Linking Environmental Management

Linking Environmental Management Systems to Firm Performance: Empirical Evidence from an Emerging Economy

https://doi.org/10.35536/ljb.2024.v11.i2.a3

Submitted

November 22, 2023

Accepted

November 22, 2023

Accepted

November 22, 2023

Abstract

This study aims to determine how environmental performance and customer satisfaction affect the relationship between environmental management systems and company perfor mance. For this purpose,we have collected and analyzed data from 243 textile companies in Pakistan, using partial least squares structural equation modelling. Our empirical results indicate that environmental management systems have a positive and significant impact on business success, customer satisfaction and environmental performance. The findings also show that environmental performance and customr satisfaction mediate the relationship between environmental management systems and business performance in a complementary manner. Our findings show that environmental performance and customer happiness are essential for textile companies to benefit from environmental management systems. The results suggest that Pakistani textile companies should make better use of environmental management systems as valuable tools for addressing stakeholders’ concernsand for boosting financial profits.

Keywords

Environmental management systems

firm performance

customer satisfaction

environmental performance,

PLS-SEM

Pakistan

This work is licensed under LJB.

Bashir, A., Jawaad, M., Hasan, T., & Nasir, T. (2024). Linking Environmental Management Systems to Firm Performance: Empirical Evidence from an Emerging Economy. The Lahore Journal of Business, 11(2), 55-88.

https://doi.org/10.35536/ljb.2024.v11.i2.a3

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