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Journal of Business Ethics

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26-11-2014

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

Authors: Taiwen Feng, Dan Wang

Published in: Journal of Business Ethics | Issue 2/2016

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Abstract

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.

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Case adapted from Cranwell Collision Repair, VIC, Australia.

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Title: The Influence of Environmental Management Systems on Financial Performance: A Moderated-Mediation Analysis
Authors: Taiwen Feng
Dan Wang
Publication date: 26-11-2014
Publisher: Springer Netherlands
Published in: Journal of Business Ethics / Issue 2/2016
Print ISSN: 0167-4544
Electronic ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-014-2486-z

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