
Pages1333-1358
JournalInternational Journal of Operations and Production Management
Volume36
Issue number10
DOIs
Publication statusPublished - 3 Oct 2016

Fingerprint

Pollution
Food processing
Regression analysis
Costs
Environmental performance
Pollution prevention
Industry
Environmental practices

Keywords

  • Pollution
  • performance measurement

Cite this

@article{31b33c1a02c5417e9975a78500a73989,
title = "The effects of pollution prevention on performance",
abstract = "PurposeAs pressure for companies to improve their environmental performance has intensified in recent years, research attention has shifted away from establishing a link between environmental practices and performance towards consideration of other factors that might facilitate performance improvements. The purpose of this paper is to: first, to investigate whether internal support processes interact with pollution prevention by positively moderating the relationship between pollution prevention and environmental performance; and, second, to assess whether the relationship between pollution prevention and cost performance is mediated by environmental performance.Design/methodology/approachIt uses a cross-sectional survey of 1,200 UK-based food processing firms to gather information on environmental practices and performance. Regression analysis was conducted on a sample of 149 responding firms to assess the hypothesised relationships.FindingsSupport was found for two of the four moderated relationships hypothesised namely, suggesting that internal support processes support the environmental performance of some pollution prevention practices. Strong support for a mediated relationship between pollution prevention, environmental performance and cost performance was provided by the results.Originality/valueThis study provides an original contribution to the literature on the performance outcomes of environmental practices by considering a number indirect relationships between environmental practices and performance. This has implications for the interpretation of the relationship between environmental practices and performance.",
keywords = "Pollution, performance measurement",
author = "Stephanie Graham and Rodney McAdam",
note = "Reference text: Abou-Elela, S., Nasr, F., Ibrahim, H., Badr, N. and Askalany, A. (2008). Pollution prevention pays off in a board paper mill, Journal of Cleaner Production, 16: 330-334. Accorsi, R., Cascini, A., Cholette, S. and Manzini, R. (2014). Economic and environmental assessment of reusable plastic containers: A food catering supply chain case study. International Journal of Production Economics, 152: 88-101. Aiken, L. and West, S. (1991). Multiple regression: testing and interpreting interactions. Newbury Park, CA, Sage Publications Inc. Ambrosini, V. and Bowman, C. (2009). What are dynamic capabilities and are they a useful construct in strategic management? International Journal of Management Reviews, 11 (1): 29-49. Aragon-Correa, J., & Sharma, S. (2003). A contingent resource-based view of proactive corporate environmental strategy. Academy of Management Review, 28: 71-88. Armstrong, C. and Shimizu, K. (2007). A review of approaches to empirical research on the resource-based view of the firm. Journal of Management, 33 (6): 959-986. Armstrong, S. J. and Overton, T. S. (1977). Estimating non-response bias in mail surveys. Journal of Marketing Research, 14(August): 396-402. Azadegan, A., Bush, D. and Dooley, K. (2008). Design creativity: static or dynamic capability? International Journal of Operations and Production Management, 28 (7): 636-662. Baron, R. and Kenny, D. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic and statistical considerations. Journal of Personality and Social Psychology, 51 (6): 1173-1182. Chen, I. and Paulraj, A. (2004). Towards a theory of supply chain management: the constructs and measurements. Journal of Operations Management, 22(2): 119-150. Christmann, P. (2000). Effects of {"}best practices{"} of environmental management on cost advantage: the role of complementary assets. Academy of Management Journal, 43(4): 663-680. Daily, B., Bishop, J. and Massoud, J. (2012). The role of training and empowerment in environmental performance. International Journal of Operations and Production Management, 32 (5): 631-647. Danese, P. and Romano, P. (2013). The moderating role of supply network structure on the customer integration-efficiency relationship. International Journal of Operations and Production Management, 33 (4): 372-393. Dawson, J. and Richter, A. (2006). Probing three-way interactions in moderated multiple regression: development and application of a slope difference test. Journal of Applied Psychology, 91(4): 917- 926. De Burgos-Jiminez, J., Vazquez-Brust, D. and Plaza-Ubeda, J. (2014). Environmental protection and financial performance: an empirical analysis in Wales, International Journal of Production and Operations Management, 33 (8): 981-1018. Dillman, D. (2007). Mail and Internet Surveys: The Tailored Design Method. New Jersey, John Wiley and Sons Inc. Drucker, D. (2005). Doing Research: Methods of Inquiry for Conflict Analysis. California, Sage Publications. Eisenhardt, K. and Martin, J. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21 (10-11): 1105-1121. Foerstl, K., Hartmann, E., Wynstra, F. and Moser, R. (2013). Cross-functional integration and functional coordination in purchasing and supply management: Antecedents and effects on purchasing and firm performance, International Journal of Operations and Production Management, 33 (6): 689- 721. Forza, C. (2002). Survey research in operations management: a process-based perspective. International Journal of Operations & Production Management, 22(2): 152-194. Galeazzo, A., Furlan, A. and Vinelli, A. (2014). Understanding environmental-operations integration: The case of pollution prevention projects. International Journal of Production Economics, 153: 149- 160. Graham, S. and A. Potter (2015). Environmental operations management and its links with proactivity and performance: A study of the UK food industry. International Journal of Production Economics, 170: 146-159. Green, K. W., Zelbst, P. J., Bhadauria, V. and Meacham, J. (2012). Do environmental collaboration and monitoring enhance organisational performance? Industrial Management and Data systems, 112(2): 186-205. Hair, J. F., Black, W. C., Babin, B., Anderson, R. and Tatham, R. (2006). Multivariate Data Analysis, Pearson Prentice Hall. Hart, S. and Dowell, G. (2011). A natural-resource-based view of the firm: Fifteen years after. Journal of Management, 37 (5): 1464-1479. Hart, S. L. (1997). Beyond greening: strategies for sustainable development. Harvard Business Review, 75(1): 66-76. Hart, S. and Ahuja, G. (1996). Does it pay to be green? Business Strategy and the Environment, 5: 30-37. Hart, S. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4): 986- 1014. Hofer, C., D. Cantor and J. Dai (2012). The competitive determinants of a firm’s environmental management activities: Evidence from US manufacturing industries. Journal of Operations Management, 30: 69- 84. Hollos, D., C. Blome, and K. Foerstl (2012). Does sustainable supplier co-operation affect performance? Examining implications for the triple bottom line. International Journal of Production Research, 50 (11): 2968-2986. Hoque, A. and Clarke, A. (2013). Greening of industries in Bangladesh: pollution prevention practices. Journal of Cleaner Production, 51: 47-56. Hsu, C., Tan, K., Zailani, S. and Jayaraman, V. (2013).Supply chain drivers that foster the development of green initiatives in an emerging economy. International Journal of Operations and Production Management, 33 (6): 656-688. Iwata, H. and Okada, K. (2011). How does environmental performance affect financial performance? Evidence from Japanese manufacturing firms, Ecological Economics, 70: 1691-1700. Klassen, R. (2000). Exploring the linkage between investment in manufacturing and environmental technologies. International Journal of Operations and Production Management, 20 (2): 127-147. Lopez-Gamero, M., Molina-Azorin, J. and Claver-Cortes, E. (2009). The whole relationship between environmental variables and firm performance: Competitive advantage and firm resources as mediator variables, Journal of Environmental Management, 90: 3110-3121. Maloni, M. and Brown, M. (2006). Corporate social responsibility in the supply chain: An application in the food industry. Journal of Business Ethics, 68: 35-52. Mattas, K. and Tsakiridou, E. (2010). Shedding fresh light on food industry’s role: the recession’s aftermath. Trends in Food Science and Technology, 21: 212-216. Michalisin, M. D. and Stinchfield, B. T. (2010). Climate Change Strategies and Firm Performance: An Empirical Investigation of the Natural Resource- Based View of the Firm. Journal of Business Strategies, 27(2): 123-149. Montabon, F., Sroufe, R. and Narashimhan, R. (2007). An examination of corporate reporting, environmental management practices and firm performance. Journal of Operations Management, 25: 998-1014. Munguia, N., Zavala, A. and Marin, A. (2010). Identifying pollution prevention opportunities in the Mexican auto refining industry. Management of Environmental Quality: An International Journal, 21 (3): 324-335. Naor, M., S. Bernardes, C. Druehl and Y. Shiftan (2015). Overcoming barriers to adoption of environmentally-friendly innovations through design and strategy. International Journal of Operations and Production Mnaagment, 35 (1): 26-59. Pagell, M. (2004). Understanding the factors that enable and inhibit the integration of operations, purchasing and logistics. Journal of Operations Management, 22(5): 459-487. Pagell, M. and Z. Wu (2009). Building a more complete theory of sustainable supply chain management using case studies of 10 exemplars. Journal of Supply Chain Management, 45(2): 37-56. Paulraj, A. and P. de Jong (2011). The effect of ISO 14001 certification announcements on stock performance. International Journal of Operations and Production Management. 31 (7): 765-788. Preacher, K. and Hayes, A. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behaviour research methods, Instruments & Computers, 36 (4): 717-731. Pullman, M., Maloni, M. and Carter, C. (2009). Food for thought: social versus environmental sustainability practices and performance outcomes. Journal of Supply Chain Management, 45(4): 38-54. Rao, P. and Holt, D. (2005). Do green supply chains lead to competitiveness and economic performance? International Journal of Production and Operations Management, 25(9): 898-916. Ronnenberg, S., Graham, M. and Mahmoodi, F. (2011). The important role of change management in environmental management system implementation. International Journal of Operations and Production Management, 31 (6): 631-647. Sarkis, J., Gonzalez-Torre, P. and Adenso-Dias, B. (2010). Stakeholder pressure and the adoption of environmental practices: The mediating effect of training. Journal of Operations Management, 28: 163-176. Schoenherr, T. (2012). The role of environmental managemen in sustainable business development: A multicountry investigation. International Journal of Production Economics, 140: 116-128. Schreyogg, G. and Kliesch-Eberl, M. (2007). How dynamic can organisational capabilities be? Strategic Management Journal, 28 (9): 913-933. Simpson, D. and R. Sroufe (2014). Stakeholders, reward expectations and firms’ use of the ISO14001 management standard. International Journal of Production and Operations Management, 34 (7): 830-852. Srivastava, S. K. (2007). Green supply-chain management: a state of the art literature review. International Journal of Management Reviews, 9(1): 53-80. Tashman, P. and Marano, V. (2009). Dynamic capabilities and base of the pyramid strategies. Journal of Business Ethics, 89 (4): 495-514. Tate, W., Ellram, L. and Kirchoff, J. (2010). Corporate social responsibility reports: A thematic analysis related to supply chain management. Journal of Supply Chain Management, 46(1): 19. Teece, D. (2009). Dynamic Capabilities and Strategic Management: Organising for innovation and growth, Oxford University Press.",
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The effects of pollution prevention on performance. / Graham, Stephanie; McAdam, Rodney.

In: International Journal of Operations and Production Management, Vol. 36, No. 10, 03.10.2016, p. 1333-1358.

Research output: Contribution to journalArticle

TY - JOUR

T1 - The effects of pollution prevention on performance

AU - Graham, Stephanie

AU - McAdam, Rodney

N1 - Reference text: Abou-Elela, S., Nasr, F., Ibrahim, H., Badr, N. and Askalany, A. (2008). Pollution prevention pays off in a board paper mill, Journal of Cleaner Production, 16: 330-334. Accorsi, R., Cascini, A., Cholette, S. and Manzini, R. (2014). Economic and environmental assessment of reusable plastic containers: A food catering supply chain case study. International Journal of Production Economics, 152: 88-101. Aiken, L. and West, S. (1991). Multiple regression: testing and interpreting interactions. Newbury Park, CA, Sage Publications Inc. Ambrosini, V. and Bowman, C. (2009). What are dynamic capabilities and are they a useful construct in strategic management? International Journal of Management Reviews, 11 (1): 29-49. Aragon-Correa, J., & Sharma, S. (2003). A contingent resource-based view of proactive corporate environmental strategy. Academy of Management Review, 28: 71-88. Armstrong, C. and Shimizu, K. (2007). A review of approaches to empirical research on the resource-based view of the firm. Journal of Management, 33 (6): 959-986. Armstrong, S. J. and Overton, T. S. (1977). Estimating non-response bias in mail surveys. Journal of Marketing Research, 14(August): 396-402. Azadegan, A., Bush, D. and Dooley, K. (2008). Design creativity: static or dynamic capability? International Journal of Operations and Production Management, 28 (7): 636-662. Baron, R. and Kenny, D. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic and statistical considerations. Journal of Personality and Social Psychology, 51 (6): 1173-1182. Chen, I. and Paulraj, A. (2004). Towards a theory of supply chain management: the constructs and measurements. Journal of Operations Management, 22(2): 119-150. Christmann, P. (2000). Effects of "best practices" of environmental management on cost advantage: the role of complementary assets. Academy of Management Journal, 43(4): 663-680. Daily, B., Bishop, J. and Massoud, J. (2012). The role of training and empowerment in environmental performance. International Journal of Operations and Production Management, 32 (5): 631-647. Danese, P. and Romano, P. (2013). The moderating role of supply network structure on the customer integration-efficiency relationship. International Journal of Operations and Production Management, 33 (4): 372-393. Dawson, J. and Richter, A. (2006). Probing three-way interactions in moderated multiple regression: development and application of a slope difference test. Journal of Applied Psychology, 91(4): 917- 926. De Burgos-Jiminez, J., Vazquez-Brust, D. and Plaza-Ubeda, J. (2014). Environmental protection and financial performance: an empirical analysis in Wales, International Journal of Production and Operations Management, 33 (8): 981-1018. Dillman, D. (2007). Mail and Internet Surveys: The Tailored Design Method. New Jersey, John Wiley and Sons Inc. Drucker, D. (2005). Doing Research: Methods of Inquiry for Conflict Analysis. California, Sage Publications. Eisenhardt, K. and Martin, J. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21 (10-11): 1105-1121. Foerstl, K., Hartmann, E., Wynstra, F. and Moser, R. (2013). Cross-functional integration and functional coordination in purchasing and supply management: Antecedents and effects on purchasing and firm performance, International Journal of Operations and Production Management, 33 (6): 689- 721. Forza, C. (2002). Survey research in operations management: a process-based perspective. International Journal of Operations & Production Management, 22(2): 152-194. Galeazzo, A., Furlan, A. and Vinelli, A. (2014). Understanding environmental-operations integration: The case of pollution prevention projects. International Journal of Production Economics, 153: 149- 160. Graham, S. and A. Potter (2015). Environmental operations management and its links with proactivity and performance: A study of the UK food industry. International Journal of Production Economics, 170: 146-159. Green, K. W., Zelbst, P. J., Bhadauria, V. and Meacham, J. (2012). Do environmental collaboration and monitoring enhance organisational performance? Industrial Management and Data systems, 112(2): 186-205. Hair, J. F., Black, W. C., Babin, B., Anderson, R. and Tatham, R. (2006). Multivariate Data Analysis, Pearson Prentice Hall. Hart, S. and Dowell, G. (2011). A natural-resource-based view of the firm: Fifteen years after. Journal of Management, 37 (5): 1464-1479. Hart, S. L. (1997). Beyond greening: strategies for sustainable development. Harvard Business Review, 75(1): 66-76. Hart, S. and Ahuja, G. (1996). Does it pay to be green? Business Strategy and the Environment, 5: 30-37. Hart, S. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4): 986- 1014. Hofer, C., D. Cantor and J. Dai (2012). The competitive determinants of a firm’s environmental management activities: Evidence from US manufacturing industries. Journal of Operations Management, 30: 69- 84. Hollos, D., C. Blome, and K. Foerstl (2012). Does sustainable supplier co-operation affect performance? Examining implications for the triple bottom line. International Journal of Production Research, 50 (11): 2968-2986. Hoque, A. and Clarke, A. (2013). Greening of industries in Bangladesh: pollution prevention practices. Journal of Cleaner Production, 51: 47-56. Hsu, C., Tan, K., Zailani, S. and Jayaraman, V. (2013).Supply chain drivers that foster the development of green initiatives in an emerging economy. International Journal of Operations and Production Management, 33 (6): 656-688. Iwata, H. and Okada, K. (2011). How does environmental performance affect financial performance? Evidence from Japanese manufacturing firms, Ecological Economics, 70: 1691-1700. Klassen, R. (2000). Exploring the linkage between investment in manufacturing and environmental technologies. International Journal of Operations and Production Management, 20 (2): 127-147. Lopez-Gamero, M., Molina-Azorin, J. and Claver-Cortes, E. (2009). The whole relationship between environmental variables and firm performance: Competitive advantage and firm resources as mediator variables, Journal of Environmental Management, 90: 3110-3121. Maloni, M. and Brown, M. (2006). Corporate social responsibility in the supply chain: An application in the food industry. Journal of Business Ethics, 68: 35-52. Mattas, K. and Tsakiridou, E. (2010). Shedding fresh light on food industry’s role: the recession’s aftermath. Trends in Food Science and Technology, 21: 212-216. Michalisin, M. D. and Stinchfield, B. T. (2010). Climate Change Strategies and Firm Performance: An Empirical Investigation of the Natural Resource- Based View of the Firm. Journal of Business Strategies, 27(2): 123-149. Montabon, F., Sroufe, R. and Narashimhan, R. (2007). An examination of corporate reporting, environmental management practices and firm performance. Journal of Operations Management, 25: 998-1014. Munguia, N., Zavala, A. and Marin, A. (2010). Identifying pollution prevention opportunities in the Mexican auto refining industry. Management of Environmental Quality: An International Journal, 21 (3): 324-335. Naor, M., S. Bernardes, C. Druehl and Y. Shiftan (2015). Overcoming barriers to adoption of environmentally-friendly innovations through design and strategy. International Journal of Operations and Production Mnaagment, 35 (1): 26-59. Pagell, M. (2004). Understanding the factors that enable and inhibit the integration of operations, purchasing and logistics. Journal of Operations Management, 22(5): 459-487. Pagell, M. and Z. Wu (2009). Building a more complete theory of sustainable supply chain management using case studies of 10 exemplars. Journal of Supply Chain Management, 45(2): 37-56. Paulraj, A. and P. de Jong (2011). The effect of ISO 14001 certification announcements on stock performance. International Journal of Operations and Production Management. 31 (7): 765-788. Preacher, K. and Hayes, A. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behaviour research methods, Instruments & Computers, 36 (4): 717-731. Pullman, M., Maloni, M. and Carter, C. (2009). Food for thought: social versus environmental sustainability practices and performance outcomes. Journal of Supply Chain Management, 45(4): 38-54. Rao, P. and Holt, D. (2005). Do green supply chains lead to competitiveness and economic performance? International Journal of Production and Operations Management, 25(9): 898-916. Ronnenberg, S., Graham, M. and Mahmoodi, F. (2011). The important role of change management in environmental management system implementation. International Journal of Operations and Production Management, 31 (6): 631-647. Sarkis, J., Gonzalez-Torre, P. and Adenso-Dias, B. (2010). Stakeholder pressure and the adoption of environmental practices: The mediating effect of training. Journal of Operations Management, 28: 163-176. Schoenherr, T. (2012). The role of environmental managemen in sustainable business development: A multicountry investigation. International Journal of Production Economics, 140: 116-128. Schreyogg, G. and Kliesch-Eberl, M. (2007). How dynamic can organisational capabilities be? Strategic Management Journal, 28 (9): 913-933. Simpson, D. and R. Sroufe (2014). Stakeholders, reward expectations and firms’ use of the ISO14001 management standard. International Journal of Production and Operations Management, 34 (7): 830-852. Srivastava, S. K. (2007). Green supply-chain management: a state of the art literature review. International Journal of Management Reviews, 9(1): 53-80. Tashman, P. and Marano, V. (2009). Dynamic capabilities and base of the pyramid strategies. Journal of Business Ethics, 89 (4): 495-514. Tate, W., Ellram, L. and Kirchoff, J. (2010). Corporate social responsibility reports: A thematic analysis related to supply chain management. Journal of Supply Chain Management, 46(1): 19. Teece, D. (2009). Dynamic Capabilities and Strategic Management: Organising for innovation and growth, Oxford University Press.

PY - 2016/10/3

Y1 - 2016/10/3

N2 - PurposeAs pressure for companies to improve their environmental performance has intensified in recent years, research attention has shifted away from establishing a link between environmental practices and performance towards consideration of other factors that might facilitate performance improvements. The purpose of this paper is to: first, to investigate whether internal support processes interact with pollution prevention by positively moderating the relationship between pollution prevention and environmental performance; and, second, to assess whether the relationship between pollution prevention and cost performance is mediated by environmental performance.Design/methodology/approachIt uses a cross-sectional survey of 1,200 UK-based food processing firms to gather information on environmental practices and performance. Regression analysis was conducted on a sample of 149 responding firms to assess the hypothesised relationships.FindingsSupport was found for two of the four moderated relationships hypothesised namely, suggesting that internal support processes support the environmental performance of some pollution prevention practices. Strong support for a mediated relationship between pollution prevention, environmental performance and cost performance was provided by the results.Originality/valueThis study provides an original contribution to the literature on the performance outcomes of environmental practices by considering a number indirect relationships between environmental practices and performance. This has implications for the interpretation of the relationship between environmental practices and performance.

AB - PurposeAs pressure for companies to improve their environmental performance has intensified in recent years, research attention has shifted away from establishing a link between environmental practices and performance towards consideration of other factors that might facilitate performance improvements. The purpose of this paper is to: first, to investigate whether internal support processes interact with pollution prevention by positively moderating the relationship between pollution prevention and environmental performance; and, second, to assess whether the relationship between pollution prevention and cost performance is mediated by environmental performance.Design/methodology/approachIt uses a cross-sectional survey of 1,200 UK-based food processing firms to gather information on environmental practices and performance. Regression analysis was conducted on a sample of 149 responding firms to assess the hypothesised relationships.FindingsSupport was found for two of the four moderated relationships hypothesised namely, suggesting that internal support processes support the environmental performance of some pollution prevention practices. Strong support for a mediated relationship between pollution prevention, environmental performance and cost performance was provided by the results.Originality/valueThis study provides an original contribution to the literature on the performance outcomes of environmental practices by considering a number indirect relationships between environmental practices and performance. This has implications for the interpretation of the relationship between environmental practices and performance.

KW - Pollution

KW - performance measurement

U2 - 10.1108/IJOPM-05-2015-0289

DO - 10.1108/IJOPM-05-2015-0289

M3 - Article

VL - 36

SP - 1333

EP - 1358

JO - International Journal of Operations and Production Management

T2 - International Journal of Operations and Production Management

JF - International Journal of Operations and Production Management

SN - 0144-3577

IS - 10

ER -