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Article history: The influence of stakeholder pressure on the adoption of environmental practices has been established in
Received 17 December 2008 the literature. In this paper we posit that these direct effects are further mediated, causally, by the level of
Received in revised form 18 September 2009 training in companies. Theoretically, this relationship is supported by the relationship between
Accepted 3 October 2009
institutional theory (stakeholder pressure) and the dimensions of dynamic capabilities in resource-
Available online 16 November 2009
based theory. We investigate this relationship within the Spanish automotive industry. The theoretical
contribution of this paper focuses on further supporting the relationship between stakeholder and
Keywords:
resource-based theory as complementary theoretical frameworks. The practical implications focus on
Environmental and operations
whether or not training should be integrated in order to help in the adoption of particular environmental
management
Stakeholder pressure practices, which in this study are represented by environmentally oriented reverse logistics practices.
Human resource training ß 2009 Elsevier B.V. All rights reserved.
Mediation
1. Introduction also provides insights for policy makers and partners within a
broader supply chain perspective.
The promulgation of various political, social, and economic An important function and resource in responding to these
pressures regarding environmental issues over the past few decades competitive pressures and building the necessary capability is
has caused companies to take these issues into greater consideration training. Studying workforce (human resource) management and
in their strategic and operational outlooks. The competitiveness of training is an important part of the operations and environmental
organizations has gone beyond building quality products at low management research agenda (Angell and Klassen, 1999; Daily and
costs in a timely manner. Corporate responsibility and social issues Huang, 2001; Hanna et al., 2000; Kitazawa and Sarkis, 2000; Sarkis,
are even more critical for organizational competitiveness at strategic 2001) and still continues to be a major, yet understudied topic (del
and operational levels (Porter and Kramer, 2006). The natural Brio et al., 2007; Jabbour et al., 2008). Much of the existing research
environment is at the center of this broader ‘sustainability’ in environmental operations management has concentrated on
competitiveness argument for organizations and operations. mid-level (firm/supply chain) issues and questions. However,
Companies understand the importance of responding to much less attention has been given to workforce issues and
pressure from stakeholders (Freeman, 1984) to help improve their environmental tools. Operations management researchers have
competitive posture; however, they also need to manage the many been motivated to seek and understand the impact of environ-
perspectives and conflicting interests of their stakeholders, which mental pressures, issue awareness and individual environmental
requires them to develop specific capabilities to manage these values on the workforce. A related issue to this revived operational
pressures (Rueda-Manzanares et al., 2008). To respond to these focus on environmental pressures is workforce training require-
pressures for adoption of environmental practices, the resource- ments for environmental tools such as design for environment,
based view of the firm posits that companies will build the life-cycle analysis, recycling and other environmentally proactive
necessary capabilities and capacities to be able to compete more practices (Angell and Klassen, 1999).
effectively. Tactical capability is built by developing worker Similar to the quality revolution of the 1980s, the green
knowledge and skills through training. The importance of revolution in business at the end of the last century and beginning
managing and balancing these external pressures with internal of this century requires that environmental management become a
capabilities is not only important for organizations to manage but pervasive organizational philosophy where all individuals are
involved in greening the company. This pervading empowerment
of all employees to think and make decisions, and not just within the
* Corresponding author. Tel.: +34 985182008; fax: +34 985182150. purview of specialized staff, was the goal of ISO 9000 and is now a
E-mail address: adenso@epsig.uniovi.es (B. Adenso-Diaz). primary goal of ISO 14000 and total quality environmental
0272-6963/$ – see front matter ß 2009 Elsevier B.V. All rights reserved.
doi:10.1016/j.jom.2009.10.001
164 J. Sarkis et al. / Journal of Operations Management 28 (2010) 163–176
management efforts (Sarkis, 1998). Developing the necessary level managers is vital to ensuring an organization-wide under-
organizational knowledge to adopt and implement environmental standing of and commitment to environmental issues (Zhu et al.,
initiatives requires developing knowledge capabilities throughout 2008). Such commitment is central to adopting new environmental
the organization, especially if the responsibilities for environmental programs and improving an organizational environmental strategy
management activities are assigned to these ‘empowered’ employ- over time. In particular, managerial attitudes and views (Cordano
ees. Thus, the need and importance of training programs within and Frieze, 2000), managerial interpretations (Sharma, 2000), and
organizations is clear. environmental values and leaders (Egri and Herman, 2000) all
Nevertheless, few studies have investigated the role of environ- influence management decisions regarding their environmental
mental training within the adoption of various environmental activities (Fernandez et al., 2003; Sharma, 2000). Thus, workers as
operating practices. This study will examine this specific issue. The internal stakeholders play a significant role in the adoption of
aim of this paper is to provide further insight into the role of training environmental operational practices.
in the adoption of environmental, organizational and operational Organizations that yield to employee and managerial stake-
practices, especially in response to stakeholder pressure. We analyze holder pressures to implement proactive environmental manage-
whether the adoption of environmental practices motivated by ment tools create a virtuous cycle that leads to additional pressures
stakeholder pressures is mediated by environmental training efforts from internal stakeholders. That is, by implementing environ-
aimed at employees within the organization. Mediation allows us to mental training, companies may be able to recruit talented
evaluate whether there is a causal relationship between the applicants who have a strong preference for working in firms
stakeholders pressures, the environmental practices and the with proactive environmental management philosophies (Rein-
training. The results of our study overwhelmingly show that, for hardt, 1999). These arguments suggest that companies will
the Spanish automotive industry, training completely mediates the implement environmental audit programs to address their internal
relationship between pressure from stakeholders and the adoption stakeholder (employee) pressures.
of three major groups of environmental practices. There are clear External stakeholders, unlike internal stakeholders, do not have
managerial implications concerning the fostering and management control of critical organizational resources (Sharma and Henriques,
of such programs and projects. Furthermore, there exists broad 2005). Rather, they have the capacity to regulate or mobilize public
policy issues associated with these results. These implications will opinion in favor of, or in opposition to, the organization’s
be discussed in later sections. environmental practices (Freeman, 1984). A number of external
In the following section we provide the practical and theoretical stakeholder groups exist, including customers (clients), govern-
bases for our study. Our discussion starts with the various ment regulators, shareholders, and society in general represented
relationships existing between stakeholder theory and the adoption by non-governmental organizations.
and performance of environmental management practices. We Regulatory bodies and government (Freeman, 1984; Backer,
likewise briefly introduce the role of the resource-based view (RBV) 2007) are the most obvious external stakeholders when it comes to
of the firm in these relationships. We also discuss the general role of environmental issues and are typically associated with coercive
training in this situation, a discussion which aids in clarifying the pressures (Zhu and Sarkis, 2007). Businesses must comply with
fundamental hypotheses of our study. Our methodology and sample environmental regulations or face the threat of regulators levying
characteristics are then defined. Finally, we present our results with legal action, penalties and fines. Failure to yield to regulatory
a discussion of their implications. Research limitations and future stakeholders also leaves companies vulnerable to individual or class
research directions appear in the final section. action lawsuits. Such pressures and threats will hurt an organiza-
tion’s public image and customer relations. Companies may utilize
2. Background and theory environmental training and proactive environmental practices as
one means to preempt these regulatory threats. There are also less
2.1. Stakeholder theory coercive regulatory pressures (Backer, 2007). Some of these
pressures may come in the form of voluntary initiatives for matters
As posited by stakeholder theory, stakeholder pressures result such as pollution prevention. Implementation of proactive programs
in significant motivation for organizations to adopt various (e.g. going beyond compliance) may build informal relationships
environmental practices (Buysse and Verbeke, 2003; Eesley and and accrue political capital. By utilizing proactive environmental
Lenox, 2006). Freeman (1984: 46) defines a stakeholder as ‘‘any practices, companies may be able to form collaborative relationships
group or individual who can affect or is affected by the with government more easily and explore more non-regulatory
achievement of an organization’s objectives’’. In crafting this ways in which government can encourage greater environmental
definition, Freeman (1984) took the position that companies improvements (Darnall et al., 2008). These collaborations can
produce externalities that affect many parties which are both promote environmental learning capacity building such as training
internal and external to the firm. Externalities often cause programs (Darnall and Edwards, 2006), as well as trust between
stakeholders to increase pressures on companies to reduce companies and regulators (Hoffman, 2000). A good reputation with
negative impacts and increase positive ones. Within institutional regulators may also provide firms with greater political influence
theory, it is argued that ‘stakeholder engagement’ is important in when negotiating the terms of forthcoming regulations with
order for companies to establish social legitimacy. Organizational government officials. Taken as a whole, these arguments suggest
capabilities that foster cooperation and environmental learning are that companies will implement various programs to address
a critical part of stakeholder engagement. Responding to stake- pressures from regulatory stakeholders.
holder pressure requires organizational learning capabilities, Other external stakeholder pressures originate from non-
especially when there are conflicting pressures derived from a governmental organizations and the community (Eesley and
variety of stakeholders (Roome and Wijen, 2006). Lenox, 2006). These stakeholders include (but are not limited
‘‘Stakeholders’’ includes both internal and external stakeholders. to) environmental groups, neighborhood groups, the media and
Internal stakeholders are relevant to training because employees are labor unions (Hoffman, 2000). Each of these groups can mobilize
often the initiators, and recipients, of an organization’s proactive public opinion in favor of or against a company’s environmental
environmental activities (Daily and Huang, 2001; Hanna et al., approach (Benn et al., 2009; Roome and Wijen, 2006). Firms that
2000). However, for employee commitments to advance, they must fail to yield to these stakeholder pressures risk enduring possible
have support from management. Support and leadership from top- public protests (Hoffman, 2000). In other instances, community
J. Sarkis et al. / Journal of Operations Management 28 (2010) 163–176 165
stakeholders may publicize information which could persuade of resources that are rare, non-substitutable, difficult to imitate,
consumers to favor the products of competitors that have and valuable to customers. These resource combinations may build
demonstrated a stronger regard for the environment. These upon a wide variety of basic components, including physical assets,
stakeholders therefore provide a ‘‘social license’’ for companies employee skills, and organizational processes (Delmas, 2001).
to operate and may be critical factors influencing an organization’s Employees’ skills may be purchased, but are typically developed
decision to adopt various practices (Gunningham et al., 2004). through education and training efforts. In the natural resource-
Supply chain stakeholders, especially customers and clients, based view of the firm, Hart (1995) posits that a combination of
may affect a company’s decision to implement environmental investments can be made to enhance the environmental capabil-
practices. Client stakeholders require that their vendors adhere to ities of a firm, including investments in technologies, processes,
certain practices to improve their environmental performance and systems, guiding strategies, and training. It has been shown that
that they adopt proactive environmental management practices different levels of capabilities are developed for various environ-
(Lee and Klassen, 2008; Zhu and Sarkis, 2004). Corporate mental strategies that companies pursue, and that there are
customers are also requiring their suppliers to provide them with varying stakeholder pressures which these companies face (Buysse
written certification of their compliance with all environmental and Verbeke, 2003).
regulations (Delmas and Montiel, 2007). These certifications can
extend to third party certifications such as ISO 14000. Pressures 2.3. The relationship between stakeholder theory, RBV, and
such as these arise because corporate customers wish to ensure environmental training
that their purchases sufficiently meet environmental quality
standards, since doing so reduces environmental liabilities Companies have engaged in corporate environmental manage-
associated with final product development (Handfield et al., 2002). ment initiatives to improve their environmental performance.
Another group of critical external (and sometimes internal) They have also been able to accrue other benefits for their
stakeholders are those who have financial investments in the organizations from these initiatives, including improved economic
companies. These shareholders are the most fundamental stake- and reduced risk benefits. Yet, significant barriers can exist to the
holders. Businesses must respond to these shareholders by max- adoption and implementation of various environmental practices.
imizing their value (Reinhardt et al., 2008). Firms with proactive These barriers are not only technical, but include organizational
environmental practices have also been shown to have improved culture and change management barriers (Perron et al., 2006).
business and financial performance with a focus on ‘win–win’ efforts Learning and knowledge are fundamental to the development and
(Montabon et al., 2007; Zhu and Sarkis, 2004). In addition, reduction utilization of resources and capabilities in RBV theory (Coates and
of risks and liability from proactive environmental practices and McDermott, 2002). Training programs that focus on educating and
programs also adds shareholder value (Goldstein and Wiest, 2007; increasing knowledge for the organization’s employees can help to
Reinhardt, 1999). Thus, the existence of shareholder pressure may overcome these barriers. With this new knowledge, employees can
also serve to protect investments against environmental liabilities then understand how the environment can affect and be affected
and even help companies gain in financial performance. by their duties and decisions.
From an RBV perspective, the weakness of a company’s business
2.2. Resource-based view of the firm and the environment culture and its shortcomings in human resources may be
important obstacles in the process of corporate environmental
A resource-based view (RBV) of the firm has typically been action (Daily and Huang, 2001). Even when there are stakeholder
applied in order to strategically manage companies (Barney, 1986, and institutional pressures for companies to adopt environmental
1991; Rugman and Verbeke, 2002). RBV examines those resources practices, there are heterogeneous responses to these pressures
and capabilities of the firm that will enable it to generate above- (Darnall, 2006) that may be explained by the lack of capabilities as
normal rates of return and a sustainable competitive advantage. defined by RBV. Arguably, resources are necessary in order for
Resources can include human, information technology, capital, companies to respond to these stakeholder pressures to adopt
equipment and knowledge resources. They can be separated into environmental practices. One of the most important resources is
tangible (equipment and assets) and intangible (knowledge and knowledge resources, which training helps to build.
intellectual property) dimensions. RBV states that a resource must The research on the question of environmental training, and
be valuable, rare, inimitable and non-substitutable (‘‘VRIN’’ human resources in general, is still limited (del Brio et al., 2007;
attributes) in order to confer advantage (Barney, 1991). RBV predicts Fernandez et al., 2003). It has been argued that several human
that valuable, rare and costly-to-imitate resources affect the resources and organizational behavior issues may be very important
performance and success of programs (Ray et al., 2005; Sohel and for the success of a company’s environmental operations, strategy,
Schroeder, 2003). Strategic management has viewed these RBV and the development of competitive advantages from these elements
attributes as core distinctive competencies. Another school of (Daily and Huang, 2001). Such issues include managerial duties, top
thought relying on the resource-based view is that of dynamic management support, the role of organizational culture in the
capabilities (Coates and McDermott, 2002; Eisenhardt and Martin, formation of internal stakeholder environmental awareness, rewards
2000; Teece et al., 1997). Dynamic capabilities represent the ability systems, the organization’s involvement in environmental issues,
of managers and others to make ongoing adjustments in resource environmental training and concern, environmental motivation,
allocation and build new organizational thought (Eisenhardt and incentives and implementation, and organizational innovations.
Martin, 2000). Dynamic capabilities may include activities for Training may play an especially important role because it serves
resource integration, resource reconfiguration, and/or acquisition as a method to build the organizational capacities and knowledge
and release of resources (Eisenhardt and Martin, 2000). Thus, both of all workers who participate in these programs (Sohel and
strategic factors and dynamic capability perspectives could be Schroeder, 2003). Here we investigate the causal role training plays
considered in an RBV theory framework with implications for in the implementation of the company’s environmental practices
adoption of environmental practices and training. by investigating its mediation between pressure from stakeholders
The RBV theory of the firm stipulates that companies can gain and the adoption of environmental practices.
sustainable competitive advantages if they are supported by Research has shown that training serves as a key factor during
organization-level competencies (Barney, 1991; Rugman and the implementation of environmental management systems by
Verbeke, 2002). These competencies reflect unique combinations altering attitude and behavior amongst managers and employees
166 J. Sarkis et al. / Journal of Operations Management 28 (2010) 163–176
(Sammalisto and Brorson, 2008). In smaller companies across early integration of TQM-like environmental programs such as total
various industry sectors, employee training was viewed as the quality environmental management (TQEM) programs (Kitazawa
most important aspect of environmental management system and Sarkis, 2000). Similar to TQM programs that focus on prevention
implementation in their managing of environmental issues and source reduction in quality problems, TQEM programs can also
(Lefebvre et al., 2003). Management’s deep involvement and its benefit from the reduction and prevention of waste. Thus, process
strategic integration, as well as employee motivation and source reduction (pollution prevention) programs constitute
participation, has a positive impact on the company achieving a practices that can generate substantial early environmental benefits
competitive edge based on environmental action; training is meant which are typically greater than those of end-of-pipe practices on
to aid in this initiative (del Brio et al., 2007). Training for skills and environmental emissions (Sarkis and Cordeiro, 2001). Source
knowledge development is important not only for the initial reduction activities can range from mistake-proofing, to identifica-
implementation and adoption of environmental practices such as tion of substitutes, to simple housekeeping activities in programs
environmental management systems, but also for their main- similar to TQM. In fact, complementarity has been shown to exist
tenance and continued operation (Balzarova and Castka, 2008). between quality programs and environmental programs (Zhu and
Companies that implement pollution prevention practices have Sarkis, 2004). Training employees to empower them in TQM and
also invested in training their employees and therefore can apply TQEM techniques has been posited as being crucial to the success of
their skills to more advanced forms of environmental management these programs (Kaynak, 2003; Samson and Terziovski, 1999).
(Darnall and Edwards, 2006). Employee involvement overall is a critical element of programs that
seek to improve both environmental and operational performance
2.4. Hypotheses development (Hanna et al., 2000). In order to achieve effective empowerment
building and employee involvement, employees need be trained in
Using the above general relationships, we now introduce some specific skills. We thus posit our second hypothesis:
hypotheses based on specific environmental practices. We can
categorize environmental practices into many different dimen- Hypothesis 2. The relationship between stakeholder pressures
sions, ranging from those that are very proactive (eco-design) to and the implementation of source-reduction practices is mediated
those that are relatively reactive (compliance to regulations). We by environmentally oriented training programs.
feel that training is even more critical for the more proactive The next grouping of factors could be considered broader
practices, not only for knowledge development, but also for getting systemic perspectives. These systemic dimensions may actually
‘buy-in’ from workers and management. Proactive environmental overlap with some of the other environmental practices, but
practices may not necessarily be limited to a single dimension, but integrate both end-of-pipe and process recycling activities,
may possibly be further characterized (González-Benito, 2008). broader prevention-type programs, and a focus on items such
We consider three types of proactive environmental practices: eco- as policy and procedures. These elements originate from a more
design practices, source reduction practices, and managerial traditional environmental management system (EMS) such as
process management practices. those associated with ISO 14000 (González et al., 2008). An EMS
Eco-design (or design for the environment) seeks to create may involve formal systems and databases which integrate
processes and products that have minimal impact on the procedures and processes for the training of personnel and the
environment. This encompasses many activities, from design for monitoring, summarizing, and reporting of specialized environ-
disassembly, such as joint and component designs, to broader life- mental performance information to internal and external
cycle assessment practices (Kurk and Eagan, 2008). The knowledge stakeholders of the firm. The documentation of this ‘‘environ-
and development of these competences in eco-design initiatives is mental’’ information is primarily internally focused on design,
a capability that can provide companies with a significant pollution control and waste minimization, training, reporting to
advantage. Despite almost two decades of development, the lack top management, and the setting of goals (Melnyk et al., 2003).
of eco-design implementation by companies is still decried Research in this area has concluded that EMS programs are more
(Verhulst et al., 2007; Boks, 2008). While the technical aspects successful if factors such as training, empowerment, teamwork,
of eco-design have been well developed, one major barrier to and rewards are addressed and has suggested that there exists a
implementation still existing are its ‘softer’ aspects, which include relationship between human and ecological sustainability (Dun-
difficulties in adopting certain change management and human phy et al., 2003; Wilkinson et al., 2001). Training is a critical
resource practices (Boks, 2006). Eco-design does require a different element to most of these systems, but it has also become evident
mindset and focuses on new, innovative practices that engineers that training is necessary for their successful implementation
and designers may not easily grasp due to a traditional focus on (Jabbour et al., 2008). Thus we posit our third and final hypothesis:
form, fit and economic design. Motivation and competency have
been found to be aspects which are critical to eco-design success Hypothesis 3. The relationship between stakeholder pressures and
(Johansson, 2002). Both these factors are developed through the implementation of environmental management system prac-
appropriate training programs. In a broad study of the imple- tices is mediated by environmentally oriented training programs.
mentation of eco-design practices in Europe, education was found
to be a critical discriminatory factor for ‘front-runner’ companies 3. Methodology
(Tukker et al., 2001). We thus posit our first hypothesis:
3.1. Instrument development
Hypothesis 1. The relationship between stakeholder pressures
and the implementation of eco-design practices is mediated by To study our hypotheses, a research questionnaire (see
environmentally oriented training programs. Appendix A) was developed to gather data. The questionnaire
Source reduction programs for operational processes1 have been targeted managers within Spanish automotive companies. The
major initiatives in environmentally oriented practices since the design process for the questionnaire consisted of two stages. The
first stage utilized an extended review of the literature to help
1
We distinguish these operational source reduction programs from eco-design
identify the major environmental issues facing automotive
programs, which focus on longer-term products and/or pollution prevention industry companies (see Table 1). The initial questionnaire design
activities and designs for processes. also incorporated input from colleagues and experts in both the
J. Sarkis et al. / Journal of Operations Management 28 (2010) 163–176 167
Table 2
Descriptive statistics of the items studied.
Mean S.D.
Environmental practices
F1. Eco-design Use of LCA for product design (LCA) 2.796 2.090
Use of easy-to-break joints between components to facilitate disassembly (JOINTS) 2.758 2.192
Clear identification of materials to facilitate disassembly (IDENTIF) 3.384 2.426
Use of standardized components to facilitate their reuse (COMPON) 3.204 2.299
F2. Source reduction Reduction in the variety of materials employed in manufacturing the company’s products (VARIETY) 2.947 2.281
Reduction in raw material (RAWMAT) 2.379 2.002
Avoidance of materials that are considered harmful, but not illegal (AVOID) 2.664 2.225
F3. Env. managment Recycling of solid waste and rubbish (RECYCLING) 5.116 2.177
systems (EMS) Environmental management procedures for internal use (ENVMAN) 4.284 2.292
Use of advanced prevention and safety systems at work (SYSTEMS) 5.237 1.894
Table 3
Factors used in the proposed models.
F1. Environmental product design Use of LCA for product design (LCA) 0.805 0.677 0.893 1
Use of easy-to-break joints between
components to facilitate disassembly
(JOINTS)
Clear identification of materials to 0.680 0.894 2
facilitate disassembly (IDENTIF)
Use of standardized components to
facilitate their reuse (COMPON)
F2. Reduction of material usage Reduction in the variety of materials 0.887 0.610 0.817 1
employed in manufacturing the
company’s products (VARIETY)
Reduction in raw material to
manufacture products (RAWMAT)
Avoidance of materials that are 0.595 0.813 2
considered harmful, but not illegal
(AVOID)
F3. Managerial aspects Recycling of solid waste and rubbish 0.801 0.571 0.799 1
(RECYCLING)
Environmental management procedures
for internal use (ENVMAN)
Use of advanced prevention and safety 0.572 0.800 2
systems at work (SYSTEMS)
Model 1 (Table 4) higher factorial weights are obtained for the Fornell and Larcker (1981) recommend an average extracted
items related to environmental practices (clear identification of variance higher than 0.50, thus guaranteeing that more than 50% of
materials, variety or materials employed and environmental the variance of the factor is due to its indicators. As shown in
management procedures), while in Model 2 (Table 5) higher Table 3, all the AVE are higher than the minimum required value,
factorial weights are obtained for items related to training (waste except for the factor that refers to training, the AVE of which is
elimination and recycling). situated on the boundary of this threshold.
To completely confirm the validity of the scale, we evaluate the Finally, in order to complete the structural model evaluation,
discriminant validity of the model. Discriminant validity is goodness-of-fit indices as well as the chi-squared test are
evaluated by means of the average extracted variance (AVE). executed. As can be observed in Table 6, all the results are
Fig. 1. Structural equation model for the direct relationships between stakeholder pressures and the adoption of environmental practices (Model 1).
170 J. Sarkis et al. / Journal of Operations Management 28 (2010) 163–176
Fig. 2. Structural equation model incorporating the training latent variable as a mediator (Model 2).
satisfactory and hence it may be concluded that the proposed 5. Discussion and conclusion
structural equation models are capable of correctly explaining the
covariances of the sample. The results of this study indicate that training, specifically
environmental training, mediates the relationship between
4.2. Analysis of results stakeholder pressures and various environmental practices.
Complete mediation occurred regardless of the type of environ-
The first step to evaluating mediation must show that the mental practice adopted. These results show that automotive
independent variable (stakeholder pressures) influences the companies are only adopting environmental practices if training
dependent variable (various environmental practices). We see programs are in effect. Thus, development of the necessary
this evaluation in Fig. 3. All the direct effect relationships between intangible knowledge capacities is required in order to achieve
stakeholder pressures and each of the environmental practices effective response to pressures. Without instituted training
factors are significant at p < 0.001. programs, these pressures may go unheeded.
The second step for mediation evaluation is to show that the The strongest relationship with training as a mediator seemed
direct relationship between the independent variable (stakeholder most evident with regards to eco-design practices. Of all the
pressures) and the mediator is significant. This result is shown in environmental practices, this one may be deemed the most
Fig. 4, with a significant relationship at the p < 0.01 level. The third technical, which may explain the need for training in order to
step is to show that the mediator variable (training) influences the successfully convince internal users of these methods of the
dependent variables (environmental practices). Again, in Fig. 4 we importance of integrating eco-design practices into their activities.
show that the mediator variable is strongly related to each of the Training may need to serve a dual purpose in this situation,
environmental practice variables at the p < 0.001 level. The final requiring a focus on both competency and motivation. Technical
step in testing for mediation needs to evaluate the original direct personnel typically have need of both dimensions for eco-design
relationships between the independent (stakeholder pressures) innovation (Johansson, 2002). These two dimensions in training
and dependent (adoption of environmental practices) variables. also further the likelihood of adoption of these practices by human
These results are also shown in Fig. 4. We now see that all these resources due to the building of their capacities (Boks, 2006). We
relationships are statistically insignificant. These results show did not tease out or fully evaluate what actually occurred in these
strong evidence of complete mediation of the relationship between training programs (awareness raising, motivational or technical
stakeholder pressures and the adoption of environmental prac- competence development). Overall, there is additional room for
tices, by the mediator variable training. Thus, Hypotheses 1–3 are research on the type of training and its effectiveness as a mediator,
all strongly supported.3 especially with respect to eco-design.
The other factor here is that stakeholder pressures are a
composite group of various pressures from a variety of sources. For
3
example, some pressures on source reduction may come from
To identify whether our bias in organizational size may moderate or influence
these relationships, we controlled for organizational size based on employees. To do
internal stakeholders and may differ from external stakeholder
this we split the sample into large and small companies (based on a mean size pressures. For these practices, internal training is needed to build
cutoff). There were only 18 larger companies falling above the mean, thus only a awareness of programs to help in these reduction efforts. For EMS
small company grouping was investigated. Not surprisingly, the results and implementation, training may be a requisite of external parties
findings were consistent with all the relationships holding. One observation with
(e.g. the standards themselves) and may be more firmly related
this is that there is a preponderance of smaller companies in our sample set and
thus a broader sampling of larger companies would be an interesting direction for (especially since we are focusing on smaller automotive suppliers)
future research. to external stakeholder pressures to implement EMS as members
J. Sarkis et al. / Journal of Operations Management 28 (2010) 163–176 171
Table 4
Individual reliability of the items (Model 1).
Environmental practices
F1. Eco-design Use of LCA for product design (LCA) 0.905 14.059*** 0.614
Use of easy-to-break joints between 0.984 13.235*** 0.654
components to facilitate disassembly
(JOINTS)
Clear identification of materials to 1.190 23.885*** 0.778
facilitate disassembly (IDENTIF)
Use of standardized components to 1.045 15.160*** 0.660
facilitate their reuse (COMPON)
F2. Source reduction Reduction in the variety of materials employed in 1.187 10.974*** 0.791
manufacturing the company’s products (VARIETY)
Reduction in raw material (RAWMAT) 0.878 10.313*** 0.565
Avoidance of materials that are considered 0.868 10.905*** 0.446
harmful, but not illegal (AVOID)
F3. Env. managment systems (EMS) Recycling of solid waste and rubbish 0.962 3.713*** 0.472
(RECYCLING)
Environmental management procedures 1.181 3.735*** 0.634
for internal use (ENVMAN)
***
Use of advanced prevention and safety 0.964 3.589 0.606
systems at work (SYSTEMS)
of the supply chain. Thus, additional interesting insights can be For example, the media may play a role as a secondary stakeholder,
accrued from the further identification and refinement of the type but may not singly produce the necessary pressures for companies
of stakeholder pressures that exist. Stakeholders may be viewed as to invest in training programs that would help in the implementa-
not only internal or external, but also as primary and secondary. tion of environmental practices.
Table 5
Individual reliability of the items (Model 2).
Environmental practices
F1. Eco-design Use of LCA for product design (LCA) 0.882 18.013*** 0.614
Use of easy-to-break joints between components 0.942 17.959*** 0.638
to facilitate disassembly (JOINTS)
Clear identification of materials to facilitate 1.152 18.618*** 0.779
disassembly (IDENTIF)
Use of standardized components to facilitate 1.024 15.584*** 0.685
their reuse (COMPON)
F2. Source reduction Reduction in the variety of materials employed in 1.220 10.551*** 0.801
manufacturing the company’s products (VARIETY)
Reduction in raw material (RAWMAT) 0.889 9.919*** 0.553
Avoidance of materials that are considered harmful, 0.873 11.268*** 0.431
but not illegal (AVOID)
F3. EMS Recycling of solid waste and rubbish (RECYCLING) 1.025 17.536*** 0.494
Environmental management procedures for internal 1.235 12.576*** 0.646
use (ENVMAN)
Use of advanced prevention and safety systems at 0.963 9.578*** 0.576
work (SYSTEMS)
Indices Recommended Model 1 Model 2 The theoretical underpinning of a joint RBV and stakeholder/
Satorra-Bentler x2
– 122.1769 272.7942 institutional theory perspective is a strong foundation for further
Degrees of freedom – 80 137 understanding the relationship between external forces and
p 0.0 0.002 0.000 internal capabilities related to corporate environmental opera-
x2/d.f. (<3.0) 1.53 1.99 tional practices. This link between a strategic theoretical perspec-
GFI >0.8 0.880 0.816 tive and operational action and activities is something that benefits
(Dawes et al., 1998) both the operations management and strategic management
RMSEA <0.10 0.05 0.08 literature. A study of multiple theoretical perspectives to address a
(Hair et al., 2006) multidisciplinary, multi-scale and multi-functional concern for
companies is needed to further understand how environmental,
CFI >0.9 0.969 0.918
IFI (Hair et al., 2006) 0.970 0.920 operations and strategic theory can cooperate (Amundson, 1998).
We believe that the joint consideration of institutional and
stakeholder pressures provides a number of additional insights
Fig. 4. Results of the mediation structural equation model (*p < 0.05; **
p < 0.01; ***
p < 0.001).
J. Sarkis et al. / Journal of Operations Management 28 (2010) 163–176 173
into why business organizations are motivated to develop specific evaluated. There is an argument that Spain may not be as culturally
operational programs to aid in building competitive advantage by or politically sensitive to environmental issues as other countries
enhancing their capabilities. The association and coordination of in the world (e.g. Japan or Germany), where it might be more
these two groups of theoretical lenses can provide ample expected and acceptable for certain practices to be implemented,
explanatory opportunity. In this study we have shown how this whether or not training is included. Alternatively, companies in
multi-theoretical framework is valuable for furthering joint less developed countries may be more concerned about economic
understanding of environmental and operational practices. growth and thus may not implement additional environmental
Practical implications are quite manifest in this study. External programs even if training is provided. In addition, there may be
and direct stakeholders such as integrated supply chain members other variables to help further explain the relationships observed
(evident in the automotive industry), who are dependent on in our study. Incorporating control variables related to managerial
resilient, reliable and environmentally sound partners, may come values and beliefs may be some factors that may explain some of
to the aid of smaller companies. For example, in the early days of the variation. There are also nuances of the intra-organizational
just-in-time manufacturing, large supply chain partners such as training programs themselves that could be investigated. For
Xerox provided expertise to smaller companies to help them example those employees who are less directly influenced by the
implement just-in-time programs. Larger companies in compe- adoption of the practice may require a different level of training
titive supply chains have come to realize that greening supply than those who might be ‘process’ owners and users of the practice.
chains is necessary to maintain an acceptable and reliable source Determining the depth of training for particular groupings within
of components and material (Orsato and Wells, 2007). In addition, organization, intra-organizational, differentiation may be an
there are cooperative relationships that have further developed interesting direction for this research. Also, we investigated one
amongst these firms through environmental life-cycle analysis, aspect of environmental programs in organizations, environmen-
eco-design initiatives and regulatory requirements for environ- tally oriented reverse logistics practices. Alternative environmen-
mentally sound materials and products (Zhu and Sarkis, 2004; Lee tal practices such as those that have may be less ‘required’ and
and Klassen, 2008). Smaller companies may not have the more voluntary (e.g. some climate change issues), could have
resources (tangible or intangible) to implement or address these differing results and could be investigated. Our sample had a
issues. Larger organizations may wish to provide some of these preponderance of relatively smaller (for the automotive industry)
necessary resources and training is a major conduit to this companies. Further expansion to consider larger companies would
development. also provide additional direction for research. These are only
Another practical implication is that the environmental suppositions at this time and further research is needed to help
performance of industry is continuously being scrutinized by identify whether training does mediate in these additional
another stakeholder, i.e. governmental or regulatory agencies. environmental situations.
Smaller companies may greatly benefit from governmental Human resources management from a corporate environ-
training and education programs. Supporting the diffusion of mental perspective goes well beyond the training activities
environmental practices to companies needs to begin with the presented in this paper. There are broader topical training issues
development of human resource capabilities through training and from basic operations in an organization to technical develop-
other ‘soft loans’ by government organizations (Akihisa, 2008). ment training not dealing with environmental issues that may
Thus, further training in general awareness-raising topics may have broader learning and development implications and could be
provide the necessary catalyst for smaller and less resource- investigated in the context of organizational environmental
capable companies to begin working in the direction of environ- concerns. The scope of human resources activities ranging from
mental operational sustainability (Pimenova and van der Vorst, personnel recruitment and selection to incentive planning,
2004). performance measurement, and advancement are all potential
areas that could also influence whether organizations are
5.2. Limitations and future research directions successful in implementation and development of environmental
organizational practices. Human resources represent a critical
Even though our results overwhelmingly show that training is a internal resource that would incorporate both tangible (actual
critical mediator between stakeholder pressures and the imple- people and their labor) and intangible (knowledge and learning)
mentation of environmental practices, there are limitations to our resources that may influence organizational capabilities. There is
study. The single-industry, single-country limitations point to the substantial research for operations management researchers in
need to investigate whether other industries and countries have each of these directions.
the same experiences. The automotive industry is typically
internationally integrated, especially in the EU. Not all industries Acknowledgment
may have the same level of vertical integration across the supply
chain, nor might there be visible environmental implications from This research was partially funded by the Spanish Ministry of
their operations. Thus, these industry differences will need to be Science and Innovation, grant MEC-DPI2007-65827-C02-01.
174 J. Sarkis et al. / Journal of Operations Management 28 (2010) 163–176
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