Implementation of eco-control system by Indonesian manufacturing firms: Understanding the mediating role of organizational culture
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Author(s)Muhammad Try DharsanaLink to ORCID Index: https://orcid.org/0009-0003-1947-8274
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Andi Iqra Pradipta NatsirLink to ORCID Index: https://orcid.org/0009-0008-8539-0795
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Fakhrul Indra HermansyahLink to ORCID Index: https://orcid.org/0009-0000-6246-2954
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Khaerunnisa Nur Fatimah SyahnurLink to ORCID Index: https://orcid.org/0000-0001-7999-5917
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DOIhttp://dx.doi.org/10.21511/ee.15(2).2024.02
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Article InfoVolume 15 2024, Issue #2, pp. 12-21
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Creative Commons Attribution 4.0 International License
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.
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- Keywords
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JEL Classification (Paper profile tab)Q56, D81, M14
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References46
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Tables5
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Figures1
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- Figure 1. PLS-SEM analysis
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- Table 1. Respondents’ information
- Table 2. Descriptive statistics
- Table 3. Measurement model results
- Table 4. Model fit indices
- Table 5. Path coefficients and p-values
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