Sustainable Environmental Management System Integration and Business Performance: A Balance Assessment Approach Using Fuzzy Logic

Abstract

Companies constantly thrive to enhance their performance in order to achieve their environmental, social, and economic goals. One way to achieve these goals is to integrate some effective management tools, such as an environmental management system (EMS), that can support sustainable development and value creation. Based on the literature, in this study some EMS integration dimensions were identified that can be used to assess its influence on business performance. The study was conducted on SMEs listed on the AeRO-Bucharest Stock Exchange that voluntary apply the ISO 14001 EMS, using a quantitative approach. To assess the EMS integration score, principal component analysis was used. Using logistic regression analysis, business performance probability (quantified by return on assets) was estimated for each company included in the final sample. Fuzzy logic was further used for modelling the influence of EMS integration on business performance probability. The research results showed that EMS integration has different effects on business performance probability, considering the influence of activity field and environmental management experience. This research assertion could be extended for all the listed Romanian companies or for major companies at the EU level.