IDEAS home Printed from https://ideas.repec.org/a/jfr/jms111/v7y2016i4p30-44.html
   My bibliography  Save this article

ISO 14001 Environmental Management Systems Certification, Firm Characteristics and Performance of Certified Firms in Nairobi County, Kenya

Author

Listed:
  • Elizabeth Wagithi Wamai
  • James M.Kilika

Abstract

Rising environmental concerns and stakeholder demands for demonstration of environmental responsibility by firms has culminated in widespread adoption of Environmental Management Systems (EMSs), with the framework based on the ISO 14001 standard being the most popular. One question that has dominated research is how ISO 14001 EMS certification contributes to firm performance. Studies on this question have largely focused on countries outside the African continent and yielded conflicting findings. Consequently, this study investigated the relationship between ISO 14001 EMS Certification and performance of certified firms in Nairobi County, Kenya. Two main research hypotheses were tested. The study applied descriptive, cross sectional research design in a census of 36 firms in Nairobi County, Kenya. Primary data was collected via structured questionnaires and analyzed using descriptive and inferential statistics. The descriptive data indicated general agreement among respondents that implementation of the core ISO 14001 elements in their respective firms satisfied the requirements specified on the questionnaire to a great extent, and that the factors for effective implementation of ISO 14001 were in place in their firms. Firm Performance improvement from ISO 14001 was rated in the range of 10-15%, though with variation in the ratings obtained. Environmental Policy, Planning, and Implementation and Operation have a positive relationship with Firm Performance, although this is not statistically significant for the element of Planning. Checking and Corrective Action and Management Review in turn have a significant, negative relationship with Firm Performance. The moderated regression analysis showed evidence of positive moderation by Firm Characteristics for Environmental Policy, Checking and Corrective Action, and Management Review, but not for Planning and Implementation and Operation; while the strength of the relationship improved by 8.4%. The study recommends that firms be cognisant of the moderating factors affecting successful implementation of EMSs in their respective industry set ups, and critically assess how these can be addressed at firm level, in order to enhance their ability to benefit from adopting EMSs.

Suggested Citation

  • Elizabeth Wagithi Wamai & James M.Kilika, 2016. "ISO 14001 Environmental Management Systems Certification, Firm Characteristics and Performance of Certified Firms in Nairobi County, Kenya," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 7(4), pages 30-44, November.
    • Handle: RePEc:jfr:jms111:v:7:y:2016:i:4:p:30-44
    DOI: 10.5430/jms.v7n4p30
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/jms/article/view/10485/6391
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/jms/article/view/10485
    Download Restriction: no
    File URL: https://libkey.io/10.5430/jms.v7n4p30?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hayam Wahba, 2008. "Does the market value corporate environmental responsibility? An empirical examination," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(2), pages 89-99, March.
    2. Haitao Yin & Peter J. Schmeidler, 2009. "Why do standardized ISO 14001 environmental management systems lead to heterogeneous environmental outcomes?," Business Strategy and the Environment, Wiley Blackwell, vol. 18(7), pages 469-486, November.
    3. Kimitaka Nishitani, 2011. "An Empirical Analysis of the Effects on Firms’ Economic Performance of Implementing Environmental Management Systems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(4), pages 569-586, April.
    4. Andrew King & Michael Lenox, 2002. "Exploring the Locus of Profitable Pollution Reduction," Management Science, INFORMS, vol. 48(2), pages 289-299, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patrizia Fanasch, 2019. "Survival of the fittest: The impact of eco‐certification and reputation on firm performance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 611-628, May.
    2. Hayam Wahba, 2010. "How do institutional shareholders manipulate corporate environmental strategy to protect their equity value? A study of the adoption of ISO 14001 by Egyptian firms," Business Strategy and the Environment, Wiley Blackwell, vol. 19(8), pages 495-511, December.
    3. Zhang, Bin & Lai, Kee-hung & Wang, Bo & Wang, Zhaohua, 2017. "Shareholder value effects of corporate carbon trading: Empirical evidence from market reaction towards Clean Development Mechanism in China," Energy Policy, Elsevier, vol. 110(C), pages 410-421.
    4. Nazim Hussain, 2015. "Impact of Sustainability Performance on Financial Performance: An Empirical Study of Global Fortune (N100) Firms," Working Papers 1, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    5. Kimitaka Nishitani & M.B. Haider & Katsuhiko Kokubu, 2014. "Corporate Environmental Initiatives and Shareholder Value: Focusing on the Role of Environmental Information and Its Credibility," Discussion Paper Series DP2014-13, Research Institute for Economics & Business Administration, Kobe University.
    6. Luca Marrucci & Tiberio Daddi & Fabio Iraldo, 2022. "Do dynamic capabilities matter? A study on environmental performance and the circular economy in European certified organisations," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2641-2657, September.
    7. Nazim Hussain & Ugo Rigoni & Elisa Cavezzali, 2018. "Does it pay to be sustainable? Looking inside the black box of the relationship between sustainability performance and financial performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1198-1211, November.
    8. Tiberio Daddi & Iñaki Heras‐Saizarbitoria & Luca Marrucci & Francesco Rizzi & Francesco Testa, 2021. "The effects of green supply chain management capability on the internalisation of environmental management systems and organisation performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1241-1253, July.
    9. Kimitaka Nishitani & Katsuhiko Kokubu & Takehisa Kajiwara, 2016. "Does low-carbon supply chain management reduce greenhouse gas emissions more effectively than existing environmental initiatives? An empirical analysis of Japanese manufacturing firms," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 33-60, February.
    10. Kimitaka Nishitani & Shinji Kaneko & Satoru Komatsu & Hidemichi Fujii, 2011. "Firm's reduction of greenhouse gas emissions and economic performance: analyzing effects through demand and productivity," IDEC DP2 Series 1-1, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    11. Treacy, Raymond & Humphreys, Paul & McIvor, Ronan & Lo, Chris, 2019. "ISO14001 certification and operating performance: A practice-based view," International Journal of Production Economics, Elsevier, vol. 208(C), pages 319-328.
    12. Kimitaka Nishitani & Nurul Jannah & Hardinsyah Ridwan & Shinji Kaneko, 2013. "The Influence of Voluntary and Mandatory Environmental Performance on Financial Performance: An Empirical Study of Indonesian Firms," Discussion Paper Series DP2013-01, Research Institute for Economics & Business Administration, Kobe University.
    13. Sergio Manrique & Carmen-Pilar Martí-Ballester, 2017. "Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries," Sustainability, MDPI, vol. 9(11), pages 1-30, October.
    14. Takashi Hatakeda & Katsuhiko Kokubu & Takehisa Kajiwara & Kimitaka Nishitani, 2012. "Factors Influencing Corporate Environmental Protection Activities for Greenhouse Gas Emission Reductions: The Relationship Between Environmental and Financial Performance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(4), pages 455-481, December.
    15. Amy McMillan & Timothy C. Dunne & Joshua R. Aaron & Brandon N. Cline, 2017. "Environmental Management’s Impact on Market Value: Rewards and Punishments," Corporate Reputation Review, Palgrave Macmillan, vol. 20(1), pages 105-122, February.
    16. Graham Gal & Orhan Akisik, 2020. "The impact of internal control, external assurance, and integrated reports on market value," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1227-1240, May.
    17. Noor Muhammad & Frank Scrimgeour & Krishna Reddy & Sazali Abdin, 2016. "Emission Indices for Hazardous Substances: An Alternative Measure of Corporate Environmental Performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(1), pages 15-26, January.
    18. Yogesh Bhatt & Karminder Ghuman, 2023. "Corporate environmental responsiveness: a bibliometric and content analysis," Management Review Quarterly, Springer, vol. 73(3), pages 1303-1350, September.
    19. José Álvarez-García & María De la Cruz Del RíoRama, 2016. "Sustainability and EMAS: Impact of Motivations and Barriers on the Perceived Benefits from the Adoption of Standards," Sustainability, MDPI, vol. 8(10), pages 1-18, October.
    20. Shih‐Fang Lo, 2010. "Performance evaluation for sustainable business: a profitability and marketability framework," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 17(6), pages 311-319, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:jms111:v:7:y:2016:i:4:p:30-44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jenny Zhang (email available below). General contact details of provider: http://jms.sciedupress.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.