This study is aimed to investigate the relationship between environmental performance, environmental innovation, and financial performance of firms. A total of 124 responses were collected from managers of manufacturers certified by ISO 14001 EMS in Malaysia, and the data was subjected to a structural equation analysis using the Smart PLS version 3.2.7 software. The results have endorsed environmental competitive capabilities i.e. environmental innovation and environmental performance as the key enablers for the creation of economic values for environmental proactive manufacturing firms. Moreover, environmental innovation is also found to be the mediator that transforms the benefits of environmental performance into financial performance.

Because it has become more and more urgent for organizations to implement environmental strategies with the support of organizational culture, this study considers it necessary to conduct an empirical study to examine the impact of organizational culture on environmental performance. Synthesizing the perspectives of organizational culture and environmental performance, we applied a theoretical model in the manufacturing industry of Pakistan linking an organizational culture that supports environmental practices for better environmental performance. Based on a survey of 314 manufacturing firms, using Smart-PLS, the current study found that adaptability, mission and consistency positively affect environmental performance. However, involvement does not have an effect on environmental performance. Additionally, organizational culture as a latent variable has a strong impact on environmental performance. The study is one of the first, to the author’s knowledge that links OC and EP in a developing economy, in this case Pakistan.

Purpose: The purpose of this paper is to analyze the influence of organizational culture (OC) on a firm’s environmental performance (EP) via the mediating variable of environmental management control systems (EMCS).Design/methodology/approach: Data were collected from 314 Pakistani manufacturing firms via the questionnaire survey, and the structural equation modeling was used to test the relationships.Findings: The stable and flexible values of OC affect the effectiveness of formal and informal EMCS. Informal EMCS mediates the relationship between flexible values and EP, whereas formal EMCS mediates the stable values and EP. Overall, the data reveal that the integration of environmental culture within an organization’s culture and control systems leads to improve EP.Originality/value: The study is one of the first, to the author’s knowledge, that links OC, EMCS, and EP in a developing economy, in this case Pakistan.

Management Control Systems and Performance: The Mediating Role of Organisational Capabilities in Malaysia