Al Sheyadi, Anwar (2014) Antecedents and consequences of the complementarities between ...

306 Pages·2017·6.2 MB·English

by  Christine Middleton

Antecedents and Consequences of the
Complementarities between Green Operations
Management Practices: An Empirical Investigation in
Oman
Anwar Khamis Abdullah Al-Sheyadi, BSc, MSc.
Thesis Submitted to the University of Nottingham
for the Degree of Doctor of Philosophy
June2014
Abstract
ABSTRACT
Green Operations Management (GOM) is becoming an increasingly important
element in the strategic agenda of many enterprises. Its main aim is to enhance the
ability of an enterprise to address stakeholder environmental concerns throughout
the entire product life cycle (PLC). Earlier studies have recognized GOM as a
useful tool to improve competitiveness (Zhanget al., 2008; Sarkis et al., 2010) and
business performance (Kassinis and Vafeas, 2006; Jacobs et al., 2010; Zhu et al.,
2012)
Over the last few decades, the role of environmental management in
achieving sustainable economic development is attracting growing global attention
both theoretically and empirically. GOM is particularly important for enhancing the
attractiveness of manufacturing companies of less developed countries such as
Oman, to be selected as a partner in the global supply chain network of multi-
national companies. However, there is a lack of integrative empirical studies to link
and simultaneously examine the interrelationships between environmental drivers,
practices and performance of manufacturing firms in general and within the context
of less developed countries in particular. Through a review of the GOM and
strategic environmental management literature, several unexplored areas were
identified which are related to:
a) The need for empirical studies to conceptualise various types of
environmental practices as complementary to each other. Complementarity
of GOM practices refers here to the combined sum of the effects of different
sets of GOM practices being greater together than individually.
b) The need for empirical studies to examine the influence of two distinct
groups of stakeholders (i.e. market and non-market stakeholders) on the
adoption of GOM practices.
c) The need for empirical studies to examine whether the relationship
between stakeholder pressures and the adoption of GOM practices is
mediated by an organisation’s internal capabilities such as the development
of environmental cross-functional collaboration (CFC). CFC is here defined
as the extent ofintra-organisational collaboration, interaction and integration
of various core functional areas within the firm on environmentally
significant issues (Auh and Menguc, 2005).
I
Abstract
d) The need for empirical studies investigating whether this mediated effect
of CFC holds across firms regardless of their size, level of pollution
intensity and degree of international orientation.
e) The need for empirical studies examining whether environmental
performance is considered as a mediator on the relationships between GOM
practices and organisational savings and spending, where organisational
savings and spending respectively reflect the saving advantages and increase
in overall spending resulting from the adoption of GOM practices.
This research is explanatory, deductive in nature, and underpinned mainly
by a quantitative research design that was supplemented by document analysis of
environmental strategies and performance and some qualitative semi-structured
interviews with managers of five Omani manufacturing firms. To achieve the
objectives of this research, an integrated conceptual framework was developed and
set of hypotheses were proposed. The analysis of the survey data collected from
138 Omani manufacturing firms wasconducted using structural equation modelling.
In this research, empirical support was found for most of the research
hypotheses, generally revealing that pressures from both market and non-market
stakeholders can influence the adoption of GOM practices and that adoption of
GOM practices can influence organisational business benefits, spending and
environmental performance. However, the relationship between the adoption of
GOM practices and organisational business benefits was found to be further
mediated by the level of environmental performance. Moreover, by integrating four
distinct, yet interrelated sets, of environmental practices into a second order
factor/construct called ‘collective GOM competency’, this research found empirical
evidence for the superiority of the second order construct in explaining the
relationships between the antecedents and consequences of the adoption of
environmental practices. Furthermore, the mediation effect of CFC on the
relationship between stakeholder pressures and the adoption of environmental
practices was empirically confirmed. This mediation effect of CFC was found to be
significantly stronger only for the case of highly internationalised firms compared
to their counterparts. Hence, firm characteristics are not always considered as
moderators on the relationship between CFC and the adoption of GOM practices.
The findings of this study provide new directions for future research and new
theoretical and practical insights in GOM practices in manufacturing firms.
II
Publications
PUBLICATIONS
Conference papers:
Al Sheyadi , A.; Muyldermans, L.; Kauppi, K., 2014, " Collaborative
competence in environmental practices adoption and its performance effects: A
contingency perspective", at the21stEurOMA Conference, Palermo, Italy, June
Al Sheyadi, A.; Muyldermans, L.; Kauppi, K., 2014, "A contingent view on
effectiveness of cross-functional collaboration for environmental practices
adoption", at the 25thPOMS Annual Conference, Atlanta, U.S.A., May
Al Sheyadi, A., 2014 "Interdependency of Green Supply Chain Management
Practices and its Performance Implications" accepted for presentation at the
Midlands Regional Doctoral Colloquium 2014, University of Nottingham,
Nottingham, April.
Al Sheyadi, A.; Muyldermans, L.; Karjalainen, K., 2013, "The mediating role
of cross-functional collaboration on the relationship between stakeholder
pressures and firm's adoption of green practices”,at the20thEurOMA
Conference, Dublin, Ireland, June.
Al Sheyadi, A.; Muyldermans, L.; Karjalainen, K., 2013, "The
complementarity of the environmental practices adoption and its performance
implications", at 24thPOMS Annual Conference 2013, Denver, U.S.A., May.
Al Sheyadi , A.; Muyldermans, L.; Karjalainen, K., 2012, "Stakeholder
influences on environmental practices in the Omani manufacturing firms", at
Middle Eastern & North African Studies Conference, Oxford University,
Oxford,June.
Al Sheyadi, A.; Muyldermans, L.; Karjalainen, K., 2012, "Environmental
Management in Oman: pressures, practices and performance", at East
Midlands Universities Postgraduate Research Students Conference, University
of Nottingham, Nottingham, July.
III
Dedication
DEDICATION
I specially dedicate this thesis to…
My parents for every thing
My wife (S.Alshidi) and my sons (Moatasim and Moataz) for their
understanding, continuous support and patience
My beloved brothers and sisters for all their continuousencouragement
IV
Acknowledgment
ACKNOWLEDGMENT
All my praise, gratitude and deepest thanks are to Allah for giving me the
ability, strength, knowledge and everything I need to successfully complete this
long journey of my PhD.
My sincere gratitude to my respected supervisors, Dr. Luc Muyldermans and
Dr. Katri Kauppi for their continuous and invaluable support, guidance and
encouragement throughout the course of my study. I will always be indebted
to them with my deepest appreciation.
I would like also to thank Professor Bart McCarty, Professor David Wastell,
Professor Ram Ramanathan and Dr. James Tannock for enriching this research
with their valuable comments and suggestions during the annual reviews.
Thanks also to James Gaskin from Brigham Young University, Provo, Utah
(U.S.A), who give me great advice during my data analysis, especially in
solving several Structural Equation Modelingchallenges.
Many thanks also to all Omani companies and managers, who participated in
the data collection. I also address special thanks to all my friends at the
University of Nottingham for their friendship, moral support and for all
unforgettable moments, and to all administrative staff here at the University of
Nottingham for providing administrativesupport.
Finally, I would like to thank the Omani Ministry of Higher Education and the
Omani Ministry of Environment and Climate Affairs for believing in the
importance of this research. Thanks a lot to everyone who helped me to make
this research possible.
V
Table of contents
ABSTRACT........................................................................................I
PUBLICATIONS.............................................................................III
DEDICATION.................................................................................IV
ACKNOWLEDGMENT..................................................................V
Table of contents……………………………………………………..VI
List of tables.....................................................................................IX
List of figures....................................................................................X
List of abbreviations........................................................................XI
CHAPTER 1 INTRODUCTION………………………………………1
1.1 Research background………………………………………………………………….2
1.2 Research context……………………………………………………………………….8
1.2.1 The Sultanate of Oman: An overview…………………………………………….8
1.2.2 Environmental management in Oman…………………………..……………….10
1.2.3 The manufacturing sector in Oman……………………………………………..11
1.3 Research objectives ………………………………………………………………….13
1.4 Research methodology: an overview ………………………………………………15
1.5 Research key findings ………………………………………………………...15
1.6 Structure of the thesis ………………………………………………………...16
CHAPTER 2 LITERATURE REVIEW……………………………..18
2.1 Environmental management drivers……………………………………………..18
2.1.1 Stakeholder theory……………………………………………………..……..19
2.2 Resource based view and environmental management…………………………26
2.3 Selection and adoption of environmental practices……………………………..28
2.3.1 Internal and external environmental practices………………………………..29
2.4 Elements of GOM: Substitution or complement………………………………35
2.4.1 Complementarities of GOM practices………………………………………….36
2.5 Environmental management and firm performance……………………………..39
2.6 Linking drivers and practices of GOM: Mediation of organizational internal
capabilities…………………………………………………………………………43
2.6.1 Cross-functional collaboration as a critical environmental capability................43
2.6.2 Contingency perspective on the effectiveness of CFC for GOM........................46
2.7 Summary of the literature review …………………………………………………50
2.8 Research gaps in the literature and their significance……………………………...51
Chapter 3 RESEARCH CONCEPTUAL FRAMEWORK…………….58
3.1 Research questions and objectives......................................................................58
3.3 Hypothesis development…………………………………………………………...65
VI
Table of contents
3.3.1 Conceptualizing the complementarities between GOM practices............................65
3.3.2 Linking stakeholder pressures and GOM practices.............................................66
3.3.3 Linking GOM practices and performance...........................................................67
3.3.4 Model mediator...................................................................................................72
3.3.5 Moderating effects of firm characteristics on the effectiveness of CFC.............73
CHAPTER 4 RESEARCH METHODOLOGY……………………….78
4.1 Research paradigm…………………………………………………………………78
4.1.1 Research design...................................................................................................83
4.1.2 Rationale for the adopted research methods........................................................87
4.2. Survey development and data collection…………………………………………..89
4.2.1 An overview of survey techniques......................................................................91
4.2.2 Operationalization of the study constructs..........................................................95
4.2.3 Summary of the measurement variables:..........................................................106
4.2.4 Survey development..........................................................................................107
4.2.5 Data collection..................................................................................................115
4.3 Data analysis techniques: Structural equation modelling………………………..120
4.4 Conclusion of methodology chapter……………………………………………..124
CHAPTER 5 RESULTS OF DATA ANALYSIS…………………….126
5.1 Total response …………………………………………………………………..126
5.2 Data entry …………………………………………………………………..127
5.3 Data cleaning …………………………………………………………………..128
5.3.1 Handling missing data and outliers...................................................................128
5.3.2 Handling common method bias and non-response bias....................................130
5.4 Preliminary data analysis………………………………………………………….136
5.4.1 Distribution of responses...................................................................................137
5.4.2 Sample and respondents characteristics............................................................138
5.5 Assessment of the measurement quality………………………………………….140
5.5.1 Reliability testing..............................................................................................142
5.5.2 Validity testing..................................................................................................142
5.5.3 Factor analysis...................................................................................................143
5.6 Assessment of the structural model and hypothesis testing………………………158
5.6.1 Conceptualization of the environmental management model...........................160
5.6.2 Examining the direct effect...............................................................................163
5.6.3 Examining the mediation effects.......................................................................167
5.6.4 Examining the moderated mediation effects.....................................................176
5.7 Conclusion………………………………………………………………………..193
CHAPTER 6 EMPIRICAL CASE STUDY ANALYSIS……………..195
6.1 Introduction…………………………………………………………………………...195
VII
Table of contents
6.2 Description of case companies and data collection processes…………………...195
6.3 Analysis of the case studies findings…………………………………………….199
6.3.1 Perceived drivers ofadopting GOM practices………………………………200
6.3.2 Adoption of GOM practices…………………………………………………202
6.3.3 Performance implications of adopting GOM practices……………………...212
6.3.4 Role of cross-functional collaboration………………………………………...218
6.4 Conclusion………………………………………………………………………..224
CHAPTER 7 DISCUSSION………………….………………...………225
7.1 Introduction………………………………………………………………………225
7.2 Research objectives and model development……………………………………225
7.3 Interpretation of the results………………………………………………………229
7.3.1 Conceptualization of the GOM model..............................................................229
7.3.2 Stakeholder pressures and GOM practices........................................................231
7.3.3 Influence of the collective GOM competency on performance........................234
7.3.4 Mediation of cross-functional collaboration..........................................................238
7.3.5 Moderation of organizational characteristics....................................................241
7.4 Conclusion………………………………………………………………………..244
CHAPTER 8 CONCLUSION…………………………………………245
8.1 Introduction…………………………………………………………………….245
8.2 Research Contributions…………………………………………………………245
8.2.1 Theoretical implications....................................................................................245
8.2.2 Practical contributions.......................................................................................251
8.3 Limitations and future research…………………………………………………..263
8.4 Conclusion……………..…………………………………………………………269
References…………………………………………………………………..270
Appendices…………………………………………………………………288
VIII
List of tables
List oftables
Table 1.1 Number of manufacturing establishments as per industrial activities….….12
Table 2.1 Classifications of environmental stakeholder pressures in previous
studies…………………………………………………………………………………22
Table 2.2 Categorizations (elements) of environmental management strategies in the
literature…………………………...………………………………………………….29
Table 2.3 Mixed results of previous empirical studies……………………...………..41
Table 4.1.1 Major paradigms of research in social sciences…………………..…….81
Table 4.1.2 Research methods and their philosophical bases…………………….…82
Table 4.1.3 Summary of the preliminary meetings conducted at the early stages of the
research…………………………………………………………………….………..86
Table 4.2.1 Previous relevant environmental studies……………………….……....93
Table 4.2.2 Items to measure the environmental pressures constructs…………..….97
Table 4.2.3 Items to measure the eco-design construct…………………………….98
Table 4.2.4 Items to measure the source reduction construct………………………99
Table 4.2.5 Items to measure the environmental management systems construct…100
Table 4.2.6 Items to measure the external environmental management construct…100
Table 4.2.7 Items to measure the environmental and economic performance
constructs……………………………………………………………………………103
Table 4.2.8 Items to measure the CFC for environmental management construct…103
Table 4.2.9 Items to measure the firm's international orientation construct………..106
Table 4.2.10 Summary of the measurement items and their labels………………....106
Table 5.1.1 Response rates obtained by some previous relevant environmental
studies………………………………………………………………………………127
Table 5.3.1 List of dummy items used to check for the existence of common methods
bias………………………………………………………………………………….133
Table 6.10 Classifications of respondents’ positions…………………………..133
Table 6.11 ANOVA test results of respondent’s position affecting the factor-
composite score of different constructs…………………………………..……133
Table 5.3.4Total variance explained………………………………………………135
Table 5.4.1Distribution of responses for each measurement item…………….…..138
Table 5.4.2 Sample characteristics…………………………………………………139
Table 5.4.3 Respondents characteristics…………………………………………...140
Table 5.5.1 KMO and Bartlett's data suitability tests………………….…………..145
Table 5.5.2 EFA results and reliability analysis for each construct……….………146
Table 5.5.3 Examples of model fit indices…………………………………….…..149
IX