Enhancing performance: The moderating effect of environmental integration and environmental capabilities on the performance outcomes of pollution prevention

Over the last two decades there has been ongoing debate about the impact of environmental practices on operational performance. In recent years, studies have started to move beyond assessing the direct impact of environmental management on different dimensions of performance to consider factors that might moderate or mediate this relationship. This study considers the extent to which environmental integration and environmental capabilities moderate the relationship between pollution prevention and environmental performance outcomes. The mediating influence of environmental performance on the relationship between pollution prevention and cost and flexibility performance is also considered. Data were collected from a sample of UK food manufacturers and analysed using multiple regression analysis. The findings indicate the existence of some moderated and mediated relationships suggesting that there is more to improving performance than implementing environmental practices.

The effects of pollution prevention on performance

As pressure for companies to improve their environmental performance has intensified in recent years, research attention has shifted away from establishing a link between environmental practices and performance towards consideration of other factors that might facilitate performance improvements. This paper has two key purposes; firstly, to investigate whether internal support processes interact with pollution prevention by positively moderating the relationship between pollution prevention and environmental performance, and; secondly, to assess whether the relationship between pollution prevention and cost performance is mediated by environmental performance.

Design/methodology/approach
It uses a cross-sectional survey of 1,200 UK-based food processing firms to gather information on environmental practices and performance. Regression analysis was conducted on a sample of 149 responding firms to assess the hypothesised relationships.

Findings
Support was found for two of the four moderated relationships hypothesised namely, suggesting that internal support processes support the environmental performance of some pollution prevention practices. Strong support for a mediated relationship between pollution prevention, environmental performance and cost performance was provided by the results.

Originality/value
This study provides an original contribution to the literature on the performance outcomes of environmental practices by considering a number indirect relationships between environmental practices and performance. This has implications for the interpretation of the relationship between environmental practices and performance.