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CHAPTER IV
RESEARCH METHODOLOGY
4.1 Introduction4.2 Problem Statement4.3 Scope of the study4.4 Research Objectives4.5 Proposed Research Model4.6 Research Hypotheses4.6.1 Hypothesis based on Dimensions of Environmental Concerns across Organizational Variables4.6.2 Hypothesis based on impact of different dimensions of environmental concerns4.7 Research Design4.8 Selection of Survey Method
4.8.1 Measurement Scale4.8.2 Question Content and Wording4.8.3 Response Format4.8.4 Sequence of Questions 4.8.5 Administration of Final Questionnaire
4.9 Questionnaire Development and Administration4.9.1 Specification of the Information Needed4.9.2 Structure and Content Validity of the Questionnaire
4.10 Reliability & Validity Analysis4.10.1 Reliability Analysis4.10.2 Exploratory Factor Analysis
4.10.3 KMO and Bartlett’s Test (Factor Analysis) for Testing the Validity of the Questionnaire4.11 Confirmatory Factor Analysis (CFA)4.12 Model Fit Assessment 4.13 Tools used for Data Analysis
4.13.1 Analysis of Variance4.13.2 Structural Equation Modeling (SEM)
4.14 Limitations of the Study
Chapter IV
RESEARCH METHODOLOGY
4.1 Introduction
This chapter highlights the problem statement, research objectives, research questions,
significance of the study, hypotheses formulation, research design, questionnaire design,
sampling methods, data collection and administration. In addition, this chapter delineates
the conceptual underpinnings based on which analysis has been carried out in the
subsequent chapter of the study. Finally, the limitations of the study relevant to this research
are detailed out.
4.2 Problem Statement
Although industrial activity is essential for a country’s socio-economic development, it
causes destruction to the natural environment in various forms of pollution and depletion of
natural resources. With the advancement in the standard of living of the populace, concerns
for a healthier environment grow at a rapid pace. Businesses need to develop and device
ways and means for the fulfillment of eco-friendly environment through changes at various
levels of manufacturing process. This poses a challenge for the business entities to
continually improve their operations so that the society and the environment can benefit and
lead a better life.
Due to globalization and development in the socio-economic conditions of the society,
demand for various goods has increased many folds. As a result, production of goods has
increased rapidly which has, in turn, led to production of waste and depletion of natural
resources to a large extent. At this point, an all-round effort for the conservation and
improvement of the environment is necessary so that the generations to come do not suffer
with the polluted and non-eco friendly environment.
4.3 Scope of the Study
The present study aims at studying the environmental issue and challenges in SMEs in
India. In this study the following topics have been focused upon:
• Environmental laws pertaining to India
• Problems faced by SMEs in incorporating the environmental laws
• Environmental pollution
• Air;
• Water;
• Noise; and
• Waste Management
With regard to Indian SMEs, this study primarily focuses on the following:
• Lock, Hardware & Allied
• Pottery/Ceramic
• Leather & Tannery
• Glass
For the present research work micro level industries have also been included in the ambit of
small and medium enterprises (MSME).
This research aims to focus on environmental issues and challenges in SMEs. This is
expected to ensure the productivity and welfare of the society contributing to sustainable
development. The research amalgamates operations with supply chain and environmental
management in order to balance a variety of corporate objectives such as resource
conservation, pollution prevention and competitiveness, etc. The functional perspective
brings together different functional fields like, Total Quality Management (TQM), Total
Quality Environmental Management (TQEM), Re-engineering, Waste management,
Reverse logistics, etc.
This research will be effective in developing optimal strategies that balance environmental
and economic costs. Further, it shall contribute to long-term betterment of industry and
society as a whole.
4.4 Research Objectives
The manufacturing sector in SMEs has been characterized by high consumption of natural
resources in one form or the other. It is also a potent source of waste generation, ecosystem
disruption and depletion of natural resources.
This study aims to focus on environmental concerns in the four different categories of
SMEs situated in the state of Uttar Pradesh (U.P) in India viz. Lock, hardware & allied,
Pottery/Ceramic, Leather & Tannery, and Glass. The study focuses on resource
conservation, pollution prevention (air, water, and noise), waste reduction (solid & liquid)
and total quality environmental management (TQEM) practices. Specifically, the study aims
• To identify environmental issues and challenges and the extent of implementation at
various levels.
• To identify the extent of implementation of environmental protection practices at various
levels of operation in select SMEs.
• To explore the differences, if any, with regard to implementation of environmental
protection procedures and techniques across select SMEs.
• To develop a conceptual model covering different aspects as regards different
environmental issues and challenges concerning selected SMEs and their impact and
benefits so derived.
• To ascertain the validity of the conceptual model interlinking various environmental
concerns with environmental performance and benefits derived.
• To ascertain the benefits derived as a result of implementation of environmental
protection procedures and techniques with regard to resource conservation,
competitiveness and economic performance.
4.5 Proposed Research Model
The proposed research model has been crystallized after thorough review of literature. The
review covered various aspects of business operations and helped identify seven latent
constructs. These constructs are viz. Issues, Challenges, Environmental Management
Practices (pollution related & others), Resource Conservation, Pollution Prevention,
Competitiveness and Economic Performance. The research model indicating the
relationship amongst these variables is presented as Exhibit 4.1
EXHIBIT 4.1: PROPOSED RESEARCH MODEL
ZZ
4.6 Research Hypotheses
Research hypotheses were formulated based on extensive literature survey/review and
discussions with professionals & experts. In all thirty-eight null hypotheses have been
framed and they are categorized into two sets. The first set comprises hypotheses relating
dimensions of environmental concerns (environmental issues, environmental challenges,
environmental management practices, resource conservation, pollution prevention,
competitiveness & economic performance) with organizational variables namely nature of
industry (Lock, hardware & allied; Pottery/Ceramic; Leather & Tannery; and Glass),
organization status (Micro scale; Small scale; or Medium scale), number of employees (<
25; 26 to 50; 51 to 100; > 100) and number of suppliers associated with (< 5; 6 to 10; 11 to
20; > 20). The second set comprises hypotheses ascertaining impact of different dimensions
of environmental concerns on each other.
Keeping in view the objectives of the study the following hypotheses were formulated:
ENVRN.
ISSUES
ENVRN. CHALLENGE
S
POLLUTION PREVENTION
RESOURCE CONSERVATIO
N
ECONOMIC PERFORMANCE
COMPETITIVENESS
ENVIRONMENTAL MANAGEMENT PRACTICES
Lean Manufacturing Improved Technology TQM Reengineering
Reverse Logistics Remanufacturing Finance/Cost
Waste Management Govt. Policies/Regul.
4.6.1 Hypothesis based on Dimensions of Environmental Concerns across
Organizational Variables
H01 There is no significant difference in the mean value of environmental issues with
respect to the nature of industry.
H02 There is no significant difference in the mean value of environmental issues with
respect to organizational status.
H03 There is no significant difference in the mean value of environmental issues with
respect to number of employees.
H04 There is no significant difference in the mean value of environmental issues with
respect to the number of suppliers associated with.
H05 There is no significant difference in the mean value of environmental challenges
with respect to the nature of industry.
H06 There is no significant difference in the mean value of environmental challenges
with respect to organizational status.
H07 There is no significant difference in the mean value of environmental challenges
with respect to number of employees.
H08 There is no significant difference in the mean value of environmental challenges
with respect to the number of suppliers associated with.
H09 There is no significant difference in the mean value of environmental management
practices with respect to the nature of industry.
H010 There is no significant difference in the mean value of environmental management
practices with respect to organizational status.
H011 There is no significant difference in the mean value of environmental management
practices with respect to number of employees.
H012 There is no significant difference in the mean value of environmental management
practices with respect to the number of suppliers associated with.
H013 There is no significant difference in the mean value of prevention of environmental
pollution with respect to the nature of industry.
H014 There is no significant difference in the mean value of prevention of environmental
pollution to organizational status.
H015 There is no significant difference in the mean value of prevention of environmental
pollution with respect to number of employees.
H016 There is no significant difference in the mean value of prevention of environmental
pollution with respect to number of suppliers associated with.
H017 There is no significant difference in the mean value of resource conservation with
respect to nature of industry.
H018 There is no significant difference in the mean value of resource conservation with
respect to organizational status.
H019 There is no significant difference in the mean value of resource conservation with
respect to number of employees.
H020 There is no significant difference in the mean value of resource conservation with
respect to number of suppliers associated with.
H021 There is no significant difference in the mean value of competitiveness with respect
to nature of industry.
H022 There is no significant difference in the mean value of competitiveness with respect
to organizational status.
H023 There is no significant difference in the mean value of competitiveness with respect
to number of employees.
H024 There is no significant difference in the mean value of competitiveness with respect
to number of suppliers associated with.
H025 There is no significant difference in the mean value of economic performance with
respect to nature of industry.
H026 There is no significant difference in the mean value of economic performance with
respect to organizational status.
H027 There is no significant difference in the mean value of economic performance with
respect to number of employees.
H028 There is no significant difference in the mean value of economic performance with
respect to number of suppliers associated with.
4.6.2 Hypothesis based on impact of different dimensions of environmental concerns
H029 There is no significant impact of environmental issues on environmental
management practices with regard to select SMEs.
H030 There is no significant impact of environmental challenges on environmental
management practices with regard to select SMEs.
H031 There is no significant impact of environmental management practices on resource
conservation with regard to select SMEs.
H032 There is no significant impact of environmental management practices on pollution
prevention with regard to select SMEs.
H033 There is no significant impact of resource conservation on competitiveness of select
SMEs.
H034 There is no significant impact of resource conservation on economic performance of
select SMEs.
H035 There is no significant impact of pollution prevention on competitiveness of select
SMEs.
H036 There is no significant impact of pollution prevention on economic performance of
select SMEs.
H037 There is no significant of competitiveness on economic performance of select SMEs.
H038 There is no significant impact of economic performance on competitiveness of
select SMEs.
4.7 Research Design
According to Yin (2003), the research design is the “logical sequence that connects the
empirical data to a study’s initial research questions and, ultimately, to its conclusions” The
research design comprises the blueprint for the collection, measurement and analysis of
data. The research design states both the structure of the research problem and the plan of
exploration used to obtain empirical evidence in relation to the problem.
For this research purpose a conclusive research design approach has been used. In the first
place, a descriptive research design approach is used, where a conceptual model is
developed, comprising of the broad dimensions of the study. In the second part, in order to
validate the cause-effect relationship among the different dimensions (variables) of the
research, a causal research design approach is used.
Surveys were carried out using a questionnaire as research tool to collect the data. It is an
established approach to obtain respondents’ opinion on a range of issues related to a
research problem.
4.8 Selection of Survey Method
The decision to choose a survey method may be based on a number of factors which include
sampling, type of population, question form, question content, response rate, costs and
duration of data collection (Aaker, Kumar and Dey, 2002). Owing to the nature of study it
was decided to personally administer the structured research instrument developed for the
study. Simple random sampling technique was employed to collect the data from the
executives or the entrepreneurs.
The main benefits of the method adopted are listed below:
• The questionnaire can be answered by circling the proper response format and with an
interviewer present, respondents could seek clarity on any question (Aaker et.al., 2002;
Boyd, Westfall and Stasch, 2003).
• The respondents are more motivated to respond, as they are not obliged to admit their
confession or ignorance to the interviewer (Hayes, 1998; Boyd et. al., 2003).
• The higher response rate can be assured since the questionnaire was collected
immediately once they are completed (Malhotra, 2007).
• This method offers highest degree of control over sample collection (Malhotra, 2007).
However, it can be very time consuming if a wide geographical region is involved. The
method allows researcher to ensure that the data covered is free from biasness and the
sample represents complete population. Though there are bound to be some biasness in the
selection of the sample, it can be eliminated to some extent by covering the larger
population in the overall sample.
A cover letter was used, having the introduction of the researcher, the objectives of the
research and the importance of the survey undertaken. A supervisor’s permission and
support letter was also attached to confirm that the researcher has come from an academic
institution.
4.8.1 Measurement Scale
To increase the response rate and facilitate respondents, the questionnaire included close-
ended questions. A five point Likert’s scale was used for this purpose. Two types of
measurement scales were used in this research: Nominal and Interval. Nominal scales were
used for identification purposes because they have no numeric value (Hayes, 1998). Interval
scale was used to measure the subjective characteristics of the respondents. This scale was
used due to its strength in arranging the objects in a specified order as well as being able to
measure the distance between the differences in response ratings (Malhotra, 2007).
4.8.2 Question Content and Wording
The questions were designed to be short, simple and comprehensive. Care was taken to
avoid ambiguous, vague, estimation based; generalization type, leading, double barreled and
presumptuous questions (Boyd et. al., 2003).
4.8.3 Response Format
Two types of response formats were chosen: Dichotomous close ended and labeled scales.
In order to obtain information pertaining to respondent’s demographics, a dichotomous
close-ended question format was used. In addition, so as to obtain respondent’s response
towards importance of environmental concerns, labeled scale response format was used.
Apart from the simplicity and in administration, it was easy to code for statistical analysis
(Burns & Bush, 2002; Luck & Rubin, 1987).
Labeled scale response format is appropriate in research as it allows the respondents to
respond to attitudinal questions in varying degrees, which describes the dimensions being
studied (Aaker et. al., 2002; Boyd et. al., 2003). In relation to the number of scale points,
there is no clear rule indicating an ideal number. However, many researchers acknowledge
that opinions can be captured best with 5 to 7 point scale (Aaker et.al., 2002; Malhotra,
2007). Keeping the same in mind a five point Likert’s scale was used for data collection in
this research.
4.8.4 Sequence of Questions
The questionnaire began with less complex and less sensitive questions and progressed to
opinion-sought questions. The questionnaire had two sections. Section A dealt with the
organization’s profile. Section B focused on environmental concerns viz. issues, challenges,
environmental management practices, pollution prevention, resource conservation,
competitiveness and economic performance.
4.8.5 Administration of Final Questionnaire
The sampling process included several steps: definition of population, establishment of the
sample frame, specification of sampling method, determination of sample size and selection
of the sample (Malhotra, 2007).
Step 1 Population: The target population of the study was defined as Private sector SMEs,
which included OEM and suppliers to the manufacturing SMEs in the state of Uttar Pradesh
in India.
Step 2 Sampling Frame: The sampling frame comprised of private sector SMEs in
Aligarh, Khurja, Kanpur & adjoining areas, Ferozabad and Purdilnagar in U.P in India.
Step 3 Sampling Method: The convenience and judgmental sampling processes were
adopted for this research. Based on the subset, an attempt has been made to represent the
entire population by the chosen sample (Hayes, 1998; Zikmund, 2000; Boyd et. al., 2003;
Levin & Rubin, 2006).
Step 4 Sample Size: The next step involved is determining the sample size for this study.
The required sample size depends on factors such as the proposed data analysis techniques,
financial support and access to sample frame (Malhotra, 2007). The data analysis techniques
employed in this research were done using SPSS 16.0 software and AMOS, which is very
sensitive to sample size and less stable when estimations are made, based on small sample
(Tabachnick & Fidell, 2001; Garson, 2008). Thus it was decided to target a total of around
250-300 respondents from different companies of the selected sector located in the state of
Uttar Pradesh in India.
Step 5 Final Sample: A total of 275 questionnaires were personally administered at
different companies of the selected sectors in the state of Uttar Pradesh in India. These
companies were carefully selected from the directories of private sector SMEs which also
included OEM and suppliers in Lock and allied, Leather & Tannery, Pottery/Ceramic and
Glass industries. This survey was conducted during 2011-12. A total of 35 questionnaires
were incomplete and were discarded. So, only 240 questionnaires were analyzed.
4.9 Questionnaire Development and Administration
Development of research instrument involves identification of constructs, method of survey
to be employed, questionnaire design, re-testing of questionnaire and administration of the
final questionnaire. The broad methodology adopted in developing the survey instrument in
the study is illustrated in Exhibit 4.2. The same is followed by a discussion on the steps
involved in the design.
Exhibit 4.2: Steps Involved in Questionnaire Design Process
(*Source: Adapted from Malhotra, N K, 2007; Kassim N M, 2001; Hamid, N R A, 2006)
Specify Information and Source
Selection of Survey Method
Develop Questionnaire
Measurement ScalesQuestion Content and WordingResponse FormatSequence of QuestionsPhysical Layout
Revision in Questionnaire
Finalization of Questionnaire
Questionnaire Distribution and Administration
PopulationSample FrameSample MethodSample SizeFinal Sample
Assessment, Refinement and Validation of Measurement Scales
4.9.1 Specification of the Information Needed
The objectives at the first stage were two folds; identifying the information required and
determining the source from where the information could be obtained. This stage begins
with identifying the information needed to meet the research objectives. For this purpose, a
conclusive study was carried out. The industries selected for the research purpose included
Lock, hardware & allied, Pottery/Ceramic, Leather & Tannery and Glass. The selected
SMEs are highly polluting in nature, polluting the environment in one-way or the other.
Lock, hardware & allied causes water, air and noise pollution. Leather and Tannery industry
causes water, air as well as noise pollution while Pottery/Ceramic industry causes water, air
and soil pollution. Glass industry causes air and noise pollution.
The questionnaire was developed after the review of available literature and in depth
interviews and discussions with the top and middle management of different companies of
the selected sector (lock hardware & allied, leather & tannery, pottery/ceramic and glass)
located in the state of Uttar Pradesh in India. From these interviews, feedback was obtained
on the variables so that they can be considered for inclusion in preliminary questionnaire.
The questionnaire so developed had the scientific basis of evolvement of the questions,
which could be considered reliable. The questionnaire was developed in English and
translated into national language Hindi, which is also the local language. Ramachandran
(1991) suggested that, if needed, the questionnaire should be translated into a local language
to avoid miscommunication and misinterpretation.
4.9.2 Structure and Content Validity of the Questionnaire
A number of measures are available to measure the reliability of the research instrument.
Measures of variables should have validity and reliability in order to draw valid inferences
from the research (Cronbach, 1971; Nunally, 1978). Reliability means ‘consistency’ or
‘trustworthiness’. Reliability deals with how consistently similar measures produce similar
results (Rosental & Rosnow, 1984). Reliability is the internal consistency of the
measurement, which is the degree of inter-correlations among the various items in the
instruments that constitute the scale (Nunally, 1978). Content validity primarily depends on
an appeal to the proprietary of the content and the way it is presented (Nunally, 1978). The
selection of measurement items in the questionnaire was based on review of available
literature and evaluation by executives and academicians, thus ensuring the content validity
of the questionnaire. The construct validity was tested through an exploratory factor
analysis. Factor Analysis is a means of describing groups of highly correlated variables by a
single underlying construct, or factor that is responsible for the observed correlations. Kim
and Mueller (1978), has suggested that only those items, which had a factor loading of more
than 0.4 are to be retained in the questionnaire.
4.10 Reliability & Validity Analysis
According to Leedy and Ormrod (2005), reliability and validity are essential characteristics
of research because they ensure the adequacy of research and the validity of conclusions.
The ability to repeat tests over time with the same degree of accuracy and precision is one
of the most important parts of research design and instrumentation. Reliability is the internal
consistency of the measurement, which is the degree of inter-correlations among the various
items in the instruments that constitute the scale (Nunally, 1978). Reliability means
‘repeatability’ or ‘consistency’. Reliability analysis helps in analyzing whether the same set
of items would educe the same responses if the same questions are re-administered to the
same respondents. Validity of a measurement is defined as the extent to which the
instrument measures what it is supposed to measure. Reliability is defined as the extent to
which a score ensures an underlying construct with stability and consistency (Singleton &
Strait, 2005).
One of the most common ways of computing the correlation values among the questions on
the instruments is by using the Cronbach's alpha (Cronbach, 1951), which is numerical
coefficient of reliability. According to Schuessler, (1971) Cronbach’s Alpha value greater
than 0.60 suggests a good reliability. For our research purpose, Cronbach’s Alpha value
greater than 0.6 has been considered satisfactory for measurement of the realiability
estimates.
4.10.1 Reliability Analysis
To test the reliability of the questionnaire, Reliability analysis was carried out for each
question using Cronbach’s Alpha value. Items having Cronbach’s Alpha value greater than
0.60 are considered to have good reliability (Schuessler, 1971), For valid 240 cases the
analysis results are presented below in Table 4.1
Table 4.1: Reliability Statistics of the Questionnaire
Reliability Statistics
Cases Items Cronbach’s Alpha
240 65 .861
The Cronbach’s Alpha’s value is 0.861 which is more than 0.6, hence the reliability of the
questionnaire is proved, i.e., the questionnaire is reliable for the purpose of collecting the
data.
Table 4.2: Reliability & Scale Statistics
Dimensions N of Items Cronbach’s AlphaIssues 3 .709Challenges 6 .670Environmental Management Practices 25 .609Pollution Prevention 15 .834Resource Conservation 7 .829Competitiveness 6 .616Economic Performance 3 .686
4.10.2 Exploratory Factor Analysis
Exploratory factor analysis (EFA) is a multivariate statistical method where a multivariate
normal random vector defined mean and covariance matrix is reduced to linear
combinations of the random variables. It is applied as a data reduction or structure detection
method. It is used to uncover the underlying structure of a relatively large set of variables.
Factor analysis is a means of describing groups of highly correlated variables by a single
underlying construct or factor that is responsible for the observed correlations.
4.10.3 KMO and Bartlett’s Test (Factor Analysis) for Testing the Validity of the
Questionnaire
To test and verify the dimensionality, construct validity and reliability of the scale items,
KMO and Bartlett’s Test was conducted. These items are Issues, Challenges, Environmental
Management, Pollution Prevention, Resource Conservation, Competitiveness and Economic
Performance.
The Kaiser-Meyer-Olkin measure of sampling adequacy tests whether the partial
correlations among variables are small. Further it should be greater than 0.5 for a
satisfactory factor analysis to proceed. Larger values of the KMO measures denote that the
factor analysis of the variables is a possible option. Bartlett’s test of sphericity tests whether
the correlations matrix is an identity matrix, which would indicate that the factor model is
inappropriate. The Bartlett’s test of sphericity is used to test the null hypothesis and to
check that the variables in the population correlation matrix are uncorrelated. The Kaiser-
Meyer-Olkin measures of sampling adequacy is greater than 0.790, and the observed
significant level is .0000. It is small enough to reject the hypothesis. It is concluded that the
strength of the relationship among variables is strong and, therefore, we can proceed for
factor analysis of the data.
The factor analysis was carried out with SPSS through factor extraction and rotation method
(Annexure III & IV) and the results are as below:
Table 4.3: KMO and Bartlett’s Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.790
Bartlett's Test of Sphericity Approx. Chi-Square 13115.758
Df 2080.000
Sig. .000
This suggested that the sample was sufficient to take the further analysis.
Table 4.4: Total Variance Explained
Component
Initial Eigenvalues
Extraction Sums of Squared
Loadings
Rotation Sums of Squared
Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 15.797 24.302 24.302 15.797 24.302 24.302 11.468 17.643 17.643
2 7.298 11.227 35.530 7.298 11.227 35.530 5.991 9.217 26.859
3 4.128 6.351 41.881 4.128 6.351 41.881 4.717 7.257 34.117
4 3.050 4.692 46.573 3.050 4.692 46.573 4.376 6.733 40.850
5 2.642 4.064 50.637 2.642 4.064 50.637 3.637 5.595 46.445
6 2.127 3.273 53.910 2.127 3.273 53.910 3.407 5.241 51.686
7 1.749 2.690 56.601 1.749 2.690 56.601 3.194 4.915 56.601
Extraction Method: Principal Component Analysis.
From the above analysis it was observed that the eigen value for the first factor is quite
large, i.e. 15.797, than the eigen value for the next factor and this factor accounts for
24.302% of the total variance. This suggests that the scale item of this variable is uni-
dimensional.
Table 4.5: Results of Exploratory Factor Analysis (EFA)
S.N. Statement Dimension Variance Explained
Factor Loading
1. Government Policies and regulations.
ENVIRONMENTALISSUES
25.302
0.460
2. Green Procurement practices. 0.6233. Societal concern for protection of
natural environment.0.562
4. Lack of commitment from top management.
ENVIRONMENTALCHALLENGES
11.227
0.531
5. Inadequate adoption of reverse logistics practices.
0.519
6. Inadequate strategic planning. 0.5877. Non adoption of cleaner
technology.0.462
8. Proper workplace management/ housekeeping practices.
0.476
9. Lean manufacturing practices. 0.465
10. The issue of natural resource depletion is highly significant.
6.531
0.529
11. Use of hazardous chemicals & substances is a highly significant issue.
0.494
12. Low usage of renewable energy sources is highly significant.
0.590
13. Low level of environmental awareness of the work force (Eco-literacy) is highly significant.
0.598
14. Assignment of roles and responsibilities with respect to environmental programs has been significantly implemented.
0.545
15. Conduct of Environmental training program for the employees has been executed.
0.556
16. The practice of Benchmarking environmental performance has been significantly implemented.
0.541
ENVIRONMENTAL MANAGEMENT
PRACTICES
ENVIRONMENTAL. MANAGEMENT
PRACTICES
17. Use of cleaner technology/ production processes to minimize wastes and make savings has been significantly implemented.
0.484
18. Continuous environmental performance improvement program has been significantly executed.
0.643
19. The Optimization of processes to reduce air emissions is an important consideration.
0.715
20. The Optimization of processes to reduce water use is an important consideration.
0.924
21. The Optimization of processes to reduce solid waste is an important consideration.
0.771
22. The Optimization of processes to reduce noise is an important consideration.
0.505
23. Recycle from the waste streams and reutilizing them in the manufacturing process is generally practiced.
0.565
24. Packaging material is reused after repair or modification for further packaging.
0.613
25. Products that can be reused after repair or modification are generally used.
0.647
26. Redesigning a product to improve performance and reduce waste is generally practiced.
0.550
27. Products are manufactured that can be easily dismantled at the end-of-life and their parts/ components are reutilized.
0.555
28. Sorting valuable raw materials which can be recycled or sold in open market is a common practice.
0.534
29. Converting a discarded product into a new product through appropriate processing is commonly practiced.
0.744
30. Information on the current regulations by issuing guidelines.
0.515
31. Information on cleaner technologies.
0.642
32. Promotion on environmental labels/eco-marks.
0.450
33. Encouraging self assessment of regulatory compliances.
0.609
34. Expediting environmental clearance/permit.
0.656
35. The issue of Air emissions is highly significant.
POLLUTION PREVENTION
POLLUTION PREVENTION
4.692
0.699
36. The issue of Water pollution is highly significant.
0.942
37. The issue of Solid waste is highly significant.
0.857
38. The issue of Hazardous waste is highly significant.
0.724
39. The issue of Noise pollution is highly significant.
0.519
40. The issue of Liquid waste is highly significant.
0.753
41 The issue of Waste disposal is highly significant.
0.576
42 Increased efficiencies and productivity.
0.574
43 Improved worker safety. 0.510
44 Reduced or eliminated long-term liabilities.
0.578
45 Decreased use of raw materials. 0.413
46 Diminished need for onsite storage space.
0.542
47 Greater compliance with government regulations.
0.504
48 Protection of natural resources, providing for long term sustainability of the business.
0.686
49 Enhanced employee morale and employee retention.
0.528
50 Lower consumption of raw material is highly significant for resource conservation.
0.638
51 Quantity of water used is highly 0.934
significant for resource conservation.
RESOURCE CONSERVATION
4.064
52 Waste water generated is highly significant for resource conservation.
0.922
53 Quantity of water treated is significantly important for resource conservation.
0.905
54 Level of electricity consumption is highly significant for resource conservation.
0.558
55 The level of fuel consumption is highly significant for resource conservation.
0.468
56 Hazardous waste reduction is highly significant for resource conservation.
0.489
57 Better corporate image.
COMPETITIVENESS 3.273
0.41858 Improved working environment. 0.47659 Improved employees’ environmental
awareness.0.593
60 Reduced risk of litigation. 0.41661 Exploring international markets. 0.50662 Creating good business relations
with customers & other stake holders.
0.490
63 Improvement in return on investment.
ECONOMIC PERFORMANCE
2.690
0.461
64 Increased productivity. 0.63465 Better strategic planning through
awareness of challenges ahead.0.512
4.11 Confirmatory Factor Analysis (CFA)
Confirmatory factor analysis was conducted using AMOS 16.0. Anderson and Gerbing
(1988), have suggested that the measurement model (relationships between observed items
and latent constructs) should be analyzed before the structural model (relationships between
latent constructs). The reason for this is that it is essential to understand what one is
measuring prior to testing relationships (Vandenberg and Lance, 2000). Confirmatory
Factor Analysis (CFA) was carried out on both the dependent and independent variables
without any structural relationships.
In order to test the data structure, CFA was applied. The model so obtained has been shown
below and the results are discussed subsequently.
Exhibit 4.3: Path Diagram for Confirmatory Factor Analysis
I
.56
Q1a
e1
.75
.79
Q1b
e2
.89
.19
Q1d
e3
.44
C
.78
Q2a
e4
.88
.60
Q2b
e5
.78
.40
Q2c
e6
.63
.19
Q2d
e7
.43
.17
Q2f
e8
-.41
.14
Q2g
e9
-.38
EP
.20
Q3a e10
.44
.39
Q3b e11
.62
.07
Q3c e12
.26
.08
Q3d e13
.29
.15
Q4a e14
.39
.30
Q4b e15
.55
.00
Q4c e16.03
Q4d e17.11
Q4e e18
.33
.00
Q5a e19
.03
.61
Q5b e20
.78.83
Q5c e21.91.00
Q5d e22
.04
.52
Q6a e23
-.72
.30
Q6b e24
-.55
.35
Q6c e25
-.59
.00
Q6d e26
.00
.26
Q6e e27
-.51
.01
Q6f e28
-.07
.22
Q6g e29
-.47
.10
Q7a e30
.32
.04
Q7b e31
.20
.15
Q7d e32
.39
.13
Q7f e33
.36
.09
Q7g e34
.31
PP
.21
Q9je49
.46
.16
Q9ie48
.40
.09
Q9he47
.30
.30
Q9ge46
.55.00
Q9fe45
.06.16
Q9de44
.40.01
Q9be43
.08
.04
Q9ae42
.20
.36
Q8ge41 .60
.65
Q8fe40
.81
.04
Q8ee39
.19
.68
Q8de38
.82
.84
Q8ce37
.92
.81
Q8be36
.90
.00
Q8ae35
.06
RC
.27
Q10ge56
.52.02
Q10fe55
-.13.36
Q10ee54
.60.88
Q10de53
.94
.92
Q10ce52.96
.88
Q10be51 .94
.09
Q10ae50
.29
COMP.71
Q11h
e62
.84.83
Q11g
e61
.91
.05
Q11e
e60
.22.01
Q11c
e59
.11.01
Q11b
e58
.09.18
Q11a
e57
.42EC
.43
Q12d
e65
.66.20
Q12b
e64
.45.29
Q12a
e63
.54
.72
.60.08
.45
.70
-.43
.96.10
.56
.95
-.50
-.10
.32
.83
-.36
.72
.37
-.57
.75
-.54
-.64.17
* I=Issues, C=Challenges, EP=Environmental Management Practices, PP=Pollution Prevention, RC=Resource Conservation, COMP=Competitiveness, EC=Economic Performance
4.12 Model Fit Assessment
For maximum likelihood estimates (MLE) to provide the valid results, Hair et al., (1998)
has recommended the absolute minimum requirement of 100 respondents. In this study, the
total sample size is 240. Thus, the present study fulfills the minimum sample size
requirement.
The ratio of Chi-square value and the corresponding degrees of freedom determine the
significance of the overall model. In our case, the value of Chi-square/degrees of freedom =
2.515, which is within the recommended level (< 3.0). A Parsimony Goodness of Fit Index
(PGFI) larger than 0.5 is generally considered a good model fit. In the present case, the
value comes out to be 0.657 signifying that the present model is acceptable. A good model
fit also demands that the Root Mean Square Error of Approximation (RMSEA) value
should be smaller than or equal to 0.1. In our case, the RMSEA value is 0.082, which is
within the desired limit. This again suggests an acceptable model fit here.
The value of GFI and AGFI which are measures that represent overall degree of fit (squared
residuals from prediction compared to the actual data) comes out to be 0.979 and 0.903
respectively. The AGFI value is on the lower side. For both of these, higher values would
indicate better fit but no absolute threshold levels have been established (Hair et al., 1998).
Normed Fit Index (NFI) value is 0.977 and Comparative Fit Index (CFI) value is 0.926,
both of these values are more than the desirable value of 0.9, suggesting that the model can
be accepted.
Table 4.6: Fit Indices for the Model
Fit Statistics Recommended
Values*
Observed
ValuesNormal Theory Weighted Least Squares Chi-Square N.A. 9106.267
Degrees of Freedom N.A. 1995Chi-Square/ Degrees of Freedom < 3.0 2.515
Root Mean Square Error of Approximation (RMSEA) ≤ 0.1 0.082P-Value for Test of Close Fit < 0.05 0.000
Normed Fit Index (NFI) ≥ 0.90 0.977Comparative Fit Index (CFI) ≥ 0.90 0.926Goodness of Fit Index (GFI) ≥ 0.90 0.979
Adjusted Goodness of Fit Index (AGFI) ≥ 0.90 0.903Parsimony Goodness of Fit Index (PGFI) ≥ 0.50 0.657
(* As proposed by Chien & Shih (2007) and Schumacker & Lomax (2004))
4.13 Tools used for Data Analysis
The final step was to select the appropriate statistical tools for the analysis of the primary
data which was collected for the study by using the specifically developed research
questionnaire. Using different statistical tools such as SPSS 16.0 and AMOS 16.0 software,
the organized data were then analyzed. It involves steps such as coding the responses,
clearing and screening the data, and selecting the appropriate data analysis strategy
(Malhotra, 2007). For systematic approach, research element, namely the research problem,
objectives, characteristics of data and the underline properties of the statistical techniques
need to be understood (Malhotra, 2007).
Descriptive analysis refers to the conversion of raw data into a form so that it would provide
information to describe a set of factors in a situation that will make them easy to understand
and explain.
This analysis gives a meaning to data through frequency distribution, which are useful to
identify differences among groups while in order to test hypotheses, ANOVA was applied.
4.13.1 Analysis of Variance
Analysis of Variance (ANOVA) is a collection of statistical models and their associated
procedures, in which the observed variance is partitioned into components due to different
explanatory variables. This method generates values that can be tested to determine whether
a significant relationship exists between variables. Generally ANOVA is applied when
comparison of means for more than two samples is to be drawn. However, ANOVA method
can also be applied in case of means for two samples as well.
4.13.2 Structural Equation Modeling (SEM)
Structural Equation Modeling is widely used in theoretical research across various
disciplines (Jöreskog & Sörbom, 1982; Garver and Mentzer, 1999). SEM can be defined as
a class of methodologies that seek to represent hypotheses about the mean variances, and
covariance of observed data in terms of a smaller number of “structural” parameters defined
by a hypothesized underlying mode (Kaplan, 2000; Glaser, 2002). SEM with latent
variables is more and more often used for analysis in marketing and consumer research
(Bollen, 1989; Schumacker & Lomax, 1996; Batista- Foguet & Coenders, 2000; Bagozzi,
1994). Some reasons for the wide spread use of these models are their parsimony (they
belong to the family of linear model), their ability to model complex systems (where
simultaneous & reciprocal relation may be present), and their ability to model relationship
among non observable variables while taking measurement errors into account (Jöreskog &
Sörbom, 1989; 1993; Jöreskog et. al., 2000). The model was estimated by normal theory
maximum likelihood using the AMOS 16.0 software. Since this study required the models
to be tested for best fit, SEM seemed to be appropriate analysis method as it produces more
comprehensive overall goodness of fit, than those found in other traditional methods.
4.14 Limitations of the Study
Academic research on any topic is a continuous process. Therefore, each part of the
research has to have some limitations in the form of either the resource constraints, be it the
money and time or the self defined scope of the study. The present research work too had
some limitations which, in fact, were not confined to any particular stage of the work.
Following are the limitations of this study:
• In a survey based research, more specifically questionnaire based, the lack of
involvement and cooperation of the respondents is a serious issue. The same was
realized during the process of data collection in this study. Some respondents appeared
reluctant to participate in the survey. They apprehended that a study on environmental
issues and challenges in SMEs (particularly in the respondent’s firm) may bring out the
weak & lacking points on their part that can put the organization in some trouble.
• Generally the organizations were found to be apprehensive of possible misuse of the
information researcher seeks from them about their business. Therefore, the respondents
appeared less cooperative with regard to participation in the survey.
• Although the sample for this study is selected by census sampling method, the
researcher has included the entire population restricted to the following segments
a) Lock, Hardware & Allied
b) Pottery/Ceramic,
c) Leather and Tannery, and
d) Glass
Thus, the interpretation of the findings cannot be generalized to the larger population of the
SMEs.
The study focused upon some key dimensions viz. Environmental Issues, Environmental
Challenges, Environmental Management Practices, Pollution Prevention, Resource
Conservation, Competitiveness and Economic Performance only. However, there may be
other factors also, e.g. Green Supply Chain Management, Environmental Accounting etc.
that too could have been considered. However, the inclusion of all these factors would have
made the study unwieldy. Therefore, only some key factors were focused upon. This too
may be considered as a limitation of the study.
The study was restricted and confined to a limited geographical area of Uttar Pradesh in
India. Exploring data from other areas of the country would have made the task of data
collection a tedious one.
Paucity of time was also a constraint with regard to data collection as personally
approaching the select SMEs over a wide geographical area required a lot of time,
considerable effort and money.
This chapter illustrated the research design, steps involved in questionnaire design and
administration. It also provides an overview of data analysis. The study’s methodology,
hypotheses, data collection, pilot study, pilot sample, reliability of the instrument, sample
size determination, sampling plan and techniques for data analysis are also described. Data
analysis techniques used in evaluating the hypotheses included factor analysis, Cronbach’s
Alpha for reliability analysis and analysis of variance (ANOVA). To test the validity of the
conceptual model Confirmatory Factor Analysis was applied. Most of the fit indices so
obtained were within the desirable range. This suggests that the model is acceptable. In the
later part, limitations of the study were also discussed. The next chapter presents the
analysis of data and its interpretation.
CHAPTER V
DATA ANALYSIS
5.1 Introduction
5.2 Hypotheses Testing
5.2.1 Hypotheses based on Dimensions of Environmental Concerns
5.3 The Conceptual Model
5.4 Tests of Significance and Inference
5.5 Hypotheses testing for ascertaining impacts between dimensions
Chapter V
DATA ANALYSIS
5.1 Introduction
This chapter deals with the results of the questionnaire-based survey carried out to
investigate and explore the current state of environmental problems in the select SME’s in
the state of Uttar Pradesh in India. It has been divided into two parts, the first part deals with
the analysis of the hypotheses based on dimensions of environmental concerns across the
organizational variables, one-way ANOVA has been applied to test and validate the
hypotheses. The second part also deals with the analysis of hypotheses, and tries to examine
the impact of the various dimensions of environmental concern viz. Environmental Issues
(I), Environmental Challenges (C), Environmental Management Practices (EP), Pollution
Prevention (PP), Resource Conservation (RC), Competitiveness (Comp), and Economic
Performance (EC) have on each other. The data collected through the questionnaire based
survey have been used to identify the impact of the dependent and independent variables on
each other. Data analysis was performed using Structural Equation Modelling (SEM) with
AMOS (Analysis of Moment Structures) version 16.0 as it ensures complete analysis and
has a graphical user interface, which is easy to understand. Further, it has the compatibility
with SPSS and hence provides direct import of data. Later on, the key findings of the
survey have been discussed.
5.2 Hypotheses Testing
In order to analyse the data the formulated hypotheses were tested. One way ANOVA was
applied with the help of SPSS 16.0 software. The results of hypotheses testing have been
presented and are discussed in the following section.
5.2.1 Hypotheses based on Dimensions of Environmental Concerns
H01: There is no significant difference in the mean value of environmental issues with
respect to the nature of industry.
Table 5.1: Environmental Issues versus Nature of Industry
Industry N Mean Std. Deviation
F Sig.
LOCK, HARDWARE & ALLIED 72 3.81 0.50
31.081 0.034*
POTTERY/CERAMIC 58 4.21 0.51
LEATHER AND TANNERY 50 4.24 0.36
GLASS 60 3.53 0.44
Total 240 3.93 0.54* Significant at 95% confidence level
Comment: With an objective to establish the difference in the mean value obtained in
environmental issues across the nature of industry i.e. Lock, Hardware & allied,
Pottery/Ceramic, Leather & Tannery, and Glass one-way ANOVA technique was applied.
The descriptive statistics of the sample along with the mean value and standard deviation
are presented in the table 5.1. Test results for one-way ANOVA show that there exists a
significant difference in the mean value of environmental issues across the nature of
industry.
Leather and Tannery obtained the highest mean value of 4.24 followed by Pottery/Ceramic
with mean values of 4.21, Lock, Hardware and allied 3.81 and Glass 3.53.
The results further show that F = 31.081 and sig. = 0.034, which is less than 0.05 (at 95%
confidence level).
This entails that there exists a significant difference in environmental issues with respect to
the nature of industry. In addition to this, the mean values indicate that leather and tannery
industries pay more importance to environmental issues and all their efforts are in the
direction of effective management of the environmental issues in order to achieve the
desired objectives.
Hence, hypothesis H01: There is no significant difference in the mean value of
environmental issues with respect to the nature of industry does not hold good and is
therefore not supported while alternate hypotheses is supported.
H02: There is no significant difference in the mean value of environmental issues with
respect to the organizational status.
Table 5.2: Environmental Issues versus Organizational Status
Status N Mean Std. Deviation
F Sig.
MICRO 87 3.67 0.64
25.744 0.017*SMALL 80 3.92 0.38
MEDIUM 73 4.24 0.39
Total 240 3.93 0.54* Significant at 95% confidence level
Comment: With a view to establish any difference in the mean value obtained in
environmental issues with regard to organizational status i.e. Micro, Small, or Medium,
one-way ANOVA was applied.
Table 5.2 illustrates the descriptive statistics of the sample along with the mean value and
standard deviation obtained by organizations according to their status. It was established
that there exists a significant difference in the mean value of environmental issues with
respect to the status of the organization.
Organizations with medium operations obtained the highest mean value of 4.24 followed by
small and micro organizations with mean values of 3.92 and 3.67 respectively.
Moreover, the results show that F = 25.744 and sig. = 0.017, which is less than 0.05 (at 95%
confidence level).
This shows that there is a significant difference in environmental issues with respect to the
status of the organization. The mean values indicate that organizations with medium level of
operations pay more attention towards environmental issues as compared to other
organizations with micro or small level of operation.
Hence, hypothesis H02: There is no significant difference in the mean value of
environmental issues with respect to organizational status is not supported whereas
alternate hypothesis is supported.
H03: There is no significant difference in the mean value of environmental issues with
respect to number of employees.
Table 5.3: Environmental Issues versus Number of Employees
No. of Employees
N Mean Std. Deviation
F Sig.
LESS THAN 25 113 3.69 0.59
20.36 0.020*
26 TO 50 82 4.06 0.4151 TO 100 31 4.39 0.24MORE THAN 100 14 4.05 0.39
Total 240 3.93 0.54* Significant at 95% confidence level
Comment: One-way ANOVA was applied in order to find out the difference in the mean
value obtained in environmental issues with respect to the number of employees viz. less
than 25, 26 to 50, 51 to 100, or more than 100.
The descriptive statistics of the sample along with the mean value and standard deviation
are represented in Table 5.3. The one-way ANOVA test results show that there exists a
significant difference in the mean value of environmental issues with respect to employees
in SMEs.
It was assessed that organizations having employees in the range of 51 to 100 obtained the
highest mean value of 4.39 followed by organizations having employees 26 to 50 with mean
value of 4.06. Organizations engaging more than 100 employees, and less than 25
employees obtained mean values of 4.05, and 3.69 respectively, which are low as compared
to mean value obtained by organizations employing in the range of 51 to 100.
The results further show that F = 20.306 and sig. = 0.020, which is less than 0.05 (at 95%
confidence level).
This implies that there exists a significant difference in environmental issues with respect to
the number of employees working in the organization. Organizations having employees in
the range 51 to 100 pay more importance to environmental issues as compared to
organizations having employees either less than 51 or more than 100.
Hence, hypothesis H03: There is no significant difference in the mean value of
environmental issues with respect to the number of employees is not supported, on the
other hand alternate hypotheses is supported.
H04: There is no significant difference in the mean value of environmental issues with
respect to the number of suppliers associated with.
Table 5.4: Environmental Issues versus Number of Suppliers
No. of Suppliers N Mean Std. Deviation
F Sig.
LESS THAN 5 22 3.70 0.45
27.393 0.237*
BETWEEN 6 TO 10 59 3.89 0.51
BETWEEN 11 TO 20 88 4.04 0.47
MORE THAN 20 71 4.08 0.44
TOTAL 240 3.92 0.54* Significant at 95% confidence level
Comment: With a view to establish the difference in the mean value obtained in
environmental issues with respect to the number of suppliers associated with, ANOVA was
applied.
The descriptive statistics of the sample along with the mean value and standard deviation
obtained as the results of ANOVA which was applied to find out the significant difference
in the mean value of environmental issues with respect to the number of suppliers, are
presented in tabular form in Table 5.4.
The results show that there is no significant difference in the mean value of environmental
issues against the number of suppliers associated with. Organizations having more than 20
suppliers obtained the highest mean value of 4.08 followed by suppliers in the range of 11
to 20 have mean value of 4.04. Organizations having 6 to 10 suppliers and suppliers less
than 5 obtained the mean values of 3.89 and 3.70 respectively.
Moreover, the results show that F = 27.393 and sig. = 0.237, which is more than 0.05 (at
95% confidence level).
This shows that there is no significant difference in environmental issues with respect to
number of suppliers associated with. This shows that the number of suppliers does not have
any significant bearing on the environmental issues faced by the industries.
Hence, hypothesis H04: There is no significant difference in the mean value of
environmental issues with respect to number of suppliers associated with is supported,
whereas an alternate hypothesis is not supported.
H05: There is no significant difference in the mean value of environmental challenges
with respect to the nature of industry.
Table 5.5: Environmental Challenges versus Nature of Industry
Industry N Mean Std. Deviation F Sig.
LOCK, HARDWARE & ALLIED 72 3.04 0.38
16.567 0.010*
POTTERY/CERAMIC 58 2.77 0.40
LEATHER AND TANNERY 50 2.61 0.30
GLASS 60 2.89 0.31
Total 240 2.85 0.39* Significant at 95% confidence level
Comment: In order to ascertain the difference in the mean value obtained in environmental
challenges with respect to the nature of industry i.e. Lock hardware & allied,
Pottery/Ceramic, Leather & Tannery and Glass, ANOVA was applied.
Table 5.5 represents the descriptive statistics of the sample along with the mean value and
standard deviation obtained.
It indicates that there exists a difference in the mean value of environmental challenges with
respect to the nature of industry.
Lock, Hardware & allied industries obtained the highest mean value of 3.04 followed by
Glass, Pottery/Ceramic and Leather & Tannery with mean values of 2.89, 2.77 and 2.61
respectively.
Moreover, the results show that F = 16.567 and sig. = 0.010, which is less than 0.05 (at 95%
confidence level).
This reveals that there exists a significant difference in the environmental challenges with
respect to nature of industry. Organizations belonging to Lock, Hardware & allied industry
face more environmental challenges as compared to other SMEs in question.
Hence, hypothesis H05: There is no significant difference in the mean value of
environmental challenges with respect to the nature of industry is not supported while
alternate hypothesis is supported.
H06: There is no significant difference in the mean value of environmental challenges
with respect to organizational status.
Table 5.6: Environmental Challenges versus Organizational Status
Status N Mean Std. Deviation
F Sig.
MICRO 87 2.93 0.42
7.800 0.003*SMALL 80 2.89 0.37
MEDIUM 73 2.71 0.33
Total 240 2.85 0.39* Significant at 95% confidence level
Comment: With a purpose to establish the difference in the mean value obtained in
environmental challenges with respect to organizational status i.e. Micro, Small, or
Medium, one-way ANOVA was applied. The descriptive statistics of the sample along with
the mean value and standard deviation obtained by different organizations are presented in
Table 5.6.
It was noticed that there exists a difference in the mean value of environmental challenges
with respect to organizational status.
Micro scale organizations obtained the highest mean value of 2.93 followed by small and
medium scale with mean values of 2.89 and 2.71 respectively.
Further, the results show that F = 7.800 and sig. = 0.003, which is less 0.05 (at 95%
confidence level).
This means that there is a significant difference in environmental challenges with respect to
organizational status i.e. micro, small and medium. Organizations at the Micro level have to
face more environmental challenges as compared to small and medium organizations.
Hence, hypothesis H06: There is no significant difference in the mean value of
environmental challenges with respect to organizational status is not supported while
alternate hypothesis is supported.
H07: There is no significant difference in the mean value of environmental challenges
with respect to the number of employees.
Table 5.7: Environmental Challenges versus Number of Employees
No. of Employees N Mean Std. Deviation
F Sig.
LESS THAN 25 113 2.95 0.41
7.205 0.000*
26 TO 50 82 2.81 0.37
51 TO 100 31 2.63 0.27
MORE THAN 100 14 2.71 0.28
Total 2402.85
0.39*Significant at 95% confidence level
Comment: With an aim to establish the difference in the mean value obtained in
environmental challenges with respect to number of employees, statistical technique one-
way ANOVA was used. The descriptive statistics of the sample along with the mean value
and standard deviation are presented in Table 5.7.
It was observed that there exists a difference in the mean value of environmental challenges
with respect to the number of employees.
Organizations employing less than 25 employees obtained the highest mean value of 2.95
followed by organizations employing 26 to 50 employees with mean value of 2.81.
Organizations employing more than 100 employees got mean value of 2.71, while
organizations employing 51 to 100 obtained mean values of 2.63.
Further, the results show that F = 7.205 and sig. = 0.000, which is less than 0.05 (at 95%
confidence level).
This signifies that there exists a significant difference in environmental challenges with
respect to the number of employees. Organizations employing less than 25 employees have
to cope with more environmental challenges as compared to organizations employing either
25 or more employees.
Hence, hypothesis H07: There is no significant difference in the mean value of
environmental challenges with respect to the number of employees is not supported while
alternate hypothesis is supported.
H08: There is no significant difference in the mean value of environmental challenges
with respect to number of suppliers associated with.
Table 5.8: Environmental challenges versus Number of Suppliers
No. of Suppliers N Mean Std. Deviation
F Sig.
LESS THAN 5 22 2.97 0.36
1.801 0.148*
BETWEEN 6 TO 10 59 2.90 0.36
BETWEEN 11 TO 20 88 2.84 0.41
MORE THAN 20 71 2.78 0.37
TOTAL 240 2.85 0.39
Comment: With a purpose to establish the difference in the mean value obtained in
environmental challenges with respect to number of suppliers associated with, ANOVA was
applied. The descriptive statistics of the sample along with the mean value and standard
deviation is presented in Table 5.8.
This implies that there is no significant difference in the mean value of environmental
challenges with respect to number of suppliers associated with.
Organizations having less than 5 suppliers obtained the highest mean value of 2.97 followed
by organizations having suppliers between 6 to 10 have the mean value of 2.90.
Organizations having suppliers between 11 to 20 and more than 20 secured the mean value
of 2.84 and 2.78 respectively.
However, the results show that F = 1.801 and sig. = 0.148, which is more than 0.05 (at 95%
confidence level).
This means that there is no significant difference in environmental challenges with respect
to number of suppliers associated with. This shows that the number of suppliers does not
have any significant bearing on the environmental challenges faced by the industries.
Hence, hypothesis H08: There is no significant difference in the mean value of
environmental challenges with respect to number of suppliers associated with is supported
while the alternate hypothesis is not supported.
H09: There is no significant difference in the mean value of environmental management
practices with respect to the nature of industry.
Table 5.9: Environmental Management Practices versus Nature of Industry
Industry N Mean Std. Deviation F Sig.
LOCK, HARDWARE & ALLIED 72 3.39 0.32
11.392 0.000*
POTTERY/CERAMIC 58 3.43 0.17
LEATHER AND TANNERY 50 3.33 0.15
GLASS 60 3.18 0.31
Total 240 3.34 0.27*Significant at 95% confidence level
Comment: With a point to establish the difference in the mean value obtained in
environmental management practices with respect to nature of industry i.e. Lock, hardware
& allied, Pottery/Ceramic, Leather & Tannery and Glass, one way ANOVA was applied.
The descriptive statistics of the sample along with the mean value and standard deviation
obtained by each industry are presented in Table 5.9.
It was observed that there exists a significant difference in the mean value of environmental
management practices with respect to the nature of industry.
Pottery/Ceramic obtained the highest mean value of 3.43 followed by Locks, Hardware &
allied, Leather and Tannery and Glass with mean values of 3.39, 3.33 and 3.18 respectively.
The results further show that F = 11.392 and sig. = 0.00, which is less than 0.05 (at 95%
confidence level).
This leads to the fact that there exists a significant difference in environmental management
practices with respect to the nature of industry. Organizations in Pottery/Ceramic pay more
importance to environmental management practices as compared to other SMEs.
Hence, hypothesis H09: There is no significant difference in the mean value of
environmental management practices with respect to the nature of industry is not
supported while alternate hypothesis is supported.
H010: There is no significant difference in the mean value of environmental management
practices with respect to the organizational status.
Table 5.10: Environmental Management Practices versus Organizational Status
Status N Mean Std. Deviation
F Sig.
MICRO 87 3.19 0.31
21.466 0.000*SMALL 80 3.40 0.21
MEDIUM 73 3.43 0.18
Total 240 3.34 0.27*Significant at 95% confidence level
Comment: With an idea to establish the difference in the mean value obtained in
environmental management practices with respect to organizational status i.e. Micro, Small,
or Medium, one-way ANOVA was applied. The descriptive statistics of the sample along
with the mean value and standard deviation obtained by each organization are shown in
Table 5.10.
It was concluded that there exists a significant difference in the mean value of
environmental management practices with respect to organizational status.
Medium scale organization obtained the highest mean value of 3.43 followed by small scale
and micro scale with mean values of 3.40 and 3.19 respectively.
Further, the results show that F = 21.466 and sig. = 0.000, which is less than 0.05 (at 95%
confidence level).
This implies that there is a significant difference in environmental management practices
with respect to organizational status. Medium scale organizations pay more importance to
environmental management practices as compared to Micro and Small scale organizations.
Hence, hypothesis H010: There is no significant difference in the mean value of
environmental management practices with respect to status of the organization is not
supported while alternate hypothesis is supported.
H011: There is no significant difference in the mean value of environmental management
practices with respect to the number of employees.
Table 5.11: Environmental Management Practices versus Number of Employees
No. of Employees N Mean Std. Deviation
F Sig.
LESS THAN 25 113 3.26 0.33
6.774 0.000*
26 to 50 82 3.41 0.20
51 to 100 31 3.32 0.14
MORE THAN 100 14 3.49 0.24
Total 240 3.35 0.27*Significant at 95% confidence level
Comment: In order to find out the difference in the mean value obtained in environmental
management practices with respect to the number of employees, one way ANOVA was
applied. The descriptive statistics of the sample along with the mean value and standard
deviation obtained by each are presented in Table 5.11.
The statistics of the table show that there exists a difference in the mean value of
environmental management practices with respect to the number of employees.
Organizations having more than 100 employees secured the highest mean value of 3.49
while organizations having employees in the range of 26 to 50 obtained mean values of
3.41. Organizations having employees in the range 51 to 100 and organizations having
employees less than 25 obtained the mean values of 3.32 and 3.26 respectively.
The results further show that F = 6.774 and sig. = 0.000, which is less than 0.05 (at 95%
confidence level).
This shows that there is a significant difference in environmental management practices
with respect to the number of employees. Moreover, the mean values indicate that
organizations having more than 100 employees pay more importance to environmental
management practices in order to achieve the desired objectives.
Hence, hypothesis H011: There is no significant difference in the mean value of
environmental management practices with respect to the number of employees is not
supported whereas alternate hypothesis is supported.
H012: There is no significant difference in the mean value of environmental management
practices with respect to number of suppliers associated with.
Table 5.12: Environmental Management Practices versus Number of Suppliers
No. of Suppliers n Mean Std. Deviation
F Sig.
LESS THAN 5 22 2.94 0.19
30.604 0.021*
BETWEEN 6 TO 10 59 3.28 0.29
BETWEEN 11 TO 20 88 3.37 0.22
MORE THAN 20 71 3.47 0.21
TOTAL 240 3.34 0.27*Significant at 95% confidence level
Comment: One way ANOVA was used to ascertain the difference in the mean value
obtained in environmental management practices with respect to the number of suppliers
associated with. The descriptive statistics of the sample along with the mean value and
standard deviation obtained are represented in Table 5.12.
The results show that there exists a difference in the mean value of environmental
management practices with respect to the number of suppliers associated with.
Organizations having more than 20 suppliers obtained the highest mean value of 3.47
followed by organizations having suppliers in between 11 to 20 having a mean value of
3.37. Organizations having suppliers in between 6 to 10 and organizations having less than
5 suppliers obtained the mean values of 3.28 and 2.94 respectively.
Moreover, the results show that F = 30.604 and sig. = 0.021, which is less than 0.05 (at 95%
confidence level).
This suggests that there exists a significant difference in environmental management
practices with respect to the number of suppliers associated with. Organizations having
suppliers more than 20 pay more importance to environmental management practices as
compared to organizations having suppliers either less than or equal to 20.
Hence, hypothesis H012: There is no significant difference in the mean value of
environmental management practices with respect to number of suppliers associated with is
not supported while alternate hypothesis is supported.
H013: There is no significant difference in the mean value of prevention of
environmental pollution with respect to the nature of industry.
Table 5.13: Environmental Pollution versus Nature of Industry
Industry N Mean Std. Deviation F Sig.
LOCK, HARDWARE & ALLIED 72 3.49 0.29
24.925 0.003*
POTTERY/CERAMIC 58 3.82 0.28
LEATHER AND TANNERY 50 3.93 0.24
GLASS 60 2.74 0.25
Total 240 3.48 0.53*Significant at 95% confidence level
Comment: With an objective to establish the difference in the mean value obtained in
prevention of environmental pollution with respect to nature of industry, ANOVA was
applied. The descriptive statistics of the sample along with the mean value and standard
deviation obtained by each industry are shown in Table 5.13.
The statistics show that there exists a difference in the mean value of prevention of
environmental pollution with respect to the nature of industry.
Leather and Tannery obtained the highest mean value of 3.93 followed by Pottery/Ceramic,
Lock, hardware & allied and Glass with mean values of 3.82, 3.49 and 2.74 respectively.
The results further show that F = 24.925 and sig. = 0.003, which is less than 0.05 (at 95%
confidence level).
This implies that there exists a significant difference in prevention of environmental
pollution with respect to the nature of industry. Further, the mean values indicate that
Leather and Tannery industries are more concerned towards the prevention of
environmental pollution in order to achieve the desired objectives.
Hence, hypothesis H013: There is no significant difference in the mean value of prevention
of environmental pollution with respect to the nature of industry is not supported on the
other hand alternate hypothesis is supported.
H014: There is no significant difference in the mean value of prevention of
environmental pollution with respect to organizational status.
Table 5.14: Environmental Pollution versus Organizational Status
Status n Mean Std. Deviation
F Sig.
MICRO 87 3.23 0.55
36.626 0.000*SMALL 80 3.40 0.42
MEDIUM 73 3.85 0.38
Total 240 3.48 0.53*Significant at 95% confidence level
Comment: With a view to find out the difference in the mean value obtained in prevention
of environmental pollution with respect to organizational status i.e. Micro, Small, or
Medium, ANOVA was applied. The descriptive statistics of the sample along with the mean
value and standard deviation obtained by each organization according to their status are
represented in Table 5.14.
The table above signifies that there exists a difference in the mean value of prevention of
environmental pollution with respect to organizational status.
Medium scale organizations obtained the highest mean value of 3.85 followed by small and
micro level organizations with mean values of 3.40 and 3.23 respectively.
Moreover, the results show that F = 36.626 and sig. = 0.000, which is less than 0.05 (at 95%
confidence level).
The results suggest that there exists a significant difference in prevention of environmental
pollution with respect to organizational status. Organizations having Medium scale of
operations are more concerned towards the prevention of environmental pollution as
compared to Micro or Small organizations.
Hence, hypothesis H014: There is no significant difference in the mean value of prevention
of environmental pollution with respect to organizational status is not supported while
alternate hypothesis is supported.
H015: There is no significant difference in the mean value of prevention of
environmental pollution with respect to number of employees.
Table 5.15: Environmental Pollution versus Number of Employees
No. of Employees
n Mean Std. Deviation
F Sig.
LESS THAN 25 113 3.28 0.53
15.829 0.032*
26 to 50 82 3.57 0.46
51 to 100 31 3.91 0.29
MORE THAN 100 14 3.51 0.53
Total 240 3.48 0.53*Significant at 95% confidence level
Comment: One-way ANOVA technique was used in order to find out the difference in the
mean values obtained in prevention of environmental pollution with respect to the number
of employees. The descriptive statistics of the sample along with the mean value and
standard deviation are shown in Table 5.15.
From the results it was noticed that there exists a significant difference in the mean value of
prevention of environmental pollution with respect to the number of employees.
Organizations having employee strength in between 51 to100 obtained the highest mean
value of 3.91 followed by organizations having strength in between 26 to 50 with mean
value of 3.57. Organizations having employee strength either more than 100 or less than 25
obtained mean values of 3.51 and 3.28 respectively.
Moreover, the results show that F = 15.829 and sig. = 0.032, which is less than 0.05 (at 95%
confidence level).
The results suggest that there is a significant difference in prevention of environmental
pollution with respect to employee strength. Organizations having employees in the range
of 51 to 100 are more concerned towards the prevention of environmental pollution as
compared to organizations having either less than 51 or more than 100 employees.
Hence, hypothesis H015: There is no significant difference in the mean value of prevention
of environmental pollution with respect to the number of employees is not supported while
alternate hypothesis is supported.
H016: There is no significant difference in the mean value of prevention of
environmental pollution with respect to number of suppliers associated with.
Table 5.16: Environmental Pollution versus Number of Suppliers
No. of Suppliers n Mean Std. Deviation
F Sig.
LESS THAN 5 22 2.71 0.39
42.046 0.008*
BETWEEN 6 TO 10 59 3.24 0.47
BETWEEN 11 TO 20 88 3.60 0.45
MORE THAN 20 71 3.75 0.37
TOTAL 240 3.48 0.53*Significant at 95% confidence level
Comment: With an aim to ascertain the difference in the mean value obtained in the
prevention of environmental pollution with respect to number of suppliers associated with,
one-way ANOVA technique was applied. The descriptive statistics of the sample along with
the mean value and standard deviation are shown by Table 5.16.
The table statistics show that there is a significant difference in the mean value of
prevention of environmental pollution with respect to the number of suppliers associated
with.
Organizations with more than 20 suppliers obtained the highest mean value of 3.75
followed by organizations engaging between 11 to 20 suppliers secured mean value of 3.60.
Further, organizations engaging suppliers either in between 6 to 10 or less than 5 obtained
mean values of 3.24 and 2.71 respectively.
Results further show that F = 42.046 and sig. = 0.008, which is less than 0.05 (at 95%
confidence level).
These results suggest that there is a significant difference in prevention of environmental
pollution with respect to number of suppliers engaged with. Moreover, the mean values
indicate that organizations engaging more than 20 suppliers pay more importance to
prevention of environmental pollution activities as compared to organisations engaging up
to 20 suppliers.
Hence, hypothesis H016: There is no significant difference in the mean value of prevention
of environmental pollution with respect to number of suppliers associated with is not
supported while alternate hypothesis is supported.
H017: There is no significant difference in the mean value of resource conservation with
respect to the nature of industry.
Table 5.17: Resource Conservation versus Nature of Industry
Industry N Mean Std. Deviation F Sig.
LOCK, HARDWARE & ALLIED 72 3.91 0.38
411.680 0.212*
POTTERY/CERAMIC 58 4.08 0.30
LEATHER AND TANNERY 50 4.15 0.29
GLASS 60 3.85 0.23
Total 240 3.99 0.76*Significant at 95% confidence level
Comment: One-way ANOVA was used to ascertain the difference in the mean value
obtained in resource conservation with respect to nature of industry. The descriptive
statistics of the sample along with the mean value and standard deviation obtained by
different industries are shown in Table 5.17.
It was observed that there is no significant difference in the mean value of resource
conservation with respect to the nature of industry.
Leather and Tannery industry obtained the highest mean value of 4.15; Pottery/Ceramic
obtained 4.08 followed by Lock, Hardware & Allied and Glass with mean values of 3.91
and 3.85 respectively.
Moreover, the results show that F = 411.680 and sig. = 0.212, which is more than 0.05 (at
95% confidence level).
The results show that there is no significant difference in resource conservation with respect
to the nature of industry. This means that nature of industry does not have any significant
bearing on Resource Conservation.
Hence, hypothesis H017: There is no significant difference in the mean value of resource
conservation with respect to nature of industry is supported whereas alternate hypothesis is
not supported.
H018: There is no significant difference in the mean value of resource conservation with
respect organizational status.
Table 5.18: Resource Conservation versus Organizational Status
Status n Mean Std. Deviation
F Sig.
MICRO 87 3. 37 0.55
18.716 0.000*SMALL 80 3.57 0.77
MEDIUM 73 3.05 0.52
Total 240 3.64 0.76*Significant at 95% confidence level
Comment: With an intention to find out the difference in the mean value obtained in
resource conservation with respect to status of the organization i.e. Micro, Small, or
Medium, one way ANOVA was applied. The descriptive statistics of the sample along with
the mean value and standard deviation obtained by each type of the organization are shown
in Table 5.18.
The results show that there exists a difference in the mean value of resource conservation
with respect to organizational status.
Small scale industries obtained the highest mean value of 3.57 followed by members with
Micro and Medium level operations with mean values of 3.37 and 3.05 respectively.
Moreover, the results show that F = 18.716 and sig. = 0.000, which is less than 0.05 (at 95%
confidence level).
This implies that there is a significant difference in resource conservation with respect to
organizational status. Small scale organizations are more concerned towards the resource
conservation as compared to Micro or Small organizations.
Hence, hypothesis H018: There is no significant difference in the mean value of resource
conservation with respect to organizational status is not supported while alternate
hypothesis is supported.
H019: There is no significant difference in the mean value of resource conservation with
respect to the number of employees.
Table 5.19: Resource Conservation versus the Number of Employees
No. of Employees
n Mean Std. Deviation
F Sig.
LESS THAN 25 113 3.40 0.72
15.516 0.004*
26 to 50 82 3.77 0.74
51 to 100 31 4.31 0.31
MORE THAN 100 14 3.84 0.67
Total 240 3.64 0.76*Significant at 95% confidence level
Comment: One-way ANOVA was applied in order to find out the difference in the mean
value obtained in resource conservation with regard to the number of employees engaged in
the organization. The descriptive statistics of the sample along with the mean value and
standard deviation obtained by each member of the chain are presented in Table 5.19.
The table statistic shows that there exists a significant difference in the mean value of
resource conservation with respect to the number of employees.
Organizations having employee strength in the range 51 to 100 obtained the highest mean
value of 4.31 followed by organizations having employees having more than 100 with mean
value of 3.84 whereas organizations having strength between 26 to 50 and less than 25
obtained mean values of 3.77 and 3.40 respectively.
Moreover, the results show F = 15.516 and sig. = 0.004, which is less than 0.05 (at 95%
confidence level).
The results imply that there is a significant difference in resource conservation with respect
to the number of employees. Organizations having employees in the range of 51 to 100 pay
more importance to Resource Conservation as compared to organizations employing either
less than or equal to 50 or more than 100 employees.
Hence, hypothesis H019: There is no significant difference in the mean value of resource
conservation with respect to the number of employees is not supported while alternate
hypothesis is supported.
H020: There is no significant difference in the mean value of resource conservation with
respect to number of suppliers associated with.
Table 5.20: Resource Conservation versus Number of Suppliers
No. of Suppliers n Mean Std. Deviation
F Sig.
LESS THAN 5 22 2.73 0.51
37.688 0.000*
BETWEEN 6 TO 10 59 3.18 0.76
BETWEEN 11 TO 20 88 3.89 0.66
MORE THAN 20 71 4.00 0.49
TOTAL 240 3.64 0.76*Significant at 95% confidence level
Comment: With a view to find out the difference in the mean value obtained in resource
conservation and the number of suppliers associated with, one-way ANOVA was applied.
The descriptive statistics of the sample along with the mean value and standard deviation
obtained are shown in Table 5.20.
The table statistic shows that there exists a significant difference in the mean value of
resource conservation with respect to the number of suppliers associated with the
organization.
Organizations having more than 20 suppliers obtained the highest mean value of 4.00,
followed by organizations having suppliers in the range of 11 to 20 with mean value of
3.89, while the organizations having suppliers in the range of 6 to 10 and the organizations
having less than 5 suppliers obtained the mean values of 3.18 and 2.73 respectively.
The results moreover show that F = 37.688 and sig. = 0.000, which is less than 0.05 (at 95%
confidence level).
The results indicate that there is a significant difference in resource conservation with
respect to the number of suppliers associated with. Organizations having more than 20
suppliers pay more importance to resource conservation as compared to organizations
having suppliers either 20 or less.
Hence, hypothesis H020: There is no significant difference in the mean value of resource
conservation with respect to number of suppliers associated with is not supported whereas
alternate hypothesis is supported.
H021: There is no significant difference in the mean value of competitiveness with
respect to the nature of industry.
Table 5.21: Competitiveness versus Nature of Industry
Industry N Mean Std. Deviation F Sig.
LOCK, HARDWARE & ALLIED 72 3.28 0.38
55.035 0.020*
POTTERY/CERAMIC 58 3.86 0.32
LEATHER AND TANNERY 50 3.96 0.33
GLASS 60 2.78 0.28
Total 240 3.69 0.43*Significant at 95% confidence level
Comment: One-way ANOVA was used in order to ascertain the difference in the mean
value obtained in competitiveness with respect to the nature of industry. The descriptive
statistics of the sample along with the mean value and standard deviation obtained are
shown in Table 5.21.
Results indicate that there exists a significant difference in the mean value of
competitiveness with respect to the nature of industry.
Leather and Tannery industry obtained the highest mean value of 3.96, followed by
Pottery/Ceramic industry which obtained the mean value of 3.86, whereas Lock, Hardware
& allied obtained the mean value of 3.28, and Glass Industry obtained the least mean value
of 2.78.
The results further show that F = 55.035 and sig. = 0.020, which is less than 0.05 (at 95%
confidence level).
The obtained results suggest that there exists a significant difference in competitiveness
across the nature of industry. Moreover, the mean values indicate that Leather and Tannery
industry employs more competitive strategies as compared to other industries in study.
Hence, hypothesis H021: There is no significant difference in the mean value of
competitiveness with respect to the nature of industry is not supported while alternate
hypothesis is support.
H022: There is no significant difference in the mean value of competitiveness with
respect to Organizational status.
Table 5.22: Competitiveness versus Organizational Status
Status n Mean Std. Deviation
F Sig.
MICRO 87 3. 41 0.40
50.457 0.012*SMALL 80 3.71 0.36
MEDIUM 73 3.99 0.32
Total 240 3.69 0.43*Significant at 95% confidence level
Comment: With the intention to find out the difference in the mean value obtained in
competitiveness across the organizational status i.e. Micro, Small & Medium, one- way
ANOVA was applied. The descriptive statistics of the sample along with the mean value
and standard deviation obtained are presented in Table 5.22.
The results suggest that there exists a significant difference in the mean value of
competitiveness with respect to the status of the organization.
Medium scale organizations obtained the highest mean value of 3.99 followed by small and
micro scale organizations with mean values of 3.71 and 3.41 respectively.
Further, the results show that F = 50.457 and sig. = 0.012, which is less than 0.05 (at 95%
confidence level).
This suggests that there is a significant difference in competitiveness with respect to the
status of the organization i.e. Micro, Small or Medium. Medium scale organizations are
more competitive as compared to Micro or Small organizations.
Hence, hypothesis H022: There is no significant difference in the mean value of
competitiveness with respect to organizational status is not supported while alternate
hypothesis is supported.
H023: There is no significant difference in the mean value of competitiveness with
respect to the number of employees.
Table 5.23: Competitiveness versus Number of Employees
No. of Employees
n Mean Std. Deviation
F Sig.
LESS THAN 25 113 3.50 0.41
17.045 0.000*
26 to 50 82 3.79 0.34
51 to 100 31 3.92 0.46
MORE THAN 100 14 4.01 0.42
Total 240 3.69 0.43*Significant at 95% confidence level
Comment: With the purpose to find out the difference in the mean value obtained in
competitiveness with respect to number of employees, ANOVA was applied. The
descriptive statistics of the sample along with the mean value and standard deviation
obtained are represented in Table 5.23.
The results show that there exists a difference in the mean value of competitiveness with
respect to the number of employees.
Organizations employing more than 100 employees obtained the highest mean value of 4.01
followed by organizations having employees in the range of 51 to 100 obtained the mean
value of 3.92. Organizations having employees in the range of 26 to 50 and the
organizations having less than 25 employees obtained the mean values of 3.79 and 3.50
respectively.
Moreover, the results show that F = 17.045 and sig. = 0.000, which is less than 0.05 (at 95%
confidence level).
The results indicate that there is a significant difference in competitiveness with respect to
the number of employees. Further, the mean values indicate that organizations having more
than 100 employees are more competitive as compared to other organizations employing up
to 100 employees.
Hence, hypothesis H023: There is no significant difference in the mean value of
competitiveness with respect to the number of employees is not supported while alternate
hypothesis is supported.
H024: There is no significant difference in the mean value of competitiveness with
respect to number of suppliers associated with.
Table 5.24: Competitiveness versus Number of Suppliers
No. of Suppliers n Mean Std. Deviation
F Sig.
LESS THAN 5 22 3.55 0.32
6.795 0.218*
BETWEEN 6 TO 10 59 3.57 0.40
BETWEEN 11 TO 20 88 3.67 0.46
MORE THAN 20 71 3.79 0.40
TOTAL 240 3.65 0.43*Significant at 95% confidence level
Comment: One-way ANOVA was used for the purpose of ascertaining the difference in the
mean value obtained in competitiveness with respect to the number of suppliers associated
with the organizations. The descriptive statistics of the sample along with the mean value
and standard deviation obtained by each are given in Table 5.24.
It was observed that there is no significant difference in the mean value of competitiveness
with respect to the number of suppliers.
Organizations having more than 20 suppliers obtained the highest mean value of 3.79
followed by organizations having suppliers in the range 11 to 20 with a mean value of 3.67,
whereas organizations having suppliers in the range of 6 to 10 and organizations having less
than 5 suppliers obtained the mean values of 3.57 and 3.55 respectively.
The results further show that F = 6.795 and sig. = 0.218, which is more than 0.05 (at 95%
confidence level).
The results suggest that there is no significant difference in competitiveness with respect to
the number of suppliers associated with. This shows that the number of suppliers does not
have any significant affect with regard to competitiveness.
Hence, hypothesis H024: There is no significant difference in the mean value of
competitiveness with respect to the number of suppliers associated with is supported while
alternate hypothesis is not supported.
H025: There is no significant difference in the mean value of economic performance with
respect to nature of industry.
Table 5.25: Economic Performance versus Nature of Industry
Industry n Mean Std. Deviation F Sig.
LOCK, HARDWARE & ALLIED 72 3.55 0.42
28.412 0.000*
POTTERY/CERAMIC 58 4.20 0.46
LEATHER AND TANNERY 50 4.03 0.45
GLASS 60 3.75 0.41
Total 240 3.86 0.50*Significant at 95% confidence level
Comment: With the purpose to ascertain the difference in the mean value obtained in
economic performance with respect to the nature of industry, one-way ANOVA was used.
The descriptive statistics of the sample along with the mean value and standard deviation
obtained are shown in Table 5.25.
It indicated that there exists a difference in the mean value of economic performance with
respect to the nature of industry.
Pottery/Ceramic industry obtained the highest mean value of 4.20, followed by Leather and
Tannery industry which obtained a mean value of 4.03, whereas Glass industry obtained a
mean value of 3.75, and Lock, Hardware & allied obtained the least mean value of 3.55.
The results further show that F = 28.412 and sig. = 0.000, which is less than 0.05 (at 95%
confidence level).
This indicates that there exists a significant difference in economic performance with
respect to the nature of industry. Moreover, the mean values indicate that Pottery/Ceramic
industry performs economically better as compared to other industries in study.
Hence, hypothesis H025: There is no significant difference in the mean value of Economic
Performance with respect to the nature of industry is not supported while alternate
hypothesis is supported.
H026: There is no significant difference in the mean value of economic performance with
respect to Organizational status.
Table 5.26: Economic Performance versus Organizational Status
Status n Mean Std. Deviation
F Sig.
MICRO 87 3. 61 0.39
45.937 0.023*SMALL 80 3.77 0.38
MEDIUM 73 4.25 0.51
Total 240 3.86 0.50*Significant at 95% confidence level
Comment: With the aim to ascertain the difference in the mean value obtained in economic
performance with respect to the organizational status i.e. Micro, Small & Medium, one-way
ANOVA was used. The descriptive statistics of the sample along with the mean value and
standard deviation obtained are shown in Table 5.26.
It indicates that there exists a significant difference in the mean value of economic
performance with respect to the status of the organization.
Medium scale organizations obtained the highest mean value of 4.25 followed by small and
micro scale organizations with mean values of 3.77 and 3.61 respectively.
Further, the results show that F = 45.937 and sig. = 0.023, which is less than 0.05 (at 95%
confidence level).
This suggests that there is a significant difference in economic performance with regard to
status of the organization i.e. Micro, Small or Medium. Medium scale organizations
perform economically better as compared to Micro or Small scale organizations.
Hence, hypothesis H026: There is no significant difference in the mean value of economic
performance with respect to the Organizational status is not supported; on the other hand
alternate hypothesis is supported.
H027: There is no significant difference in the mean value of economic performance with
respect to the number of employees.
Table 5.27: Economic Performance versus Number of Employees
No. of Employees
n Mean Std. Deviation
F Sig.
LESS THAN 25 113 3.64 0.39
18.772 0.000*
26 to 50 82 4.04 0.56
51 to 100 31 3.97 0.35
MORE THAN 100 14 4.33 0.49
Total 240 3.86 0.50*Significant at 95% confidence level
Comment: One-way ANOVA was used to find out the difference in the mean value
obtained in economic performance with respect to the employee strength. The descriptive
statistics of the sample along with the mean value and standard deviation obtained are
shown in Table 5.27.
It shows that there exists a difference in the mean value of economic performance with
respect to the number of employees.
Organizations employing more than 100 employees obtained the highest mean value of 4.33
followed by organizations having employees in the range of 26 to 50 with a mean value of
4.04. Organizations having employees in the range of 51 to 100 and the organizations
having less than 25 employees obtained the mean values of 3.97 and 3.64 respectively.
Moreover, the results show that F = 18.772 and sig. = 0.000, which is less than 0.05 (at 95%
confidence level).
This suggests that there is a significant difference in economic performance with respect to
the number of employees. Organizations employing more than 100 employees perform
economically better than the organizations employing up to 100 employees.
Hence, hypothesis H027: There is no significant difference in the mean value of economic
performance with respect to the number of employees is not supported while alternate
hypothesis is supported.
H028: There is no significant difference in the mean value of economic performance with
respect to the number of suppliers associated with.
Table 5.28: Economic Performance versus Number of suppliers
No. of Suppliers n Mean Std. Deviation
F Sig.
LESS THAN 5 22 3.56 0.36
16.902 0.034*
BETWEEN 6 TO 10 59 3.68 0.41
BETWEEN 11 TO 20 88 3.80 0.42
MORE THAN 20 71 4.16 0.56
TOTAL 240 3.86 0.50*Significant at 95% confidence level
Comment: With the purpose to ascertain the difference in the mean value obtained in
economic performance with respect to number of suppliers, one-way ANOVA was applied.
The descriptive statistics of the sample along with the mean value and standard deviation
obtained by each are shown in Table 5.28.
It was observed that there exists a difference in the mean value of economic performance
with respect to the number of suppliers associated with the organization.
Organizations having suppliers more than 20 obtained the highest mean value of 4.16
followed by organizations having suppliers in the range 11 to 20 with a mean value of 3.80,
whereas organizations having suppliers in the range of 6 to 10 and organizations having less
than 5 suppliers obtained the mean values of 3.68 and 3.56.
The results, show that F = 16.902 and sig. = 0.034, which is less than 0.05 (at 95%
confidence level).
The results suggest that there is a significant difference in economic performance with
respect to the number of suppliers associated with. Organizations having more than 20
suppliers perform economically better than organizations having up to 20 suppliers.
Hence, hypothesis H028: There is no significant difference in the mean value of economic
performance with respect to the number of suppliers associated with is not supported
while alternate hypothesis is supported.
Table 5.29: Summary of Hypotheses Testing
S. No. Hypothesis F Sig. Result
1.There is no significant difference in the mean value of Environmental Issues with respect to nature of industry.
31.081 0.034 Not Supported
2.There is no significant difference in the mean value of Environmental Issues with respect to organizational status.
25.744 0.017 Not Supported
3.There is no significant difference in the mean value of Environmental Issues with respect to number of employees.
20.306 0.020 Not Supported
4.There is no significant difference in the mean value of Environmental Issues with respect to number of suppliers associated with.
27.393 0.237 Supported
5. There is no significant difference in the mean value of Environmental Challenges with respect to nature of industry.
16.567 0.010 Not Supported
6. There is no significant difference in the mean value of Environmental Challenges with respect to organizational status
7.800 0.003 Not Supported
7. There is no significant difference in the mean value of Environmental Challenges with respect to number of employees.
7.205 0.000 Not Supported
8. There is no significant difference in the mean value of Environmental Challenges with respect to number of suppliers associated with.
1.801 0.148 Supported
9. There is no significant difference in the mean value of Environmental Management Practices with respect to nature of industry.
11.392 0.000 Not Supported
10. There is no significant difference in the mean value of Environmental Management Practices with respect to organizational status.
21.466 0.000 Not Supported
11. There is no significant difference in the mean value of Environmental Management Practices with respect to number of employees.
6.774 0.000Not Supported
S. No. Hypothesis F Sig. Result12. There is no significant difference in the
mean value of Environmental Management Practices with respect to number of suppliers associated with.
30.604 0.021 Not Supported
13. There is no significant difference in the mean value of Prevention of Environmental Pollution with respect to nature of industry.
224.925 0.003 Not Supported
14. There is no significant difference in the mean value of Prevention of Environmental Pollution with respect to organizational status.
36.626 0.000 Not Supported
15. There is no significant difference in the mean value of Prevention of Environmental Pollution with respect to number of employees.
15.829 0.032 Not Supported
16. There is no significant difference in the mean value of Prevention of Environmental Pollution with respect to number of suppliers associated with.
42.046 0.008 Not Supported
17. There is no significant difference in the mean value of Resource Conservation with respect to nature of industry.
411.680 0.212 Supported
18. There is no significant difference in the mean value of Resource Conservation with respect to organizational status.
18.716 0.000 Not Supported
19. There is no significant difference in the mean value of Resource Conservation with respect to number of employees.
15.516 0.004 Not Supported
20. There is no significant difference in the mean value of Resource Conservation with respect to number of suppliers associated with.
37.688 0.000 Not Supported
21. There is no significant difference in the mean value of Competitiveness with respect to nature of industry.
55.035 0.020 Not Supported
22. There is no significant difference in the mean value of Competitiveness with respect to organizational status.
50.457 0.012 Not Supported
23. There is no significant difference in the mean value of Competitiveness with respect to number of employees.
17.045 0.000 Not Supported
24. There is no significant difference in the mean value of Competitiveness with respect to number of suppliers associated with.
6.795 0.218 Supported
25. There is no significant difference in the
S. No. Hypothesis F Sig. Resultmean value of Economic Performance with respect to nature of industry.
28.412 0.000 Not Supported
26. There is no significant difference in the mean value of Economic Performance with respect to organizational status.
45.937 0.023 Not Supported
27. There is no significant difference in the mean value of Economic Performance with respect to number of employees.
18.772 0.000 Not Supported
28. There is no significant difference in the mean value of Economic Performance with respect to number of suppliers associated with.
16.902 0.034 Not Supported
5.3 The Conceptual Model
The proposed research model/conceptual model as developed in Chapter IV has been talked
about earlier. The proposed model is being presented here again.
Exhibit 5.1: PROPOSED RESEARCH MODEL*
(*Developed by Researcher)
The data with respect to the different dimensions of the proposed conceptual model were
collected with the help of questionnaire based survey.
All the dimensions of the proposed conceptual model were then assessed for the validity of
the conceptual model using SEM technique with the help of AMOS 16.0
ENVRN.ISSUES
ENVRN.CHAL-LENGES
POLLUTION PREVENTION
RESOURCE CONSERVATIO
N
ECONOMIC PERFORMANCE
COMPETITIVENESS
ENVIRONMENTAL MANAGEMENT PRACTICES
Lean Manufacturing
Improved Technology
TQM
Reengineering
Reverse Logistics
Remanufacturing
Finance/Cost
Waste Management
Govt. Policies/Regul.
Exhibit 5.2 Path Diagram for Structural Equation Modelling
*issues = Environmental Issues, challenges = Environmental Challenges, envrn. mgt. pr. = Environmental Management Practices, Pollution Prevention = Pollution Prevention, Resource Conservation = Resource Conservation, Competitiveness = Competitiveness, EconomicPerfor = Economic Performance
5.4 Tests of Significance and Inference
The test of absolute fit measures, involves measuring the overall model fit using a
likelihood ratio chi-square statistic. The chi-square statistic indicates that the matrices
between the hypothesized model and the actual data are statistically different at a designated
significance level. The objective of this research is to have the hypothesized model “fit” the
actual data; thus, the absolute fit measure would preferably indicate no significant
difference. However, since the chi-square statistic is sensitive to sample size, additional
measures of overall fit must be used. Therefore, the goodness-of-fit-index (GFI) and root
mean square error of approximation (RMSEA) must also be examined. GFI represents the
percent of observed co-variances explained by the researcher’s hypothesized structural
equation model. A GFI of 0.95 is preferred; however, a GFI of 0.90 is deemed acceptable
for the model’s acceptance (Hair et. al.; 1998). AGFI, a second but similar measure to the
GFI, instead uses the mean squares instead of the sums of squares in the numerator and
denominator of (1 – GFI) and is interpreted at acceptance levels similar to the GFI of 0.90
or higher.
RMSEA, or root mean square error of approximation, indicates the errors of fit in the
covariance matrix. Values of 0.1 or less are acceptable and a recommended lower level is
0.08. CFI, a comparative fit index, is used to compare the model fit to other models. A
range of 0.95 or above infers a good fit of the model to the actual data (Hu & Bentler,
1999).
Parsimony indices are typically lower than the normed fit measures and typically range in
the 0.50 to 0.60 range with values larger than 0.60 considered satisfactory (Blunch 2008).
The default model absolute fit indices include the following: RMSEA = 0.016, GFI = 0.979,
AGFI =0.903, PGFI = 0.655 and CFI = 0.969. These indices confirmed an adequate fit of
the model to data. The model RMSEA of 0.016 which is well below the recommended level
of 0.08, indicates that the errors in the fit of the covariance matrix are very small. A value of
0.08 or less indicates a reasonable error of approximation, while a value of 0.05 or less
indicates a close fit of the model in relation to the degree of freedom.
The CFI of 0.969 is a normed fit index with a range from 0 to 1 and it is particularly useful
for estimating model fit with small samples (Hu & Bentler, 1999). In summary, the absolute
fit indices provide evidence of a good model fit to the data.
Table 5.30: Fit Indices for the Model
Fit Statistics Recommended
Values*
Observed
ValuesNormal Theory Weighted Least Squares Chi-
Square
N.A. 9106.267
Degrees of Freedom N.A. 1995Chi-Square/ Degrees of Freedom < 3.0 2.515
Root Mean Square Error of Approximation
(RMSEA)
≤ 0.1 0.016
P-Value for Test of Close Fit < 0.05 0.000Normed Fit Index (NFI) ≥ 0.90 0.977
Comparative Fit Index (CFI) ≥ 0.95 0.969Goodness of Fit Index (GFI) ≥ 0.90 0.979
Adjusted Goodness of Fit Index (AGFI) ≥ 0.90 0.903Parsimony Goodness of Fit Index (PGFI) ≥ 0.50 0.655
(* As proposed by Chien & Shih (2007) and Schumacker & Lomax (2004))
5.5 Hypotheses Testing for ascertaining impacts between dimensions
The statistical significance of all of the structural parameter estimates was examined to
determine the validity of the hypothesised paths. The values have been tested for
significance on the basis of Critical Ratio (C.R.) value. According to Garson (2005), values
are significant if Critical Ratio is more than 1.96. The hypotheses have been tested and their
results discussed as under:
H029: There is no significant impact of environmental issues on environmental
management practices with regard to select SMEs.
From the results, it has been established that the relationship between environmental issues
and environmental management practices is statistically significant (C.R=3.424), which is
more than the standard C.R. value of 1.96. Further, the path coefficient value is equal to
0.215 which is positive. This suggests that environmental issues have a positive significant
impact on environmental management practices.
Thus, the hypothesis H029: There is no significant impact of environmental issues on
environmental management practices is not supported while alternate hypothesis is
supported.
H030: There is no significant impact of environmental challenges on environmental
management practices with regard to select SMEs.
From the results, it has been established that the relationship between environmental
challenges and environmental management practices is statistically insignificant
(C.R.=1.610), which is less than the standard C.R. value of 1.96. Moreover, the path
coefficient value is equal to 0.101 which is positive. This implies that environmental
challenges have a positive but insignificant impact on environmental management practices.
Thus, the hypothesis H030: There is no significant impact of environmental challenges on
environmental management practices is supported while alternate hypothesis is not
supported.
H031: There is no significant impact of environmental management practices on
resource conservation with regard to select SMEs.
From the results, it has been established that the relationship between environmental
management practices and resource conservation is statistically significant (C.R=18.878),
which is more than the standard C.R. value of 1.96. Moreover, the path coefficient value is
equal to 0.774 which is positive. This implies that environmental management practices
have positive significant impact on resource conservation.
Hence, the hypothesis H031: There is no significant impact of environmental management
practices on resource conservation not supported whereas alternate hypothesis is
supported.
H032: There is no significant impact of environmental management practices on pollution prevention with regard to select SMEs.
From the results, it has been established that the relationship between environmental
management practices and pollution prevention is statistically significant (C.R=15.173),
which is more than the standard C.R. value of 1.96. Further, the path coefficient value is
equal to 0.700 which is positive. This implies that environmental management practices
have a positive significant impact on pollution prevention.
Thus, the hypothesis H032: There is no significant impact of environmental management
practices on pollution prevention is not supported while alternate hypothesis is supported.
H033: There is no significant impact of resource conservation on competitiveness of
select SMEs.
From the results, it has been established that the relationship between resource conservation
and competitiveness is statistically significant (C.R= 2.539), which is more than the
standard C.R. value of 1.96. Further, the path coefficient value is equal to 0.301 which is
positive. This implies that resource conservation has a positive significant impact on
competitiveness.
Thus, the hypothesis H033: There is no significant impact of resource conservation on
competitiveness is not supported while alternate hypothesis is supported.
H034: There is no significant impact of resource conservation on economic performance
of select SMEs.
From the results, it has been established that the relationship between resource conservation
and economic performance is statistically insignificant (C.R= -9.645), which is less than the
standard C.R. value of 1.96. Further, the path coefficient value is equal to -0.893 which is
negative. This implies that resource conservation has a negative but insignificant impact on
economic performance.
Thus, the hypothesis H034: There is no significant impact of resource conservation on
economic performance is supported while alternate hypothesis is not supported.
H035: There is no significant impact of pollution prevention on competitiveness of select
SMEs.
From the results, it has been established that the relationship between pollution prevention
and competitiveness is statistically insignificant (C.R= -10.233), which is less than the
standard C.R. value of 1.96. Moreover, the path coefficient value is equal to -1.934 which is
negative. This indicates that pollution prevention has a negative but insignificant impact on
competitiveness.
Thus, the hypothesis H047: There is no significant impact of pollution prevention on
competitiveness is supported whereas alternate hypothesis is not supported.
H036: There is no significant impact of pollution prevention on economic performance of
select SMEs.
From the results, it has been established that the relationship between pollution prevention
and economic performance is statistically significant (C.R=21.480), which is more than the
standard C.R. value of 1.96. However, the path coefficient value is equal to 2.564 which is
positive. This implies that pollution prevention has a positive significant impact on
economic performance.
Hence, the hypothesis H036: There is no significant impact of pollution prevention on
economic performance is not supported whereas alternate hypothesis is supported.
H037: There is no significant of competitiveness on economic performance of select
SMEs.
From the results, it has been established that the relationship between competitiveness and
economic performance is statistically insignificant (C.R= -18.957), which is less than the
standard C.R. value of 1.96. However, the path coefficient value is equal to -1.678 which is
negative. This implies that competitiveness has a negative but insignificant impact on
economic performance.
Thus, the hypothesis H037: There is no significant impact of competitiveness on economic
performance is supported while alternate hypothesis is not supported.
H038: There is no significant impact of economic performance on competitiveness of
select SMEs.
From the results, it has been established that the relationship between economic
performance and competitiveness is statistically significant (C.R=18.949), which is more
than the standard C.R. value of 1.96. However, the path coefficient value is equal to .949
which is positive. This implies that economic performance has a positive significant impact
on competitiveness.
Thus, the hypothesis H038: There is no significant impact of economic performance on
competitiveness is not supported whereas alternate hypothesis is supported.
Hypotheses testing results and the structural parameter estimates have been represented in
Table 5.31
Table 5.31: Structure Parameters and Hypotheses Testing Results
S.
No.
Hypothesis Path Critical
Ratio (C.R.)
Results
1. H029 Environmental Issues
→Environmental
management practices
3.424 Not Supported
2. H030 Environmental Challenges→ Environmental management
practices
1.610 Supported
3. H031 Environmental management practices →Resource
conservation
18.878 Not Supported
4. H032 Environmental management practices →Pollution
prevention
15.173 Not Supported
5. H033 Resource conservation →Competitiveness
2.539 Not Supported
6. H034 Resource conservation →Economic performance
-9.645 Supported
7. H035 Pollution prevention→ Competitiveness
-10.233 Supported
8. H036 Pollution prevention → Economic performance
21.480 Not Supported
9. H037 Competitiveness → Economic performance
-18.957 Supported
10 H038 Economic performance→ Competitiveness
18.949 Not Supported
Hypotheses testing results show that there is a linear positive significant relationship
between environmental issues & environmental management practices, environmental
management practices & resource conservation, environmental management practices &
pollution prevention, resource conservation & competitiveness, pollution prevention &
economic performance and lastly economic performance & competitiveness. This signifies
that for the above dimensions, there is a direct positive relationship.
The impact of environmental challenges on environmental management practices too is
positive. However, that impact is statistically insignificant.
On the other hand, there is a negative relationship between resource conservation and
economic performance, pollution prevention and competitiveness, and competitiveness and
economic performance. However, these impacts are statistically insignificant as the C.R.
values for each of these are lower than the standard C.R. value of 1.96. This shows that
there is an overall positive impact of the dimensions on each other.
In this chapter, the proposed hypotheses relating to dimensions of environmental concerns
across the organizational variables as well as hypotheses developed in order to assess the
impact of the various dimensions of environmental concern viz. Environmental Issues (I),
Environmental Challenges (C), Environmental Management Practices (EP), Pollution
Prevention (PP), Resource Conservation (RC), Competitiveness (Comp), and Economic
Performance (EC) on each other and their cause-effect relationship, were tested using one
way ANOVA and Structural Equation Modelling.
CHAPTER VI
CONCLUSIONS AND RECOMMENDATIONS
6.1 Introduction
6.2 Key findings
6.3 Suggestions
6.4 Directions for future research
Chapter VICONCLUSIONS AND RECOMMENDATIONS
6.1 Introduction
This chapter summarizes the research work undertaken, presents the key findings and
discusses the hypotheses results. Suggestions and recommendations for future research are
also dealt with.
6.2 Key findings
The key findings of the present research work related to environmental issues,
environmental challenges, environmental concerns, pollution prevention, resource
conservation, competitiveness and economic performance are discussed below
• There exist significant differences in the mean values environmental issues,
environmental challenges, environmental management practices, pollution
prevention, competitiveness, and economic performance with respect to nature of
industry.
• Leather and Tannery industry pay highest importance to environmental issues as
compared to other industries.
• Lock, Hardware and Allied face more environmental challenges as compared to
other SMEs.
• Pottery /Ceramic industry pay more importance to environmental management
practices as compared to other industries.
• Leather and Tannery industry is more concerned towards the prevention of
environmental pollution in comparison to other industries.
• Leather and Tannery industry employ more competitive strategies as compared to
other industries.
• Pottery/Ceramic industry performs economically better as compared to other
industries.
• There exist significant differences in the mean values of environmental issues,
environmental challenges, environmental management practices, pollution
prevention, resource conservation, competitiveness and economic performance with
respect to organizational status.
• Organizations with medium operation pay more attention towards environmental
issues as compared to small and micro level organizations.
• Micro level organizations face more environmental challenges as compared to small
and medium organizations.
• Medium scale organizations pay more importance to environmental management
practices as compared to micro and small scale organizations.
• Medium scale organizations are more concerned towards the prevention of
environmental pollution as compared to micro or small scale organizations.
• Small scale organizations are more concerned towards the resource conservation as
compared to micro and medium scale organization.
• Medium scale organizations are more competitive as compared to micro or small
organizations.
• Medium scale organizations perform economically better as compared to micro or
small scale organizations.
• There exist significant differences in the mean values of environmental issues,
environmental challenges, environmental management practices, pollution
prevention, resource conservation, competitiveness and economic performance with
respect to number of employees.
• Organizations having employees in the range 51 to 100 pay more importance to
environmental issues as compared to organizations having less than 51 and more
than 100 employees.
• Organizations employing less than 25 employees have to deal with more
environmental challenges as compared to organizations employing either 25 or more
employees.
• Organizations having more than 100 employees pay more importance to
environmental management practices in comparison to organizations employing lee
than 100 employees.
• Organizations having strength of employees in the range of 51 to 100 are more
concerned towards the prevention of environmental pollution as compared to
organizations having less than 51 or more than 100 employees.
• Organizations employing employees in the range of 51 to 100 pay more importance
to resource conservation as compared to organizations employing either less than or
equal to 50 or more than 100 employees.
• Organizations engaging more than 100 employees are more competitive as
compared to other organizations engaging up to 100 employees.
• Organizations employing more than 100 employees perform economically better
than the organizations employing up to 100 employees.
• There exist significant differences in the mean values of environmental management
practices, pollution prevention, resource conservation, and economic performance
with respect to number of suppliers associated with. It has also been observed that
• Organizations having more than 20 suppliers pay more importance to environmental
management practices as compared to organizations having suppliers up to 20.
• Organizations engaging more than 20 suppliers pay more importance to prevention
of environmental activities as compared to organizations engaging up to 20
suppliers.
• Organizations associated with more than 20 suppliers pay more importance to
resource conservation as compared to organizations having suppliers either 20 or
less.
• Organizations having more than 20 suppliers perform economically better than
organizations having up to 20 suppliers.
• Nature of industry be it micro, small or medium does not have any significance with
regard to resource conservation practices.
• The number of suppliers does not have any significance as far as environmental
issues are concerned. Organizations having any number of suppliers encounter
similar environmental issues.
• The number of suppliers does not have any significance with respect to
environmental challenges. Organizations having any number of suppliers face
similar environmental challenges.
• The number of suppliers making the supplies to the industry does not have any
significance with regard to competitiveness. Organizations having any number of
suppliers encounter similar environmental challenges.
• There exists a positive significant impact of environmental challenges on
environmental management practices.
• There exists a negative but insignificant impact of resource conservation on
economic performance.
• There exists a negative but insignificant impact of pollution prevention on
competitiveness.
• There exists a negative but insignificant impact of competitiveness on economic
performance.
• There exists a positive significant impact of environmental issues on environmental
management practices.
• There is a positive significant impact of environmental management practices on
resource conservation.
• There exists a positive significant impact of environmental management practices on
pollution prevention.
• There exists a positive significant impact of resource conservation on competitiveness.
• There is a positive significant impact of pollution prevention on economic
performance.
• There exists a positive significant impact of economic performance on
competitiveness.
Environmental Issues
This has been found that the environmental issues vary significantly with the nature of
industry. This is quite clear as the industry vary with the nature of business and the diversity
of the process involved. The environmental issues are also dependent on the status of the
organization i.e. micro, small or medium. The result shows that the medium level
companies are more concerned towards environmental issues. Further, it has also been
found that environmental issues vary significantly with the size of the workforce, whereas
the number of suppliers associated with the organization does not have any significance
with regard to environmental issues.
Environmental Challenges
The hypotheses results show that environmental challenges vary significantly with the
nature of industry. This is evident from the fact that the nature of business plays a
significant role. It has also been found that the environmental challenges vary significantly
with the status of the organization. The micro level organizations have to tackle more
environmental challenges because of one reason or the other. The result also draws to the
conclusion that environmental challenges vary significantly with the number of the
employees. Further, we conclude that the number of suppliers associated with the
organization does not have any significant difference.
Environmental Management Practices
It has been concluded from the results that environmental management practices vary
significantly with the nature of the industry. Pottery and Ceramic SMEs are more
concerned towards the environment. Significant variations are also found in environmental
concerns with respect to the status of organization (micro, small & medium). The results
also have led to conclude that environmental concerns vary significantly with the
organizational workforce strength. Further, environmental concerns also vary significantly
with the number of organizational suppliers.
Pollution Prevention
The adoption of prevention strategies for environmental pollution varies significantly with
the nature of industries. Leather and Tannery industry are more conscious towards the
pollution prevention. The results also convey that pollution prevention also vary
significantly with the status of the organization. The results also bring about the presence of
significant variations in prevention of environmental pollution with respect to employees
strength and number of suppliers.
Resource Conservation
The results show that there is no significant variation in resource conservations with respect
to nature of industry. Leather and Tannery industries are seriously more concerned towards
the resource conservation as it may lead to economies of scale. It is also seen that resource
conservation varies significantly with the status of the organization. Small organizations are
more worried towards resource conservation. Further, it has also been observed from the
results that resource conservation varies significantly with the number of employees and
also with the number of suppliers.
Competitiveness
It has been noticed from the results that Competitiveness varies significantly with the nature
of industry. Leather and Tannery industry apply more competitiveness techniques as
compared to other industries. It has also been noted that there is a significant variation in
Competitiveness with respect to status of organization. The medium scale organizations are
more competitive as compared to micro or small scale organizations. Further, it has been
seen from the results that Competitiveness varies significantly with the number of
employees the organization have, whereas it was observed that the number of suppliers
making supplies to the organization does not vary significantly.
Economic Performance
Significant variations are observed from the results, Economic Performance varies
significantly with regard to the nature of industry. Pottery/Ceramic enjoys more economic
performance as compared to the other industries. It has also been observed that the medium
scale organizations perform better on the front of economic performance as compared to
micro or small scale organizations. Further, the results show that economic performance
varies significantly with the employee strength of the organization and the number of
suppliers making supplies to the organization.
6.3 Suggestions
In order to make this planet worth living, it becomes strictly important to keep a check on
the growing levels of environmental pollution in the Indian SMEs. Problems related with
the environment be it air, water, noise, or soil pollution, solid hard waste disposal, forest
and agricultural degradation of land, ozone layer depletion etc are the most sensitive issues
now a days. Government rules and regulations are not implemented to its full length.
Environmental awareness of the masses is required to be raised. Though government has
taken some steps in this direction by introducing environmental education in the curriculum
of schools and colleges, still a lot of other steps are required to be taken.
The government may provide financial as well as technical help to SMEs in order to ensure
proper implementation of suggested rules and regulations conforming to international
standards. Social activist’s role and the consumer awareness can help in protecting the
environment to some extent.
The firms, on their part, may realize their responsibilities of protecting the environment and
conserving the natural resources, guaranteeing better returns as a by-product. The business
organizations are required to take steps in this direction. As the awareness regarding the
environment increases customers’ demand for the green products will increase.
Technological advancement will help in curbing this problem. Pollution prevention
strategies, reverse logistics, TQEM, re-engineering lean manufacturing etc will benefit both
the organizations as well as customers.
All these steps, if implemented and strictly followed, may help in making this world a better
place to live.
6.4 Directions for future research
• Only four sectors of SMEs have been targeted, which may not reflect the entire status
of environmental issues and challenges in Indian SMEs. Further work and studies may
be carried out in other Indian SMEs. It may help to understand the status of
environmental issues and challenges in SMEs as a whole.
• The seven dimensions were identified for this research work, future research proposal
may include some other dimensions such as environmental awareness and
sustainability etc.
• The work was confined to a limited geographical area of Uttar Pradesh in India; the
future research may cover a wider geographical area of the country and cover other
industrial cluster.
• The sample size of this study was 240 which may be increased so that a better
understanding of the problem is possible.
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ANNEXURES
ANNEXURE I
Research Questionnaire
Dear Respondent I am Farrukh Rafiq, doing Ph.D in the Department of Business Administration, Aligarh Muslim University under the supervision of Prof. Khalid Azam Sb. The topic of my research is “Study of Environmental Issues and Challenges in Small & Medium Enterprises (SMEs).” This research work is undertaken in partial fulfillment of requirement for the award of Ph.D. degree. I would be grateful if you kindly spend some of your precious time and help in conducting this survey, by filling the enclosed questionnaire. The data collected will be used purely for research and academic purpose. I assure you that all the responses will be kept strictly confidential and will be used for academic purpose only. I look forward for your response. Thanks.
Section A
1. Name of the Organization:
2. Your organization has the production activity in (Please tick)
(a) Lock, Hardware and Allied (b) Pottery/Ceramics (c) Leather and Tannery (d) Glass
3. Indicate the category your organization belongs to:
(a) Micro Scale (b) Small Scale (c) Medium scale
4. Indicate the total number of employees in your organization
(a) Less than 25 (b) 26 to 50 (c) 51 to 100 (d) More than 100
5. Indicate the average number of suppliers engaged by your organization for supplying raw
material/semi finished components in the final products
(a) Less than 5 (b) Between 6 to 10(c) Between 11 to 20 (d) More than 20
Section B
ISSUES
Q1. The following issues are critically important in integrating environmental concerns in
your business processes.
*SD = Strongly Disagree, D = Disagree, N = Neutral, A = Agree, SA = Strongly Agree
a. Government policies and regulationsb. Green procurement practicesc. Financial constraintsd. Societal concern for protection of natural environmente. Lack of support and guidance from regulatory authorities
CHALLENGES
Q2. The following challenges hinder integration of environmental concerns in your business
processes.
a. Lack of commitment from top management
b. Inadequate adoption of reverse logistics practices
c. Inadequate strategic planning
d. Non adoption of cleaner technology
e. Lack of corporate social responsibility
f. Proper workplace management/housekeeping practices
g. Lean manufacturing practices
ENVIRONMENTAL MANAGEMENT PRACTICES
SD1
D N A SA5
SD D N A SA
SD D N A SA
SD D N A SA
SD D N A SA
SD D N A SA
SD D N A SA
SD D N A SA
SD D N A SA
SD D N A SA
SD D N A SA
SD D N A SA
Q3. Following are the statements as regards environmental concerns with respect to your
manufacturing sector. Please show your agreement or disagreement on a five point scale as mentioned
below.
a. The issue of natural resource depletion is highly significant
b. Use of hazardous chemicals & substances is a highly significant issue
c. Low usage of renewable energy sources is highly significant
d. Low level of environmental awareness of the work force (Eco-literacy) is highly significant
Q4. Following are the statements about implementation of Total Quality Environmental Management practices/ Green Business practices in your organization.
a. Assignment of roles and responsibilities with respect to environmental programs has been significantly implemented.
b. Conduct of Environmental training program for the employees has been executed
c. The practice of Benchmarking environmental performance has been significantly implemented
d. Use of cleaner technology/production processes to minimize wastes and make savings has been significantly implemented
e. Continuous environmental performance improvement program has been significantly executed
Q5. On a scale of five, rate the following factors while selecting the manufacturing processes.
a. The Optimization of processes to reduce air emissions is an important consideration
b. The Optimization of processes to reduce water use is an important consideration
c. The Optimization of processes to reduce solid waste is an important consideration
d. The Optimization of processes to reduce noise is an important consideration
SD D N A SA5
SD D N A SA5
SD D N A SA5
SD D N A SA5
SD D N A SA5
SD D N A SA5
SD D N A SA5
SD D N A SA5
SD D N A SA5
SD D N A SA5
SD D N A SA5
SD D N A SA5
SD D N A SA5
Q6. Rate on a scale of five, your agreement/disagreement about the extent of application of the
following statements in your organization.
a. Recycle from the waste streams and reutilizing them in the manufacturing process is generally practiced
b. Packaging material is reused after repair or modification for further packaging
c. Products that can be reused after repair or modification are generally used
d. Redesigning a product to improve performance and reduce waste is generally practiced
e. Products are manufactured that can be easily dismantled at the end-of-life and their parts/components are reutilized
f. Sorting valuable raw materials which can be recycled or sold in open market is a common practice
g. Converting a discarded product into a new product through appropriate processing is commonly practiced
Q7. On a scale of five, show your agreement/disagreement on the following statements regarding the level of support from the government for environmental regulation.
a. Information on the current regulations by issuing guidelines. b. Information on cleaner technologies c. Information regarding Tax incentivesd. Promotion on environmental labels/eco-markse. Environmental education to raise awarenessf. Encouraging self assessment of regulatory compliancesg. Expediting environmental clearance/permits
POLLUTION PREVENTION
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Q8. The following are the statements regarding concern for environmental pollution with regard to
your manufacturing unit. On a scale of five, please show your agreement/disagreement.
a. The issue of Air emissions is highly significant
b. The issue of Water pollution is highly significant
c. The issue of Solid waste is highly significant
d. The issue of Hazardous waste is highly significant
e. The issue of Noise pollution is highly significant
f. The issue of Liquid waste is highly significant
g. The issue of Waste disposal is highly significant
Q9. The following factors of pollution prevention strategies benefit your organization while selecting
the manufacturing processes. Show your agreement/disagreement on the scale of five.
a. Increased efficiencies and productivityb. Improved worker safetyc. Lower operational and environmental compliance costsd. Reduced or eliminated long-term liabilitiese. Decreased disposal costsf. Decreased use of raw materialsg. Diminished need for onsite storage spaceh. Greater compliance with government regulationsi. Protection of natural resources, providing for long term sustainability of the business
j. Enhanced employee morale and employee retention
RESOURCE CONSERVATION
Q10. On the scale of five, show your agreement/disagreement regarding the importance of the following factors related to your organization.
a. Lower consumption of raw material is highly significant for resource conservation
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b. Quantity of water used is highly significant for resource conservation
c. Waste water generated is highly significant for resource conservation
d. Quantity of water treated is significantly important for resource conservation
e. Level of electricity consumption is highly significant for resource conservation
f. The level of fuel consumption is highly significant for resource conservation
g. Hazardous waste reduction is highly significant for resource conservation
COMPETITIVENESS
Q11. The following competitive benefits are observed/ perceived through integration of
environmental concerns.
a. Better corporate image
b. Improved working environment
c. Improved employees environmental awareness
d. Better competitive advantage through green products
e. Reduced risk of litigation
f. Increased social acceptance
g. Exploring international markets
h. Creating good business relations with customers & other stake holders
ECONOMIC PERFORMANCE
Q12. The following economic benefits are observed/ perceived through integration of environmental
concerns.
a. Improvement in return on investment
b. Increased productivity
c. Risk reduction related to termination of business
d. Better strategic planning through awareness of challenges ahead
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ANNEXURE II
Questionnaire (Hindi Format)
ANNEXURE III
Table1 Total Variance Explained
Component
Initial EigenvaluesExtraction Sums of Squared
LoadingsRotation Sums of Squared
Loadings
Total% of
VarianceCumulative
% Total% of
VarianceCumulative
% Total% of
VarianceCumulative
%
1 15.797 24.302 24.302 15.797 24.302 24.302 11.468 17.643 17.643
2 7.298 11.227 35.530 7.298 11.227 35.530 5.991 9.217 26.859
3 4.128 6.351 41.881 4.128 6.351 41.881 4.717 7.257 34.117
4 3.050 4.692 46.573 3.050 4.692 46.573 4.376 6.733 40.850
5 2.642 4.064 50.637 2.642 4.064 50.637 3.637 5.595 46.445
6 2.127 3.273 53.910 2.127 3.273 53.910 3.407 5.241 51.686
7 1.749 2.690 56.601 1.749 2.690 56.601 3.194 4.915 56.601
8 1.570 2.416 59.017
9 1.531 2.356 61.372
10 1.365 2.100 63.472
11 1.300 2.000 65.472
12 1.225 1.884 67.356
13 1.186 1.824 69.180
14 1.152 1.773 70.953
15 1.035 1.592 72.546
16 .966 1.486 74.032
17 .938 1.444 75.475
18 .882 1.357 76.832
19 .839 1.290 78.123
20 .808 1.244 79.366
21 .770 1.184 80.550
22 .721 1.109 81.659
23 .717 1.103 82.763
24 .669 1.029 83.791
25 .629 .968 84.759
26 .617 .949 85.708
27 .586 .901 86.609
28 .557 .858 87.466
29 .536 .824 88.291
30 .525 .807 89.098
31 .489 .753 89.850
32 .472 .726 90.576
33 .463 .712 91.288
34 .426 .656 91.944
35 .414 .636 92.580
36 .389 .598 93.178
37 .366 .563 93.742
38 .318 .488 94.230