| A debate continues over whether strong environmental performance and strong manufacturing performance can be achieved simultaneously by a manufacturing firm. Yet little research in operations management has explored the relationship between environmental management and manufacturing performance. To facilitate such research, a conceptual model was synthesized from the operations strategy, environmental management and corporate social performance literatures.; Two important constructs, strategy formulation and implementation, were developed. Strategy formulation consists of planning/systems analysis, organizational structure and management controls, and is affected by management views and plant-specific characteristics. Implementation is realized through an environmental investment portfolio. This portfolio captures the pattern of management decisions for investments that improve environmental performance, and identifies the proportion of resources allocated to adaptive and conventional environmental technologies. Adaptive technologies include product and process adaptation; conventional technologies include remediation and end-of-pipe control technologies. These investments directly affect both manufacturing and environmental performance.; Empirical validation was undertaken using a survey instrument in the furniture industry. The relationship between formulation and implementation of environmental management strategy is complex, with three groups identified: reactive/adaptive, reactive/conventional and proactive/balanced. Parent firm size, public influence and plant awareness of environmental regulation characterize some of the differences between strategy/portfolio groups. Management views and plant-specific characteristics are important determinants of the type of environmental management strategy adopted.; Most importantly, significantly better manufacturing performance was discovered in those plants where management favored adaptive technologies for their portfolio of environmental investments. Similar results were found for individual factors of cost, delivery and flexibility performance, however quality was lower. Conversely, manufacturing performance suffered in plants with high levels of conventional technologies. These findings strongly support the proposition that plants can obtain multiple benefits, but only those that implement adaptive technologies--plants that implement conventional technologies face a trade-off in benefits. In a general sense, this research has started to address one aspect of the broad concept of sustainable development, which proposes that economic growth can occur while simultaneously protecting the environment. |
