Finding a common ground : which implications does the introduction of Environmental Management Systems have for the competitiveness of small and medium sized enterprises in Baden-Württemberg, Germany?

Abstract: The objectives of this thesis are to find a common ground for business and environmental interests and to evaluate the potential of Environmental Management Systems (EMSs) as transition tools to lead towards a greener economic paradigm. For these purposes it was assessed, which implications EMSs have for the competitiveness of small and medium sized enterprises (SMEs) within the first three years after their introduction. As representatives, the International Organization [sic!] for Standardization [sic!] (ISO) 14001 and the Eco-Management and Audit Scheme (EMAS) were chosen. The research site was the county of Baden-Württemberg in Germany. A survey, which contained quantitative and qualitative elements, was sent to 73 SMEs of the metal sector. Competitiveness was defined by the business and environmental performance. The aim of this approach was to determine if the EMSs improved the status quo of the firm and which Environmental Management System (EMS) performed better in the separate categories. Therefore, each performance set was assessed and then combined in Porter’s Diamond (PsD) to evaluate the overall competitiveness. EMAS outperformed ISO14001 in 10 of 12 business variables, improved five variables and satisfied two of three improvement goals. ISO14001 outperformed EMAS in two of 12 business variables, improved one variable and reached one of three improvement goals. Thus, the business performance was better for EMAS certified SMEs. For the environmental indicators, EMAS performed better in six of 11 variables, improved five and impaired two indicators, and satisfied one of four improvement goals. The two impaired variables were Waste reduction and Energy efficiency. ISO14001 performed better in five of 11 environmental variables, also improved five indicators and reached two of four improvement goals. This concludes that for the environmental indicators, the results were mixed. Regarding the overall competitiveness, EMAS scored in five of six categories and thus enhanced the competitiveness of SMEs significantly more than ISO14001 did. Although EMAS seemed to create a win-win situation, no clear answer could be provided when discussing the potential of EMSs leading towards a greener economic paradigm. This was mainly due to the probability of a negative correlation between business and environmental indicators being the result of an EMS implementation. Furthermore, although PsD was combined with environmental indicators, its inherent framework adheres to the principles of modernity and is therefore probably not suited for an integration of environmental aspects.