Hasanuddin Economics and Business Review
VOLUME 8 NUMBER 2, 2024

Eco-Control and Its Dual Impact on Environmental and Economic Performance

Dharsana, Muhammad Try (Unknown)
Natsir, Andi Iqra Pradipta (Unknown)
Aksah, Naufal Muhammad (Unknown)
Ulumuddin, Ihya' (Unknown)
Bachmid, Ummuhani (Unknown)



Article Info

Publish Date
02 Nov 2024

Abstract

This study examines the dual impact of eco-control on both environmental and economic performance in the manufacturing sector. Drawing on data from 183 managers of manufacturing companies in Indonesia, this research employs Partial Least Squares Structural Equation Modelling (PLS-SEM) to analyse the relationships between eco-control, environmental performance, and economic performance. The findings reveal that eco-control significantly enhances environmental performance, which in turn positively influences economic outcomes. Additionally, eco-control has a direct positive effect on economic performance, suggesting that firms with robust eco-control mechanisms are more likely to achieve greater operational efficiency and financial success. The mediation analysis further confirms that environmental performance plays a crucial role in transmitting the positive effects of eco-control to economic performance. These results contribute to the growing body of literature on sustainability and corporate strategy by demonstrating the value of integrating eco-control systems to achieve both environmental and economic objectives. The study also highlights the importance of eco-control in aligning corporate sustainability initiatives with long-term profitability, particularly in sectors with high environmental impact. Limitations and directions for future research are discussed, including the need for broader studies across different industries and regions.

Copyrights © 2024






Journal Info

Abbrev

hebr

Publisher

Subject

Economics, Econometrics & Finance

Description

Hasanuddin Economics and Business Review (HEBR) is an international triannual open access and peer reviewed journal of economics and business. HEBR is published by Faculty of Economics and Business Hasanuddin University. The journal is published in both print and online ...