Journal of Cleaner Production 87 (2015) 442e451

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Journal of Cleaner Production

journal homepage: www.elsevier.com/locate/jclepro

Green product development and performance of Brazilian rms:

measuring the role of human and technical aspects
Charbel Jose Chiappetta Jabbour a, *, Daniel Jugend a, 1,
Ana Beatriz Lopes de Sousa Jabbour a, 1, Angappa Gunasekaran b, Hengky Latan c
a
UNESP e Univ Estadual Paulista (Sao Paulo State Univ), Av. Eng. Luiz Edmundo Carrijo Coube, 14-01, Vargem Limpa, Bauru-SP CEP 17033360, Brazil
b
University of Massachusetts Dartmouth, 285 Old Westport Road, North Dartmouth, MA 02747-2300, USA
c
University of Pattimura, Faculty of Economics and Business Department Accounting, Jl. Ir. M. Putuhena 97233, Indonesia

a r t i c l e i n f o a b s t r a c t

Article history: The goal of this study is to present and test a conceptual framework that describes the technical aspects
Received 25 April 2014 (TA), human/organizational aspects (HOA) of the adoption of green product development (GPD) practices
Received in revised form and the effect of these practices on rms' environmental (EP), operational (OP) and market performance
4 September 2014
(MP). To this end, after reviewing the literature on these themes, a conceptual framework with 5 hy-
Accepted 8 September 2014
Available online 18 September 2014
potheses is proposed. These hypotheses were tested on 62 Brazilian companies through structural
equation modeling using SmartPLS 2.0M3. The main results of this study are as follows: (a) in general,
the proposed framework obtained adequate goodness of t statistics (GoF); (b) technological factors are
Keywords:
Environmental management
shown to have an inuence on the adoption of GPD practices, and those practices are related to company
Sustainable product development EP, OP and MP, thus conrming 4 hypotheses of the study; and (c) one of the study's hypotheses is not
Green human resource management validated, indicating that the relationship of human/organizational aspects to GPD must be further
Technological aspects analyzed. This work extends the literature because: (a) the conceptual framework tested in this study
Performance establishes several concepts that have been only partially tested in the previous literature; (b) this work
Sustainable operations management presents evidence about Brazil, where the themes addressed herein have not been yet been thoroughly
investigated; and (c) the non-validation of the hypothesis regarding the relationship between human/
organizational aspects with respect to the adoption of product-related environmental practices requires
attention.
2014 Elsevier Ltd. All rights reserved.

1. Introduction This environmental pressure has led companies to increasingly

Since Porter's hypothesis (Porter & Van der Linde, 1995) was
proposed, the argument that environmental management can
generate superior competitive performance for companies by
improving their performance and competitiveness has gained
strength. Over time, institutional pressure for countries and their
companies to become greener has increased, for example, in the
cases of Brazil's new national solid waste policy (Jabbour et al.,
2014) and China's circular economy policy (Geng et al., 2012).
* Corresponding author. Tel./fax: 55 14 31036122.
E-mail addresses: prof.charbel@gmail.com (C.J.C. Jabbour), daniel@feb.unesp.br
(D. Jugend), abjabbour@feb.unesp.br (A.B.L.S. Jabbour), agunasekaran@umassd.edu
(A. Gunasekaran), hengkylatan@yahoo.com (H. Latan).
1
Tel./fax: 55 14 31036122.
adopt environmental management practices. Among these prac-
tices, environmentally improved product development practices
are important (Borchardt et al., 2011; Tomasin et al., 2013). Green
product development (GPD) is one of the main themes in the
literature on environmental management (Albino et al., 2009).
Some issues remain important in understanding this theme, for
example, which factors inuence the development of environ-
mentally improved products (Pujari et al., 2003, 2004) and effect of
environmental management practices on company performance
(Chen et al., 2006; Driessen et al., 2013; Gonza
lez-Benito and
Gonza
lez-Benito, 2005; Lin et al., 2013; Wong, 2012).
Based on these gaps in the state-of-the-art of GPD and the lack
of literature on the topic as it relates to Brazil, the goal of this study
is to analyze how organizational/human and technological aspects
inuence the adoption of GPD in Brazilian companies and the ef-
fects of those practices on rms' performance. It is known that
human/organizational aspects (HOA) are critical for the success of

http://dx.doi.org/10.1016/j.jclepro.2014.09.036
0959-6526/ 2014 Elsevier Ltd. All rights reserved.
 C.J.C. Jabbour et al. / Journal of Cleaner Production 87 (2015) 442e451
environmental management and the implementation of environ-
mental management systems (EMS) (Zutshi and Sohal, 2004). It is
also known that technical aspects and green technologies are
required for the success of environmental management (Boiral,
2009). Moreover, it is known that the adoption of environmental
practices tends to inuence companies' performance (Berry and
Rondinelli, 1998). However, an analytical focus on the relationship
among technical (TA) and human/organizational aspects (HOA),
green product development (GPD) and Brazilian companies' per-
formance (EP, OP and MP) is still lacking.
The emphasis on the Brazilian context is justied because Brazil
is one of the most bio-diverse countries in the world, with abun-
dant natural resources that must be adequately respected in the
process of industrial development. Brazil is also part of the BRIC, a
group of emerging developing nations. The country is also the most
economically active in Latin America and has the largest number of
ISO 14001-certied companies in the region (ISO, 2012). For all of
these reasons, studies on environmental management in Brazilian
companies are relevant.
In this context, the originality of this study is that it proposes a
conceptual model, ascertains the relationship between human/
organizational aspects and technological factors in adopting prac-
tices for green product development and explores the inuence of
said practices on the market, operational and environmental per-
formance of Brazilian companies. A sample of 62 companies was
used in a structural equation modeling approach to determine the
validity of the study's hypotheses.
2. Conceptual background
2.1. Technological aspects (TA) and human/organizational aspects
(HOA) of environmental management
Debate over the importance of organizational environmental
management is becoming more intense every day, and in this
context, companies are increasingly adopting environmental
management practices. However, adoption of environmental
management practices depends on a series of prerequisites that
drive the greening of organizations. These prerequisites may be
either technical or human/organizational aspects (Alvarez Gil
et al., 2001). They turn companies' adoption of environmental
management practices and search for better environmental per-
formance into socio-technical processes (Boiral, 2009) in which
both technological and human aspects are relevant for organiza-
tional change (Mumford, 2000). This reality is no different when
more advanced environmental management practices are adopted
(Jabbour and Oliveira, 2011) and its presence has become increas-
ingly prominent in recent debates on environmental management
(Muduli et al., 2013).
Therefore, the adoption of environmental management prac-
tices, including environmentally improved product development,
requires attention to both technical and human/organizational
aspects.
The technical aspects of environmental management comprise
changes that should occur in products and production processes to
improve organizations' environmental performance. One of the
most relevant theories related to the TA of greening organizations is
ecological modernization (Sarkis et al., 2011). This theory states
that the synergy between industrial development and improve-
ment in environmental performance can be obtained through
organizational investment in technology and innovation, i.e., by
emphasizing technical aspects (Zhu et al., 2011). By combining
technology, innovation and emerging techniques with organiza-
tional greening, it becomes possible to develop environmentally
443
improved products. This provides an outline of a coordinated effort
that organizations should make:
 Adopting environmental technologies, preventive or end of pipe
control (Kuehr, 2007);
 Obtaining specic technical knowledge about legislation and
environmental requirements in the sectors and markets where
the company acts;
 Obtaining technical knowledge and enabling the application of
technologies such as life cycle assessment, CO2 emission anal-
ysis (Rajaeifar et al., 2014) and eco-efciency (Govindan et al.,
2014b), among others, to map the environmental effects
generated by the manufacturing and production processes; and
 Obtaining technical knowledge and enabling the application of
the above mentioned technologies to measure the environ-
mental impact of the end consumer's product consumption.
In addition, several authors (Murillo-Luna et al., 2011; Shi et al.,
2008; Chan, 2008; Hillary, 2004; Post and Altman, 1994) state a
series of human/organizational barriers may hinder the adoption of
environmental practices and delay organizational greening. These
barriers are related to the difculties in creating a more sustainable
organizational culture (Linnenluecke and Grifths, 2010; Harris and
Crane, 2002; Stone, 2000). These non-technical organizational as-
pects may become critical factors for the success of environmental
management (Zutshi and Sohal, 2004), and they are relevant for the
adoption of more advanced environmental practices (Vazquez and
Liston-Heyes, 2008) such as green supply chain management
(Muduli et al., 2013).
To overcome these human challenges in environmental man-
agement, a new theory known as green human resource manage-
ment (GHRM) has been proposed (Renwick et al., 2013),
considering sustainability issues and HRM in a long-term
perspective (Kramar, 2014). Jackson et al. (in press), having
reviewed the literature on the benets and contributions of envi-
ronmentally adequate human resource management, invites
management scholars to further the knowledge of the human side
of environmental sustainability. This perspective conrms the
warnings in several previous studies (Boiral and Paille
, 2012;
Jabbour et al., 2010; Jabbour and Santos, 2008; Ramus, 2002,
2001; Ramus and Steger, 2000), which state that for environ-
mental management to be effective, human aspects must be sup-
ported. As stated by Milliman (2013), organizational sustainability
management requires employee dedication and therefore requires
attention from human resources aspects. According to Delmas and
Pekovic (2013), companies that pay attention to the greening of
human factors may be more productive, thus gaining a competitive
advantage. Recent studies are supporting similar ndings on the
relevance of the human side of green management (for example,

et al.,
Ehnert, 2009; Jackson and Seo, 2010; Kim et al., in press; Paille
2014; Govindan et al., 2014a; Wolf, 2013; Graves et al., 2013;
Longoni et al., 2014).
Among the human/organizational aspects that are relevant for
environmental management, the following are important:
 Environmental training to improve the capacity to address
environmental management situations (Jabbour, 2013);
 Green empowerment, providing employees autonomy to make
environmental decisions (Daily et al., 2012; Ramus, 1997);
 Environmental performance assessment, measuring employees'
contribution to the advancement of environmental performance
(Jackson et al., in press);
 Reward systems for environmental performance, valuing em-
ployees that contribute the most to environmental sustainabil-
ity (Renwick et al., 2013);
444 C.J.C. Jabbour et al. / Journal of Cleaner Production 87 (2015) 442e451
 Support from senior management for environmental initiatives
(Daily and Huang, 2001); and
 Interfunctional/Cross-Functional integration of environmental
management that favors the formation of green teams
(Dangelico, 2014; Jabbour et al., 2013).
2.2. Practices of Green Product Development (GPD)
New product development can be dened as a collection of
activities that seek to achieve the specication of a completely new
product or the improvement of an existing one, based on market
needs, market opportunities and technical and technological pos-
sibilities and restrictions, taking into consideration the company's
competitive strategy (Crawford and Di Benedetto, 2006; Rubera
et al., 2012).
To create widespread standards and benchmarks, there are lines
of research into new product development (NPD) that aim to
identify and promote best practices (Cooper et al., 1999; Ernst,
2002; Kahn et al., 2006, 2012). Kahn et al. (2012) dene NPD
practices as the routines and policies that a company possesses to
implement ideas and policies that lead to the development and
launch of new products.
In recent years, research into environmentally adequate product
development has intensied. For example, Pujari et al. (2003, 2004)
have approached prerequisites and environmental responsibility in
NPD. Pigosso et al. (2013) have proposed a framework specic to
eco-design. Gmelin and Seuring (2014), based on the product life-
cycle theory, have found a relationship between sustainability
and NPD.
Gonza
lez-Benito and Gonza
lez-Benito (2006) have identied a
set of practices that should be adopted for the development of
environmentally adequate products, namely:
 The substitution of polluting and hazardous material/parts;
 Design focused on reducing resource consumption and waste
generation during production and distribution;
 Design focused on reducing resource consumption and waste
generation in product usage; and
 Design for disassembly, reusability and recyclability.
Some contextual factors have also received special attention
due to their inuence on NPD performance. There is pressure from
stakeholders for companies to develop environmentally friendly
products (Brook and Pagnanelli, in press; Gonz
alez-Benito and
Gonz
alez-Benito, 2006). Studies such as those by March-Chorda 
et al. (2002) and Moultrie et al. (2006) show that a company's
size tends to inuence the management practices that it adopts in
product development and its respective development pattern.
Bener (2009) observes that there is a relationship between ISO
9001 certication practices and NPD innovation efforts.
These issues are also important variables when studying GPD.
For example, Gonza
lez-Benito and Gonz
alez-Benito (2006) state
that a company's size tends to favor the adoption of a greener
perspective in product development. The ISO 14001 environmental
management system also tends to favor more advanced green
supply-chain practices, in which environmental product develop-
ment is important (Darnall et al., 2008). Finally, companies that
operate in an environment of high pressure from environmental
legislation tend to adopt environmental practices, such as envi-
ronmental logistics, more intensely (Lai and Wong, 2012) and may
tend to adopt more GPD practices. Therefore, company size, ISO
14001 certication and pressure from environmental legislation all
tend to inuence GPD.
2.3. GPD and rms' performance
According to Ghalayini et al. (1997), to obtain and maintain
competitive advantage, organizations must produce high-quality
and low-cost products while increasing variety and reducing pro-
duction lead time. According to Wang et al. (2012), for increasing
prots and competitiveness, the product development process is
one of an organization's most important processes. To evaluate the
success of these processes, performance measurements are
required (Ghalayini et al., 1997). Performance measurements are an
essential element in planning and controlling organizational ac-
tivities (Driva et al., 2001), such as the product development pro-
cess. According to Pujari et al. (2003), it is important to understand
market performance and eco-performance indicators to ascertain
the effectiveness of developing environmentally improved
products.
Market performance (MP) indicators may be understood from
indicators such as:
 Company reputation and image;
 Alignment between what the company offers and consumers'
expectations;
 Success in launching new products (Gonz

lez-
alez-Benito; Gonza
Benito, 2005).
According to Gonz
alez-Benito and Gonza
lez-Benito (2005),
company reputation and the ability to meet client expectations can
both be improved by offering environmentally improved products.
According to Lin et al. (2013) and Driessen et al. (2013), an impor-
tant outcome of GPD is an improved company reputation.
Operational performance (OP) indicators can be analyzed based
on the competitive priorities of production that Hayes and
Wheelwright (1984) proposed and Slack et al. (1997) reviewed.
More specically, those priorities include:
 Costs;
 Quality;
 Flexibility;
 Reliability; and
 Speed.
Gonza
lez-Benito and Gonza
lez-Benito (2005) have conducted a
study relating environmental product-development practices to
operational performance, resulting in a nding that this relation-
ship is not very signicant. Chen et al. (2006) have conducted a
study showing that investment in green product innovation by
means of environmental product-development practices leads to
improved competitive advantage, based on positive results in in-
dicators such as product cost, quality and exibility. Wong (2012)
points in the same direction as Chen et al. (2006), conrming
that innovation in green products improves competitive advan-
tages such as improved product quality.
According to Gmelin and Seuring (2014), sustainability aspects
have been neglected in the development of new products. How-
ever, according to Ellram et al. (2008), it is possible to reach envi-
ronmental sustainability goals while meeting organizational
protability targets and excellence in new product performance. In
this sense, it is important to understand the indicators that should
be used to assess the performance of environmental products.
Measures of environmental performance (EP) include (Lai and
Wong, 2012; Zhu et al., 2007):
 Reduction in pollution generation (atmospheric emissions,
liquid efuents and residues);
 Reduction in the consumption of toxic, hazardous materials;
 C.J.C. Jabbour et al. / Journal of Cleaner Production 87 (2015) 442e451
 Reduction in the consumption of water and energy; and
 Reduction in the frequency of environmental accidents
According to Dangelico and Pujari (2010), it is important to note
that green products cannot sustain long-term market success un-
less they can demonstrate credible environmental performance
without compromising others benets.
3. Research methodology
3.1. Methodological approach
This research follows a logic that is both deductive and quan-
titative developed by conducting a survey. A survey is a research
strategy in which experts on a particular subject are asked about
their perception of relevant organizational aspects
(Rungtusanatham et al., 2003). A survey allows for a closer rela-
tionship between academia and the real world because it facilitates
the testing of conceptual models based on real-world data (Flynn
et al., 1990).
3.2. Conceptual framework and hypotheses development
Based on the literature review, the conceptual framework used
in this study is depicted in Fig. 1. The list of study variables and their
respective codes are provided in Appendix 1.
In this framework, TA and HOA inuence the adoption of envi-
ronmental practices (EP) for product development, which conse-
quently inuence green performance (GP), operational
performance (OP) and market performance (MP).
The effects of technological factors on environmental manage-
ment have been explored by the pertinent literature (Boiral, 2009),
along with the inuence of human/organizational aspects, which
are important for the adoption of environmental management
practices (Zutshi and Sohal, 2004). Therefore, the following
research hypotheses are proposed:
 H1dTechnological factors have positive inuence on the
adoption of GPD practices;
 H2d Human/organizational aspects have positive inuence on
the adoption of GPD practices.
The adoption of GPD practices has shown positive effects on
company performance (Berry and Rondinelli, 1998). Proactive
Fig. 1. Conceptual framework.
445
environmental management practices such as the development of
environmentally adequate products tend to have positive effects on
company operational, environmental and market performance
(Chen et al., 2006; Driessen et al., 2013; Gonza
lez-Benito and
Gonza
lez-Benito, 2005; Lin et al., 2013; Wong, 2012). Thus:
 H3dThe adoption of GPD practices has a positive inuence on
OP;
 H4dThe adoption of GPD practices has a positive inuence on
MP; and
 H5dThe adoption of GPD practices has a positive inuence on
GP.
Moreover, rm size (FS), certied Environmental Manage-
ment System (ISO 14001) and environmental regulation (ER) are
considered to be control variables related to the adoption of GPD
because there are studies showing that size has an inuence on
environmental management (Gonz
alez-Benito and Gonza
lez-
Benito, 2006), that adopting EMS is important for corporate
greening (Darnall et al., 2008) and that environmental enforcement
inuences the adoption of more advanced environmental practices
(Lai and Wong, 2012).
3.3. Measurements
3.3.1. Measurement of HOA
Among the human/organizational aspects relevant to environ-
mental management, the following were used in this study: envi-
ronmental training, to provide the capacity to address
environmental management situations (Jabbour, 2013); green
empowerment, providing employees with the autonomy to make
environmental decisions (Daily et al., 2012; Ramus, 1997); envi-
ronmental performance evaluation, which measures employee
contributions to the advancement of environmental performance
(Jackson et al., in press); reward systems for environmental per-
formance, which value employees who contribute the most to
environmental sustainability (Renwick et al., 2013); support from
top management for environmental initiatives (Daily and Huang,
2001); and inter/cross-functional integration of environmental
management favoring the formation of green teams (Dangelico,
2014; Jabbour et al., 2013). Each of these items was measured us-
ing a 5-point Likert scale ranging between 1 (no adoption) and 5
(total adoption).
446 C.J.C. Jabbour et al. / Journal of Cleaner Production 87 (2015) 442e451
3.3.2. Measurement of TA
In this study, TA was measured according to ve assertions:
environmental technologies, be they preventive or end-of-pipe
control (Kuehr, 2007); specic technical knowledge about envi-
ronmental requirements and legislation in the sectors and markets
where the company acts; technical knowledge and application of
technologies such as life cycle assessment, CO2 emission analysis
(Rajaeifar et al., 2014) and eco-efciency (Govindan et al., 2014b),
among others, to map the environmental impact caused by the
production/manufacture process; and technical knowledge and
application of the above-referenced technologies to measure
environmental impacts during the product-consumption phase.
Each of these items was measured using a 5-point Likert scale
ranging between 1 (no adoption) and 5 (total adoption).
3.3.3. Measurement of GPD
Gonza
lez-Benito and Gonza
lez-Benito (2006) have identied a
set of practices that should be adopted in the development of
environmentally friendly products: the substitution of polluting
and hazardous material/parts; designs focused on reducing
resource consumption and waste generation during production and
distribution; design focused on reducing resource consumption
and waste generation during product usage; and design focused on
disassembly, reusability and recyclability. Each of these items was
measured using a 5-point Likert scale ranging between 1 (no
adoption) and 5 (total adoption).
3.3.4. Measurement of performance (MP, OP and GP)
MP may be obtained from indicators such as company reputa-
tion and image, alignment between a company's offerings and
consumer expectations and success in launching new products
(Gonza
lez-Benito; Gonza

lez-Benito, 2005). Each of these items was
measured using a 5-point Likert scale ranging between 1
(maximum deterioration) and 5 (maximum improvement)
considering companies' activities over the previous 3 years.
OP can be analyzed by examining the competitive priorities of
production proposed by Hayes and Wheelwright (1984) and
reviewed by Slack et al. (1997): cost, quality, exibility, reliability
and speed. Each of these items was measured using a 5-point Likert
scale ranging between 1 (maximum deterioration) and 5
(maximum improvement) considering companies' activities over
the previous 3 years.
GP may be ascertained by examining reduction in pollution
generation (i.e., atmospheric emissions, liquid efuents and resi-
dues), reduction in the consumption of toxic/hazardous materials,
reduction in the consumption of water and energy and reduction in
the frequency of environmental accidents (Lai and Wong, 2012; Zhu
et al., 2007). Each of these items was measured using a 5-point
Likert scale ranging between 1 (maximum deterioration) and 5
(maximum improvement) considering companies' activities over
the previous 3 years.
3.3.5. Measurement of control variables (rm size [C1], EMS ISO
14001 [C2] and environmental regulation [C3])
Firm size (C1) was measured in four separate categories: micro-,
small-, medium- and large-sized companies. We used the Brazilian
classication for rm size, which is based on the number of com-
pany employees (Sebrae, 2013). Micro-sized rms have up to 19
employees, small-sized rms have between 20 and 99 employees,
medium-sized rms have between 100 and 499 employees, and
large-sized rms have 500 or more employees. Environmental
certication based on ISO 14001 (C2) was measured on a 2-point
scale (yes or no). The variable of environmental legal enforce-
ment, based on Lai and Wong (2012) was measured on a 2-point
scale (context of low environmental regulation or context of high
environmental regulation).
3.4. Population, sample and data collection
Based on Synodinos (2003), a research instrument was devel-
oped to collect data using an online questionnaire located in a
virtual environment that housed the items used to measure each of
the key concepts in this research, as documented in Appendix 1.
The web link for the questionnaire was emailed to owners/top
managers of ISO 9001-certied companies located in Brazil.
The managers' contact information was collected using Inme-
tro's database on ISO 9001 certication and the research team's
contacts. In all, approximately 1000 environmental managers were
contacted. After sending the original invitation to complete the
survey, the research team sent 3 additional email reminders.
Finally, the research team initiated a more personalized approach
by telephoning the targeted respondents. By the end of this pro-
cess, which took place between 2013 and 2014, we had 62 valid and
correctly completed questionnaires. In absolute terms, the number
of questionnaires obtained is adequate compared to other research
in the environmental eld (Delmas, 2001). Other empirical studies,
based on the Brazilian context, have been carried out with a similar
amount of respondents (for example, Gavronski et al., 2008).
The respondent companies sampled have the following proles:
(a) 17.74% are micro-companies, 29.03% are small companies,
37.09% are medium-sized companies and 16.12% are large com-
panies; (b) only 16.12% of the companies have ISO 14001 certi-
cation; and (c) 56.45% of the companies claim that their products
are subject to very strict environmental regulations.
3.5. Data analysis
The hypotheses of the conceptual model were tested based on
empirical data by means of structural equation modeling using
partial least squares (PLS) with the support of SmartPLS 2.0 M3
(Ringle et al., 2005). Structural equation modeling is a type of
second-generation multivariate statistical analysis that has attrac-
ted attention in the areas of environmental management (Murillo-
Luna et al., 2011; Pereira-Moliner et al., 2012) and operations
management (Peng and Lai, 2012). The test of the conceptual model
involved obtaining a measurement model (outer model) and a
structural model (inner model).
Five hypotheses were tested according the conceptual frame-
work of this research. We applied the following cut-off values
during the data analysis:
 Average variance extracted (AVE) higher than 0.5 (Hair et al.,
2011; Latan and Ghozali, 2012);
 Composite reliability higher than 0.7 (Hair et al., 2011; Latan and
Ghozali, 2012);
 Square root of AVE higher than correlation among construct
(Latan and Ghozali, 2012);
 Cronbach's alpha higher than 0.6 (Hair et al., 2011; Latan and
Ghozali, 2012);
 Communality higher than 0.6 (Latan and Ghozali, 2012);
 Redundancy higher than zero (Latan and Ghozali, 2012);
 R2 small 0.02; R2 medium 0.13; R2 large 0.26 (Cohen,
1992);
 The t test values near 1.65, 1.96 and 2.58 were considered with
signicance levels of 10%, 5% and 1%, respectively (Hair et al.,
2011; Latan and Ghozali, 2012); and
 The GoF calculation was obtained multiplying the square root of
AVE by the average of R2 (where AVE 0.5, R2 small 0.02, R2
medium 0.13 and R2 large 0.26), thus, GoF small, medium
 C.J.C. Jabbour et al. / Journal of Cleaner Production 87 (2015) 442e451 447

Table 1 The discriminant validity was obtained by comparing the square

The result of convergent validity and internal consistency reliability (Factor- roots of the AVE and the paths between the latent variables. The
weighting scheme; mean 0, var. 1; max. Iteration 300).
values for the square roots of the AVE shown on the diagonal in bold
Latent variables Items/ Indicator AVE Composite reliability demonstrate that they are acceptable (Table 2).
Indicators reliability The convergent validity was analyzed to verify whether the
TA V1 0.762 0.6599 0.8852 measuring items for the latent variables have their highest loads in
V2 0.853 their original concepts; in other words, whether the items have
V3 0.888
higher loads for the concepts to which they belong. This test
V4 0.737
HOA V5 0.817 0.6019 0.8997 showed adequate results (Table 3).
V6 0.683 To ensure that these positive relationships are truly statistically
V7 0.730 signicant, we applied a bootstrapping technique (2000 sub-
V8 0.876
samples). Here, we nd that all such values are both positive and
V9 0.669
V10 0.854
statistically signicant, as shown in Fig. 2.
GPD V11 0.688 0.6115 0.8601 The R-squares for all dependent variables went to large. The
V12 0.886 tested models have predictive relevance because the Q2 result is
V13 0.893 greater than 0. There is no collinearity problem among predictor
V14 0.625
variables with VIF values for all <3.3. In the model tested, based on
GP V15 0.745 0.7181 0.9101
V16 0.930 the observed R2, it is clear that the determining power of TA and
V17 0.835 HOA in GPD can be considered large (Cohen, 1992); the deter-
V18 0.870 mining power of GPD is large at a lower level for the performance
OP V19 0.758 0.6209 0.8909 constructs.
V20 0.749
V21 0.758
To compute Adjusted R2, we used the Equation (1):
V22 0.816
V23 0.853
 n1
~ 2 1  1  R2
R (1)
MP V24 0.859 0.8183 0.9310 Y Y
nk1
V25 0.925
V26 0.928
where
Note: All items in each variable have outer loading >0.6; AVE >0.5 and CR >0.7.
~ 2 adjusted R2;
R Y
R2Y R-square;
and large 0.10, 0.25 and 0.36, respectively (Latan and Ghozali,
n sample size; and
2012; Wetzels et al., 2009).
k number of predictor variables.

AVE, communality and the square root of AVE were used to

To compute the predictive validity of Q2, we used the Equation
measure validity. Next, Cronbach's alpha and composite reliability
(2):
were used to measure reliability. Redundancy and R-square were
used to measure the explained variance (dependent/endogenous P
E
constructs). The t-statistic was adopted for the test hypotheses, and Q 2 1  PD D (2)
GoF was used as the goodness of t model global indicator. D OD

4. Research results GoF, which measures the overall statistical tness of the model
tested, has a large (0.4739) effect for our study, meaning that our
All items for the latent variables that were considered in the proposed and tested models can be considered valid. To compute
conceptual model of this research showed good levels of statistical absolute GoF, we used the Equation (3):
quality, and therefore, no item needed be discarded in the analyses. p
With help from the SmartPLS 2.0 M3 software (Ringle et al., 2005), GoF AAVE  AARS (3)
the measures for the model were obtained. The main statistical
indicators showed satisfactory values that were above the mini- Where
mum levels of reference. For all latent variables, the AVE obtained
values above 0.6019; the composite reliability showed values above AAVE Average AVE; and
0.8601; and the indicator reliability obtained a minimum value of AARS Average Adjusted R2.
0.625 (Table 1).
In addition to the indicators of statistical quality, the discrimi- Thus, of the 5 hypotheses in our study, 4 can be considered valid
nant and convergent validity of the latent variables were checked. for our sample, as detailed in Table 4. With respect to the control

Table 2
The result of discriminant validity.

Variables GPD GP HOA MP OP TA

GPD (0.782) 0.0000 0.0000 0.0000 0.0000 0.0000

GP 0.5287 (0.847) 0.0000 0.0000 0.0000 0.0000
HOA 0.6197 0.6364 (0.776) 0.0000 0.0000 0.0000
MP 0.5306 0.4678 0.4601 (0.905) 0.0000 0.0000
OP 0.5190 0.2770 0.3725 0.6923 (0.788) 0.0000
TA 0.7243 0.5549 0.7121 0.5253 0.4510 (0.812)

Note: Square roots of AVEs shown on the diagonal must be greater than correlations.
448 C.J.C. Jabbour et al. / Journal of Cleaner Production 87 (2015) 442e451

Table 3 relationship, one of the most relevant variables is the knowledge

The result of inner-model analysis (Bootstrapping; sign changes individual of all environmental impacts generated by the production process
changes; 62 cases; 2000 in sample).
of products. The reason for the importance of that variable is the
Latent R-Squared (R2) Adj. R2 Effect Q2 predictive VIF GoF possibility that companies in the sample may be using technologies
variables size (f2) validity absolute such as life cycle assessment, CO2 emissions analysis (Rajaeifar
TA e e 0.378 e 2.318 e et al., 2014) or eco-efciency (Govindan et al., 2014b) to improve
HAO e e 0.166 e 2.745 e their GPD. In addition, it is worth noting that approximately 56% of
GPD 0.5576 0.5426 0.280 e 1.213 e
the survey respondents asserted that their products were subject to
0.268
0.280 very rigorous environmental regulations.
GP 0.2796 0.2676 e 0.2796 e e The hypothesis that HOA has an inuence on GPD is not
OP 0.2694 0.2572 e 0.2694 e e considered valid because it is not statistically sufcient. This may
MP 0.2816 0.2696 0.2816 0.4739
e e
reveal that for the sample analyzed herein, HOA is perceived to be
less important than technical aspects. Lending weight to this
argument is the fact that the variable there is a reward system for
employees based on the company's environmental performance is
variables (rm size, EMS and environmental regulations), our re-
the least important variable in the sample. The analyses also show
sults illustrate that these variables do not have a signicant effect.
that the variable support from top management is one of the
most important variables.
5. Discussions GPD reveals itself as a construct that has a great deal of inuence
on company performance. For GPD, the most relevant variables are
The rst point of discussion concerns the validity of the pro- product development focused on reducing resource consumption/
posed framework. In general, the proposed framework obtains an waste generation during production, distribution and use by con-
adequate level of statistical t, given the obtained GoF value. This sumers. It is likely that understanding the environmental impact
indicates that in general, the conceptual construct employed re- of the production process, which results from the existence of
veals itself to be coherent when applied to Brazilian companies. technical prerequisites, helps to achieve environmentally friendly
Although the literature indicates that adopting GPD practices is product-development practices.
important for company performance, this study presents a com- It is worth noting that GPD inuences performance in a quite
plementary model that integrates technical and human/organiza- balanced way, indicating that GPD may contribute to more
tional aspects and considers the impact that GPD has on a wide balanced and sustainable organizational performance. For MP, the
array of a company's EP, OP and MP variables. variables better alignment between what the company offers and
Of the 5 proposed hypotheses, 4 are considered valid. TA effects consumers' expectations and greater success in launching new
on the adoption of GPD practices are thus shown to be valid. In this products stand out, conrming some of the ndings of Gonza
lez-

Fig. 2. Statistically tested study model. Note: * value at sig. 5% Two-tails with DF 62;Student's T 2.00.
 C.J.C. Jabbour et al. / Journal of Cleaner Production 87 (2015) 442e451 449

Table 4  Of the 5 hypotheses, 4 are conrmed, indicating that technical

Hypothesis testing for relationships among variables (Sig. 5% Two-tails with aspects inuence GPD and GPD practices inuence companies'
DF 62; Student's T 2.00).
performance;
Relationship Original Sample Standard error T statistics Decision  The hypothesis relating HOA to GPD is not validated; and
sample (O) mean (M) (STERR) (jO/STERRj)  The control variables have little inuence on the adoption of
TA -> GPD 0.5206 0.5054 0.1607 3.2403 Accept GPD practices.
HOA -> GPD 0.2704 0.2972 0.1564 1.7293 Reject
GPD -> GP 0.5287 0.5534 0.1114 4.7448 Accept
These results have several implications for academics, organi-
GPD -> MP 0.5306 0.5354 0.0869 6.1039 Accept
GPD -> OP 0.5190 0.5297 0.0790 6.5720 Accept zational managers and future studies.
For academics, this study adds to the literature a more complete
framework that simultaneously integrates the constructs of tech-
nical, human/organizational aspects, green product development
Benito and Gonza
lez-Benito (2005). One implication may be that practices and rm's performance. It is one of the rst frameworks to
adopting GPD practices may improve innovative potential and in integrate these concepts in this way. The results support the
turn, improve a company's product launch success rate. For envi- existing literature to the extent that they indicate the relevance of
ronmental performance, reducing the consumption of toxic- technical aspects for GPD and environmental management gener-
hazardous materials stands out, which may be a consequence of ally (Boiral, 2009). The results also conrm indications that envi-
technical prerequisites because companies in the sample declared ronmental management may be competitive (Porter and Van der
that they had good knowledge of the legal requirements in their Linde, 1995) because GPD may inuence performance. However,
sector[s]. With respect to OP, ability to meet clients' needs within this study does not conrm the hypothesis that human and orga-
the specied time stands out, which may be due to improvements nizational factors are signicantly related to GPD. These results add
in the production process because companies declared that they to the literature on GHRM and green organizational culture because
had good knowledge of the environmental impact caused by the the human dimension of environmental management must be
production process and focused on the development of products strengthened in organizations, and it must support advanced
that reduce resource consumption/waste generation during environmental management practices more directly (Delmas and
production. Pekovic, 2013). It is also worth noting that this study's results
Finally, it must be noted that control variables (rm size, with respect to the relationship between GPD and the 3 types of
ISO14001 and environmental regulations) are not revealed to have performance show new perspectives on improvement in these
a signicant inuence on GPD. These results deserve future study performance indicators that have not been stressed in the literature
but may be preliminarily explained not only by the sample's on the subject (e.g., GPD and reliability or GPD and success in
composition but also because none of these variables force com- launching new products).
panies to adopt GPD. For example, there may be micro-sized rms For organizational managers, it is suggested that company per-
that are very green and large companies that are not green; there formance, including market, operational and environmental per-
may be companies without EMS but that adopt cleaner production, formance, may be inuenced by environmental management and
which are greener than others that do have EMS; the perception of by the adoption of GPD practices. Thus, when seeking better per-
environmental regulation (in the context of high versus low pres- formance, GPD becomes important. The study also shows that,
sure) may not be considered to be distinct by Brazilian managers aside from technical aspects, it is important to invest in HOA, which
because in Brazil, laws are often weak. companies do not always do. Additionally, this study shows that the
adoption of GPD is not exclusive to large companies, companies
with EMS or companies under environmental pressure of green
regulations. GPD can be adopted and have broader effects on
6. Conclusions
performance.
For future studies, there is a need to better understand the
The goal of this study is to present empirical test results for a
relationship between human factors and GPD, along with strategies
conceptual framework that relates technical and human/organi-
to strengthen the importance of this relationship among entre-
zational factors to the adoption of GPD practicesdand the effects of
preneurs. Moreover, the control variables studied here could be
those practices on company performance, in environmental, oper-
better understood. The results and implications of this study may
ational and market terms. The framework was tested on a sample of
have been inuenced by several limitations, such as respondent
Brazilian companies, and the results were obtained by means of
proles, the limitations of the sample and the restriction of the
structural equation modeling.
sample to respondents in Brazil.
The study's primary results are as follows:

 In general, there is good adherence between the conceptual

Appendix 1. Study variables/assertive.
framework and the practices of the companies analyzed;

Construct Code/Variable Assertive

TA V1 The company uses environmental technology in the production process.

V2 The legal environmental requirements pertinent to my company's industrial sector are known and obeyed.
V3 My company knows all of the environmental impacts generated by the production of its products.
V4 My company knows all of the environmental impacts generated by its clients' consumption of its products.
HOA V5 Adequate environmental training is provided to all company employees.
V6 All company employees have the autonomy to make decisions regarding environmental management.
(continued on next page)
450 C.J.C. Jabbour et al. / Journal of Cleaner Production 87 (2015) 442e451

(continued )

Construct Code/Variable Assertive

V7 In the company, the system for assessing employees' GP includes environmental management goals/targets.
V8 Top management supports environmental management activities.
V9 There is a reward system for company employees based on the company's environmental performance
V10 Specialists from different areas/departments collaborate and share information to develop products with less environmental impact.
GPD V11 The company uses substitutes for pollutants and hazardous components/materials.
V12 Product development is focused on reducing resource consumption/waste generation during production and distribution.
V13 Product development is focused in reducing resource consumption/waste generation during consumers' use of the company's products.
V14 Product development is focused on disassembly, reusability and recyclability.
GP V15 The company has reduced its pollution generation (atmospheric emissions, liquid efuents and residues).
V16 The company has reduced its consumption of toxic-hazardous materials.
V17 The company has reduced its water and energy consumption.
V18 The company has reduced the frequency of environmental accidents.
OP V19 There has been a reduction in operational costs (production, distribution and supply chain costs, for example).
V20 There has been a reduction in the time required to develop and launch new products.
V21 There has been an increase in the quality of the company's products (degree of conformity to specications).
V22 There has been an increase in exibility to support different volumes in demand/client orders.
V23 The company's ability to meet client's needs within the time specied has improved.
MP V24 There has been an improvement in the company's reputation and image in the market.
V25 There is better alignment between what the company's offerings and consumers' expectations.
V26 There company has had greater success in launching new products.
Control variables C1 What is the company's size?
C2 Is the company NBR ISO 14001 certied?
C3 Our products are subject to very rigorous environmental regulations.

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