The Influence of Environmental Management Systems on Financial Performance: A Moderated-Mediation Analysis

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 “blac...

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Bibliographic Details
Authors: Feng, Taiwen (Author) ; Wang, Dan (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2016
In: Journal of business ethics
Year: 2016, Volume: 135, Issue: 2, Pages: 265-278
Further subjects:B Environmental management systems
B Moderating effect
B Financial Performance
B Mediating effect
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Description
Summary: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.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-014-2486-z