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Evaluating the organizational intention to implement an Environmental Management System: evidence from the Indonesian food and beverage industry
Author(s) -
Salim Hengky K.,
Padfield Rory,
Yuzir Ali,
Mohamad Shaza Eva,
Kaida Naoko,
Papargyropoulou Effie,
Nakamura Shohei
Publication year - 2018
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.2188
Subject(s) - incentive , business , indonesian , marketing , environmental economics , environmental resource management , industrial organization , economics , microeconomics , linguistics , philosophy
The over‐exploitation of natural capital and unsustainable production practices has contributed to increased pollution, biodiversity loss, drought, and deforestation. The food and beverage (F&B) sector is one of the largest contributors to the Indonesian economy but it is also responsible for various environmental impacts. Implementing Environmental Management Systems (EMS) is one way to promote improved sustainable practices within organisations, particularly those within the F&B sector. This research investigates the drivers, barriers and incentives for implementing EMS and their causal relationships. Data were collected from 59 F&B companies in East Java, Indonesia. The results indicate that the implementation of EMS tends to be driven internally in an effort to enhance market competitiveness. There is a need for institutions to exert pressures to develop organizational capability to implement EMS. External barriers are significant impeding factors, while internal barriers do not have a direct link to EMS implementation. The moderating role of technical incentives underlines the need to improve infrastructure and policy to support EMS implementation. Theoretical and practical insights for governments and industries are also discussed.