doctor of philosophy business administration farrukh...

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.


to organizational status.


to number of employees.


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.


respect to organizational status.


respect to number of employees.


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.


practices with respect to organizational status.


practices with respect to number of employees.


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.


pollution to organizational status.


pollution with respect to number of employees.


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.



H019 There is no significant difference in the mean value of resource conservation with respect

to number of employees.


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.


organizational status.


number of employees.


number of suppliers associated with.

H025 There is no significant difference in the mean value of economic performance with

respect to nature of industry.




respect to number of employees.


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,


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,


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.

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