Exploring the ISO 14001 Environmental Management System (EMS) towards SMEs Organizational Performance: Case Study of Southern Malaysia Furniture Manufacturers

Environmental issues associated with industrial activities such as gas emissions and toxic chemicals waste caused the nature imbalance effects. Therefore, ISO14001 standard was introduced and employed globally. Previous studies related to ISO 14001 in Malaysia are focused at high technologies and construction sectors. Thus, this research aims to determine the correlation between ISO 14001 orientation factor and environmental management capability (EMC) of suppliers towards SMEs organizational performance. The surveys were distributed to various ISO 14001 certified furniture manufacturing companies registered under Federation of Malaysian Manufacturers in southern region of Malaysia. The data were collected among 70 respondents at the managerial and production level. Efficient production and EMC of suppliers’ factors are significantly correlated to organizational performance. Thus, companies are recommended to employed green supply chain practices and eco-efficiency production processes. This quantitative case study is important to SMEs in the specific area in order to provide knowledge on the impact of ISO14001 into production and operation.