ABSTRACT
This research proposes a conceptual model and research proposition to investigate the relationships among the external institutional factors, internal resources and capability factors, environmental management system (EMS) implementation, environmental performance, and financial performance to explain the phenomenon of ISO 14000 (proxy of EMS) implementation of manufacturing firms. This conceptual model and research propositions build on institutional theory, resource-based view of the firm, and relevance literature of environmental management system implementation. The conceptual model and research proposition postulates that both the external institutional factors and internal resources and capabilities are positively related to environmental management system implementation. The implementation of EMS is hypothesized to be positively associated with both environmental and financial performance. Moreover, environmental performance is proposed to have a positive relationship with financial performance. This research describes theory and practice of ISO 14000 in order to, gain competitive advantage and firm performance. Moreover, this research suggests venues for future in environmental management system.
Keywords
Environmental Management System, Institutional Theory, Resource-Based View, Firm Performance