Linking Manufacturing Firms with Environment: Role of Green Manufacturing and Environmental Management on Firm's Environmental Performance with Moderating Effect of External Environmental Regulations

Abstract

Abstract Purpose: The relationship between manufacturing firms and the environment became critical in contemporary business research and sustainability efforts. This study explored the complex interconnections and relationships among various factors, specifically focusing on manufacturing firms. It sought to understand how these firms' environmental performance was influenced by a combination of environmental management practices they adopted and the regulatory environment they operated in. Design: Data were collected through a structured questionnaire from employees working in manufacturing firms in Pakistan. Random sampling was used to select the participants. The hypotheses were tested using partial least squares (PLS) analysis. Findings: The findings of this study had significant implications for both manufacturing firms and policymakers. They provided insights into the strategies that manufacturing companies could adopt to enhance their environmental performance through green manufacturing practices and proactive environmental management. Furthermore, the research shed light on the role of external environmental regulations in moderating these processes. Practical Implications: The practical implications offered valuable insights and guidance for manufacturing companies seeking to improve their environmental responsibility and performance. Additionally, policymakers gained insights into how regulatory frameworks could be designed or modified to better support sustainability efforts within the manufacturing sector. Originality or Value: It emphasized the novelty and significance of the research in offering a comprehensive understanding of how manufacturing firms could navigate the complex landscape of environmental responsibility, compliance with regulations, and the simultaneous enhancement of their environmental performance. In essence, it underscored the study's role in advancing knowledge and practices related to sustainability in manufacturing.