How Environmental Performance Influences SMEs’ Competitive Performance: A Case of Food Production Industry
Abstract
This research studies the effects of environmental performance, green corporate image, and corporate competitive performance on the food production industry in the Bangkok Metropolitan area. Using a multistage sampling method, 400 questionnaires were distributed by mail to SMEs in the food production industry with a response rate of 94.5 percent. Data was analyzed by structural equation modeling using the AMOS program to evaluate the significance of relationships between environmental performance, green corporate image, and corporate competitive performance. Environmental performance, an antecedent variable, was found to have a very moderate positive indirect effect on corporate competitive performance via green corporate image. Sixty-four percent of the variation in the dependent variable is explained by the antecedent variables, indicating significant mediating effects on marketing performance of SMEs in the food industry. Corporate competitive performance was found to be directly affected by corporate environmental performance, suggesting the industry would benefit from increased concern with environmental performance.
References
Ashraf AZ, Yaseen AH, Amina A. Factor analysis for an institutional image instrument. IRPNM [Internet]. 2010 [2018 October 8];7(2):157-166. Available from: https://link.springer.com/article/10.1007/s12208-010-0056-3
Andrea R, David S, Hsin C. Small business and the environment: turning over a new leaf?. BSE [Internet]. 2010 [2019 January 30];19(5):273-288. Available from: DOI: 10.1002/bse.628
Anna BC, Jason O. Best practices in exploratory factor analysis: four recommendations for getting the most from your analysis. PARE [Internet]. 2005 [cited 2018 December 19]; 10(7):1-9. Available from: DOI: 10.7275/jyj1-4868
Bureau of Economic Industry [Internet]. Beginning of Food and Drug Industries; [updated 2016; cited 2019 August 12]. Available from: http://www.oie.go.th/sites/default/files/attachments/IndustBasicKnowledge/Master_1.pdf
Carmelo R, Eduardo GM, Juan GC. The influence of corporate social responsibility practices on organizational performance: evidence from Eco-Responsible Spanish firm. JCP [Internet]. 2016 [cited 2019 March 10];112:2870-2884. Available from: DOI: 10.1016/j.jclepro.2015.09.128
Caspar R, Steen T. The impact of corporate reputation on performance: some Danish evidence. EMJ [Internet]. 2004 [2018 November 13];22(2):201-210. DOI: 10.1016/j.emj.2004.01.012
Claes F, David FL. Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. JMR [Internet]. 1981 [cited 2019 January 4]; 18(1):39-50. Available from: DOI: 10.2307/3151312
David LG, Jessica K, Catherine M. An empirical study of environmental awareness and practices in SME. JBE. 2009 [cited 2019 March 20];84(1):1-19. Available from: DOI: 10.1007/s10551-008-9672-9
Deborah G. Reputation Orientation Improving Marketing Performance through Corporate Reputation Building. MIP. 2015 [cited 2019 January 27];33(5):784-803. Available from: DOI: 10.1108/MIP-2013-0183
Dow Jones Industrial Average [Internet]. Environmental, Social and Governance Investing; [updated 2018; cited 2019 August 9]; Available from: https://www.dowjones.com/insight/esg-investing-analytic/
Emilio GG, Jose CL, Javier M-del-R. Environmental Performance and Spillover Effects on Productivity: Evidence from Horticultural Firms. JEM [Internet]. 2008 [cited 2018 December 15];88(4):1552-1561. Available from: DOI: 10.1016/j.jenvman.2007.07.028
Eva M, Jose MP. Influence of Corporate Image on Brand Extensions: A Model Applied to the Service Sector. JMC [Internet]. 2005 [cited 2019 February 17];11(4):263-281. Available from: DOI: 10.1080/13527260500167264
Francesco C, Pierpaolo P, Barbara S. Investigating Corporate Social Responsibility in Supply Chains: A SME Perspective. JCP [Internet]. 2008 [cited 2018 November 10];16(15):1579-1588. Available from: DOI: 10.1016/j.clepro.2008.04.016
Grahame RD. Corporate Reputations: Strategies for Developing the Corporate Brand. London. Kogan Page; 2004, 256 p.
Grace TS, Hengky L. Linking Environmental Strategy to Environmental Performance: Mediation role of environmental management accounting. SAMPJ [Internet]. 2017 [2019 August 14];8(5):595-619. Available from: DOI: 10.1108/sampj-08-2016-0046
International Organization for Standardization [Internet]. ISO: 26000; [updated 2010; cited 2019 August 12]; Available from: https://www.iso.org/files/live/sites/isoorg/files/store/en/PUB100259.pdf
Javier AS, Gregorio M-de-C, Jose ENL. Green corporate image: moderating the connection between environmental product innovation and firm performance. JCP [Internet]. 2014 [cite 2019 March 17];83:356-365. Available from: DOI: 10.1016/j.jclepro.2014.07.059
Javier GB, Oscar GB. Environmental Proactivity and Business Performance: An Empirical Analysis. Omega [Internet]. 2005 [cited 2019 June 24];33(1):1-15. Available from: DOI: 10.1016/j.omega.2004.03.002
Jay BB. Firm resources and sustained Competitive advantage. JM [Internet]. 1991 [2018 October 9];17(1):99-120. Available from: DOI: 10.1177/014920639101700108
Jay BB. Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. JM [Internet]. 2001 [cited 2019 January 10]; 27(6):643-650. Available from: DOI: 10.1177/014920630102700602
Jay BB, Delwyn NC. Resource Based Theory: Creating and Sustaining Competitive Advantage. Oxford: Oxford University Press; 2007 [cited 2019 May 8].
Jay BB, Mike W, David JK. The future of resource-based theory: Revitalization or decline? JM [Internet]. 2011 [cited 2019 January 25];37(5):1310-1311. Available from: DOI: 10.1177/0149206310391805
Jeff F. Stakeholder influence strategies. AMR [Internet]. 1999 [cited 2019 February 1]; 24(2):191-205. Available from: DOI: 10.5465/amr.1999.1893928
Jeremy G, Paul KS. Do Customer Satisfaction and Reputation Mediate the CSR-FP Link? Evidence from Australia. AJM. 2012 [cited 2019 March 9]; 37(2):211-229. Available from: DOI: 10.1177/0312896211432941
Jesus HM, Manuel LJ, Isabel MC, Domingo MM. Relationship between Corporate Social Responsibility and Competitive Performance in Spanish SME: Empirical Evidence from a Stakeholders’ Perspective. BBQ BRQ [Internet]. 2016 [cited 2019 April 19];19(1):55-72. Available from: DOI: 10.1016/j.brq.2015.06.002
Joseph FH, William CB, Barry JB, Rolph EA, Ronald LT. Multivariate Data Analysis. 6th edition. New Jersey: Pearson Education; 2006. 899 p.
Juan AAC, Enrique RL. Proactive Corporate Environmental Strategies: Myths and Misunderstandings. LRP [Internet]. 2007 [cited 2018 September 2];40(3):357-381. Available from: DOI: 10.1016/j.lrp.2007.02.008
Kevin LK. Branding and brand equity. In A. Barton. Weitz & Robin Wensley (Eds.), Handbook of Marketing. UK: London SAGE Publications Ltd.; 2002. p. 151-178.
Larry H. A Step-by-Step Approach to Using the SAS System for Factor Analysis and Structural Equation Modeling. Cary NY: SAS Institute; 1994. 608 p.
Manuel LJ, Herrera MJ, Domingo MM, Maria PLS. Competitiveness and Environmental Performance in Spanish Small and Medium Enterprises: Is there a Direct Link?.JCP. 2015 [cited 2018 November 15];101:26-37. Available from: DOI: 10.1016/j.jclepro.2015.04.016
Manuel GV. Business Ethics – Concepts and Cases. 7th edition. UK: Pearson International; 2014. 155 p.
Marcus W. How to reconcile environmental and economic performance to improve corporate sustainability: Corporate environmental strategies in the European paper industry. JEM [Internet]. 2005 [2018 October 19];76(2):105-118. Available from: DOI: 10.1016/j.jenvman.2004.11.021
Martin G, Timothy B. Company environmental performance and consumer purchase intentions. JBR. 2013 [cited 2018 November 8];66(10):1945-1953. Available from: DOI: 10.1016/j.jbusres.2013.02.017
Maria DLG, Enrique CC, Jose FMA. Complementary Resources and Capabilities for and Ethical and Environmental Management: A Qual/Quan Study. JBE [Internet]. 2008 [cited 2019 April 19];82(3):701-732. Available from: DOI: 10.1007/s10551-007-9587-x
Michelle M, Seyhmus B. Hotel guests’ preferences for green hotel attributes. CHQ [Internet]. 2011 [cited 2019 May 19];52(3):302-311. Available from: DOI: 10.1177/1938965511409031
Michael EP. Competitive Strategy. New York: Free Press; 1980. 396 p.
Michael EP, Mark RK. The competitive advantage of corporate philanthropy. HBR [Internet]. 2002 [cited 2019 April 23];80(12):57-68. Available from: https://www.academia.edu/39670432/The_Competitive_Advantage_of_Corporate_Philanthropy
Monica S, Geoffrey D. Green Companies or Green Con-Panies: Are companies really Green, or Are They Pretending to be?. BSR [Internet]. 2005 [2019 April 15];110(2):117-157. Available from: DOI: 10.1111/j.0045-3609.2005.00007.x
Nei-Jen C, Cher-Min F. Green Product Quality, Green Corporate Image, Green Customer Satisfaction, and Green Customer Loyalty. AJBM [Internet]. 2010 [cited 2018 August 23];4(13):2836-2844. Available from: DOI: 10.5897/AJBM.9000310
OSMEP [Internet]. Trends of the Export, Import and the Growth Rate of the SMEs. 2012-2016. [cited 2018 July 25]. Available from: http://www.sme.go.th/eng/
Philip K. Marketing Management. 10th edition. New Jersey: Prentice-Hall; 2000. 533 p.
Puneeta G. Triple bottom line reporting: An analytical approach for corporate sustainability. JFAM [Internet]. 2010 [cited 2019 May 8];1(1):27-42. Available from: http://eds.a.ebscohost.com/eds/detail/detail?vid=0&sid=98470970-75aa-4ebe-a281-7a263a1c9b87%40sessionmgr4007&bdata=JnNpd%20GU9ZWRzL%20WxpdmU%3d#AN=61996575&db=bsx
Pratima B, Kendell R. Why companies go green: a model of ecological responsiveness. AMJ [Internet]. 2000 [cited 2018 September 16];43(4):717-736. Available from: DOI: 10.2307/1556363
Qinghua Z, Joseph S, Kee-hung L, Yong G. The role of organizational size in the adopting of green supply chain management practices in China. CSREM [Internet]. 2008 [cited 2019 April 15];15(6):322-337. Available from: DOI: 10.1002/csr.173
Raphael A, Paul JHS. Strategic assets and organizational rent. SMJ [Internet]. 1993 [2019 January 21];14(1):33-46. Available from: DOI: 10.1002/smj.4250140105
Rex BK. Principles and Practice of Structural Equation Modeling. 3th edition. NY: The GuilFord Press; 2011. 427 p.
Robert R, Ali Q, Byron K. Applying a consumer perceptual measure of corporate social responsibility: a regional Australian perspective. JCC [Internet]. 2008 [2019 July 3];29(Spring):61-74. Available from: https://pdfs.semanticscholar.org/dd4e/65864e4b9c11971a04004b9500bd618be5d5.pdf
Sanit K, Viroj J, Jantana S. Component and Pattern of Strategic Corporate Social Responsibility: Hotel Business in Thailand. Journaldtc [Internet]. 2018 [cited 2019 September 10];11(special):171-185. Available from: https://so01.tci-thaijo.org/index.php/journaldtc/article/view/136163
Sarah R. Supply chain specific? Understanding the patchy success of ethical sourcing initiatives. JBE [Internet]. 2003 [2019 June 8];44(2/3):159-170. Available from https://link.springer.com/content/pdf/10.1023/A:1023395631811.pdf
Sharon L, Eitan N. Standardization and discretion; Does the environmental standard ISO 14001 lead to performance benefits?. IEEE TEM [Internet]. 2006 [cited 2019 June 3];53(4):508-519. Available from: DOI: 10.1109/TEM.2006.883704
Taro Y. Statistics: An Introductory Analysis. 3rd edition. New York: Harper & Row; 1973. 1130 p.
Thailand Board of Investment [Internet]. Thailand Food Industry; [updated 2016; cited 2019 August 12]. Available from: https://www.boi.go.th/index.php?page=business_opportunities_detail&topic_id=117522
Thaipublica [Internet]. 5 hottest business sustainability trends: The Path to Sustainability; [updated 2011; cited 2018 October 10]. Available from: https://thaipublica.org/2011/10/the-path-to-sustainability/
Tzu-Yun C, Hing Kai C, Fiona L, Sai HC. The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. TRP-E [Internet]. 2011. [cited 2018 September 16];47:822-836. Available from: DOI: 10.1016/j.tre.2011.05.016
Udemy [Internet]. 8 Consumer Rights and Responsibilities: How to Be Protected; [updated 2020; cited 2020 April 10]; Available from: https://blog.udemy.com/consumer-rights-and-responsibilities/
Wanchai K, Viroj J. The Impact of Customer Relationship Management on Customer Responsiveness and Business Performance of Electronic Commerce in Thailand. JAM [Internet]. 2014 [cited 2019 May 8];8(2):53-66. Available from: https://www.mis.ms.su.ac.th/MISMS01/PDF02/200_20190615_j_27.pdf
William QJ, Thomas JD. Performance implications of incorporating natural environmental issues into the strategic planning process: An empirical assessment. JMS. 2002 [cited 2019 February 22];35(2): 241-262. Available from: DOI: 10.1111/1467-6486.00092
Yavuz A, Cemil K, Mehmet FA, Atif A. The relationships between corporate social responsibility, environmental supplier development, and firm performance. JCP [Internet]. 2016 [cited 2018 August 11];112(3): 1872-1881. Available from: DOI: 10.1016/j.jclepro.2014.08.090
Yu-Shen C, Shyh-Bao L, Chao-Tung W. The Influence of Green Innovation Performance on Corporate Advantage in Taiwan. JBE [Internet]. 2006 [cited 2019 March 4]; 67(4): 331-339. Available from: DOI: 10.1007/s10551-006-9025-5
Yu-Shen C. The Driver of Green Innovation and Green Image – Green Core Competence. JBE [Internet]. 2008 [cited 2018 November 11];81(3):531-543. Available from: DOI: 10.1007/s10551-007-9522-1
Copyright (c) 2020 LUMEN Proceedings
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Selection and peer-review under responsibility of the Organizing Committee of the conference.
This is an Open Access article distributed under the terms of the Creative Commons Attribution-Noncommercial 4.0 Unported License, permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.
© LUMEN Proceedings Series 2022 . The LUMEN Proceedings Open Access volumes are distributed under the terms of the 