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The impact of national culture on corporate adoption of environmental management practices and their effectiveness

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  • Song, Fei (Sophie)
  • Montabon, Frank
  • Xu, Yuhang

Abstract

National culture matters in business as it affects managerial attitudes, values, behaviors, and efficacy in organizations. It contributes to our understanding of environmental management issues as well. Previous studies investigating the link between national culture and environmental performance had mixed findings as they overlooked the intervening mechanism between the two—firm environmental management practice (EMP) adoption. This paper considers the missing link, lays out a complete theoretical framework, and empirically tests the effects of national culture on firm EMP adoption and EMP effectiveness. The analysis uses data collected during the 5th round of the Global Manufacturing Research Group (GMRG) survey, Hofstede cultural dimensions, and World Bank Database. Hierarchical linear models (HLMs) using the Bayesian Markov chain Monte Carlo (MCMC) approach are employed to examine the cross-level relationships in the framework. The study finds out that certain cultural traits are significantly related to corporate EMP adoption and how effectively EMPs are implemented after adoption. The study provides meanings insights into the role of national culture in the context of environmental management.

Suggested Citation

  • Song, Fei (Sophie) & Montabon, Frank & Xu, Yuhang, 2018. "The impact of national culture on corporate adoption of environmental management practices and their effectiveness," International Journal of Production Economics, Elsevier, vol. 205(C), pages 313-328.
    • Handle: RePEc:eee:proeco:v:205:y:2018:i:c:p:313-328
    DOI: 10.1016/j.ijpe.2018.09.020
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