Management Science Letters (Dec 2018)

Examining the effect of green management on firm efficiency: Evidence from Jordanian oil and gas industry

  • Adnan M. Rawashdeh

DOI
https://doi.org/10.5267/j.msl.2018.9.011
Journal volume & issue
Vol. 8, no. 12
pp. 1283 – 1290

Abstract

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Green management is fundamentally referred to the environmental practices and the implementation of the appropriate eco-friendly activities, which improve the level of people’s awareness about the environmental protection. Such green management practices have been investigated namely, redesigning of operation and production processes, innovation and R&D functions, use of technology to save energy and reduce waste, environmental awareness of stakeholders through seminars and training, investment in equipment and technology, and improvement in products or services towards improving firm efficiency in Oil and Gas industry in Jordan. The design of this study has a quantitative approach. Three hypotheses have been developed through literature review and tested using descriptive statistical analysis performed by SPSS. The number of population was 250 employees from different departments that include HR, environment, operation, maintenance, and marketing, a total of 208 completed questionnaires were analyzed as a final sample. The results show a moderate implementation of Green management practices, redesigning of operation and production processes indicated the strongest influence, while innovation and R&D functions indicated the weakest influence. Statistical positive association also was indicated between green management practices and firm efficiency. This study contributes to support the literature of Green management and environment protection that is little in developing countries like Jordan. And it urges firm management to develop effective green innovation culture to improve the implementation level of Green management which may in turn create a high level of environmental efficiency outcome in the medium and long run. Also, it’s very significant for firm management to invest more money in green innovation and R&D functions in order to improve the level of efficiency/ performance.

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