Development and validation of critical factors of environmental management

Purpose – The literature reveals that various authors have indicated various sets of requirements for corporate environmental management but no study has yet identified and statistically established the reliability and validity of a set of critical factors. It aims to develop and validate a set of critical factors of environmental management that could be used by the managers in assessing and improving their own environmental management practices. Design/methodology/approach – Using a thorough synthesis of the environmental management literature the authors identified a number of critical factors. Performance measures for each of these factors were developed through literature review and interviews with environmental managers. A survey methodology was used. A pre‐tested questionnaire was mailed to the managing directors or the chief executive officers of 848 electronic and chemical manufacturing companies in Singapore and 186 completed responses were received. Using the data collected, the identified critical factors were subjected to appropriate statistical tests to establish reliability and validity. Findings – Through reliability and validity analyses seven critical factors – top management commitment to environmental management, total involvement of employees, training, green product/process design, supplier management, measurement, and information management – were established. Research limitations/implications – The study covered only two industries in Singapore but for the purpose of wider generalisability similar studies need to be conducted in other industries and in other parts of the world. Practical implications – The validated instrument reported here could be used by managers to audit their environmental management practices. Such an audit may help management to prioritise its environmental management efforts. This instrument could also be used by the organizations to assess the level of environmental management practices of their respective suppliers. Originality/value – This paper fills the gap in the literature on identification, establishment and validation of critical factors of environmental management.