Research On The Impact Of Cleaning Production Towards Firms' Business Performance

With the increasingly serious environmental problems, people both at home and abroad are discussing how to achieve sustainable development between economic growth and environment. Cleaner production has become an important means of protecting the environment. However, there are still many problems in the implementation of cleaner production. So the study of relationship between enterprise's cleaner production and business Performance is very meaningful on theory and practice.In this study, the manufacturing enterprises in Yangtze River Valley were studied. With factors and process analysis of cleaner production, the implementation of cleaner production is divided into two variables: high-cost projects and low / no-cost projects. Business performance is divided into two variables: financial and non-financial performance. In the questionnaire we set up many questions to measure the four basic variables above. With the 125 valid questionnaires and the structural equation model method, we did confirmatory factor analysis for each of the four variables and set up the structural equation model of the 4 basic variables.The results show that the positive relations between the "low / no-cost project" of the cleaner production and "financial performance" of business performance is higher, while its impact on "non-financial performance" is relatively small; the impact of "high-cost project" of cleaner production on "non-financial performance" of corporate performance has higher values, but its impact on "financial performance" is smaller. From the indirect relationships between the four basic variables we are able to infer that there is a positive impact for the cleaner production on business performance, which confirmed the initial assumption of this article. In addition, statistics obtained from the survey data, the top two factors blocking cleaner production are "cleaner production is often accompanied by increased business investment spending" and "the government's economic incentives or preferential tax policies for small or less intensity" .The use of structural equation modeling to do empirical analysis on cleaner production and corporate performance is a good try in this paper. We make cleaner production and corporate performance subdivided into two parts respectively to study their mutual relations, and ultimately get the impact of implementing cleaner production on business performance.