Institutional pressure and waste reduction: The role of investments in waste reduction resources

Abstract The introduction of increased recycling and recovery laws in the E.U. and a growing number of countries have forced firms to consider their waste reduction performance. Firms that are unable to understand the complexities of waste recycling and recovery are increasingly at a disadvantage relative to firms that can. Firms for example that do not develop capabilities that support waste recycling must rely on costly third party disposal and treatment options. Identification of beneficial combinations of waste reduction resources however that can be used by firms remains under-explored. In this study, it is proposed that firms' investment in resources that allow them to improve their waste reduction performance has competitive advantage implications. These resources are expected to mediate the relationship between external pressure to reduce waste and firms' waste reduction performance. These resources, such as equipment, personnel or R&D, provide firms with important context-specific capabilities. In this study, the relationship between institutional pressures, waste reduction resources and performance was assessed for a sample of U.S. manufacturers. Study findings indicated that firms' investments in waste reduction resources provided them with significant advantages in the form of increased pollution and cost reduction. The results suggest that waste reduction resources better position firms to predict and effectively respond to institutional pressures. From a policy perspective, the benefits of waste reduction resources can be highlighted and more specific payback calculated for specific resource types. The findings of this study further support the role of resources to environmental performance improvement in the study of sustainable operations.

[1]  Andrew King,et al.  Exploring the Locus of Profitable Pollution Reduction , 2002, Manag. Sci..

[2]  Joseph Sarkis,et al.  Barriers to the Implementation of Environmentally Oriented Reverse Logistics: Evidence from the Automotive Industry Sector , 2010 .

[3]  C. Armstrong,et al.  A Review of Approaches to Empirical Research on the Resource-Based View of the Firm† , 2007 .

[4]  P. Bansal.  Evolving sustainably: a longitudinal study of corporate sustainable development , 2005 .

[5]  Michael J. Lenox,et al.  LEAN AND GREEN? AN EMPIRICAL EXAMINATION OF THE RELATIONSHIP BETWEEN LEAN PRODUCTION AND ENVIRONMENTAL PERFORMANCE , 2001 .

[6]  Edward S. Rubin,et al.  Regulation as the Mother of Innovation: The Case of So2 Control , 2005 .

[7]  Mark Cordano,et al.  Pollution Reduction Preferences of U.S. Environmental Managers: Applying Ajzen'S Theory of Planned Behavior , 2000 .

[8]  E. Williams,et al.  Exploring e-waste management systems in the United States , 2008 .

[9]  Joseph Sarkis,et al.  RELATIONSHIPS BETWEEN OPERATIONAL PRACTICES AND PERFORMANCE AMONG EARLY ADOPTERS OF GREEN SUPPLY CHAIN MANAGEMENT PRACTICES IN CHINESE MANUFACTURING ENTERPRISES , 2004 .

[10]  Joseph Sarkis,et al.  Relationships between solid waste management performance and environmental practice adoption in Welsh small and medium-sized enterprises (SMEs) , 2007 .

[11]  R. Calantone,et al.  Assessing the impact of environmental management systems on corporate and environmental performance , 2003 .

[12]  Andrew A. King,et al.  Prospects for Developing Absorptive Capacity Through Internal Information Provision , 2004 .

[13]  Monique L. French,et al.  Closed-loop supply chains in process industries: An empirical study of producer re-use issues , 2006 .

[14]  M. Mazzanti,et al.  Economic instruments and induced innovation: The European policies on end-of-life vehicles , 2006 .

[15]  P. Desrochers,et al.  Does the invisible hand have a green thumb? Incentives, linkages, and the creation of wealth out of industrial waste in Victorian England , 2009 .

[16]  Robert U. Ayres,et al.  Metals recycling: economic and environmental implications , 1997 .

[17]  J. Scott Armstrong,et al.  Estimating nonresponse bias in mail surveys. , 1977 .

[18]  N. Jacobsen.  Industrial Symbiosis in Kalundborg, Denmark: A Quantitative Assessment of Economic and Environmental Aspects , 2006 .

[19]  Baptiste Lebreton,et al.  A quantitative approach to assessing the profitability of car and truck tire remanufacturing , 2006 .

[20]  Joseph Sarkis,et al.  Stakeholder pressure and the adoption of environmental practices: The mediating effect of training , 2010 .

[21]  Sime Curkovic,et al.  Total Quality Environmental Management and Total Cost Assessment: An exploratory study , 2007 .

[22]  Danny Samson,et al.  Greening the automotive supply chain: a relationship perspective , 2007 .

[23]  S. Hart.  A Natural-Resource-Based View of the Firm , 1995 .

[24]  Joseph A. Cote,et al.  Lack of method variance in self-reported affect and perceptions at work: Reality or artifact? , 1989 .

[25]  Stephan Vachon,et al.  COLLABORATION AND EVALUATION IN THE SUPPLY CHAIN: THE IMPACT ON PLANT‐LEVEL ENVIRONMENTAL INVESTMENT , 2003 .

[26]  Kevin W Linderman,et al.  Hazardous waste disposal: A waste-fuel blending approach , 2009 .

[27]  Robert D. Klassen,et al.  Linking forward and reverse supply chain investments: The role of business uncertainty , 2007 .

[28]  Guo-Ciang Wu,et al.  The effects of GSCM drivers and institutional pressures on GSCM practices in Taiwan’s textile and apparel industry , 2012 .

[29]  Kendall Roth,et al.  Why Companies Go Green: A Model of Ecological Responsiveness , 2000 .

[30]  Rawshan Ara Begum,et al.  Attitude and behavioral factors in waste management in the construction industry of Malaysia , 2009 .

[31]  R. Hayes.  Restoring our competitive edge , 1984 .

[32]  Sameer Kumar,et al.  Cradle to cradle: Reverse logistics strategies and opportunities across three industry sectors , 2008 .

[33]  H. Wee,et al.  Green-component life-cycle value on design and reverse manufacturing in semi-closed supply chain , 2008 .

[34]  Perry Sadorsky,et al.  The Relationship Between Environmental Commitment and Managerial Perceptions of Stakeholder Importance , 1999 .

[35]  Don A. Dillman,et al.  Mail and electronic surveys : the tailored design method , 2000 .

[36]  Ivan Montiel,et al.  Greening the Supply Chain: When is Customer Pressure Effective? , 2009 .

[37]  Sandra Rothenberg,et al.  ENVIRONMENTAL PERFORMANCE AS A DRIVER OF SUPERIOR QUALITY , 2003 .

[38]  J. Hair.  Multivariate data analysis , 1972 .

[39]  Perry Sadorsky,et al.  Adopting Proactive Environmental Strategy: The Influence of Stakeholders and Firm Size , 2009 .

[40]  W. Scott,et al.  Institutions and Organizations. , 1995 .

[41]  Augustine A. Lado,et al.  Inter‐organizational communication as a relational competency: Antecedents and performance outcomes in collaborative buyer–supplier relationships , 2008 .

[42]  Dennis W. Krumwiede,et al.  Efficacy of environmental and supplier relationship investments—moderating effects of external environment , 2007 .

[43]  Anna Alberini,et al.  Forcing Firms to Think About the Future: Economic Incentives and the Fate of Hazardous Waste , 2007 .

[44]  K. Lai,et al.  An Organizational Theoretic Review of Green Supply Chain Management Literature , 2011 .

[45]  Ravi Subramanian,et al.  An empirical investigation of environmental performance and the market value of the firm , 2010 .

[46]  Madhu Khanna,et al.  EPA's Voluntary 33/50 Program: Impact on Toxic Releases and Economic Performance of Firms , 1999 .

[47]  Dayna Simpson,et al.  Use of supply relationships to recycle secondary materials , 2010 .

[48]  B. Laplante,et al.  Determinants of environmental performance in the Canadian pulp and paper industry: An assessment from inside the industry , 2005 .

[49]  Hai-Yong Kang,et al.  Electronic waste recycling: A review of U.S. infrastructure and technology options , 2005 .

[50]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[51]  F.O. Ongondo,et al.  How are WEEE doing? A global review of the management of electrical and electronic wastes. , 2011, Waste management.

[52]  P. M. Podsakoff,et al.  Self-Reports in Organizational Research: Problems and Prospects , 1986 .

[53]  Joy M. Field,et al.  The use of recycled materials in manufacturing: implications for supply chain management and operations strategy , 2007 .

[54]  P. Bentler,et al.  Comparative fit indexes in structural models. , 1990, Psychological bulletin.

[55]  Vic Naiker,et al.  The Effect of Board Characteristics on Firm Environmental Performance , 2011 .

[56]  M. Toffel,et al.  How Firms Respond to Being Rated , 2009 .

[57]  Joseph Sarkis,et al.  The relationship between ISO 14001 and continuous source reduction programs , 2000 .

[58]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[59]  M. Toffel.  The Growing Strategic Importance of End-of-Life Product Management , 2003, IEEE Engineering Management Review.

[60]  G. Capelle-Blancard,et al.  How Does the Stock Market Respond to Chemical Disasters? , 2009 .

[61]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.

[62]  M. Toffel,et al.  Organizational Responses to Environmental Demands: Opening the Black Box , 2008 .

[63]  Luk N. Van Wassenhove,et al.  Behind the Learning Curve: Linking Learning Activities to Waste Reduction , 2000 .

[64]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[65]  Mark Pagell,et al.  The supply chain implications of recycling , 2007 .

[66]  W. Powell,et al.  The iron cage revisited institutional isomorphism and collective rationality in organizational fields , 1983 .

[67]  R. Klassen,et al.  The Impact of Environmental Technologies on Manufacturing Performance , 1999 .

[68]  Costas P. Pappis,et al.  Preventive maintenance and upgrade system: Optimizing the whole performance system by components’ replacement or rearrangement , 2008 .

[69]  Luk N. Van Wassenhove,et al.  Remanufacturing as a Marketing Strategy , 2008, Manag. Sci..