doctor of philosophy business administration farrukh...
Post on 30-Apr-2020
3 Views
Preview:
TRANSCRIPT
STUDY OF ENVIRONMENTAL ISSUES
AND CHALLENGES IN SMEs
ABSTRACT
THESIS
SUBMITTED FOR THE AWARD OF THE DEGREE OF
Doctor of Philosophy
IN
BUSINESS ADMINISTRATION
BY
FARRUKH RAFIQ
Under the Supervision of
Prof. (Dr.) M. Khalid Azam
DEPARTMENT OF BUSINESS ADMINISTRATION
FACULTY OF MANAGEMENT STUDIES AND RESEARCH
ALIGARH MUSLIM UNIVERSITY
ALIGARH-202002 (INDIA)
2012
STUDY OF ENVIRONMENTAL ISSUES AND
CHALLENGES IN SMEs
ABSTRACT
Introduction
Since the day man began to devote his physical strength, mental power, ability and skills in
the utilization of natural resources, it was the turning point of far reaching consequences. The
man has been the explorer, exploiter and destroyer of these natural resources. In the name of
development and advancement, he has disturbed the ecological balance between himself and
the natural environment.
The issue of pollution has become much more significant since the emergence of industrial
societies, which have the potential to generate newer forms of pollution and to spread these
across large areas. Industrial revolution of the 18th and 19th century and the technological
revolution of the 20th century resulted imbalance of the natural environmental.
The industrial sector is one of the most dynamic sectors of the economy and plays an
important role in the economic development. The increasing concern of environmental
degradation has led to environmental sensitivity among the nations of the developing as well
as the developed world.
Industrialization processes and overexploitation of the country's resources be it land or water
has resulted in considerable environmental degradation of resources. Business organizations
and societies’ commitment and dedication to the cause of protection, preservation and
conservation of environment is very much essential.
India’s economic development propelled by rapid industrialization and urbanization is
causing serious environmental problems that have local, regional and global implications.
Deforestation, soil erosion, water pollution and land degradation continue to worsen the
problems and are hindering economic development in rural India, while the rapid
industrialization and urbanization are causing serious environmental pollution problems. The
inter-relationship between environmental degradation and most of India’s serious problems
are often over-looked.
Small and medium enterprises (SMEs) are commonly recognized as one of the leading
groups of economic activities globally, and pose massive impacts on social issues. Most of
the SMEs are suppliers to large enterprises. The importance of SMEs in society can be
recognized by looking at the recent institutional arrangement and policy development for
assisting SMEs in all the countries. The SMEs active in the country are often undercapitalized
and technologically weak operating outside the formal sector of the economy. Of the total
export from India, a large portion is contributed by small and medium scale industries which
also contribute 50 percent to the total industrial pollution.
Pollution can be defined as the release of potentially harmful contaminants into the
environment. Today, pollution is a very serious and obvious environmental problem that has
to be addressed. One of the most serious threats is the enormous amount of waste that is
discharged into the air, water and ground ever year. The issue of pollution has become much
more significant since the emergence of industrial societies, which have the potential to
generate more and new types of pollution and to spread these across large areas of the planet
earth.
Air pollution is one of the major reasons for the environmental pollution. Air pollution is said
to exist if the level of harmful gases, solids, or liquids present in the atmosphere is high
enough to affect humans, other organisms, monuments, buildings, and plants etc.
The quality of water is of vital importance for the sustenance of mankind as it is directly
linked to the welfare of human beings as well as for all forms of living organisms. Most
countries have economic problems of providing fresh water. Water pollution is the presence
of deleterious substances in water that make it unsuitable. Pollution in water can be either due
to the presence of either industrial or domestic wastes.
Soil pollution refers to any chemical or physical change in soil conditions that may adversely
affect the growth of plant and other organisms living in it or on that soil. Agricultural
chemicals, especially fertilizers and pesticides, dumped waste like garbage, untreated sewage,
nuclear waste and mining waste pollute the soil, as the dangerous substance from the dumps
leak into it. Soil and water pollution are closely connected to each other.
Noise has been defined as unwanted sound that irritates and results in stress. High intensity
noise has become one of the most disturbing problems of modern life. Noise pollution affects
human beings and results in physiological as well as psychological damage. Loud noise can
also have other ill effects like heart palpitation, muscle contraction, migraine headaches,
nausea and dizziness. Noise can cause serious damages to wildlife while animals are
adversely affected due to loud noise.
Scope of the study
The present study aims at studying the environmental issue and challenges in SMEs in India.
In this study the following topics have been focused upon:
• Environmental laws pertaining to India
• Problems faced by SMEs in incorporating the environmental laws
• Environmental pollution
• Air;
• Water;
• Noise; and
• Waste Management
This research aims to focus on environmental issues and challenges in SMEs. This is
expected to ensure the productivity and welfare of the society contributing to sustainable
development. The research amalgamates operations with supply chain and environmental
management in order to balance a variety of corporate objectives such as resource
conservation, pollution prevention and competitiveness, etc. The functional perspective
brings together different functional fields like, Total Quality Management (TQM), Total
Quality Environmental Management (TQEM), Re-engineering, Waste management, Reverse
logistics, etc.
This research will be effective in developing optimal strategies that balance environmental
and economic costs. Further, it shall contribute to long-term betterment of industry and
society as a whole.
Research Objectives
The manufacturing sector in SMEs has been characterized by high consumption of natural
resources in one form or the other. It is also a potent source of waste generation, ecosystem
disruption and depletion of natural resources. Specifically, the study aims
• To identify environmental issues and challenges and the extent of implementation at
various levels.
• To identify the extent of implementation of environmental protection practices at
various levels of operation in select SMEs.
• To explore the differences, if any, with regard to implementation of environmental
protection procedures and techniques across select SMEs.
• To develop a conceptual model covering different aspects as regards different
environmental issues and challenges concerning selected SMEs and their impact and
benefits so derived.
• To ascertain the validity of the conceptual model interlinking various environmental
concerns with environmental performance and benefits derived.
• To ascertain the benefits derived as a result of implementation of environmental
protection procedures and techniques with regard to resource conservation,
competitiveness and economic performance.
Research Strategy
In this research work, following research techniques are employed
• Questionnaire-based survey: Questionnaire-based survey is an established approach and
technique to obtain respondents’ opinion on a range of issues related to a research
problem. In the present research work this is used to gain an insight into the
environmental issues and challenges in select Indian SMEs.
• Hypothesis testing and Model validation: The hypotheses relating to dimensions of
environmental concerns with organizational variables and hypothesis based on impact of
different dimensions on environmental concerns were tested. For this purpose Analysis
of Variance (ANOVA) and Structural equation modeling (SEM) have been used. SEM is
used to quantify relationship between interdependent variables related to environmental
issues, environmental challenges, environmental management practices, pollution
prevention, resource conservation, competitiveness and economic performance.
Proposed Research Model
The proposed research model has been crystallized after thorough review of literature. The
review covered various aspects of business operations and helped identify seven latent
constructs. These constructs are viz. Issues, Challenges, Environmental Management
Practices (pollution related & others), Resource Conservation, Pollution Prevention,
Competitiveness and Economic Performance. The research model indicating the relationship
amongst these variables is presented as Exhibit 1
EXHIBIT 1: PROPOSED RESEARCH MODEL
ENVRN. ISSUES
ENVRN. CHALLENGES
POLLUTION PREVENTION
RESOURCE CONSERVATION
ECONOMIC PERFORMANCE
COMPETITIVENESS
ENVIRONMENTALMANAGEMENT PRACTICES
Lean Manufacturing Improved Technology TQM Reengineering
Reverse Logistics Remanufacturing Finance/Cost
Waste Management Govt. Policies/Regul.
Research Hypotheses
Research hypotheses were formulated based on extensive literature survey/review and
discussions with professionals & experts. In all thirty-eight null hypotheses have been framed
and they are categorized into two sets. The first set comprises hypotheses relating dimensions
of environmental concerns (environmental issues, environmental challenges, environmental
management practices, resource conservation, pollution prevention, competitiveness &
economic performance) with organizational variables namely nature of industry (Lock,
hardware & allied; Pottery/Ceramic; Leather & Tannery; and Glass), organization status
(Micro scale; Small scale; or Medium scale), number of employees (< 25; 26 to 50; 51 to
100; > 100) and number of suppliers associated with (< 5; 6 to 10; 11 to 20; > 20). The
second set comprises hypotheses ascertaining impact of different dimensions of
environmental concerns on each other.
Keeping in view the objectives of the study the following hypotheses were formulated:
Hypothesis based on Dimensions of Environmental Concerns across Organizational
Variables
H01 There is no significant difference in the mean value of environmental issues with respect
to the nature of industry.
H02 There is no significant difference in the mean value of environmental issues with respect
to organizational status.
H03 There is no significant difference in the mean value of environmental issues with respect
to number of employees.
H04 There is no significant difference in the mean value of environmental issues with respect
to the number of suppliers associated with.
H05 There is no significant difference in the mean value of environmental challenges with
respect to the nature of industry.
H06 There is no significant difference in the mean value of environmental challenges with
respect to organizational status.
H07 There is no significant difference in the mean value of environmental challenges with
respect to number of employees.
H08 There is no significant difference in the mean value of environmental challenges with
respect to the number of suppliers associated with.
H09 There is no significant difference in the mean value of environmental management
practices with respect to the nature of industry.
H010 There is no significant difference in the mean value of environmental management
practices with respect to organizational status.
H011 There is no significant difference in the mean value of environmental management
practices with respect to number of employees.
H012 There is no significant difference in the mean value of environmental management
practices with respect to the number of suppliers associated with.
H013 There is no significant difference in the mean value of prevention of environmental
pollution with respect to the nature of industry.
H014 There is no significant difference in the mean value of prevention of environmental
pollution to organizational status.
H015 There is no significant difference in the mean value of prevention of environmental
pollution with respect to number of employees.
H016 There is no significant difference in the mean value of prevention of environmental
pollution with respect to number of suppliers associated with.
H017 There is no significant difference in the mean value of resource conservation with
respect to nature of industry.
H018 There is no significant difference in the mean value of resource conservation with
respect to organizational status.
H019 There is no significant difference in the mean value of resource conservation with respect
to number of employees.
H020 There is no significant difference in the mean value of resource conservation with
respect to number of suppliers associated with.
H021 There is no significant difference in the mean value of competitiveness with respect to
nature of industry.
H022 There is no significant difference in the mean value of competitiveness with respect to
organizational status.
H023 There is no significant difference in the mean value of competitiveness with respect to
number of employees.
H024 There is no significant difference in the mean value of competitiveness with respect to
number of suppliers associated with.
H025 There is no significant difference in the mean value of economic performance with
respect to nature of industry.
H026 There is no significant difference in the mean value of economic performance with
respect to organizational status.
H027 There is no significant difference in the mean value of economic performance with
respect to number of employees.
H028 There is no significant difference in the mean value of economic performance with
respect to number of suppliers associated with.
Hypothesis based on impact of different dimensions of environmental concerns
H029 There is no significant impact of environmental issues on environmental management
practices with regard to select SMEs.
H030 There is no significant impact of environmental challenges on environmental
management practices with regard to select SMEs.
H031 There is no significant impact of environmental management practices on resource
conservation with regard to select SMEs.
H032 There is no significant impact of environmental management practices on pollution
prevention with regard to select SMEs.
H033 There is no significant impact of resource conservation on competitiveness of select
SMEs.
H034 There is no significant impact of resource conservation on economic performance of
select SMEs.
H035 There is no significant impact of pollution prevention on competitiveness of select
SMEs.
H036 There is no significant impact of pollution prevention on economic performance of
select SMEs.
H037 There is no significant of competitiveness on economic performance of select SMEs.
H038 There is no significant impact of economic performance on competitiveness of select
SMEs.
Research Design
According to Yin (2003), the research design is the “logical sequence that connects the
empirical data to a study’s initial research questions and, ultimately, to its conclusions” The
research design comprises the blueprint for the collection, measurement and analysis of data.
The research design states both the structure of the research problem and the plan of
exploration used to obtain empirical evidence in relation to the problem.
For this research purpose a conclusive research design approach has been used. In the first
place, a descriptive research design approach is used, where a conceptual model is developed,
comprising of the broad dimensions of the study. In the second part, in order to validate the
cause-effect relationship among the different dimensions (variables) of the research, a causal
research design approach is used.
Surveys were carried out using a questionnaire as research tool to collect the data. It is an
established approach to obtain respondents’ opinion on a range of issues related to a research
problem.
Selection of Survey Method
The decision to choose a survey method may be based on a number of factors which include
sampling, type of population, question form, question content, response rate, costs and
duration of data collection (Aaker, Kumar and Dey, 2002). Owing to the nature of study it
was decided to personally administer the structured research instrument developed for the
study. Simple random sampling technique was employed to collect the data from the
executives or the entrepreneurs.
However, it can be very time consuming if a wide geographical region is involved. The
method allows researcher to ensure that the data covered is free from biasness and the sample
represents complete population. Though there are bound to be some biasness in the selection
of the sample, it can be eliminated to some extent by covering the larger population in the
overall sample.
Measurement Scale
To increase the response rate and facilitate respondents, the questionnaire included close-
ended questions. A five point Likert’s scale was used for this purpose. Two types of
measurement scales were used in this research: Nominal and Interval. Nominal scales were
used for identification purposes because they have no numeric value (Hayes, 1998). Interval
scale was used to measure the subjective characteristics of the respondents. This scale was
used due to its strength in arranging the objects in a specified order as well as being able to
measure the distance between the differences in response ratings (Malhotra, 2007).
Questionnaire Development and Administration
Development of research instrument involves identification of constructs, method of survey
to be employed, questionnaire design, re-testing of questionnaire and administration of the
final questionnaire.
Specification of the Information Needed
The objectives at the first stage were two folds; identifying the information required and
determining the source from where the information could be obtained. This stage begins with
identifying the information needed to meet the research objectives. For this purpose, a
conclusive study was carried out. The industries selected for the research purpose included
Lock, hardware & allied, Pottery/Ceramic, Leather & Tannery and Glass. The selected SMEs
are highly polluting in nature, polluting the environment in one-way or the other. Lock,
hardware & allied causes water, air and noise pollution. Leather and Tannery industry causes
water, air as well as noise pollution while Pottery/Ceramic industry causes water, air and soil
pollution. Glass industry causes air and noise pollution.
The questionnaire was developed after the review of available literature and in depth
interviews and discussions with the top and middle management of different companies of
the selected sector (lock hardware & allied, leather & tannery, pottery/ceramic and glass)
located in the state of Uttar Pradesh in India. From these interviews, feedback was obtained
on the variables so that they can be considered for inclusion in preliminary questionnaire. The
questionnaire so developed had the scientific basis of evolvement of the questions, which
could be considered reliable. The questionnaire was developed in English and translated into
national language Hindi, which is also the local language. Ramachandran (1991) suggested
that, if needed, the questionnaire should be translated into a local language to avoid
miscommunication and misinterpretation.
Structure and Content Validity of the Questionnaire
A number of measures are available to measure the reliability of the research instrument.
Measures of variables should have validity and reliability in order to draw valid inferences
from the research (Cronbach, 1971; Nunally, 1978). Reliability means ‘consistency’ or
‘trustworthiness’. Reliability deals with how consistently similar measures produce similar
results (Rosental & Rosnow, 1984). Reliability is the internal consistency of the
measurement, which is the degree of inter-correlations among the various items in the
instruments that constitute the scale (Nunally, 1978). Content validity primarily depends on
an appeal to the proprietary of the content and the way it is presented (Nunally, 1978). The
selection of measurement items in the questionnaire was based on review of available
literature and evaluation by executives and academicians, thus ensuring the content validity
of the questionnaire. The construct validity was tested through an exploratory factor analysis.
Factor Analysis is a means of describing groups of highly correlated variables by a single
underlying construct, or factor that is responsible for the observed correlations. Kim and
Mueller (1978), has suggested that only those items, which had a factor loading of more than
0.4 are to be retained in the questionnaire.
Reliability & Validity Analysis
According to Leedy and Ormrod (2005), reliability and validity are essential characteristics
of research because they ensure the adequacy of research and the validity of conclusions. The
ability to repeat tests over time with the same degree of accuracy and precision is one of the
most important parts of research design and instrumentation. Reliability is the internal
consistency of the measurement, which is the degree of inter-correlations among the various
items in the instruments that constitute the scale (Nunally, 1978). Reliability means
‘repeatability’ or ‘consistency’. Reliability analysis helps in analyzing whether the same set
of items would educe the same responses if the same questions are re-administered to the
same respondents. Validity of a measurement is defined as the extent to which the instrument
measures what it is supposed to measure. Reliability is defined as the extent to which a score
ensures an underlying construct with stability and consistency (Singleton & Strait, 2005).
One of the most common ways of computing the correlation values among the questions on
the instruments is by using the Cronbach's alpha (Cronbach, 1951), which is numerical
coefficient of reliability. According to Schuessler, (1971) Cronbach’s Alpha value greater
than 0.60 suggests a good reliability. For our research purpose, Cronbach’s Alpha value
greater than 0.6 has been considered satisfactory for measurement of the realiability
estimates.
Exploratory Factor Analysis
Exploratory factor analysis (EFA) is a multivariate statistical method where a multivariate
normal random vector defined mean and covariance matrix is reduced to linear combinations
of the random variables. It is applied as a data reduction or structure detection method. It is
used to uncover the underlying structure of a relatively large set of variables. Factor analysis
is a means of describing groups of highly correlated variables by a single underlying
construct or factor that is responsible for the observed correlations.
KMO and Bartlett’s Test (Factor Analysis) for Testing the Validity of the Questionnaire
To test and verify the dimensionality, construct validity and reliability of the scale items,
KMO and Bartlett’s Test was conducted. These items are Issues, Challenges, Environmental
Management, Pollution Prevention, Resource Conservation, Competitiveness and Economic
Performance.
The Kaiser-Meyer-Olkin measure of sampling adequacy tests whether the partial correlations
among variables are small. Further it should be greater than 0.5 for a satisfactory factor
analysis to proceed. Larger values of the KMO measures denote that the factor analysis of the
variables is a possible option. Bartlett’s test of sphericity tests whether the correlations matrix
is an identity matrix, which would indicate that the factor model is inappropriate. The
Bartlett’s test of sphericity is used to test the null hypothesis and to check that the variables in
the population correlation matrix are uncorrelated. The Kaiser-Meyer-Olkin measures of
sampling adequacy is greater than 0.790, and the observed significant level is .0000. It is
small enough to reject the hypothesis. It is concluded that the strength of the relationship
among variables is strong and, therefore, we can proceed for factor analysis of the data.
Confirmatory Factor Analysis (CFA)
Confirmatory factor analysis was conducted using AMOS 16.0. Anderson and Gerbing
(1988), have suggested that the measurement model (relationships between observed items
and latent constructs) should be analyzed before the structural model (relationships between
latent constructs). The reason for this is that it is essential to understand what one is
measuring prior to testing relationships (Vandenberg and Lance, 2000). Confirmatory Factor
Analysis (CFA) was carried out on both the dependent and independent variables without any
structural relationships.
In order to test the data structure, CFA was applied.
Tools used for Data Analysis
The final step was to select the appropriate statistical tools for the analysis of the primary data
which was collected for the study by using the specifically developed research questionnaire.
Using different statistical tools such as SPSS 16.0 and AMOS 16.0 software, the organized
data were then analyzed.
This analysis gives a meaning to data through frequency distribution, which are useful to
identify differences among groups while in order to test hypotheses, ANOVA was applied.
Analysis of Variance
Analysis of Variance (ANOVA) is a collection of statistical models and their associated
procedures, in which the observed variance is partitioned into components due to different
explanatory variables. This method generates values that can be tested to determine whether a
significant relationship exists between variables. Generally ANOVA is applied when
comparison of means for more than two samples is to be drawn. However, ANOVA method
can also be applied in case of means for two samples as well.
Structural Equation Modeling (SEM)
Some reasons for the wide spread use of these models are their parsimony (they belong to the
family of linear model), their ability to model complex systems (where simultaneous &
reciprocal relation may be present), and their ability to model relationship among non
observable variables while taking measurement errors into account (Jöreskog & Sörbom,
1989; 1993; Jöreskog et. al., 2000). The model was estimated by normal theory maximum
likelihood using the AMOS 16.0 software. Since this study required the models to be tested
for best fit, SEM seemed to be appropriate analysis method as it produces more
comprehensive overall goodness of fit, than those found in other traditional methods.
Limitations of the Study
Academic research on any topic is a continuous process. Therefore, each part of the research
has to have some limitations in the form of either the resource constraints, be it the money
and time or the self defined scope of the study. The present research work too had some
limitations which, in fact, were not confined to any particular stage of the work. Following
are the limitations of this study:
• In a survey based research, more specifically questionnaire based, the lack of involvement
and cooperation of the respondents is a serious issue. The same was realized during the
process of data collection in this study. Some respondents appeared reluctant to
participate in the survey. They apprehended that a study on environmental issues and
challenges in SMEs (particularly in the respondent’s firm) may bring out the weak &
lacking points on their part that can put the organization in some trouble.
• Generally the organizations were found to be apprehensive of possible misuse of the
information researcher seeks from them about their business. Therefore, the respondents
appeared less cooperative with regard to participation in the survey.
• Although the sample for this study is selected by census sampling method, the researcher
has included the entire population restricted to the following segments
a) Lock, Hardware & Allied
b) Pottery/Ceramic,
c) Leather and Tannery, and
d) Glass
Thus, the interpretation of the findings cannot be generalized to the larger population of the
SMEs.
• The study focused upon some key dimensions viz. Environmental Issues, Environmental
Challenges, Environmental Management Practices, Pollution Prevention, Resource
Conservation, Competitiveness and Economic Performance only. However, there may be
other factors also, e.g. Green Supply Chain Management, Environmental Accounting etc.
that too could have been considered. However, the inclusion of all these factors would
have made the study unwieldy. Therefore, only some key factors were focused upon. This
too may be considered as a limitation of the study.
• The study was restricted and confined to a limited geographical area of Uttar Pradesh in
India. Exploring data from other areas of the country would have made the task of data
collection a tedious one.
• Paucity of time was also a constraint with regard to data collection as personally
approaching the select SMEs over a wide geographical area required a lot of time,
considerable effort and money.
Key findings
The key findings of the present research work related to environmental issues, environmental
challenges, environmental concerns, pollution prevention, resource conservation,
competitiveness and economic performance are discussed below
• There exist significant differences in the mean values environmental issues,
environmental challenges, environmental management practices, pollution prevention,
competitiveness, and economic performance with respect to nature of industry.
• Leather and Tannery industry pay highest importance to environmental issues as
compared to other industries.
• Lock, Hardware and Allied face more environmental challenges as compared to other
SMEs.
• Pottery /Ceramic industry pay more importance to environmental management
practices as compared to other industries.
• Leather and Tannery industry is more concerned towards the prevention of
environmental pollution in comparison to other industries.
• Leather and Tannery industry employ more competitive strategies as compared to other
industries.
• Pottery/Ceramic industry performs economically better as compared to other
industries.
• There exist significant differences in the mean values of environmental issues,
environmental challenges, environmental management practices, pollution prevention,
resource conservation, competitiveness and economic performance with respect to
organizational status.
• Organizations with medium operation pay more attention towards environmental
issues as compared to small and micro level organizations.
• Micro level organizations face more environmental challenges as compared to small
and medium organizations.
• Medium scale organizations pay more importance to environmental management
practices as compared to micro and small scale organizations.
• Medium scale organizations are more concerned towards the prevention of
environmental pollution as compared to micro or small scale organizations.
• Small scale organizations are more concerned towards the resource conservation as
compared to micro and medium scale organization.
• Medium scale organizations are more competitive as compared to micro or small
organizations.
• Medium scale organizations perform economically better as compared to micro or
small scale organizations.
• There exist significant differences in the mean values of environmental issues,
environmental challenges, environmental management practices, pollution prevention,
resource conservation, competitiveness and economic performance with respect to
number of employees.
• Organizations having employees in the range 51 to 100 pay more importance to
environmental issues as compared to organizations having less than 51 and more than
100 employees.
• Organizations employing less than 25 employees have to deal with more
environmental challenges as compared to organizations employing either 25 or more
employees.
• Organizations having more than 100 employees pay more importance to
environmental management practices in comparison to organizations employing lee
than 100 employees.
• Organizations having strength of employees in the range of 51 to 100 are more
concerned towards the prevention of environmental pollution as compared to
organizations having less than 51 or more than 100 employees.
• Organizations employing employees in the range of 51 to 100 pay more importance to
resource conservation as compared to organizations employing either less than or
equal to 50 or more than 100 employees.
• Organizations engaging more than 100 employees are more competitive as compared
to other organizations engaging up to 100 employees.
• Organizations employing more than 100 employees perform economically better than
the organizations employing up to 100 employees.
• There exist significant differences in the mean values of environmental management
practices, pollution prevention, resource conservation, and economic performance
with respect to number of suppliers associated with. It has also been observed that
• Organizations having more than 20 suppliers pay more importance to environmental
management practices as compared to organizations having suppliers up to 20.
• Organizations engaging more than 20 suppliers pay more importance to prevention of
environmental activities as compared to organizations engaging up to 20 suppliers.
• Organizations associated with more than 20 suppliers pay more importance to
resource conservation as compared to organizations having suppliers either 20 or less.
• Organizations having more than 20 suppliers perform economically better than
organizations having up to 20 suppliers.
• Nature of industry be it micro, small or medium does not have any significance with
regard to resource conservation practices.
• The number of suppliers does not have any significance as far as environmental issues
are concerned. Organizations having any number of suppliers encounter similar
environmental issues.
• The number of suppliers does not have any significance with respect to environmental
challenges. Organizations having any number of suppliers face similar environmental
challenges.
• The number of suppliers making the supplies to the industry does not have any
significance with regard to competitiveness. Organizations having any number of
suppliers encounter similar environmental challenges.
• There exists a positive significant impact of environmental challenges on
environmental management practices.
• There exists a negative but insignificant impact of resource conservation on economic
performance.
• There exists a negative but insignificant impact of pollution prevention on
competitiveness.
• There exists a negative but insignificant impact of competitiveness on economic
performance.
• There exists a positive significant impact of environmental issues on environmental
management practices.
• There is a positive significant impact of environmental management practices on
resource conservation.
• There exists a positive significant impact of environmental management practices on
pollution prevention.
• There exists a positive significant impact of resource conservation on
competitiveness.
• There is a positive significant impact of pollution prevention on economic
performance.
• There exists a positive significant impact of economic performance on
competitiveness.
Suggestions
In order to make this planet worth living, it becomes strictly important to keep a check on the
growing levels of environmental pollution in the Indian SMEs. Problems related with the
environment be it air, water, noise, or soil pollution, solid hard waste disposal, forest and
agricultural degradation of land, ozone layer depletion etc are the most sensitive issues now a
days. Government rules and regulations are not implemented to its full length. Environmental
awareness of the masses is required to be raised. Though government has taken some steps in
this direction by introducing environmental education in the curriculum of schools and
colleges, still a lot of other steps are required to be taken.
The government may provide financial as well as technical help to SMEs in order to ensure
proper implementation of suggested rules and regulations conforming to international
standards. Social activist’s role and the consumer awareness can help in protecting the
environment to some extent.
The firms, on their part, may realize their responsibilities of protecting the environment and
conserving the natural resources, guaranteeing better returns as a by-product. The business
organizations are required to take steps in this direction. As the awareness regarding the
environment increases customers’ demand for the green products will increase. Technological
advancement will help in curbing this problem. Pollution prevention strategies, reverse
logistics, TQEM, re-engineering lean manufacturing etc will benefit both the organizations as
well as customers.
All these steps, if implemented and strictly followed, may help in making this world a better
place to live.
Directions for future research
• Only four sectors of SMEs have been targeted, which may not reflect the entire status of
environmental issues and challenges in Indian SMEs. Further work and studies may be
carried out in other Indian SMEs. It may help to understand the status of environmental issues
and challenges in SMEs as a whole.
• The seven dimensions were identified for this research work, future research proposal may
include some other dimensions such as environmental awareness and sustainability etc.
• The work was confined to a limited geographical area of Uttar Pradesh in India; the future
research may cover a wider geographical area of the country and cover other industrial
cluster.
• The sample size of this study was 240 which may be increased so that a better understanding
of the problem is possible.
top related