Early and late adopters of ISO 14001-type standards: revisiting the role of firm characteristics and capabilities

Serdal Ozusaglam (), Stéphane Robin () and Chee Yew Wong ()
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Serdal Ozusaglam: Leeds University Business School
Stéphane Robin: University of Paris 1 Panthéon-Sorbonne
Chee Yew Wong: Leeds University Business School

The Journal of Technology Transfer, 2018, vol. 43, issue 5, No 9, 1318-1345

Abstract: Abstract Environmental management standards (EMS) are important voluntary management tools that aim at reducing the environmental impact of firms’ activities. From ethical motivations through increasingly high pressure from regulatory authorities to expected financial returns, reasons to adopt an EMS are manifold. While they all certainly matter, it is still unclear from the literature which firm-specific organisational capabilities and structural characteristics significantly drive adoption. Using Propensity Score Matching (PSM) on two samples of French firms, we identify firm-specific factors associated with the early or late adoption of ISO 14001-type EMS and we test whether adoption increases labour productivity. We find that adopters are moderately large manufacturing firms that rely on ISO 9001 standards or Total Quality Management. In addition, according to the first sample, early adopters tend to be more technologically complex firms that are active in the European market. These differences are attenuated in the second sample, which may be biased towards more innovative firms. Both samples however concur with the conclusion that, whether early or late, adoption is associated with a higher labour productivity compared to non-adoption. This result still holds when we use fully interacted linear models instead of PSM, and seems to be consistent over time. Thus, implementing EMS might provide win–win opportunities to adopters, without giving any premium to “early birds”.

Keywords: Environmental management standards; Early and late adoption of environmental standards; Labour productivity (search for similar items in EconPapers)
JEL-codes: L15 O31 O32 Q55 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s10961-017-9560-5

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