Environmental management practices and firm performance of manufacturing small and medium-sized enterprises

Abstract

Environmental management practices are the driving force for many
firms as they help to achieve sustainability. The current study revisits
the premises of effect of environmental management practices on
firm performance in Indian small- and medium-sized enterprise
(SM Es) context. This study considers firm performance as
environmental, marketing and financial performance, and argues the
moderating effect of top management commitment. We collected
data form 594 employees working in manufacturing firms of SMEs of
India. Structural equation modeling was used to test the paths, with
Hayes PROCESS macro for moderation analysis. The four dimensions
of environmental management practices were extracted. The
findings confirm the influence of environmental management
practices on firm performance. Further, top management
commitment significantly moderates the relationships. The study
offers an insights which is of interest to the companies and policy
makers for understanding important of environmental management
and its financial implications.