Please use this identifier to cite or link to this item: https://ptsldigital.ukm.my/jspui/handle/123456789/485871
Title: Environmental Management Control System (EMCS), eco-capability and firm performance in environmentally sensitive industries
Authors: Indarawati Tarmuji (P71265)
Supervisor: Ruhanita Maelah, Prof. Madya Dr.
Keywords: Environmental management
Business enterprises
Industries -- Environmental aspects
Universiti Kebangsaan Malaysia -- Dissertations
Dissertations, Academic -- Malaysia
Issue Date: 1-Oct-2019
Description: The industrial sector has contributed a massive growth to the world economy. However, this growth has affected the natural environment adversely due to inefficient control of the industrial activities. Thus, the Environmental Management Control System (EMCS) is the most relevant control system that is required by these industries to reduce the environmental impacts. EMCS is defined as a combination of both formal and informal procedures and control system that helps organizations to use their information on finance and ecology to structure activities that affect the environment to be consistent with their organizational objectives and strategies. An organization needs eco-capability in controlling the environmental exercises that relies on several factors including human and business abilities as well as technological. As a specific application of the Management Control System (MCS) package, the use of EMCS to enhance the firm��s performance is still at the infancy level. This study examined the relationship between four variables, Environmental Management Control System (EMCS), eco-capability, environmental performance, and firm performance in environmentally sensitive industries (ESI) (manufacturing, plantation, construction and oil & gas). Environmentally sensitive industries were chosen due to the high impacts on natural resources generated from their operations. A conceptual framework was developed based on the Natural Resource-Based View (NRBV) and Dynamic Capabilities view. The study used quantitative approach to achieve its objectives and survey questionnaires to collect required data. All 142 responses received were analyzed. The models and hypotheses of this study were analyzed using the Partial Least Squares (PLS) approach. Instead of modeling the attributes of EMCS and firm performance on a single construct layer, this study applied the concept of higher construct model, Reflective Formative Type II, mode B. The findings revealed that the dimensions (planning, cultural, cybernetic, reward and compensation and administration) that form EMCS are significant, thus supporting the need for EMCS to be practiced in a package. EMCS also significantly affect eco-capability, environmental performance, and firm performance. The inclusion of multiple mediators (eco-capability and environmental performance) in relation to EMCS and firm performance revealed that only environmental performance acts as a mediator. These findings provide theoretical insights and practical implications relating to the importance of EMCS to enhance organization performance through eco-capability and environmental performance. This study also shed some light on EMCS practices in environmentally sensitive industries. This study contributed additional empirical evidence to the extant literature in environmental management control system area. The findings could be used as an input for managers to implement EMCS and eco-capabilities for competitive advantage and for regulators to encourage and regulate EMCS practices in environmentally sensitive industries.,Ph.D.
Pages: 242
Call Number: HD75.6.I533 2019 tesis
Publisher: UKM, Bangi
Appears in Collections:Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

Files in This Item:
File Description SizeFormat 
ukmvital_107610+SOURCE1+SOURCE1.0.PDF
  Restricted Access
12.39 MBAdobe PDFThumbnail
View/Open


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.