This study reflects upon environmental performance constituted by small and medium-sized enterprises. In this respect, ISO 14001 precisely defines environmental strategies. Environmental management systems (EMS) are well integrated into large firms due to sufficient funds and time…
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SMEs are regarded as vendors to large firms, and they subsequently lack funds to implement EMS. Environmental performance is a major area of concern for organizational managers, as well as for the public who demand green products. SMEs are pressurized to implement environmental practices in order to gain a competitive advantage in the marketplace. On the contrary, a good environmental image is already maintained by the majority of SMEs through technical efficiency. Hence this aspect would be critically analyzed in this particular study. Market pressures are consistently demanding for achieving a balance between profitability and eco-efficiency. In an intensely competitive market segment, a business organization can survive by increasing its market share and upgrading its environmental image. There are distinct differences between environmental management activities undertaken by larger organizations in comparison to small firms. It can be stated that third-party intervention would enhance benefits associated with ISO 14001 implementation in SMEs. Supply chain pressure is one of the major challenges faced by SMEs. Financial problems are still considered to be an obstacle in the context of implementing environmental practices in SMEs. Environmental management activity varies across organizations due to management structure and firm size. A small percentage of SMEs will adopt environmental standards if they are pressurized by customers. This is primarily because of the cost factor linked with EMS implementation. The technical ability and resources play a vital role while integrating environmental solutions. ISO 14001 is beneficial for all SMEs if it is exhibited appropriately, along with support obtained from a third party.
The basic EMS standard is based on a known model which is the Plan-do-check-act model. A proper learning network motivates organizational members to develop environmental practices. EMS standards can be beneficial for an SME only when employees have a desirable knowledge of environmental sustainability.
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