Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30382
Determining Factors for ISO14001 EMS Implementation among SMEs in Malaysia: A Resource Based View

Authors: Goh Yen Nee


This research aimed to find out the determining factors for ISO 14001 EMS implementation among SMEs in Malaysia from the Resource based view. A cross-sectional approach using survey was conducted. A research model been proposed which comprises of ISO 14001 EMS implementation as the criterion variable while physical capital resources (i.e. environmental performance tracking and organizational infrastructures), human capital resources (i.e. top management commitment and support, training and education, employee empowerment and teamwork) and organizational capital resources (i.e. recognition and reward, organizational culture and organizational communication) as the explanatory variables. The research findings show that only environmental performance tracking, top management commitment and support and organizational culture are found to be positively and significantly associated with ISO 14001 EMS implementation. It is expected that this research will shed new knowledge and provide a base for future studies about the role played by firm-s internal resources.

Keywords: SMEs, Malaysia, ISO 14001 Environmental Management System, Resource based view

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 3187


[1] SME Annual Report (2009/2010). Chapter 2: SMEs Development and Outlooks, Retrieved July 30,2011from
[2] MS ISO 14001 (2004). Malaysian standard: environmental management system: requirements with guidance for use (first revision), Department of Standards Malaysia.
[3] Jabbour, C. J. C. & Santos, F. C. A. (2008). Relationship between human resources dimensions and environmental management in companies: proposal of a model, Journal of Cleaner Production, 16, 1922-1925.
[4] Lefebvre, E. Lefebvre, L. A. & Talbot, S. (2003). Determinants and impacts of environmental performance in SMEs, R & D Management, 33(3), 263-283.
[5] Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
[6] Wu, S. J., Melnyk, S. A. & Calantone, R. J. (2008). Assessing the core resources in the environmental management system from the resource based perspective and the contingency perspective, IEEE Transactions on Engineering Management, 55(2), 304-315.
[7] Del Brío, J. A., Fernández, E., Junquera, B., & Vázquez, C. J. (2001). Motivations for adopting the ISO 14001 standards: a study of Spanish industrial companies, Environmental Quality Management, 13-26.
[8] Chin, K.S., Chiu, S. & Tummala, V. M. R. (1999). An evaluation of the success factor using the AHP to implement ISO 14001-based EMS. International Journal of Quality and Reliability Management, 16(4), 341-361.
[9] Zutshi, A. Sohal, A. S. & Adams, C. (2008). Environmental management system adoption by government department/agencies. International Journal of Public Sector Management, 21(5), 525-539.
[10] Curkovic, S., Sroufe, R. & Melnyk, S. (2005). Identifying the factors which affect the decision to attain ISO 14000, Energy, 30, 1387-1407.
[11] Davidson, W. N. & Worrell, D. L. (2001). Regulatory pressure and environmental management infrastructure and practices. Business and Society, 40(3), 315-342.
[12] Wee, Y. S. & Quazi, H. A. (2005). Development and validation of critical factors of environmental management. Industrial Management and Data Systems, 105, 1/2, 96-114.
[13] Sammalisto, K. & Brorson, T. (2008). Training and communication in the implementation of environmental management system (ISO 14001): a case study at the University of Gävle, Sweden, Journal of Cleaner Production, 16, 299-309.
[14] Del Brío, J. A., Fernández, E., Junquera, B., & Vázquez, C. J. (2001). Motivations for adopting the ISO 14001 standards: a study of Spanish industrial companies, Environmental Quality Management, 13-26.
[15] Cheremisinoff, N. P. & Haddadin, M. (2006). Beyond compliance: the refinery manager-s guide to ISO 14001 implementation, Golf Publishing Company: US.
[16] Jabbour, C. J. C. & Santos, F. C. A. (2008). Relationship between human resources dimensions and environmental management in companies: proposal of a model, Journal of Cleaner Production, 16, 1922-1925.
[17] Daily, B. F. & Huang, S.C. (2001). Achieving sustainability through attention to human resource factors in environmental management, International Journal of Operations & Production Management, 21(12), 1539-1552.
[18] Choueke, R. & Armstrong, R. (2000). Culture: a missing perspective on small and medium sized enterprise development? International Journal of Entrepreneurial Behaviour & Research, 6(4), 227-238.
[19] Hair, J. F. Wolfinbarger, M., Ortinau, D. J. & Bush, R. P. (2008). Essentials of Marketing Research. 1st Edition, New York: McGraw-Hill.
[20] Zutshi, A. & Sohal, A. (2004a). Adoption and maintenance of environmental management system: critical success factors. Management of Environmental Quality: An International Journal, 15(4), 399-419.
[21] Zhang, Z. H., Waszink, A., & Windgaard, W. (2000). An instrument for measuring TQM implementation for Chinese manufacturing companies. The International Journal of Quality & Reliability Management, 17(7), 730.
[22] Ahire, S. L., Golhar, D. Y. & Waller, M. A. (1996). Development and validation of TQM implementation constructs, Decision Sciences, 27(1), 23-56.
[23] Daily, B. F., Bishop, J. W. & Steiner, R. (2007). The mediating role of EMS teamwork as it pertains to HR factors and perceived environmental performance, Journal of Applied Business Research, 23(1), 95-109.
[24] Zainudin, D. (2008). Critical success factors and performance outcomes of ISO 9000 implementation: the case of small and medium enterprises in Malaysia. Unpublished DBA thesis, Graduate School of Business, Universiti Sains Malaysia.
[25] Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E. & Tatham, R. L. (2006). Multivariate data analysis. 6th edition, Upper Saddle River: Pearson Education International.
[26] Matthews, T. H. (2003). Environmental management system for internal corporate environmental benchmarking. Benchmarking: An International Journal, 10(2), 95-106.
[27] Quazi, H. A. (1999). Implementation of an environmental management system: the experience of companies operating in Singapore. Industrial Management and Data System, 99/7, 302-311.
[28] Darnall, N. & Edwards, D. (2006). Predicting the cost of environmental management systems: the role of capabilities, resources and ownership structure, Strategic Management Journal, 27, 301-320.
[29] Koberg, C.S., Boss, R. W., Senjem, J.C. & Goodman, E. A. (1999). Antecedents and outcomes of empowerment, Group and Organization Management, 24(1), 71-92.
[30] Heinz, U. Baga., T. Gebert, D. & Kearney, E. (2006). Leadership and cooperation as success factors in innovative R & D projects on electronic platform. Team Performance Management, 12 (3/4), 66-76.
[31] Hoegl, M. (2005). Smaller teams - better teamwork: How to keep project teams small, Business Horizons, 48, 209-214.
[32] Pattit, J. M. & Wilemon, D. (2005). Creating high-performing software development teams, R & D Management, 35 (4), 375-393.
[33] Von Malmborg, F. B. (2002). Environmental management systems, communicative action and organizational learning. Business Strategy and the Environment, 11, 312-323.
[34] Eltayeb, T. K. (2009). Adoption of green supply chain initiatives by ISO 14001 certified manufacturing firm in Malaysia: key drivers, outcomes and moderating effect of relationship orientation. Unpublished PhD thesis, School of Management, University Sains Malaysia.
[35] Razuan Zainol, M. (2006). Determinants factors for EMS ISO 14001 adoption in Malaysia. Unpublished MBA thesis, School of Management, Universiti Sains Malaysia.
[36] Balzarova, M.A., Castka, P., Bamber, C. J. and Sharp, J. M. (2006). How orgnizational culture impacts on the implementation of ISO 14001:1996 - a UK multiple case views, Journal of Manufacturing Technology Management, 17(1), 89-103.
[37] Sambasivan, M. & Ng, Y. F. (2008). Evaluation of critical success factors of implementation of ISO 14001 using analytic hierarchy process (AHP): a case study from Malaysia. Journal of Cleaner Production, 16, 1424-1433.