Designing a Model for the Relationship among the Components of Environmental Management, Quality Management and Employee Productivity: A Case Study of Small and Medium-Sized Enterprises in Yazd Province

Subject Areas : Business Management

Ali  Saffari darberazi ¹ (Assistant Professor, Department of Industrial Engineering, Higher Education Complex of Bam, Bam, Iran)
Sobhan  Heidary ² (Holds Msc. in Industrial Management, Faculty of Management and Accounting, Yazd Science And Arts University, Yazd, Iran)
habib  zare ahmadabadi ³ (Associate Professor, Faculty of Economics, Management and Accounting Department, Yazd University, Yazd, Iran)
Amirabbas  Abouei Mehrizi ⁴ (Lecturer, Department of Industrial Engineering, Higher Education Complex of Bam, Bam, Iran)

Received: 2022-05-07 Accepted : 2022-08-23 Published : 2023-09-23

Keywords: Productivity, Quality Management, Interpretive Structural Modeling, Environmental Management, structural equation modeling,

Abstract :

Concerns related to environmental issues on the one hand and limited resources available for different organizations on the other hand make it mandatory to pay attention to productivity and quality management of products and services, especially among small and medium- sized enterprises. The purpose of this research was to explain the relationship among factors affecting employee productivity, quality management and environmental management. The statistical population of this research is managers, employees, and supervisors of small and medium-sized companies in Yazd province, which are active in 5 industrial branches (chemical-cellulose, food, clothing, textile, mineral, metal-electrical). The data collection instrument in this research was a questionnaire. Initially, using the questionnaire of the pair-wise comparisons of identified factors and presenting a conceptual model of the study through the interpretive structural modeling, the opinions of nine managers of small and medium-sized companies in Yazd province were sought. Then, in order to fit the obtained model, using the structural equation modeling approach and Smart PLS3 software, 400 questionnaires were distributed among the employees and supervisors of small and medium-sized enterprises in Yazd province through available sampling procedure, of which 265 questionnaires returned. The results of the analyses showed that the culture of cooperation, leadership and performance feedback has a positive significant effect on customer focus and training. Also, it was revealed that training and focusing on the customer has a positive significant effect on innovativeness, environmental policies and strategies, environmental investment, defined processes and organization and management support.

References:

Aboelmaged, M. G. (2018). Knowledge sharing through enterprise social network (ESN) systems: motivational drivers and their impact on employees’ productivity. Journal of Knowledge Management, 22(2), 362-383. doi:10.1108/JKM-05-2017-0188

Adel, A., Esmaeilpour, R., Mahdavi, A. (2019),   Investigating the Factors Affecting Green Productivity in Iranian Automotive Industries Using Gray Dimetallic Approach. Journal of Strategic Management in Industrial Systems, 47, 53-64. [In Persian]

Alizadeh, F., & Ahmadi, F. (2019). Computation of Environmental Management with Regards to the Relationship Between Quality Management and Firm Performance. Journal of Computational and Theoretical Nanoscience, 16(1), 168–176. do:10.1166/jctn.2019.7718.

Ammons, D. N. (2019). Productivity barriers in the public sector. In Public productivity handbook (pp. 147-173). CRC Press.

Arda, O. A., Bayraktar, E., & Tatoglu, E. (2019). How do integrated quality and environmental management practices affect firm performance? Mediating roles of quality performance and environmental proactivity. Business Strategy and the Environment, 28(1), 64-78. doi: 10.1002/bse.2190.

Asif, M. (2019). Exploring the role of core and infrastructure quality management practices in ambidexterity. Total Quality Management & Business Excellence, 30(9–10), 990–1004. doi:10.1080/14783363.2017.1344549.

Bahrami, V., Ostadi, B. (2017), Investigating the relationship between productivity factors and performance of organizations by considering environmental indicators based on ISO 14001 standard. Journal of Engineering and Quality Management, 2, 140-158. 20.1001.1.23221305. 1396.7.2.6.3 [In Persian].

Barani, M., Talebpour, M., Keshtidar, M. (2021), Structural model design The role of total quality management in the productivity of sports organizations, 22, 12-23. 10.22084/SMMS.2021.23975.2835. [In Persian]

Barclay, D., Higgins, C., & Thompson, R. (1995). The partial least squares (PLS) approach to casual modeling: personal computer adoption ans use as an Illustration, 2, 285-309.

Chaudhry, N. I., Asad, H., & Hussain, R. I. (2020). Environmental innovation and financial performance: Mediating role of environmental management accounting and firm’s environmental strategy. Pakistan Journal of Commerce and Social Sciences (PJCSS), 14(3), 715–737. http://hdl.handle.net/10419/224961

Cheung, S. O., Wong, P. S. P., & Lam, A. L. (2012). An investigation of the relationship between organizational culture and the performance of construction organizations. Journal of Business Economics and Management, 13(4), 688–704. doi:10.3846/16111699.2011.620157.

Clay-Williams, R., Taylor, N., Ting, H. P., Arnolda, G., Winata, T., & Braithwaite, J. (2020). Do quality management systems influence clinical safety culture and leadership? A study in 32 Australian hospitals. International Journal for Quality in Health Care, 32(Supplement_1), 60–66.doi:10.1093/intqhc/mzz107.

Cobbinah, J. E., & Agyemang, S. (2020). Quality Management and Academic Leadership. In Quality Management Principles and Policies in Higher Education (pp. 101–120). IGI Global. 10.4018/978-1-7998-1017-9.ch006.

Dash, G., & Paul, J. (2021). CB-SEM vs PLS-SEM methods for research in social sciences and technology forecasting. Technological Forecasting and Social Change, 173, 121092. doi:10.1016/j.techfore.2021.121092.

Davari, A., Rezazadeh, A. Structural equation modeling with PLS software, Tehran:University Jihad Publications,2016,Third edition,1-240.[In Persian]

Delis, M. D., Molyneux, P., & Pasiouras, F. (2011). Regulations and productivity growth in banking: Evidence from transition economies. Journal of Money, Credit and Banking, 43(4), 735-764. doi:10.1111/j.1538-4616.2011.00393.x.

Dunlap, D., McDonough III, E. F., Mudambi, R., & Swift, T. (2016). Making up is hard to do: Knowledge acquisition strategies and the nature of new product innovation. Journal of Product Innovation Management, 33(4), 472–491. doi:10.1111/jpim.12298.

Dwyer, R., Lamond, D., Haden, S. S. P., Oyler, J. D., & Humphreys, J. H. (2009). Historical, practical, and theoretical perspectives on green management. Management Decision,47(7),1041-1055. doi:10.1108/ 00251740910978287.

Eisenberger, R., & Stinglhamber, F. (2011). Perceived organizational support: Fostering enthusiastic and productive employees. American Psychological Association, 1-304.

Feng, T., Cai, D., Wang, D., & Zhang, X. (2016). Environmental management systems and financial performance: The joint effect of switching cost and competitive intensity. Journal of Cleaner Production, 113, 781–791. doi:10.1016/j.jclepro.2015.11.038.

Fonseca, L. (2015). From Quality Gurus and TQM to ISO 9001: 2015: a review of several quality paths. International Journal for Quality Research (IJQR), 9(1), 167–180. http://hdl.handle.net/10400.22/5740.

Fonseca, L. (2015). Relationship between ISO 9001 certification maturity and EFQM business excellence model results. Quality Innovation Prosperity, 19, 85-102. 10.12776/QIP.V19I1.556.

Grilo, L. M., Grilo, H. L., & Martire, E. (2018). SEM using PLS approach to assess workers’ burnout state. AIP Conference Proceedings, AIP Publishing LLC, 2040(1),. doi:10.1063/1.5079172.

Guzmán, B. V. R., & Domínguez, O. F. C. (2022). Benefits on productivity indicators after quality management implementation: evidence in the dairy industry. International Journal of Productivity and Performance Management, 1-43. doi:10.1108/IJPPM-04-2021-0219.

Halkos, G., & Bousinakis, D. (2010). The effect of stress and satisfaction on productivity. International Journal of Productivity and Performance Management, 59(5), 415–431. doi:10.1108/17410401011052869.

Hamdoun, M., Jabbour, C. J. C., & Othman, H. Ben. (2018). Knowledge transfer and organizational innovation: Impacts of quality and environmental management. Journal of Cleaner Production, 193, 759–770. doi:10.1016/j.jclepro.2018.05.031.

Hasan, I., Kobeissi, N., Liu, L., & Wang, H. (2018). Corporate social responsibility and firm financial performance: The mediating role of productivity. Journal of Business Ethics, 149(3), 671–688. doi:10.1007/s10551-016-3066-1.

Hoboubi, N., Choobineh, A., Ghanavati, F. K., Keshavarzi, S., & Hosseini, A. A. (2017). The impact of job stress and job satisfaction on workforce productivity in an Iranian petrochemical industry. Safety and Health at Work, 8(1), 67–71. doi:10.1016/j.shaw.2016.07.002.

Hussain, A. (2020). Workplace Conflicts and its Effect on Employee Productivity: A Mediating Role of Workplace Politics. International Journal of Psychosocial Rehabilitation, 24(3), 2774-2783. 10.37200/IJPR/V24I3/PR2020313.

Irawan, D. A., & Sari, P. (2021). Employee productivity: The effect of flexible work arrangement, indoor air quality, location and amenities at one of multinational logistics providers in Indonesia. IOP Conference Series: Earth and Environmental Science, IOP Publishing, 729(1), 1-11. 10.1088/1755-1315/729/1/012126.

Jabbour, C. J. C., Jabbour, A. B. L., Teixeira, A. A., & Freitas, W. R. S. (2012). Environmental development in Brazilian companies: The role of human resource management. Environmental Development, 3, 137–147. doi:10.1016/j.envdev.2012.05.004.

Kharub, M., & Sharma, R. (2020). An integrated structural model of QMPs, QMS and firm’s performance for competitive positioning in MSMEs. Total Quality Management & Business Excellence, 31(3–4), 312–341. doi:10.1080/14783363.2018.1427500.

Khwaja, M. G., Mahmood, S., & Jusoh, A. (2020). The impacts of quality management on customer focus in the beverages industry. Proceedings on Engineering Sciences, 2(1), 81–92. doi:10.24874/PES02.01.009.

Lannelongue, G., Gonzalez-Benito, J., & Quiroz, I. (2017). Environmental management and labour productivity: The moderating role of capital intensity. Journal of Environmental Management, 190, 158–169. doi:10.1016/j.jenvman.2016.11.051.

Law, L., & Fong, N. (2020). Applying partial least squares structural equation modeling (PLS-SEM) in an investigation of undergraduate students’ learning transfer of academic English. Journal of English for Academic Purposes, 46, 100884. doi:10.1016/j.jeap.2020.100884.

Levine, D. I., & Toffel, M. W. (2010). Quality management and job quality: How the ISO 9001 standard for quality management systems affects employees and employers. Management Science, 56(6), 978–996. doi:10.1287/mnsc.1100.1159.

Lo, C. K. Y., Yeung, A. C. L., & Cheng, T. C. E. (2012). The impact of environmental management systems on financial performance in fashion and textiles industries. International Journal of Production Economics, 135(2), 561–567. doi:10.1016/j.ijpe.2011.05.010.

Lu, P., Cai, X., Wei, Z., Song, Y., & Wu, J. (2019). Quality management practices and inter-organizational project performance: Moderating effect of governance mechanisms. International Journal of Project Management, 37(6), 855–869. doi:10.1016/j.ijproman.2019.05.005.

Ma, L., & Ye, R. (2019). Does daily commuting behavior matter to employee productivity? Journal of Transport Geography, 76, 130–141. doi:10.1016/j.jtrangeo.2019.03.008.

Ma, Y., Zhang, Q., & Yin, H. (2020). Environmental management and labor productivity: The moderating role of quality management. Journal of Environmental Management, 255, 1-7. doi:10.1016/j.jenvman. 2019.109795.

Mabrouk, N. (2020). Interpretive structural modeling of critical factors for buyer-supplier partnerships in supply chain management. Uncertain Supply Chain Management, 8(3), 613–626. 10.5267/j.uscm.2020.2.002.

Mahmud, M., Soetanto, D., & Jack, S. (2020). Environmental management and product innovation: The moderating role of the dynamic capability of small manufacturing firms. Journal of Cleaner Production, 264, 1-13. doi:10.1016/j.jclepro.2020.121633.

Massoudi, A. H., & Hamdi, S. S. A. (2017). The Consequence of work environment on Employees Productivity. IOSR Journal of Business and Management, 19(01), 35–42. 10.9790/487X-1901033542.

Mehdipoor, E. (2020), The Effectiveness of Organizational Culture and Job stress on Personnel Productivity of university. Journal of New Approaches in Educational Adminstration, 45, 305-318. 20.1001.1.20086369. 1399.11.45.13.0. [In Persian].

Molina‐Azorín, J. F., Tarí, J. J., Claver‐Cortés, E., & López‐Gamero, M. D. (2009). Quality management, environmental management and firm performance: a review of empirical studies and issues of integration. International Journal of Management Reviews, 11(2), 197–222. doi:10.1111/j.1468-2370.2008.00238.x.

Mohaghar, A., Moein Najafabadi, F., Bayazi Tehrabnd, A. (2010), Examining the Effects of Quality Management System (QMS) on Organizational Performance. Journal of Management Research in Iran, 4, 186-204. [In Persian]

Mohammadi, S. (2020). Organizational culture and its impact on organizational productivity. International Journal of Human Capital in Urban Management (IJHCUM), 5(3), 267–276. doi:10.22034/IJHCUM.2020.03.08.

Morovati Sharifabadi, A., Namakshenas-Jahromi, M.(2014), dentifying Effective Factors in Successful Implementation of Environmental Management System in Tile and Ceramic Industry in Yazd Province. Journal of Industrial Management Perspective, 3, 9-32. [In Persian]

Pambreni, Y., Khatibi, A., Azam, S., & Tham, J. (2019). The influence of total quality management toward organization performance. Management Science Letters, 9(9), 1397–1406. 10.5267/j.msl.2019.5.011.

Peng, X., Prybutok, V., & Xie, H. (2020). Integration of supply chain management and quality management within a quality focused organizational framework. International Journal of Production Research, 58(2), 448–466. doi:10.1080/00207543.2019.1593548.

Pertusa-Ortega, E. M., Tarí, J. J., Pereira-Moliner, J., Molina-Azorín, J. F., & López-Gamero, M. D. (2021). Developing ambidexterity through quality management and their effects on performance. International Journal of Hospitality Management, 92, 1-11. doi:10.1016/j.ijhm.2020.102720.

Pereira-Moliner, J., Claver-Cortés, E., Molina-Azorín, J. F., & Tarí, J. J. (2012). Quality management, environmental management and firm performance: direct and mediating effects in the hotel industry. Journal of Cleaner Production, 37, 82-92. doi:10.1016/j.jclepro.2012.06.010.

Ramayah, T., Cheah, J., Chuah, F., Ting, H., & Memon, M. A. (2018). Partial least squares structural equation modeling (PLS-SEM) using smartPLS 3.0. In An Updated Guide and Practical Guide to Statistical Analysis. Pearson, 1-149.

Rezaei Zivlaei, M., zandhesami, H. (2020),  The Impact of Quality Management (Soft and Hard Aspect) on Innovation Performance by Mediating Role of Technological Innovation Capability and Proactive Behaviour (The Case: Knowledge-Base Firms). Journal of Industrial Management Studies, 59, 219-262. .[In Persian].doi:10.22054/jims.2021.48758.2422

Saffar, N., & Obeidat, A. (2020). The effect of total quality management practices on employee performance: The moderating role of knowledge sharing. Management Science Letters, 10(1), 77–90. 10.5267/j.msl.2019.8.014.

Sal, A., & Raja, M. (2016). The impact of training and development on employees performance and productivity. International Journal of Management Sciences and Business Research, 5(7), 1-35. https://ssrn.com/abstract=2849769.

Singh, S. K., Chen, J., Del Giudice, M., & El-Kassar, A.-N. (2019). Environmental ethics, environmental performance, and competitive advantage: role of environmental training. Technological Forecasting and Social Change, 146, 203–211. doi:10.1016/j.techfore.2019.05.032.

Song, H., Tucker, A. L., Murrell, K. L., & Vinson, D. R. (2015). Public relative performance feedback in complex service systems: Improving productivity through the adoption of best practices. Harvard Business School Boston, MA, 1-47.

Tung, A., Baird, K., & Schoch, H. (2014). The relationship between organisational factors and the effectiveness of environmental management. Journal of Environmental Management, 144, 186–196. doi:10.1016/j.jenvman.2014.05.025.

Uddin, M. J., Luva, R. H., & Hossian, S. M. M. (2013). Impact of organizational culture on employee performance and productivity: A case study of telecommunication sector in Bangladesh. International Journal of Business and Management, 8(2). 10.5539/ijbm.v8n2p63.

Ugoani, J. (2018). Exploring the relationship between ethics and corporate social responsibility and productivity in Nigeria extractive industry. American Journal of Business and Society, 3(2), 28–37. https://ssrn.com/abstract=3311488.

Villalba, L., & Useche, E. (2021). Methodological approach for the construction of environmental management indicators in universities. Cleaner Environmental Systems, 2(1), 1-12. doi:10.1016/j.cesys.2021.100016.

Wagner, M. (2011). Corporate performance implications of extended stakeholder management: New insights on mediation and moderation effects. Ecological Economics, 70(5), 942-950. doi:10.1016/j.ecolecon. 2010.12.010.

Wiengarten, F., Humphreys, P., Onofrei, G., & Fynes, B. (2017). The adoption of multiple certification standards: perceived performance implications of quality, environmental and health & safety certifications. Production Planning & Control, 28(2), 131–141. doi:10.1080/09537287.2016.1239847.

Wong, P. S. P., & Zapantis, J. (2013). Driving carbon reduction strategies adoption in the Australian construction sector–The moderating role of organizational culture. Building and Environment, 66, 120–130.

doi: 10:1016/j.buildenv.2013.04.022.

Wu, S., Li, B., Nie, Q., & Chen, C. (2017). Government expenditure, corruption and total factor productivity. Journal of cleaner production, 168, 279-289. doi:10.1016/j.jclepro.2017.09.043.

Xu, L., Peng, X., Pavur, R., & Prybutok, V. (2020). Quality management theory development via meta-analysis. International Journal of Production Economics, 229, 1-16. doi:10.1016/j.ijpe.2020.107759.

Yadav, A., & Sagar, M. (2021). Modified total interpretive structural modeling of marketing flexibility factors for Indian telecommunications service providers. Global Journal of Flexible Systems Management, 22(4), 307–330. doi:10.1007/s40171-021-00278-6.

Yudhy, Y. (2020). The Influence of Organization Culture and Work Motivation on Employee Productivity of Bank BJB Rancaekek Branch. International Journal of Business, Economics, and Social Development, 1(4), 202–211. doi:10.46336/ijbesd.v1i4.98.

Zhang, Q., & Ma, Y. (2021). The impact of environmental management on firm economic performance: The mediating effect of green innovation and the moderating effect of environmental leadership. Journal of Cleaner Production, 292(4). doi:10.1016/j.jclepro.2021.126057.

Zhao, L., & Chen, L. (2022). Research on the impact of government environmental information disclosure on green total factor productivity: Empirical experience from Chinese province. International Journal of Environmental Research and Public Health, 19(2), 729. doi:10.3390/ ijerph19020729.