Assessing the influence of internal environmental management systems on green packaging management, green information systems and organisational performance

Abstract

The effective practice of green supply chain has been a focus of both practitioners and researchers for almost a decade, mostly focusing on greenhouse effects and implementing full green supply chain control systems. However, not much attention has been given to empirical relationships between internal environmental management systems, green packaging management, green information systems adoption and organisational performance. The chief objective of this study was to assess the internal environmental management factors of the plastic packaging manufacturing organisations in Gauteng province in South Africa, mainly focusing on the three major internal environmental factors, namely pollution prevention plans, total quality management and environmental audits. Secondly, the study aimed to determine the relationship between green packaging management, green information systems and organisational performance. A positivist approach was used as this study is quantitative. A total number of 250 questionnaires were distributed to managers and employees of the chosen plastic packaging organisations. Although 250 questionnaires were distributed to the chosen organisations, only 230 were deemed to be fit for capturing due to some errors on the other 20 questionnaires. For data analysis the Statistical Package for Social Sciences (SPSS 24) was used to generate frequency tables and graphs. Furthermore, structural equation modelling (SEM) was used to generate regression weights and standard regression weights. The factor loading was also generated using SEM as well as model fitness and path co-efficiency values. A detailed research approach was followed using a sample size of 230; the results of this study show that there is a positive significant relationship between internal environmental management systems, green packaging management and green information systems. Further, it was found that most organisations that adopt green management systems are more likely to perform better than those that do not. The study also discovered that the government policies that place emphasis on green practices, not only pressurise organisations, but also help them to be strategic. Most plastic packaging manufacturing organisations usually find it difficult to operate without polluting the environment, but this study discovered that if they control their internal environmental systems, it will be easy for these organisations to adopt environmental management systems and produce green products. Also, given the changing market environments, currently most consumers prefer green products and if organisations go green this might open up new markets for their new products and enhance performance. This study examined the importance of green packaging management from the perspective of both government policies and organisational policies. The results showed that some organisations are still struggling to align their internal environmental management process with the external environment; however, the market changes are enforcing that most plastic packaging organisations start aligning their internal management systems with external systems, as it gives them opportunities towards new products and new competitive strategies that will lead to better performance. An environmental management framework was developed in this study. The framework aims to help guide plastic manufacturers with their long- and short-term strategies. In line with non-linear relationships between variables, the study recommends the following to the plastic packaging organisations: to create pollution prevention policies and strategies to improve organisational performance by eliminating pollution and avoiding penalties from the government. Pollution prevention plans, total quality management and environmental audits were used as independent variables to measure organisational performance. In line with the linear relationship between the adoption of green packaging management and organisational performance, it is recommended to the plastic packaging organisations that enterprises facing slow-moving sales growth, profitability and general performance challenges, should use green technologies as a remedy for their problems.