The relationship between sustainability development and organizational effectiveness

Waste recycling and organizational effectiveness in Nigeria


Research Paper (undergraduate), 2019

60 Pages, Grade: A


Excerpt

TABLE OF CONTENTS

ABSTRACT

CHAPTER ONE
INTRODUCTION
Background to the Study
Statements of the Problem
Objectives of the Study
Research Questions
Research Hypotheses
Significance of the Study
Scope and Limitations of the Study
Definition of Terms
Conclusion

CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
CONCEPTUAL FRAMEWORK
Overview of Sustainability
The Concept of Sustainability Development
Environmental Sustainability
Dimensions of Environmental Sustainability
Waste Recycling
Significance of waste recycling to manufacturing companies
Benefits of the implementation of sustainable business practices
Cost reduction
Public relations
Employee satisfaction
Concept of Organizational Effectiveness
Conceptual Model
THEORETICAL FRAMEWORK
Resource-based View Theory
The Resource Dependence Theory
EMPIRICAL REVIEW
Conclusion

CHAPTER THREE: RESEARCH METHODOLOGY
Introduction
Research Design
Area of Study
Population of the Study
Sample Technique
Sources of Data
Data collection Instrument
Validity of the Research Instrument
Reliability of Research Instrument
Administration of the Instrument
Scoring of Research Instrument
Method of Data Analysis:
Statistical Measure:
Model Specification:
Decision Rule Regarding Testing of the Hypotheses

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
Introduction
Presentation of Data
Testing of Hypotheses
Discussion of Finding

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
INTRODUCTION
SUMMARY OF FINDINGS
Conclusion
Recommendations

References

ABSTRACT

This study, “Sustainability Development and Organizational effectiveness” (A study of Manufacturing firms Port Harcourt, Rivers State) was to examine the relationship between the sustainable development practices and organizational effectiveness in manufacturing firms in Port Harcourt, Rivers State. Specifically, the study sought to achieve the following objectives; To examine the relationship between waste recycling and increase in output in manufacturing firms in Port Harcourt, Rivers State.; to investigate on the relationship between waste recycling and cost reduction in manufacturing firms in Port Harcourt, Rivers State; to investigate on relationship between waste recycling and increase in sales volume in manufacturing firms in Port Harcourt, Rivers State and to determine the relationship between waste recycling and environmental pollution reduction in manufacturing firms in Port Harcourt, Rivers State. For the purpose of this study, the total population is two hundred and twenty (220) adopted from ten plastic manufacturing firms located within Obio/Akpor Local Government Area and Port Harcourt City Local Government Area was ascertained using a purposive sampling techniques. Furthermore, a purposive sampling is applicable to this study because the respondents are unique hence; it gives a wider view selection of the respondents of the study at ease effort. A sample size of 120 for this study was gotten using taro yamane formula. To gather primary data from the respondents, a closed ended questionnaire was distributed to enable quantitative statistical analysis. The study utilized Pearson Product Moment Correlation (PPMC) in which Scientific Package for Social Sciences (SPSS) package was used to analyze the data collected. The accessible population of this study from the selected ten (10) plastic manufacturing consists of staff in the account/finance, human resources, production, sales, safety and health environment department. The result of the findings measure by the indicators of both variables reveals that there is a positive correlation between sustainability development and organizational effectiveness. Hence, firms operating in this industry must be able to make effective use of these green opportunities to transfer the original environmental pressures into a competitive advantage, improve corporation image, develop new market segments, expand into new markets, and maximize benefits.

CHAPTER ONE

INTRODUCTION

Background to the Study

Global warming and increased pollution from all aspect of business activities highlight the importance of green management for firms operating in Nigeria and worldwide. The need to ‘go green’ in order to preserve and sustain the ecological environment has become a major concern to many stakeholders, thus, using renewable energy sources capable of reducing emissions, reducing levels of waste through improve industry re-cycling programmes etc is a policy every business organization that has the interest of the society at heart must incorporate in its strategy (Onwudiwe, Agwamba and Ugwuegbu, 2019).

More so, sustainable development practices is one of the elements that contributes directly or indirectly to business value. It is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Therefore, sustainability development practice is according to Epstein and Buhovac (2011) it is the ability of any establishment to better comprehend the role of their host communities, customers, employees, stakeholders and proffer solutions to their respective needs which ensures better cooperation with the organisation.

According to the APICS, (2005) dictionary, the manufacturing industry is defined as “a series of interrelated activities and operations involving the design, material selection, planning, production, quality assurance, management, and marketing of discrete consumer and durable goods.” More so, Manufacturers must deal with pollution risks during production processes and various demands from investors, NGOs, governments, customers, and other stakeholders. Ultimately, the activities of the manufacturing company are seen to have been actively contributing to the pollution of air and water, as well as environmental harm and disruption. At this point, it has been foreseen that green innovation can improve the value of products made by a firm, reduce the environmental costs, and eventually lead to a better firm performance (Handayani, Wahyudi and Suharnomo, 2017).

As the Nigeria population and its industries continue to grow, the problem of proper waste disposal increasingly becomes difficult. Solid garbage, for example, is usually buried in landfill sites or incinerated, which is extremely harmful to the environment. Decomposing garbage may attract parasites, give off a foul smell or leach into groundwater. The smoke given off by burning garbage contributes to air pollution. Certain by products of the manufacturing process amplify the need for improved waste disposal. Efficiency is sometimes pursued at the expense of environmental sustainability. To produce as much as possible in the most cost-effective manner, manufacturers may adopt practices that appear to be cheap but are actually resource-intensive in the long run (Onwudiwe, Agwamba and Ugwuegbu, 2019).

Generally, it is believed that most firms in Nigeria have not set or implemented their sustainable vision towards proper management of the environment in which they operate on which have out rightly hamper their performance. More so, it can visibly said to be connected to the seemingly desolate lack of interest of the Nigerian government to implementing and enforcing environmental laws and regulations; poor understanding of environmental issues, and lack of commitment to protecting and managing the environment by firms and business organisations. Finally, most organizations are anxious of implementing sustainability plans because at the initial stage, it will demand a very high level of managerial & technical know-how with specialized trained skill worker. Therefore, evaluating sustainable development in business organisation in Nigeria will contribute to knowledge, sustainability practices, and stimulate high standard of business development practices in the country and could direct or indirectly contributes to the effectiveness of some of these firms that engage in sustainable practices.

Statements of the Problem

In light of these developments, the perspectives on manufacturing companies’ operations have expanded from economic to environmental and social aspects in current trends. Manufacturing companies are not only aiming to improve operations in terms of flexibility, delivery, quality, and cost, but also attempting to be competitive in terms of economic, environmental and social issues (Caniels, Gehrsitz, and Semeijn, (2013); Vachon and Klassen, 2008). Hence understating sustainable developmental practices is necessary and should be prioritized in the decision-making processes by company management.

However, there is still a question as to whether investments in environmental management practices such as waste cycling and other corporate social responsibility (CSR) initiatives offer direct relationship firm effectiveness in terms of productivity, cost reduction and pollution reduction. Thus, several studies have supported the notion that there is a positive relationship between sustainable development practices and better organizational effectiveness.

More so, Onwudiwe, Agwamba and Ugwuegbu, (2019) studied on Green Management and Organizational Effectiveness and the results showed waste recycling has a positive and significant effect on cost reduction and pollution reduction. Hofer, Cantor, and Dai, (2012) have also supported the premise that environmental management practices can lead to innovation. Innovation, in turn, can help companies to increase their market share and to reduce their costs, resulting in greater financial gains. Further research by Zhu, Sarkis, and Lai, (2012) supported the notion that improved economical, environmental and social practices can help companies to gain competitive advantage and subsequently improve their performance.

Anosike, (2016) revealed that organizational effectiveness in the age of sustainability pressure must include economic, social, and environmental performance to remain competitive. Also, Ukpabi, Ikaba, Enyindah, Orji, and Idatoru, (2014) study also revealed that there is a significant correlation between corporate social responsibility and organisational effectiveness. The results also indicate that a firm’s active involvement in corporate social responsibility has a significant contribution to its productivity and stability.

With the above findings, it has been shown that many manufacturing firms poorly discarded waste products without considering its potential contribution to the effectiveness of the business hence, this study will look in to the relationship between the dimensions and measures of sustainable development practice particularly on environmental sustainability adopted in this work and organizational effectiveness with emphasis on increase in output, cost reduction, increase in sales volume and environmental pollution reduction in manufacturing firms in Port Harcourt, Rivers State, Nigeria in order to make recommendations on how effective sustainable development practices would either lead to organizational effectiveness in manufacturing firms in Port Harcourt, Rivers State, Nigeria.

Objectives of the Study

The general objective of this study is to examine the relationship between the sustainable development practices and organizational effectiveness in manufacturing firms in Port Harcourt, Rivers State. However, the specific objectives of this study are stated as follows;

i. To examine the relationship between waste recycling and increase in output in manufacturing firms in Port Harcourt, Rivers State.
ii. To investigate on the relationship between waste recycling and cost reduction in manufacturing firms in Port Harcourt, Rivers State.
iii. To investigate on relationship between waste recycling and increase in sales volume in manufacturing firms in Port Harcourt, Rivers State.
iv. To determine the relationship between waste recycling and environmental pollution reduction in manufacturing firms in Port Harcourt, Rivers State.

Research Questions

For the purpose of this study, the following research questions are put forward;

i. What is the relationship between waste recycling and increase in output in manufacturing firms in Port Harcourt, Rivers State?
ii. What is the relationship between waste recycling and cost reduction in manufacturing firms in Port Harcourt, Rivers State?
iii. What is relationship between waste recycling and increase in sales volume in manufacturing firms in Port Harcourt, Rivers State?
iv. What is the relationship between waste recycling and environmental pollution reduction in manufacturing firms in Port Harcourt, Rivers State?

Research Hypotheses

Base on the previous empirical evidences and ideas from theories, the following hypotheses are formulated for the purpose of this study.

HO1: There is no relationship between waste recycling and increase in output in manufacturing firms in Port Harcourt, Rivers State.

HO2: There is no relationship between waste recycling and cost reduction in manufacturing firms in Port Harcourt, Rivers State.

Ho3: There is no relationship between waste recycling and increase in sales volume in manufacturing firms in Port Harcourt, Rivers State.

HO4: There is no relationship between waste recycling and environmental pollution reduction in manufacturing firms in Port Harcourt, Rivers State.

Significance of the Study

This research work will be of immense benefit to the following ways;

Academic: It could be affirm that good written work can serves as an inspiration any reader to know what is hidden and benefit from it by consuming every piece of information available, to add to one’s existing body of knowledge. Hence, this work would add to the existing knowledge of readers to understand the concept of sustainability development in literature. This study will bring about improvement of literature in the area of corporate social responsibility. It would also add to the existing body of literatures on profitability. Hence, academia would benefit greatly from this work as it may serve as a boulevard for knowledge improvement on further research studies.

Business Organizations: This study will serves business firms especially manufacturing firms on the need to carryout thorough recycling used materials by customers for the purpose of reducing cost of acquisition of raw materials for production and by way of pollution reduction helps in maintaining their corporate image to the environments. This work would be valuable to production/operations managers, financial managers, marketing managers, especially in decision making and control of organizational resources to attain sustainability development and maintaining effectiveness in the organizations.

Government: This study upon conclusion will serve as a guide to government to formulate and implement policies that restrict manufacturing firms dumping debris of used materials from their factory in other to reduce environmental pollution. It will encourage government to monitor and placed high fine payment for any manufacturing found guilty of the offence.

Scope and Limitations of the Study

The content scope of the study focuses on the concepts sustainability development practices and organizational effectiveness in manufacturing firms in Port Harcourt, Rivers State. The unit needed to access information for this is top organizational level, the Departmental heads, Managers and Supervisors of the selected manufacturing firms operating within Port Harcourt, Rivers State.

The limitations of this study include but not limited to the followings: unreleased of some vital information at various units of the selected manufacturing firms necessary for the conduct of this study, lack of adequate finance to cover all the manufacturing firms in Port Harcourt, Rivers State. Limited time bound to have also been one of the challenges to unravel everything on the concept of sustainable development practices and organizational profitability considering selected manufacturing firms in Port Harcourt, River State.

Definition of Terms

Sustainable Development: According to Unerman et al (2007) sustainable development concerns tend to focus on how to organize and manage human activities in such a way that they meet physical and psychological needs without compromising the ecological, social or economic base which enable these needs to be met. It is a development that attempts to bridge the divide between economic growth and environmental protection, while taking into account other issues traditionally associated with development.

Environmental Sustainability: United States Environment Protection Agency (2014) opined that environmental sustainability is defined as the creation and maintenance of good environment conditions for human habitation. That is, existing in a “productive harmony that permits fulfilling the social, economic and other requirements of present and future generations”.

Organizational Effectiveness: According to French and Bell (2003), organizational effectiveness illustrates the soundness of an organization’s culture, processes, and structure in terms of its overall system performance. Organizational effectiveness can be evaluated by looking at how an organization is attaining its multiple goals, both official and operative and environmental compliance.

Manufacturing Firms: According to the APICS (2005) dictionary, the manufacturing industry is defined as “a series of interrelated activities and operations involving the design, material selection, planning, production, quality assurance, management, and marketing of discrete consumer and durable goods.”

Conclusion

Sustainable development continues to arouse attentions from business leaders around the world. Developing a comprehensive view of sustainability in the manufacturing industry is an important task. Such a view should consider economic and environmental sustainability; achieving a better balance between environmental and economic sustainability requires a lot of work. Companies should incorporate the operations strategy perspective into their sustainability aspects. Sustainable development practice may seem to be an insurmountable task, yet every individual firm’s effort will make a difference.

At first, the benefit of individual firm’s effort might not be perceptible, however history has shown that perseverance is indeed rewarded. The effect accumulates, reinforcing the practice of sustainable development; these practices become customary even mundane. To enable the implementation of sustainable development strategies, appropriate supporting resources are required. Therefore, it is essential to take into consideration the resources’ allocation for corresponding tasks, during the planning stage of sustainable development strategies and programs.

CHAPTER TWO: REVIEW OF RELATED LITERATURE

Introduction

In the manufacturing industry, the concern over sustainability is greater than ever. In addition to facing high-pressure competition, manufacturers must increasingly pay attention to resource usage, waste treatment, air emissions, water pollution, employee welfare, and so on. Failing to manage these sustainability issues can substantially damage the image of the company and thus affect its performance. Hence, this chapter reviews literature related to this study. It consists of the conceptual framework on sustainability development practices and that of organizational effectiveness. This chapter also presents a review of theoretical framework which explains theories that relate to the subject matter and the empirical review describes what has been practically observed and validated objectively in relation to the subject matter.

CONCEPTUAL FRAMEWORK

Overview of Sustainability

Sustainability is one of the very essential elements for the survival of organizations. As Dylick and Hockets (2013) as cited in Miidom and Sholokwu (2017) argued that sustainability has become a sound or prayer that is repeated again and again during this 21st century that involves promising of societal changes for better in relation to a more justifiable and wealthy generation by paying and focusing on national environment and where our cultural achievements are protected and kept for the benefit of the future generations.

According to Munck and Souza, (2009) sustainability is a state in which an organization or a society exhibits a relation to economical environmental and social aspects. Therefore, usually when it is said that an organization or a society is sustainable it is meant that it holds a certain state of sustainability. As such, sustainable is what can be maintained, in other words, nothing is stagnant, that is why sustainability must be viewed in levels (Van Marrewijk & Werre, 2003 as cited in Flavio, 2013). This way, the correct would be to say that a given organization or society holds a certain level of sustainability, rather than what is and is no longer sustainable.

The Concept of Sustainability Development

In 1987, the Brundtland Report of World Commission on Environment and Development first provided the concept of sustainability development, describing it as “a development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED, 1987 as cited in Chen, 2015). The Brundtland Report recommends that Business enterprise should adopt sustainable development as a central guiding principle since the principle was developed to deal with environmental, social and economic issues facing the world.

The Earth Summit in Rio 1992 officially marks the introduction of sustainable development in business to meet the challenges of the 21st century. This led to formation of bodies like the World Business Council for Sustainable Development (WBCSD) and the Business Action for Sustainable Development responsible in promoting sustainable development in business communities amongst others (Abdul-Rahman, Sunday, Idowu and Oyefuga, 2012).

According to Roberts and Tribe (2008) sustainability indicators for business enterprises includes the following four dimensions: environmental, socio-cultural, economic and environmental. Although these indicators were designed for small businesses they will however serves as a basis for this literature review because they provide a holistic overview of the issues relevant for businesses.

Connie, (2010) further emphasize that the three components of the Triple Bottom Line are people and community (social responsibility), planet (environmental sustainability) and profit (the bottom line). He stated that successful 21st Century organizations must consider how they are going to actively engage in each of the Triple Bottom Line components, and this requires many organizations to adopt a more innovative approach to business while constantly communicating with current and potential customers. For the purpose of this study, we shall only take into consideration environmental sustainability which will be further broken down into its various variables.

Environmental Sustainability

United States Environment Protection Agency (2014) opined that environmental sustainability is defined as the creation and maintenance of good environment conditions for human habitation. That is, existing in a “productive harmony that permits fulfilling the social, economic and other requirements of present and future generations”. The environmental area consists of environmental impacts related to an organization’s diverse activities, products, and services. Similarly, Khan, Dewan and Chowdhurry (2014) submitted that natural environment sustainability covers a wide range of indicators and that all firms contribute to the degradation of the environment through factors such as “water and energy use, waste and emissions, waste management, space management and hygiene factors”. These environmental indicators should be identified in all stages of the organization’s full life cycle because they are used to track environmental progress, support environmental policy evaluation and inform the public.

Dimensions of Environmental Sustainability

According to Onwudiwe, Agwamba and Ugwuegbu, (2019) environmental sustainability which involves determining ways industrial action can be made compatible with nature; for instance, by minimizing emissions and by reducing organizational wastes. The dimensions are; renewable energy, waste disposal and collecting and recycling programs. Hence, for the purpose of this study we shall be considering waste collection and disposal as our indicator.

Waste Recycling

Waste recycling is very important as waste has a huge negative impact on the natural environment and as well could contribute to the effectiveness of business organization. Harmful chemicals and greenhouse gasses are released from rubbish in landfill sites. However, waste collection helps to reduce the pollution caused by waste. Waste collection reduces the need for raw materials so that the rainforests can be preserved.

According to Onwudiwe, (2019) waste recycling is the recovery of useful materials, such as paper, glass, plastic, and metals, from the trash to use to make new products, reducing the amount of virgin raw materials needed. Producing recycled white paper creates 74% less air pollution and 35% less water pollution than producing paper from virgin fibres.

Using recycled cans instead of extracting ore to make aluminium cans produces 95% less air pollution and 97% less water pollution. Recycling and remanufacturing are 194 times more effective in reducing greenhouse gas emissions than land filling and virgin manufacturing (IDEM Fact Sheet, 2010). Common consumer items that are widely accepted at community collection sites and private recyclers include: Paper, cardboard, plastic, glass, aluminium, and steel are widely accepted at community recycling programs. Unwanted, obsolete and broken electronics are collected by retailers and other electronics recyclers.

Significance of waste recycling to manufacturing companies

Recycling paper, glass, plastic, aluminium and steel, tires, electronics and batteries (which contain plastic, lead and other materials), and used oil helps protect natural resources, conserve energy and water, reduce air emissions generated in manufacturing processes, save landfill space, and prevent environmental pollution from occurring. Information on waste collection and disposal as contain in Act 2007 of National Environmental Standards and Regulation Enforcement Agency (NESREA) of Nigeria seems not currently have a database that enables a proper records of waste collection and disposal activities. Hence, the United States Environmental Protection Agency (U.S. EPA, 2005) provides information on recycling benefits and statistics on municipal solid waste disposal such as:

a. Recycling 10 aluminium cans are estimated to save enough energy to power a laptop for almost 52 hours.
b. Recycling 10 plastic bottles are estimated to save enough energy to power a 60 watt CFL light bulb for almost 100 hours.
c. Almost 27 percent of the trash generated and over 51 percent of the recyclables collected in 2012 was paper. It is used in more than 5,000 paper and non-paper products. Energy saved from recycling one ton would power the average home for six months and conserve about 7,000 gallons of water.
d. According to U.S. EPA’s report (2012), 54 percent of waste was disposed of in landfills, 11.7 percent was combusted (burned) to create energy, and 34.5 percent was recycled. The resulting reduction in carbon emissions is estimated to be more than 168 million metric tons—the equivalent of the greenhouse gases emitted from over 33 million cars. The resulting energy savings is estimated to be more than 1.1 quadrillions BTUs—an amount consumed by almost 10 million households in a year.

Benefits of the implementation of sustainable business practices

The moral obligation or pure desire to contribute to society might be the reason for adopting sustainable business practices for some businesses (Tzschentke Kirk and Lynch, 2004); but for many the business case for sustainability and the benefits related to sustainable business practices tie the commercial interest of business to the goals of society (Miller and Twining-Ward, 2005).

Cost reduction

The most cited benefit of sustainable business practices is the reduction of costs (Landrum and Edwards, 2009; Bohdanowicz et al., 2004; Hobson and Essex, 2001; Hitchcock and Willard, 2009; Swarbrooke, 1999) as cited in Chen, (2015). Tzschentke et al. (2004) declare it as the prime motive behind introducing environmental initiatives. In particular the rising costs for water, energy and waste disposal led many businesses to look for alternatives. Operational measures are for example recycling systems, using recycled materials, installing water-saving devices, using low energy light bulbs, energy-conservation measures such as insulation or solar-powered water heating systems. These initiatives focus exclusively on the environmental dimension of sustainable business practices (Swarbrooke, 1999).

Public relations

Sustainable business practices can also bring benefits to a company in terms of positive public relations and improved hotel image with shareholders and local community. These benefits can differentiate the business from its competitors and can be the source of competitive advantages and new market opportunities (Hitchcock and Willard, 2009; Landrum and Edwards, 2009; Swarbrooke, 1999). Kirk’s (1998) findings revealed that public relation benefits had the most positive attitude ratings, followed by ‘Improved relation with the local community’ and ‘Marketing’.

Employee satisfaction

Through sustainable human resource management employees are more likely to feel adequately rewarded, valued and proud of their work and have a more positive self-image (Swarbrooke, 1999; Baum, 2006; Chen, 2015). Service quality but also health and productivity are likely to improve through more sustainable developments and business practices. The move towards sustainability requires a positive change in corporate culture. Sustainable human resource management and a sustainable corporate culture can help the company to attract and retain the best employees which at present is a serious problem in the tourism and hospitality industry (Hitchcock and Willard, 2009; Swarbrooke, 1999).

[...]

Excerpt out of 60 pages

Details

Title
The relationship between sustainability development and organizational effectiveness
Subtitle
Waste recycling and organizational effectiveness in Nigeria
Course
Business Administration
Grade
A
Author
Year
2019
Pages
60
Catalog Number
V514806
ISBN (eBook)
9783346114990
ISBN (Book)
9783346115003
Language
English
Tags
waste, nigeria, Recycling management, UNIDO, SDGs, Organizational performance
Quote paper
Micah Effiong (Author), 2019, The relationship between sustainability development and organizational effectiveness, Munich, GRIN Verlag, https://www.grin.com/document/514806

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