Using structural equation modeling to test environmental performance in small and medium-sized manufacturers: can SEM help SMEs? |
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| Institution: | 1. Environmental Health and Safety, Goodrich Corporation, USA;2. Engineering Professional Development, University of Wisconsin, 432 North Lake St, 715 Extension Building, Madison, WI, USA;1. Department of International Trade, Fatih University, Buyukcekmece, Istanbul, Turkey;2. Department of International Trade and Marketing, Gediz University, Izmir, Turkey;3. Department of Marketing and Supply Chain Management, University of Memphis, USA;1. ICUBE UMR CNRS 7357, University of Strasbourg, UFR Physics and Engineering, 24 Bld de la Victoire, 67084 Strasbourg Cedex, France;2. INSA Strasbourg, 24 Bld de la Victoire, 67084 Strasbourg Cedex, France;1. Fatih University, Department of International Trade, ?stanbul 34500, Turkey;2. Fatih University, Department of Management, Büyükçekmece, ?stanbul 34500, Turkey;3. Gediz University, Department of Logistics Management, ?zmir, Turkey;1. Aston University, Birmingham, B4 7ET, United Kingdom;2. Department of Rural Development, Democritus University of Thrace, Greece;3. Coventry University Priory Street, Coventry, CV1 5FB, United Kingdom;4. Department of Applied Informatics, University of Macedonia, 156 Egnatia str., 54006, Thessaloniki, Greece;5. Department of Mechanical Engineering, Jadavpur University, Kolkata, India;1. Department of Marketing, College of Business Administration, University of South Florida, Tampa, FL, 33813, United States;2. Center for Engineering Operations Management, Department of Technology and Innovation, University of Southern Denmark, DK-5230, Denmark, Odense M, Denmark;3. Department of Quantitative Methods, School of Business, King Faisal University, Saudi Arabia;4. Department of Industrial Engineering, Mazandaran University of Science and Technology, Babol, Iran |
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| Abstract: | Small and medium-sized enterprises (SMEs), defined as manufacturers employing 500 or fewer people, represent an estimated 70–98% of the manufacturing population globally and together have the potential to significantly impact the environment. Many of these small manufacturers throughout the world are not in compliance with environmental regulations, and even fewer see the need to focus on pollution prevention, implement environmental management systems, or to use life-cycle management or other proactive environmental management practices. A validated environmental performance model for SMEs holds the promise of providing a roadmap to more productive environmental results. This paper discusses structural equation modeling as a useful methodology to validate environmental performance models.The paper shares some insights from the use of structural equation modeling, which was used to evaluate the development of an environmental performance model for SMEs. The model was based on the Malcolm Baldrige Criteria. We review SEM methodology and share results from a population of SMEs in the plastics manufacturing sector. Fit statistics confirmed the overall model fit, but not all of the paths in the model were statistically significant. An assessment of the non-significant paths (from leadership and from the system components of the model to environmental results) led the authors to conclude that an improved definition of environmental results is critical. Education of SMEs on the benefits of improved environmental performance is also warranted. |
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