Implementation of eco-control system by Indonesian manufacturing firms: Understanding the mediating role of organizational culture
Implementing eco-control is a strategic way for companies to prevent environmental damage. This paper aims to analyze the effect of perceived environmental uncertainty and stakeholder pressure on system implementation through environmentally oriented organizational culture as a mediating variable. T...
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| Language: | English |
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LLC "CPC "Business Perspectives"
2024-07-01
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| Series: | Environmental Economics |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20364/EE_2024_02_Dharsana.pdf |
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| author | Muhammad Try Dharsana Andi Iqra Pradipta Natsir Fakhrul Indra Hermansyah Khaerunnisa Nur Fatimah Syahnur |
| author_facet | Muhammad Try Dharsana Andi Iqra Pradipta Natsir Fakhrul Indra Hermansyah Khaerunnisa Nur Fatimah Syahnur |
| author_sort | Muhammad Try Dharsana |
| collection | DOAJ |
| description | Implementing eco-control is a strategic way for companies to prevent environmental damage. This paper aims to analyze the effect of perceived environmental uncertainty and stakeholder pressure on system implementation through environmentally oriented organizational culture as a mediating variable. This study utilizes the PLS-SEM model using a sample of 104 manufacturing companies in Indonesia; 197 respondents from those companies completed the survey. All variables used in the research model are significant for a formative measurement model, and an internal model applied met all criteria. This study confirms a negative relationship between perceptions of environmental uncertainty and environmentally oriented organizational culture (β = 0.174, p < 0.01). The opposite effect is shown by the relationship between stakeholder pressure and organizational culture (β = 0.379, p < 0.01), and the positive effect of organizational culture on the implementation of eco-control in companies is significant (β = 0.650, p < 0.01). In addition, organizational culture partially mediates the relationship between perceptions of environmental uncertainty and the implementation of the eco-control system (β = 0.317, p < 0.05) and between stakeholder pressure and the implementation of this system (β = 0.401, p < 0.05). When companies through managers face uncertainty from the ecological environment and stakeholder pressure, they should utilize an eco-control system, which can succeed in profit goals and environmental responsibility. |
| format | Article |
| id | doaj-art-ed3e67e103d94ce5ba08c219805fe7bd |
| institution | Kabale University |
| issn | 1998-6041 1998-605X |
| language | English |
| publishDate | 2024-07-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Environmental Economics |
| spelling | doaj-art-ed3e67e103d94ce5ba08c219805fe7bd2025-01-20T12:24:25ZengLLC "CPC "Business Perspectives"Environmental Economics1998-60411998-605X2024-07-01152122110.21511/ee.15(2).2024.0220364Implementation of eco-control system by Indonesian manufacturing firms: Understanding the mediating role of organizational cultureMuhammad Try Dharsana0https://orcid.org/0009-0003-1947-8274Andi Iqra Pradipta Natsir1https://orcid.org/0009-0008-8539-0795Fakhrul Indra Hermansyah2https://orcid.org/0009-0000-6246-2954Khaerunnisa Nur Fatimah Syahnur3https://orcid.org/0000-0001-7999-5917Master of Science (M.Sc.), Junior Lecturer, Department of Accounting, Faculty of Economics and Business, Hasanuddin University, IndonesiaMaster of Science (M.Sc.), Junior Lecturer, Department of Accounting, Faculty of Economics and Business, Hasanuddin University, IndonesiaMaster of Science (M.Sc.), Junior Lecturer, Department of Economics, Faculty of Economics and Business, Hasanuddin University, IndonesiaM.Sc., Lecturer, Retail Management Program, Kalla Institute of Technology and Business, IndonesiaImplementing eco-control is a strategic way for companies to prevent environmental damage. This paper aims to analyze the effect of perceived environmental uncertainty and stakeholder pressure on system implementation through environmentally oriented organizational culture as a mediating variable. This study utilizes the PLS-SEM model using a sample of 104 manufacturing companies in Indonesia; 197 respondents from those companies completed the survey. All variables used in the research model are significant for a formative measurement model, and an internal model applied met all criteria. This study confirms a negative relationship between perceptions of environmental uncertainty and environmentally oriented organizational culture (β = 0.174, p < 0.01). The opposite effect is shown by the relationship between stakeholder pressure and organizational culture (β = 0.379, p < 0.01), and the positive effect of organizational culture on the implementation of eco-control in companies is significant (β = 0.650, p < 0.01). In addition, organizational culture partially mediates the relationship between perceptions of environmental uncertainty and the implementation of the eco-control system (β = 0.317, p < 0.05) and between stakeholder pressure and the implementation of this system (β = 0.401, p < 0.05). When companies through managers face uncertainty from the ecological environment and stakeholder pressure, they should utilize an eco-control system, which can succeed in profit goals and environmental responsibility.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20364/EE_2024_02_Dharsana.pdfeco-controlenvironmentally oriented organizational cultureperception of ecological environment uncertaintystakeholder pressure |
| spellingShingle | Muhammad Try Dharsana Andi Iqra Pradipta Natsir Fakhrul Indra Hermansyah Khaerunnisa Nur Fatimah Syahnur Implementation of eco-control system by Indonesian manufacturing firms: Understanding the mediating role of organizational culture Environmental Economics eco-control environmentally oriented organizational culture perception of ecological environment uncertainty stakeholder pressure |
| title | Implementation of eco-control system by Indonesian manufacturing firms: Understanding the mediating role of organizational culture |
| title_full | Implementation of eco-control system by Indonesian manufacturing firms: Understanding the mediating role of organizational culture |
| title_fullStr | Implementation of eco-control system by Indonesian manufacturing firms: Understanding the mediating role of organizational culture |
| title_full_unstemmed | Implementation of eco-control system by Indonesian manufacturing firms: Understanding the mediating role of organizational culture |
| title_short | Implementation of eco-control system by Indonesian manufacturing firms: Understanding the mediating role of organizational culture |
| title_sort | implementation of eco control system by indonesian manufacturing firms understanding the mediating role of organizational culture |
| topic | eco-control environmentally oriented organizational culture perception of ecological environment uncertainty stakeholder pressure |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20364/EE_2024_02_Dharsana.pdf |
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