Department of Business Development and Technology

Environmental practices and firm performance in emerging markets: The mediating role of product quality

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  • Usman Ahmed, University of Michigan, United States
  • Ismail Golgeci
  • Erkan Bayraktar, American University of the Middle East
  • ,
  • Ekrem Tatoglu, Ibn Haldun University, Bahcesehir University Engineering
Environmental practices have not received as much research attention in emerging market contexts as traditional topics like quality. However, the importance of environmental practices for a firm’s production strategy has been increasing at an unprecedented level across the globe. Our research objective is, therefore, to investigate the interplay between environmental practices and quality in the pursuit of firm performance. Relying on 492 responses from Turkish manufacturers to test our hypotheses, we show that environmental practices directly improve the quality of products over and above the effect of quality management practices in emerging markets. Product quality, in turn, is important for increasing firm performance, acting as a mediator for the positive effects of environmental practices on performance. Thus, we reveal that product quality functions as an instrumental conduit between environmental practices and firm performance in emerging markets like Turkey where stakeholder pressures are weak, and regulations are often not properly enforced.
Original languageEnglish
JournalProduction Planning & Control
Pages (from-to)315-328
Number of pages14
Publication statusPublished - 2019

    Research areas

  • Environmental practices, Emerging markets, Quality management, Firm performance, Product Quality

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