Impact of sustainable manufacturing practices on consumer perception and revenue growth: an emerging economy perspective

The view that adopting an environmental perspective on operations can lead to improved operations has become commonplace over the past decade. The implication is that any operational system that has minimised inefficiencies is also more environmentally sustainable. In the first phase of our research, we conducted a field research of the green manufacturing techniques in place in two world-class, ISO 14001-certified paint manufacturing firms in India. This phase of the study was undertaken to ascertain the cost benefits that these firms enjoy due to green manufacturing and recycling. Based on the field work in these two companies, a conceptual framework was proposed to investigate any relationship between the consumer's attitude towards the environment and the perceived image of a company that was environmentally conscious. Subsequently, a survey was administered to understand the impact of green marketing on the decision of consumers to buy paint manufactured by a firm that stringently regulates its hazardous waste. Results indicate that there is a strong correlation between the environmental concern of the survey respondent and the perception that the respondent forms of the firm that has implemented green manufacturing techniques. There is also a strong correlation between the decision to buy a green product and the respondent's concern for the environment as well as the perception formed of the firm. Further research is required to substantiate the cost benefits of green manufacturing.

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