Is Environmental Management an Extension of Excellence in Advanced Manufacturing Practices?

This paper investigates the impact of two advanced manufacturing practices, continuous improvement and supply chain management, on the development of environmental management programs. The research premise is that environmental management is partially an extension of those two manufacturing practices. The statistical results confirm the mediated effect of environmental management and suggest that there are two routes for improving manufacturing performance: (1) the direct influence of supply chain practices and continuous improvement, and (2) the indirect influence of supply chain practices and continuous improvement through the mediator, EM programs. The implication is that continuous improvement and supply chain management provide the necessary "complementary assets/capabilities" to develop an effective EM program. Companies must emphasize integrating environmental strategies with both practices to improve manufacturing performance.