Firms Decisions to Certify ISO14001 EMS and their Financial Performance – An Empirical Study of Taiwan

• Main Authors: Tzu-Yar Liu, 劉子衙
• Other Authors: Po-Young Chu
• Format: Others
• Language: en_US
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/36963419502810013246

博士 === 國立交通大學 === 管理科學系所 === 95 === Rare empirical studies have analyzed the responses of Taiwanese manufacturing firms to ISO 14001 despite firm responses to environmental issues being an important aspect of environmental management. This study empirically examines the determinants of firms’ environmental self-governance. Export-oriented Taiwanese firms, which face supply chain pressure from multinational firms and environmental concerns from foreign consumers, are found to be more likely than domestic-focused firms to adopt ISO 14001. This study also finds that several firm attributes are decisive for firm adoption of ISO 14001. However, this study does not find a significant impact of local governors’ political party affiliation on firms’ decisions on ISO 14001 certifications. Since the institutional forces such as greening supply chain pressures have become the major driver of the moves of Taiwanese firms towards more environmentally responsible operations, the estimation results demonstrate that Taiwanese firms regard the ISO14001 standard as an acceptable means of seeking legitimacy, establishing trust and long-term relationships with a wide range of stakeholders, and deflecting the scrutiny and interest of watchdog agencies and other interested parties worldwide; thus, no significant correlation exists between environmental and financial performance.