Environmental management practices and environmental performance: the roles of operations and marketing capabilities

Abstract

Purpose – The main purpose of this paper is to provide an initial analysis of the roles of functional capabilities in adopting environmental management practices (EMP) and improving environmental performance from an organizational capability perspective. Design/methodology/approach – By combing survey data and archival data from 121 UK based manufacturing firms, this study explores the relationships among functional capabilities (marketing and operations), EMP and environmental performance. Findings – The results show that marketing and operations capabilities significantly affect EMP, which in turn leads to improved environmental performance. More specifically, this study finds that EMP fully mediates the relationship between marketing capability and environmental performance. Practical implications – The results of this study provide guidance for managers considering how to develop environmental capability in order to improve environmental performance. Originality/value – This study addresses a demonstrable gap in the existing literature that few empirical studies have explored the potential effects of functional capabilities on implementing EMP.