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Evaluating the organizational intention to implement an Environmental Management System: evidence from the Indonesian food and beverage industry

Author

Listed:
  • Hengky K. Salim
  • Rory Padfield
  • Ali Yuzir
  • Shaza Eva Mohamad
  • Naoko Kaida
  • Effie Papargyropoulou
  • Shohei Nakamura

Abstract

The over‐exploitation of natural capital and unsustainable production practices has contributed to increased pollution, biodiversity loss, drought, and deforestation. The food and beverage (F&B) sector is one of the largest contributors to the Indonesian economy but it is also responsible for various environmental impacts. Implementing Environmental Management Systems (EMS) is one way to promote improved sustainable practices within organisations, particularly those within the F&B sector. This research investigates the drivers, barriers and incentives for implementing EMS and their causal relationships. Data were collected from 59 F&B companies in East Java, Indonesia. The results indicate that the implementation of EMS tends to be driven internally in an effort to enhance market competitiveness. There is a need for institutions to exert pressures to develop organizational capability to implement EMS. External barriers are significant impeding factors, while internal barriers do not have a direct link to EMS implementation. The moderating role of technical incentives underlines the need to improve infrastructure and policy to support EMS implementation. Theoretical and practical insights for governments and industries are also discussed.

Suggested Citation

  • Hengky K. Salim & Rory Padfield & Ali Yuzir & Shaza Eva Mohamad & Naoko Kaida & Effie Papargyropoulou & Shohei Nakamura, 2018. "Evaluating the organizational intention to implement an Environmental Management System: evidence from the Indonesian food and beverage industry," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1385-1398, December.
    • Handle: RePEc:bla:bstrat:v:27:y:2018:i:8:p:1385-1398
    DOI: 10.1002/bse.2188
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    2. Rocio Carrillo-Labella & Fatiha Fort & Manuel Parras-Rosa, 2020. "Motives, Barriers, and Expected Benefits of ISO 14001 in the Agri-Food Sector," Sustainability, MDPI, vol. 12(5), pages 1-17, February.
    3. Olaf Weber & Grace Saunders‐Hogberg, 2020. "Corporate social responsibility, water management, and financial performance in the food and beverage industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1937-1946, July.
    4. Nikunj Kumar Jain & Abinash Panda & Piyush Choudhary, 2020. "Institutional pressures and circular economy performance: The role of environmental management system and organizational flexibility in oil and gas sector," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3509-3525, December.
    5. Pei‐Chi Kelly Hsiao & Charl de Villiers & Claire Horner & Hein Oosthuizen, 2022. "A review and synthesis of contemporary sustainability accounting research and the development of a research agenda," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4453-4483, December.
    6. Christian Valery Tayo Tene & Olivier Boiral & Iñaki Heras‐Saizarbitoria, 2021. "Does quality management improve the internalization of environmental practices? An empirical study in Africa," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3053-3064, November.
    7. Fabien Martinez & Ken Peattie & Diego Vazquez‐brust & Diego Vazquez-Brust, 2019. "Beyond win–win: A syncretic theory on corporate stakeholder engagement in sustainable development," Post-Print hal-02887685, HAL.

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