DISAGGREGATING THE PERFORMANCE OUTCOMES OF TOTAL QUALITY ENVIRONMENTAL MANAGEMENT (TQEM): AN EMPIRICAL EXPLORATION TESTING A RESOURCE-BASED MODEL

Total Quality Environmental Management (TQEM) has been defined as the practice of applying Total Quality Management (TQM) practices to an organization's environmental effort. TQEM is therefore closely tied with the firm's primary functions and is directly dependent on a firm's competencies. As resource-based theory supports, disaggregating the performance outcomes of internal strategic assets enables identification of the sources of competitive disadvantage and advantage. The contribution of this study was the test of an exploratory, resource-based model linking resources, organizationally-embedded TQEM, and competitive advantage. This study collected survey data from corporations in 15 manufacturing industries and a sample of 143 managers from corporate headquarters and manufacturing plants provided an overall response rate of 27%. Applying moderated, stepwise regression, the majority of hypothesized main effects were supported, but the hypothesized moderated relationships were not supported. The results supported the core theoretical framework which linked the exogenous variable TQEM program implementation with the interim performance outcome of environmental performance. Environmental performance was then successfully linked with the creation of strategic value in the form of protection against competitive threats and exploitation of competitive opportunities, and with the subsequent common proxy for competitive advantage—financial performance.