The influence of environmental management systems on financial performance: A moderated-mediation analysis

Taiwen Feng, Dan Wang

Research output: Contribution to journalArticleResearchpeer-review

47 Citations (Scopus)

Abstract

This study utilizes hierarchical regression analysis to explore how environmental management systems (EMSs) influence financial performance through customer satisfaction and customer loyalty, and the moderating effects of switching cost. The originality of the present research is to unpack the “black box” through which a firm can profit from EMSs. The empirical results indicate that EMSs have positive and significant impacts on customer satisfaction, customer loyalty, and financial performance. In addition, switching cost negatively and significantly moderates the relationship between EMSs and customer satisfaction, but does not significantly moderates the relationship between EMSs and customer loyalty. The results also demonstrate that customer satisfaction and customer loyalty partially mediate the relationship between EMSs and financial performance. Our findings highlight that customer satisfaction, customer loyalty, and switching cost play important roles for a firm to profit from EMSs.
Original languageEnglish
Pages (from-to)265-278
Number of pages14
JournalJournal of Business Ethics
Volume135
Issue number2
DOIs
Publication statusPublished - 1 May 2016

Keywords

  • Environmental management systems
  • Financial performance
  • Mediating effect
  • Moderating effect

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