مقاله انگلیسی در رابطه با مدیریت

[مدیر تالار مدیریت]

Motives, difficulties and benefits
in implementing the ISO 14001
Environmental Management
System
Evangelos L. Psomas, Christos V. Fotopoulos and
Dimitrios P. Kafetzopoulos
Department of Business Administration of Food and Agricultural Enterprises,
University of Ioannina, Agrinio, Greece
Abstract
Purpose – The purpose of this paper is to examine the motives for implementing the ISO 14001
standard, the difficulties in meeting the standard’s requirements and the benefits derived, and to
determine the most significant latent constructs (unobserved variables) of these.
Design/methodology/approach – A research project was carried out in 53 ISO 14001-certified
Greek companies. Exploratory Factor Analyses were applied in order to refine the latent constructs of
the ISO 14001 motives, difficulties and benefits.
Findings – Obtaining a competitive advantage, the social requirement and the
environmentally-friendly policy were the extracted latent constructs of the ISO 14001 motives. The
decision of the companies to be ISO 14001-certified was mostly influenced by internal motives. The
ISO 14001 requirements and the determination of environmental performance issues were the
extracted latent constructs of the difficulties faced during the implementation of the standard.
However, according to the findings, the level of these difficulties was not high. The improvement of a
company’s position in the market, the transition from conventional to sustainable practices, the
improved relationship with society due to better environmental performance and the improvement of
waste processing were the extracted latent constructs of the benefits derived. Even though they were
not extremely high, the internal were more significant than the external benefits.
Research limitations/implications – The subjective character of the data collected, the small size
of the sample of the participating companies and their diversity with respect to their sector and size,
are the main limitations of the present study. Future studies can use these limitations as suggestions
for further research.
Practical implications – The latent constructs extracted through the analysis of the ISO 14001
motives, difficulties and benefits may encourage non-certified companies to implement an
Environmental Management System (EMS) according to ISO 14001. The ISO 14001 certified
companies can focus on specific factors in order to strengthen their motivation, avoid difficulties,
maximise benefits and consequently to improve their environmental management and performance.
Originality/value – This paper describes the underlying structure of the ISO 14001 motives,
difficulties and benefits and determines the respective latent constructs.
Keywords Environmental management, ISO 14001 series, Benefits
Paper type Research paper
Introduction
Society’s concerns over pollution, resource depletion, hazardous waste, and other
environmental matters have increased over the last decades (Rezaee and Elam, 2000).
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1477-7835.htm
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Received 10 August 2010
Revised 3 January 2011
Accepted 5 March 2011
Management of Environmental
Quality: An International Journal
Vol. 22 No. 4, 2011
pp. 502-521
q Emerald Group Publishing Limited
1477-7835
DOI 10.1108/14777831111136090
Owing to the increased customer concern for environmental protection, the demand for
more stringent environmental regulation on product end-of-life and on production
processes of companies has increased (Santos-Reyes and Lawlor-Wright, 2001). As a
consequence, a number of environmental laws and regulations have been enacted to
hold organizations more accountable for their environmental responsibilities (Rezaee
and Elam, 2000). So, the need for companies to effectively address environmental
issues has increased (Santos-Reyes and Lawlor-Wright, 2001) due to either external
(e.g. government regulations) or internal reasons (e.g. company’s policy). Therefore, an
increasing number of companies are exploring the possibility of including
environmental matters into their operations due to changes in legislation, especially
on the health and safety front (Holt, 1998).
Effective compliance with environmental laws and regulations requires
commitment by companies to environmental concerns as well as Environmental
Management Systems (EMS), accounting, and auditing (Rezaee and Elam, 2000). The
concepts of management and environmental preservation are connected and are part of
the business world, through the concept of environment management as a component
of enterprise management. Environmental management seeks to insert the concept of
sustainable development in the process of production of goods and services, through
different mechanisms that are efficient at combining technological processes, economic
growth and sustainability. An EMS allows an organization to permanently control the
effects of the productive processes on the environment (da Silva and de Medeiros,
2004). All the EMSs stress the need for continuous improvement in striving to protect
the environment, not only for ourselves but also for future generations to come
(Chavan, 2005).
EMSs first appeared in North America in the 1970s and are now widely used by
many organizations in all parts of the developed world. Although various systems
exist, the most important are ISO 14001 and the European Union’s EMAS (Watson and
Emery, 2004). However, organizations need to keep in mind that an EMS such as ISO
14001 is a voluntary system and tool and thus does not replace the existing regulations
but provides guidance and flexibility in addressing both environmental and business
issues (Zutshi and Sohal, 2004). The key elements of ISO 14001 include environmental
policy, planning, implementation and operation, checking and corrective action, and
management review (Liyin et al., 2006). In other words the ISO 14001 standard
describes the organizational structure, planning activities, responsibilities, practices,
procedures, processes and resources for preparing, applying, reviewing and
maintaining a company’s environmental policy (Marimon et al., 2009).
Although the ISO 14001 standard aims for performance beyond environmental
regulations, its implementation does not establish absolute requirements for
environmental performance (Yin and Ma, 2009; Rowland-Jones et al., 2005). Thus, it
does not lead to strict requirements regarding the environmental impact of a
company’s activities (Fortunski, 2008). In other words, it does not specify an
environmental performance standard, nor specify environmental performance targets
(Liyin et al., 2006). For this reason, ISO 14001 certification does not guarantee any
performance improvement beyond meeting regulations (Yin and Ma, 2009). According
to Poksinska et al. (2003), given that the aim of ISO 14001 is not to measure any
environmental effects or to ensure that those are minimised, it is wrongly called an
“environmental standard”.
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benefits
503
The ISO 14001 standard is intended for application by a broad range of
organizations (Poksinska et al., 2003) and more specifically by organizations of all sizes
and in all industries (Rezaee and Elam, 2000) because it is flexible enough to be adapted
to the size of any organization, whatever its type of activity and the geographical,
social and cultural circumstances in which it functions (Fortunski, 2008; Proto and
Supino, 2000). The usefulness of implementing ISO 14001 in international industry is
attributed to the standard being an important factor in international development and
commerce for three key reasons. First, implementing the standard will build a
worldwide consensus that there is a need for environmental management and for a
common terminology for environmental management systems; second, it will improve
environmental performance; and, third, it will facilitate trade and remove trade
barriers. So, the standard creates a common international environmental language for
global environmental progress (Georgiadou and Tsiotras, 1998).
However, debates about the value of ISO 14001 and its ability to meet its lofty
intentions have been going on since the early 1990s and continue today, even after
several years of experience with implementation and registration to the standard (Ann
et al., 2006). Poksinska et al. (2003) stated that despite the growing interest in voluntary
environmental management standards for industry, little empirical information exists
on systematic experiences of the implementation processes and only a few survey
studies have been performed on the ISO 14001-certified companies. Hence, there is a
great need for research providing evidence on the advantages and disadvantages of
EMSs. According to Lopez-Rodriguez (2009) a deeper understanding of the reasons,
organizational functions and outcomes connected to corporate green engagements is
needed, as these may vary over time and between countries. This opens a very
promising avenue for future research on cross-cultural and longitudinal evolution of
corporate environmentalism. Turk (2009) mentioned that further research is needed on
the problems caused by the application of the ISO 14001 standard together with other
standards such as ISO 9000 and ISO 18000. To conclude, a deeper knowledge by
companies of the EMSs is necessary, so that in the process of acquisition of goods and
services, a “clean” production will be achieved, which will be efficient and not harmful
to the environment, thus becoming a source of competitiveness and survival for these
organizations (da Silva and de Medeiros, 2004).
Against this background, the purpose of this study is to examine the motives for
implementing the ISO 14001 standard, the difficulties in meeting the standard’s
requirements and the benefits derived, and to determine the underlying structure of
these (the latent constructs – unobserved variables). Exploratory Factor Analyses
(EFA) were applied in order to refine the latent constructs. The determination of the
most significant latent constructs of the motives, difficulties and benefits is also an aim
of this study.
The rest of the paper is structured as follows: in the first part of the literature
review, the ISO 14001 diffusion is presented; while in the second part, the research
questions are formulated with regard to the ISO 14001 motives, difficulties and
benefits. This is followed by describing the methodology of the research project carried
out in ISO 14001 certified Greek companies. The next part presents the analysis and
the respective results. In the following part the results are discussed and the
conclusions are presented. Finally, the managerial implications are presented and
further research is suggested.
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Literature review
The diffusion of ISO 14001
The ISO 14000 series of standards were published in September 1996 (although some
companies had already been certified in accordance with a previous draft). The last
review of the standards dates from 2004, having a transition period that ended in May
2006. From that point onwards, the ISO 14001:2004 standard would be the only one
acknowledged by the IAF (International Accreditation Forum) member states
(Marimon et al., 2009).
The ISO’s Technical Committee 207 realised that for the ISO 14001 standard to be
widely accepted it had to be compatible with ISO 9001 (Marimon-Viadiu et al., 2006).
So, the structure and the philosophy of ISO 14001 are very similar to ISO 9001
(Marimon et al., 2009; Marimon-Viadiu et al., 2006). According to Marimon et al. (2009),
the number of ISO 14001 certificates in a country has a certain relationship with the
number of ISO 9001 certificates in that same country. Those countries with more ISO
9001 certificates tend, in the long term, to also be those with more ISO 14001 intensity
and vice versa (Marimon et al., 2009). This is why many authors examine the ISO 14001
diffusion pattern along with that of ISO 9001.
The certification according to ISO 9001 and ISO 14001 is a phenomenon involving
over the years a larger and larger number of companies (Franceschini et al., 2008). At
present, the dissemination of the two standards – in particular, of ISO 9001 – has been
very successful. The latest data offered by ISO (ISO, 2008) indicates that, as of December
2008, there were already 176 countries with ISO 9001-certified companies, and the
number of certificates worldwide was at least 982,832. Like ISO 9001, ISO 14001 was also
disseminated worldwide, although not with the same degree of success for the time
being. The latest data available, also dating from December 2008 (ISO, 2008), indicates
that 188,815 ISO 14001 certificates have already been issued in a total of 155 countries.
Looking at empirical data, it is observed that the phenomenon of ISO 9001 and ISO
14001 certification is close to saturation in many countries (Franceschini et al., 2008).
There are some countries in a declining process as regards dealing with the number of
ISO 9001 certificates, with very marked drops in Australia and Canada, compensated
on a worldwide scale by strong growth in China, Italy and Spain. Thus, although the
number of certificates is globally increasing, the situation is worrisome, since various
economically significant countries have already started a trend towards decertification.
On the other hand, regarding ISO 14001, it is easy to note that such behaviour has not
been detected. There continues to be a certain growth in the great majority of countries,
with the exception of China, where the increase is very high. However, it seems normal
that this should be the case, since the implementation of the standard in question has
always taken place under the aegis of its famous predecessor (Marimon et al., 2009).
Marimon et al. (2009) highlighted three clearly differentiated behaviours, to which
they assigned three different names: “Expansionist”, “Mature” and “Retrocessive”.
Accordingly, it seems logical that countries will pass sequentially through three states:
from expansionist to mature and from this to retrocessive. The group of “Expansionist
behaviour” is made up of countries growing in their ISO 9001 and ISO 14001
certification intensity rates. Countries such as China, Spain and Italy and to a lesser
degree Switzerland stand out amongst the countries all over the world and seem to
belong to this group. These countries are all in a relatively initial phase of growth as
regards both standards. The group of “Mature behaviour” is made up of countries that
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continue to increase in their ISO 14001 intensity rate, but which otherwise are
decreasing as regards the rate referring to ISO 9001. The majority of countries seem to
belong to this group and correspond to those that have already reached a certain
maximum level of ISO 9001 certificates, whereas this limit has not been exceeded in the
case of ISO 14001. Of the countries analysed, the UK, Republic of Korea and Canada
belong to this group, among others. The group of “Retrocessive behaviour” is made up
of those countries in which a clear decertification in both ISO 9001 and ISO 14001
certification rates has been detected. Taking into account the data up until the year
2003, only Australia is in this situation. However, according to Marimon et al. (2009), it
is possible to define a fourth group of countries and more specifically those that have
decreased in their rate as regards ISO 14001 certifications but continue to grow as
regards ISO 9001. No country has been found in this situation.
The motives for implementing ISO 14001
The ISO 14001 standard was developed primarily to provide businesses with a guide to
setting up EMSs, apart from providing an objective measure to assess the
appropriateness of environmental systems implemented by organizations. However, it
is not clear whether company motives for certification are in line with the original
intention of the ISO 14001 standard (Chavan, 2005).
Liyin et al. (2006) noticed that the practice of environment management is mainly
driven by external impetus such as legal enforcement incentive programmes from
government. Chavan (2005) noted that there is a general concern that businesses have
acquired ISO 14001 certification mainly to gain commercial advantage and not so
much for sustainable development. Pan (2003) exploring the motivations of firms
registering ISO 14001 in four far Eastern countries ( Japan, Taiwan, Korea and
Hong-Kong) found that the desire for improving corporate image, environmental
improvement, gaining marketing advantage and improving relations with
communities were the most important reasons for the ISO 14001 certification.
The external motivation for a company to be ISO 14001-certified is considered
insufficient, as effectiveness of improving environmental programmes cannot be
gained if internal motivation does not exist (Liyin et al., 2006). da Silva and de Medeiros
(2004) stated that beyond consumers’ increasing requirements, the optimisation of the
productive processes is another important factor for the adoption of environmental
management. The search for efficiency has motivated organizations to adopt adequate
processes of environmental management to their productive and economic intentions,
through a pro-active position in the improvement of their processes.
Poksinska et al. (2003) studying Swedish companies focused on the following
external as well as internal motives for the ISO 14001 certification: corporate image,
marketing advantage, customer pressure/demand, relations with communities and
authorities, environmental improvements, capturing workers’ knowledge, cost
reductions, many competitors already certified, avoiding potential export barriers
and benefits experienced by others. Turk (2009) stated that among the reasons
requiring the expansion and implementation of ISO 14001 is the significance of
economic activity of a company’s sector, the principles of sustainable development, the
protection of the environment and the related international agreements and the actions
of firms in international markets. Yin and Ma (2009) examining the adoption of ISO
14001 in China focused on motivations including social responsibility, profitability,
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reputation, corporate mandate, regulatory pressure, and demands from foreign and
domestic customers.
The above literature background provides the basis for developing the following
research questions:
RQ1. What is the underlying structure (the latent constructs) of the motives for
the ISO 14001 implementation?
RQ2. Which of these latent constructs have mostly motivated the companies in
implementing the ISO 14001 standard?
Difficulties in meeting the ISO 14001 requirements
According to Zutshi and Sohal (2004) managers continue to experience resistance and
challenges when implementing and maintaining the systems/standards, whether they
are in quality, occupational health and safety, environmental or any other area. Chavan
(2005) stated that even though ISO 14001 was created to help organizations, there are
some factors that may prevent a company from successfully implementing an EMS,
such as the anger from staff who may oppose the increase in their responsibilities;
reluctance from management to give the time and resources necessary to implement
the EMS; and the belief that once the EMS is in place, it does not need to be constantly
reviewed and improved.
Ann et al. (2006) noted that there may even be a downside to implementing the ISO
14001 standard, such as added bureaucracy and requirements for extensive and
unnecessary documentation. Liyin et al. (2006) mentioned that cost increase and the
consumption of time and resources for implementing environmental management
activities discourage construction companies from engaging actively in improving
their environmental performance. Chin et al. (1999) stated that a major barrier in
implementing the ISO 14001 standard is the total cost and more specifically the initial
set-up cost and the long-term maintenance and improvement cost. Turk (2009)
mentioned that the disadvantages of obtaining ISO 14001 certificates include the high
initial and operation costs, lack of qualified personnel and the lack of sufficient
information regarding the certificates.
Poksinska et al. (2003) studying the experiences from the ISO 14001 implementation
processes in Swedish companies focused on factors of difficulty such as the
identification of environmental/quality aspects, training, top management
commitment, documentation, periodic audits, middle management commitment,
implementation of corrective actions, (re)defining standard procedures, workers’
commitment, following standard procedures and capital investment. del Brio et al.
(2001) studying Spanish companies focused on difficulties such as ignorance, high cost,
lack of resources, insufficient compromise, lack of flexibility, low concern of clients,
reduction in benefits and little management support.
Having in mind the above mentioned difficulties identified in the literature, the
following research questions are formulated:
RQ3. What is the underlying structure (latent constructs) of the difficulties in
implementing the ISO 14001 standard?
RQ4. Which of these latent constructs are the main difficulties in implementing
the ISO 14001 standard?
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Benefits derived from implementing the ISO 14001 standard
An EMS can be a powerful tool for organizations to both improve their environmental
performance and enhance their business efficiency. It can assist them in the following
ways: by minimizing environmental liabilities, maximizing the efficient use of
resources, reducing waste, demonstrating a good corporate image, building awareness
of environmental concern among employees, gaining better understanding of the
environmental impacts of business activities and increasing profit through more
efficient operations (Chavan, 2005). da Silva and de Medeiros (2004) stated that
environmental management may help a company improve the environmental
performance, reduce costs, enhance image with the public, regulators and investors,
prevent pollution, conserve resources and attract new customers and markets. It also
encourages companies to accept responsibility for the protection of the environment,
ensuring the continuous improvement of the ecological administration. Proto and
Supino (2000) mentioned that companies by implementing the ISO 14001 standard,
first, improve the capacity of managing and controlling their environmental
performance (by continuously monitoring their activities, systematically registering
and evaluating environmental effects and periodically verifying the effectiveness of the
whole system); second, define better employees’ responsibilities and tasks (through the
definition of formal documents); and finally, integrate the management of quality and
environmental issues. Therefore, the adoption of an EMS provides goodwill,
credibility, reduced liability risk, increased productivity, competitive advantage, cost
savings and ultimately, profitability.
Fisher (2003) stated some advantages from implementing ISO 14001 such as the
evidence that an organization’s environmental policy is being translated into
operational quality assurance, cost savings, reduced risk of civil and criminal liability,
legislative compliance, improvements to corporate image, creation of niche marketing
opportunities and human health. Rezaee and Elam (2000) also stated that the ISO 14001
registration may benefit organizations by helping them comply with a major customer
who may require registration to ISO 14001, achieve a competitive advantage in the
global market, improve compliance with applicable environment laws, regulations, and
standards, reduce the exposure to environmental liability, increase community
goodwill by preventing pollution and waste and reduce the number of audits required
by regulatory agencies. Zutshi and Sohal (2004) noted that as changes are made in
company operating systems and procedures, following the identification of the
gaps/improvement areas during the environmental audits, these changes accordingly
are regularly documented, reviewed and updated. Chin et al. (1999) stated that the
benefits of the ISO 14001 EMS fall within three major categories, namely: legal,
commercial and social. Companies may implement new processes that use less
hazardous materials resulting in less hazardous waste needing land disposal, which in
turn may result in less soil and ground water pollution. Competitiveness can also be
enhanced by improved company public image and staff morale, as a result of ISO
14001.
Poksinska et al. (2003) summarizing the results from literature studies, stated that
the most commonly reported ISO 14001 benefits are related to improved relations with
stakeholders and improved organizational control, while the environmental
improvements were indicated only by few studies. They also stated that showing
care for the environment and establishing a strong environmental image may help
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attract environmentally conscious customers and suppliers and that one must not
overlook the public relations benefits, which may result in wide community support.
Hwee Nga (2009) also stated that the extant literature has documented the perception
that the ISO 14001 certification leads to increased competitive advantage, pre-emption
of regulations, increased financial performance, enhanced reputation and reduction of
cost of business.
The case study of Fortunski (2008) in the energy sector in Poland provided
arguments that the environmental management system based on the ISO 14001
standard contributes to sustainable development in general (in particular when
standard legal enforcement mechanisms are weak) and to sustainable business in
particular. Similarly, the case study of Sebhatu and Enquist (2007) in a Swedish
company demonstrated that the ISO 14001 EMS can be used as a driving force for
sustainable development and value creation in a radical change process aimed at
quality improvement. Radonjic and Tominc (2006) studying Slovenian manufacturing
companies found the following benefits from ISO 14001: reduced energy consumption,
higher safety for workers, technology adoption and upgrading, achievement of
environmental demands and promotion and acceleration of technological innovation
activities. Ann et al. (2006) surveying ISO 14001-certified firms in Malaysia found that
this certification has a positive impact on a firm’s performance, specifically on
perceived economic impact, perceived environmental impact and perceived customer
satisfaction.
Based on the above literature review, the following research questions are
formulated:
RQ5. What is the underling structure (latent constructs) of the ISO 14001
benefits?
RQ6. Which of these latent constructs were the major benefits derived from ISO
14001?
Research methodology
Questionnaire
In order to answer the above mentioned research questions; a research project was
carried out in Greek companies, using the questionnaire method. A structured
questionnaire was designed based on the motives, difficulties and benefits of ISO
14001, as they had been defined in the literature. The draft questionnaire was first
reviewed by academics in the environmental management discipline and then
subjected to a pilot test by practitioners who had expertise in the ISO 14001-based
EMS. Based on their recommendations, minor adjustments were made to the wording
in order to improve the clarity in the final version of the questionnaire. The pre-test
also helped improve the structure and the content of the questionnaire, the final version
of which consisted of four parts. The first part contained questions regarding company
profiles. The second, third and fourth parts contained statements with regard to the
motives, difficulties and benefits of the ISO 14001 standard respectively. Respondents
were asked to indicate the degree of agreement or disagreement with these statements,
using a seven-point Likert scale, where 1 represented “strongly disagree” and 7
represented “strongly agree”. So, it is obvious that the data used in this study do not
Motives,
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constitute objective but subjective business evidence obtained from representatives of
the companies. However, this fact involves the risk of receiving biased responses.
Sample
The questionnaire was distributed by e-mail to senior management representatives
(that were in charge of environmental management) of 180 ISO 14001-certified Greek
companies. These companies had been recorded in the data base of ICAP, the largest
business information and consulting firm in Greece. In total, 53 completed
questionnaires were received, which represents a response rate of 29.4 per cent.
However, it is apparent that the participating companies constitute a rather small
research sample. It should also be stated that both the sample of the 180 ISO
14001-certified companies that had been recorded in the data base of ICAP and the
sample of the 53 responding companies, included manufacturing and service
companies as well as large, medium and small sized companies. In other words, the
companies studied were not manufacturing or service in total. Similarly, the companies
studied were not large, medium or small sized in total. This fact constitutes a limitation
of this study.
However, comparing the early and late responding companies in terms of the
number of their employees and the questionnaire items, no significant differences were
found. Moreover, several non-responding companies stated, when contacted, that the
major reason for not participating in the research project was lack of time. So, from the
above, it is clear that there is an absence of non-response bias.
Data analysis
The statistical package SPSS was used for data processing. In accordance with
previous studies (Fotopoulos et al., 2009; Strohbehn et al., 2004; Gadene and Sarma,
2009), Exploratory Factor Analyses (EFA) were applied to refine the latent constructs
of the motives, difficulties and the benefits examined.
Results
Profile of respondents
Based on the number of employees it is observed that the responding companies were
small, medium and large, given that 28.3 per cent of them employ less than 50
employees, 15.1 per cent more than 50 and less than 100 employees, 17 per cent more
than 100 and less than 250 employees, 17 per cent more than 250 and less than 500
employees, 15.1 per cent more than 500 and less than 1000 employees and 7.5 per cent
more than 1000 employees. According to the companies’ main activity, they were
divided into manufacturers (79.2 per cent), service providers (17 per cent) and
wholesale traders (3.8 per cent). In each of these three sectors, there were companies
from several fields. A rate of 32.1 per cent of the responding companies had been
certified to ISO 14001 until the end of 2001, 30.1 per cent until the end of 2004 and 30.2
per cent until the end of 2006. However, it is worth noting that 64 per cent of the
responding ISO 14001 certified companies have also implemented a quality
management system (e.g. ISO 9001), 16 per cent an occupational health and safety
management system (e.g. OHSAS 18001), 11 per cent a food safety management
system (e.g. ISO 22000 or HACCP), 5 per cent the European Union’s EMAS and 4 per
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cent the general requirements for the competence of testing and calibration laboratories
(ISO 17025).
Motives for the ISO 14001 implementation
The measured variables with respect to the motives that led companies to the ISO 14001
certification were used as the basis for Exploratory Factor Analysis (varimax rotation
method). The result was the establishment of three latent constructs to which the
motives were refined (Table I). Based on the loadings of the ISO 14001 motives, the latent
constructs were labeled as: “competitive advantage”, “social requirement” and
“environmentally-friendly policy”. The reliability of these constructs was confirmed
through the Cronbach’s alpha coefficients that were higher than 0.610 (Table I). It is
worth noting that values of 0.6 to 0.7 are deemed the lower acceptable limit of Cronbach’s
alpha coefficients (Hair et al., 2005). From Table I we observe that almost all the factor
loadings are above 0.60. According to Hair et al. (2005), although factor loadings of^0.30
to ^0.40 are minimally accepted, values greater than ^0.50 are generally considered
necessary for practical significance. This is why few low loading items (,0.5) were
excluded from the data analysis. From Table I we also observe that the squared factor
loadings are satisfactorily high, which indicate that a high percentage of measured
variable’s variance is explained by the respective latent construct.
Table I also indicates the mean values of the latent constructs of the ISO 14001
motives (based on the mean values of the respective responses made by the
representatives of the participating companies). Setting them in a descending order, we
Factors
Factor loadings
Variables
Mean
valuea
Competitive
advantage
Social
requirement
Environmentallyfriendly
policy
Improvement of company’s
image 5.00 0.835
Increase in internal and external
market share 3.42 0.809
Use of the certificate as a
marketing tool 4.32 0.764
Increase the competitive
advantage 4.66 0.750
Environmental regulation 4.19 0.825
Government requirement 3.21 0.778
Social unions pressure 3.26 0.717
Customer pressure 2.98 0.596
Middle management
commitment 5.47 0.741
Top management commitment 6.25 0.721
Environmental policy 5.92 0.688
Eigenvalue 3.693 1.910 1.788
Cumulative variance % 30.777 46.694 61.596
Cronbach’s alpha 0.817 0.751 0.610
Mean valuea 4.35 3.41 5.88
Notes: a1 represents “strongly disagree” and 7 represents “strongly agree”; Kaiser-Meyer-Olkin ¼ 0.696
Table I.
Exploratory factor
analysis for the ISO
14001 implementation
motives
Motives,
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511
observe that the “environmentally-friendly policy” was the strongest motive for the
companies implementing an EMS according to ISO 14001. Gaining a “competitive
advantage” was the motive of middle level, while “social requirement” was the motive
of the lowest level.
Difficulties in implementing the ISO 14001 standard
The measured variables with respect to the difficulties companies faced while
implementing the ISO 14001 standard, were used as the basis for Exploratory Factor
Analysis (varimax rotation method). The result was the establishment of two latent
constructs to which the difficulties were refined (Table II). Based on the loadings of the
ISO 14001 difficulties, the latent constructs were labeled as follows: “the ISO 14001
standard’s requirements” and “determining issues of environmental performance”. The
reliability of these constructs was confirmed through the Cronbach’s alpha coefficients
that were higher than 0.685 (Table II).
From Table II we observe that almost all the factor loadings are above 0.60. Given
that factor loadings with values greater than ^0.50 are generally considered necessary
for practical significance (Hair et al., 2005), the low loading items (,0.5) were excluded
from the data analysis. From Table II we also observe that the squared factor loadings
are satisfactorily high, which indicate that a high percentage of measured variable’s
variance is explained by the respective latent construct.
Based on the mean values of the measured variables of the difficulties as well as on
the mean values of the latent constructs (Table II), it is obvious that the difficulties that
Factors
Factor loadings
Variables
Mean
valuea
The ISO 14001
standard’s
requirements
Determining issues
of environmental
performance
Periodic audits 2.70 0.818
Knowledge and experience in environmental
management issues 3.13 0.790
Required resources 3.15 0.731
Required time of implementation 3.75 0.723
Keeping and checking records 3.04 0.657
Employee resistance for changes 2.7 0.642
Corrective and preventive actions 3.64 0.601
Training on environmental management
issues 3.64 0.564
Determining objectives and measurable aims 3.91 0.888
Identifying environmental issues 3.37 0.725
Determining employees’ tasks and
responsibilities 3.49 0.600
Eigenvalue 5.302 1.185
Cumulative variance % 48.196 58.971
Cronbach’s alpha 0.882 0.685
Mean valuea 3.22 3.59
Notes: a1 represents “strongly disagree” and 7 represents “strongly agree”; Kaiser-Meyer-Olkin ¼ 0.863
Table II.
Exploratory factor
analysis for the
difficulties in
implementing the ISO
14001 standard
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the companies faced were of middle to low level. However, the determination of the
issues of environmental performance presented a greater difficulty than meeting the
requirements of the ISO 14001 standard.
Benefits from implementing the ISO 14001 standard
The measured variables with respect to the benefits derived from the ISO 14001
implementation were used as the basis for Exploratory Factor Analysis (varimax
rotation method). The result was the establishment of four latent constructs to which
the benefits were refined (Table III). Based on the loadings of the ISO 14001 benefits,
the latent constructs were labeled as follows: “improved a company’s position in the
market”, “transition from conventional to sustainable practices”, “improved
relationship with society due to better environmental performance” and “improved
waste processing”. The reliability of these constructs was confirmed through the
Cronbach’s alpha coefficients that were higher than 0.659 (Table III).
From Table III we observe that the vast majority of the factor loadings are above
0.60. Given that factor loadings with values greater than ^0.50 are generally
considered necessary for practical significance (Hair et al., 2005), the low loading items
(,0.5) were excluded from the data analysis. From Table III we also observe that the
squared factor loadings are satisfactorily high, which indicate that a high percentage of
measured variable’s variance is explained by the respective latent construct.
Table III also indicates the mean values of the latent constructs of the ISO 14001
benefits (based on the mean values of the respective responses made by the
representatives of the participating companies). Given that these mean values range
from 3.94 to 5.06 we conclude that none of the latent constructs were considered as
being benefits of extremely high level. Improving the processing of company’s waste
was the most significant benefit derived from the ISO 14001 implementation. The
improved relationship with society due to better environmental performance was the
next most significant benefit. The improvement of a company’s position in the market
due to the ISO 14001 certification was the third significant benefit. Finally, the benefit
with the lowest level was the company’s transition from conventional to sustainable
practices due to the implementation of an EMS.
Discussion
The profile of the ISO 14001 certified companies
Based on the size of the responding companies it is obvious that not only small to
medium but large enterprises implement an EMS such as ISO 14001. This is in line
with Chavan (2005) who stated that many large businesses have obtained certification
under the ISO 14001 standard. He also stated that the ISO 14001 benefits are mainly
realised by large organizations, as small to medium enterprises have a smaller
turnover and thus a correspondingly small return on the cost of certification. However,
in previous studies carried out by Fotopoulos and Psomas (2009) and Fotopoulos et al.
(2009) in Greek ISO 9001 and ISO 22000 certified companies respectively, it was
observed that the responding companies were mostly small to medium enterprises. In
other words, contrary to ISO 9001 and ISO 22000, it seems that in the case of the ISO
14001 standard, it is implemented by both small-medium and large Greek enterprises.
Lopez-Rodriguez (2009) studied ISO 14001 certified Spanish companies that were
mostly SMEs, while on the contrary Radonjic and Tominc (2006) and Turk (2009)
Motives,
difficulties and
benefits
513
Factors
Factor loadings
Variables
Mean
valuea
Improved company’s
position in the market
Transition from conventional to
sustainable practices
Improved relationship with
society due to better
environmental performance
Improved waste
processing
Increased customer satisfaction 4.06 0.905
Improvement of competitive
position 4.06 0.845
Market share and sales increase 3.40 0.798
Improved company’s image 4.62 0.702
Improved quality of internal
processes 5.25 0.545
Adoption of new and/or adjusted
technology 4.08 0.826
Design of environmentally
friendly products/services 3.86 0.751
Replacement of traditional energy
sources 3.17 0.727
Increased level of labour
assurance 4.66 0.681
Decrease of non-conformities with
respect to environmental issues 5.45 0.730
Improved relationships with
authorities 4.47 0.682
Improved relationships with
social unions 4.13 0.566
Decrease of energy consumption 4.15 0.543
Increased level of recycling 5.47 0.859
Improved processing of solid
waste 5.00 0.803
Improved processing of liquid
waste 4.69 0.615
Eigenvalue 6.267 2.018 1.305 1.228
Cumulative variance % 39.166 51.778 59.935 67.608
Cronbach alpha 0.865 0.827 0.659 0.764
Mean valuea 4.28 3.94 4.55 5.06
Notes: a1 represents “strongly disagree” and 7 represents “strongly agree”; Kaiser-Meyer-Olkin ¼ 0.699
Table III.
Exploratory factor
analysis for the benefits
of certification
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514
studied ISO 14001 certified Slovenian and Turkish companies respectively that mostly
comprised large enterprises. del Brio et al. (2001) studied the level of the development of
the EMSs in Spanish companies that employed more than 50 employees, of which
almost 30 per cent were large companies.
The majority of those responding in the present study ISO 14001 certified
companies belongs to the manufacturing sector, a sector which effects the natural
environment. Similarly, Lopez-Rodriguez (2009), Radonjic and Tominc (2006) and
Poksinska et al. (2003) studied the EMSs based on manufacturing companies and del
Brio et al. (2001) on industrial companies. On the contrary, Griffith and Bhutto (2009)
and Turk (2009) studied the EMSs based on construction companies.
It is also worth mentioning that the participating companies in the present study
seem to have ample experience in implementing not only an EMS but also a quality
management system, since the majority of them have been implementing both the ISO
14001 and the ISO 9001 standard for more than five years. Similarly, the majority of the
Swedish companies studied by Poksinska et al. (2003) were both ISO 9001 and ISO
14001 certified. Furthermore and similar to the present study, all the UK organizations
that Griffith and Bhutto (2009) studied, operated a quality management system
according to ISO 9001:2008 and an EMS according to ISO 14001:2004.
Motives for the ISO 14001 implementation
Internal reasons such as the environmentally-friendly policy and the commitment of
top and middle managers to organise their efforts for environmental protection and to
co-ordinate them according to the ISO 14001 requirements, seem to be the strongest
motives for the companies that participated in the present study implementing an ISO
14001 EMS. However, external motives such as obtaining a competitive advantage and
the social requirement seem also to be present, but being of middle significance with
regard to their contribution to the companies’ decision to be ISO 14001-certified.
The findings from the study of Lopez-Rodriguez (2009) in Spanish ISO 14001
certified companies are in line with the findings from the present study, with regard to
the presence of not only external but internal motives. Using the Confirmatory Factor
Analysis, it was concluded that not only instrumental and ecological motivations play
a key role, but also the internal organizational activities, in addition to the expected
outcomes of the implementation itself. More specifically, the most influential motives
were found to be the latent constructs namely “greening of manufacturing processes”
and “expected improvement in market performance” while the latent constructs such
as the “expected improvement in firm performance”, “ecological concerns” and the
“organizational functions” were of secondary contributory factors to the companies’
decision to be ISO 14001 certified. From these results it is obvious that, as in the
present study, the internal and external motives do have a strong influence on a
company’s decision to implement an EMS.
Pan (2003), as in the present study, used the EFA in order to extract the latent
constructs of the ISO 14001 motives. The results indicated two constructs of motives of
the Taiwanese and Korean firms examined, namely “external pressure” and
“improvement of corporate image and public relations with others”, with the second
factor being more significant than the first (for the companies of both countries).
However, it can be observed that in the case of the Taiwanese and Korean firms, a
factor was not extracted that would represent an internal motive for being ISO 14001
Motives,
difficulties and
benefits
515
certified, as was the case of the Greek companies examined in the present study.
Poksinska et al. (2003) also used the EFA and extracted three latent constructs of the
ISO 14001 motives, including internal and external ones, as in the present study.
Contrary to our study, in the case of the Swedish companies examined by Poksinska
et al. (2003), the latent constructs of external motives such as “external marketing
motives’ and “regulatory motives” were more significant than the latent construct of
internal motives namely “internal performance motives”.
Contrary to the present study, the main motive of the Chinese firms for pursuing
ISO 14001 was externally oriented, as the analysis of Yin and Ma (2009) showed. More
specifically, the motives for adopting the ISO 14001 standard were mostly driven by
outside demands (international green consumers) instead of environmental awareness
(social responsibility). So, the ISO 14001 certification was taken as a symbolic gesture
instead of a tool to reduce a firm’s environmental footprint. Similarly, and contrary to
the companies examined in the present study, the most significant motive of the
Turkish companies for obtaining the ISO 14001 certification was externally oriented.
More specifically, according to the results of the analysis of Turk (2009), the most
significant reason for these firms implementing ISO 14001 was access to international
markets to get a competitive edge. Other reasons, of lower significance, were the desire
to develop the EMS and the desire of the firms to change.
Difficulties in implementing the ISO 14001 standard
The participating companies in the present study did not face great difficulties in their
attempt to implement the ISO 14001 standard. The experience of these companies in
implementing international standards such as ISO 9001 and ISO 14001 may have
helped them conform effectively to their requirements. The latent construct “the ISO
14001 standard’s requirements” was a difficulty of lower level than the latent construct
“determining environmental performance issues”.
Similar to the present study, the ISO 14001-certified Swedish companies studied by
Poksinska et al. (2003) stated that the identification of environmental/quality aspects is
the most important factor with respect to the required effort needed to implement the
standard. However, the requirements of the ISO 14001 standard with respect to
documentation, periodic audits, corrective actions and the standard procedures, were
considered, as in the present study, as difficulties requiring less effort. Contrary to the
above study as well as the study presented in this paper, Turk (2009) did not find,
among the main difficulties encountered by the ISO 14001-certified Turkish
companies, a factor with respect to the identification of the environmental
performance issues. The main difficulties encountered concerned mostly top
management commitment and the attributes of the ISO 14001 standard. More
specifically, the main difficulties the Turkish companies faced were the following:
company management was not open to research and criticism, the registration process
was too lengthy, the volume of documentation and paperwork had been increased and
the ISO 14001 EMS had increased expenses. The last two difficulties coincide with the
respective items of the latent construct named “the ISO 14001 standard’s requirements”
that was extracted in the present study.
Liyin et al. (2006) studying the existing problems in implementing ISO 14001 in the
Hong Kong construction industry, found that the effectiveness in improving
environmental performance in construction activities was limited. According to these
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authors there were various barriers limiting this improvement. These typical barriers
included the clash between cost and environmental performance, and environmentally
passive culture within the construction industry, lack of client’s support, and a clash
between contract time and implementing environmental management methods.
However, these barriers were not mentioned by the participating companies in the
present study. This might be due to the difference of the company sector examined,
meaning the manufacturing sector examined in this study and the construction sector
examined by Liyin et al. (2006).
Benefits from implementing the ISO 14001 standard
The level of the benefits derived by the responding companies as well as their
description is worth mentioning. The findings from the present study reveal that the
benefits derived so far from implementing the ISO 14001 standard are not extremely
high. They can be characterised as of middle to high level. Although the responding
companies have been implementing the ISO 14001 standard for more than five years, it
seems that the respective benefits are fully derived after a long period of
implementation. The benefits can be seen initially in the internal environment and
consequently in the external environment of the companies. More specifically, the
companies examined in the present study stated that by implementing the ISO 14001
standard, they mostly improved the processing of waste, making the transition from
conventional to sustainable practices, which consequently helped them to achieve
better environmental performance. This has as a result the improvement of the
companies’ relationship with society and finally the improvement of their position in
the market. Comparing the internal and external benefits of the participating
companies, it seems that the internal benefits are more significant than the external
ones.
Similar to the present study, Georgiadou and Tsiotras (1998) studied the
implementation of EMSs in Greek industry. Their results are in accordance with the
results from the present study, meaning that the internal benefits were more significant
than the external ones. More specifically, they classified the benefits as being limited to
three factors, of which the two most significant included benefits with regard to the
internal environment of the companies (such as improved quality, reduced production
cost due to the minimization of energy consumption, showing care for the environment,
using the standard to facilitate management of environmental aspects and guiding the
update of the existing EMS). The third factor (of the lowest significance) included
benefits with regard to the external environment (such as facilitating trade,
overcoming trade barriers, meeting supplier and contractor certification criteria and
improving market share). The findings from the study of Turk (2009) in Turkish
companies are in line with those of the above mentioned study as well as the present
study. More specifically, the most significant advantages of obtaining the ISO 14001
certificate were the following (which can be considered as internal benefits): the
improvement of environmental awareness, improvement of standardisation in
environmental management, minimization of the adverse impacts on the
environment and its assistance in establishing a system for sustainable
environmental development.
Contrary to the above mentioned studies as well as the present study, Poksinska
et al. (2003) studying the ISO 14001 benefits of Swedish companies (based on the EFA
Motives,
difficulties and
benefits
517
as in the present study), extracted three latent constructs, of which the most significant
were those of external benefits. More specifically, it was found that the most significant
latent constructs were the “relations benefits” and the “external marketing benefits”,
while the “internal performance benefit” was of lower significance. However, these
latent constructs are quite similar to the latent constructs extracted from the present
study. The study of Chin et al. (1999) in Hong Kong manufacturers indicated that the
lower legal liability followed by improved company image and staff morale were
perceived to be the major benefits in implementing the ISO 14001 EMS. Improved
profitability, however, was perceived to be the next important benefit. Hence, contrary
to the findings from the present study, Chin et al. (1999) showed that by implementing
the ISO 14001 standard the main benefits were external ones. Similar to the above
mentioned studies and contrary to the present study, del Brio et al. (2001) stated that
the external advantages (such as better image and legislation compliance) were
considered by the majority of the Spanish industrial companies examined as higher
level advantages than the internal advantages (such as synergies management, deeper
conscience, resources optimization, better training and saving costs).
Conclusions
The responding ISO 14001 certified companies were small and medium and large
(based on the number of employees), confirming that the ISO 14001 standard can be
implemented by companies of all sizes. The results also confirm the notion that the ISO
14001 standard is mostly implemented in tandem with the ISO 9001 standard, since
implementing either the ISO 9001 or the ISO 14001 standard forms the basis for
implementing the other one.
The reasons that motivated the companies in being ISO 14001 certified were both
internal and external. Obtaining a competitive advantage, the social requirement and
the environmentally-friendly policy were the extracted latent constructs of the ISO
14001 motives. Either the stronger internal motivation (compared with the external) or
the ample experience in implementing an international standard (e.g. ISO 9001) may
have contributed to decreasing the level of the difficulties faced during the ISO 14001
implementation. The requirements of the ISO 14001 standard and the determination of
environmental performance issues were the extracted latent constructs of the
difficulties. As far as the ISO 14001 benefits are concerned, we conclude that, even
though they were not extremely high, the internal benefits were more significant than
the external ones. The improvement of a company’s position in the market, the
transition from conventional to sustainable practices, the improved relationship with
society due to better environmental performance and the improvement of waste
processing were the extracted latent constructs of the ISO 14001 benefits.
Managerial implications and future research suggestions
It is suggested the above mentioned conclusions be taken under consideration by
managers that are in charge of environmental management in companies that have
already been ISO 14001 certified or are willing to implement an ISO 14001-based EMS
in future. They should first formulate a strong environmentally-friendly policy with
clear objectives, from which the commitment of top and middle management would be
shown. Second, they should strengthen the will of the company to obtain a competitive
advantage through implementing an EMS. It is also important for the managers to
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realise that the level of the difficulties is not high and that they mostly concern the
determination of environmental issues rather than the requirements of the ISO 14001
standard. The role of the managers in formulating an optimum background for the ISO
14001 implementation and maintenance is easier if they explain to employees and to
the senior management the benefits that may be derived. These benefits are mostly
internal and concern both managerial and environmental issues. These consequently
result in external benefits with respect to a company’s position in the market.
The limitations of the present study give rise to suggestions for future research. So,
future research is recommended using objective data that will be drawn from the
documents of the environmental management systems implemented by the companies.
Furthermore, it is recommended to confirm the underlying structure of the ISO 14001
motives, difficulties and benefits in a broader sample of companies. It would also be
worth confirming this structure with different samples of manufacturing and service
companies as well as with different samples of small, medium and large companies, in
order to determine whether there are any statistical significant differences between
these groups. The longitudinal study of the ISO 14001 certified companies would also
give an answer to whether the motives, difficulties and benefits change due to the
experience in implementing the standard.
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About the authors
Evangelos L. Psomas is a Research Assistant in the Department of Business Administration of
Food and Agricultural Enterprises in the University of Ioannina. He received a PhD in Total
Quality Management at the University of Ioannina, Greece, in 2008. He has dealt with issues of
Management and Marketing and has worked as a teaching assistant in the University of
Ioannina and Technological Educational Institute of Epirus. His research interests include: Total
Quality Management, Quality Assurance, Food Safety Management, Environmental
Management, Human Resource Management, Supply Chain Management, Agribusiness and
Food Marketing. Evangelos L. Psomas is the corresponding author and can be contacted at:
epsomas@cc.uoi.gr
Christos V. Fotopoulos is a Professor of Marketing Management in the Department of
Business Administration of Food and Agricultural Enterprises in the University of Ioannina. His
scientific contribution includes the completion of 27 research projects, in 13 of which he was the
project leader. His scientific work includes 35 papers, 22 of which have been published in
international journals, over 13 books – monographs, over 30 papers presented in conferences
and many research project reports. His current research interests include Management,
Agribusiness, Food Marketing, Total Quality Management, Supply Chain Management,
Promotion and Marketing of PDO products.
Dimitrios P. Kafetzopoulos is a PhD candidate in the Department of Business Administration
of Food and Agricultural Enterprises in the University of Ioannina. His research interests
include: Management, Total Quality Management, Quality Assurance, Food Safety
Management, Agribusiness and Food Marketing.
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