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Investigating the efficacy of isomorphic pressures on the adoption of green manufacturing practices and its influence on organizational legitimacy and financial performance

Innocent Senyo Kwasi Acquah (Department of Marketing and Supply Chain Management, University of Cape Coast, Cape Coast, Ghana)
Dacosta Essel (Transportation Engineering College, Dalian Maritime University, Dalian, China)
Charles Baah (Transportation Engineering College, Dalian Maritime University, Dalian, China)
Yaw Agyabeng-Mensah (Transportation Engineering College, Dalian Maritime University, Dalian, China)
Ebenezer Afum (Transportation Engineering College, Dalian Maritime University, Dalian, China)

Journal of Manufacturing Technology Management

ISSN: 1741-038X

Article publication date: 14 May 2021

Issue publication date: 12 October 2021

1559

Abstract

Purpose

The need to engage in manufacturing practices that promote environmental sustainability has shifted from being optional to mandatory. From the perspectives of institutional and stakeholder theories, this paper captures the efficacy of isomorphic pressures on the adoption of green procurement, green product and process innovations and their respective influence on organizational legitimacy and financial performance in the context of an emerging economy and from the perspective of manufacturing small-and medium-sized enterprises.

Design/methodology/approach

The study adopted a survey research design, a quantitative approach and partial least square structural equation modelling (PLS-SEM) technique in making data analysis and interpretations due to its suitability for predictive research models.

Findings

Analysis of the results highlighted the fact that the composite impact of coercive, mimetic and normative isomorphic pressures robustly influenced the adoption of green procurement, green product and process innovations. Simultaneously, green procurement, green product and process innovations significantly influenced organizational legitimacy. Green procurement and green product innovation also significantly influenced financial performance unlike green process innovation that had an insignificant yet positive impact on financial performance. Based on the results, theoretical and practical implications are explained for policy makers, managers, government authorities and owners.

Originality/value

The study is among the first to expose isomorphic pressures on the adoption of green manufacturing practices specifically, green procurement, green product and process innovations and their influence on organizational legitimacy and financial performance in the context of Ghana, an emerging economy and from the perspective of small-and medium-sized enterprises. As such, the study provides guidance to relevant industry authorities and stakeholders in further promoting green manufacturing practices that preserve the environment by producing safer consumer products through efficient green procurement, green product and process innovative practices.

Keywords

Citation

Acquah, I.S.K., Essel, D., Baah, C., Agyabeng-Mensah, Y. and Afum, E. (2021), "Investigating the efficacy of isomorphic pressures on the adoption of green manufacturing practices and its influence on organizational legitimacy and financial performance", Journal of Manufacturing Technology Management, Vol. 32 No. 7, pp. 1399-1420. https://doi.org/10.1108/JMTM-10-2020-0404

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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