Relationship Between Organisational Culture, EMCS and Environmental Performance

The role of the Management Control Systems (MCS) is critical for the contemporary business arena as a source of garnering information and evaluating organizational resources for implementing strategies efficiently and effectively. This study analyzes the influence of organization culture (OC) on firm’s environmental performance (EP) via the mediating variable of environmental management control systems (EMCS). Data were collected from 314 Pakistani manufacturing firms via questionnaire survey and analyzed with Smart-PLS. The stable and flexible values of organizational culture 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 reveals that the integration of environmental culture within an organization’s culture and control systems leads to improved environmental performance. The study is one of the first, to the author’s knowledge that links OC, EMCS, and EP ...