Environmental strategies of tourism's restaurant sector and their relationship with organizational capabilities in the operations of small and medium-sized restaurants in Manila: A resource-based view

• Main Author: Tibon, Maria Victoria P.
• Format: text
• Language: English
• Published: Animo Repository 2009
• Subjects: Restaurants > Philippines > Manila; Business Administration, Management, and Operations; Entrepreneurial and Small Business Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_doctoral/241; https://animorepository.dlsu.edu.ph/context/etd_doctoral/article/1240/viewcontent/CDTG004571_P.pdf
• Institution: De La Salle University

Business operations of SMEs have significant negative effects on the natural environment. Previous research found their efforts to take care of the natural environment to be minimal because of resource constraints. Among the many different kinds of resources, this study focused on organizational capabilities, which are specific skills that an organization employs to make effective and efficient use of assets, people and process. As the Resource-Based View suggests, small firms can implement a whole range of environmental strategies through the development of organizational capabilities. The study, using Harts framework, investigated the environmental strategies of 240 small and medium-sized restaurants in Manila and their relationship with organizational capabilities with the objectives of: (1) looking into the extent of implementation of environmental strategies (2) examining and analyzing the nature of the relationship between organizational capabilities in SMEs across the various levels of corporate environmental management and (3) contributing to the scant research on the environmental strategies of SMEs. The firms were investigated using measures validated by academicians and practitioners and those used in previous works. Primary data were collected through a survey and were encoded and processed with the aid of the following statistical tools: canonical correlation analysis, linear regression, cluster analysis and t-test. Results show that the level of implementation of environmental strategies is generally high because out of 32 environmental practices, 21 have averages of 4 (corresponding to much in the Likert scale) and above, 9 practices have averages of Environmental Strategies of Tourisms Restaurant Sector. above 3 (moderate) but below 4 (much) and only 2 have averages of above 2 (little) but below 3 (moderate). Organizational capabilities were also found to be generally present in the restaurants sampled as evidenced by relatively high mean scores. The high level of implementation of environmental strategies among small and medium-sized restaurants in Manila can be explained by the firms level of organizational capabilities. Environmental strategies can be attributed to organizational capabilities. The ability of SMEs to minimize emissions, effluents and waste depends to a certain extent to how well they gather and use information as well as gain from them as a team. They will use materials and processes that are environmentally friendly if they would like to maintain good relationships with their stakeholders. They are more likely to favorably manage and consider the long-term environmental impacts of their materials and processes if they have a common picture of the future of the organization at all levels. Managers, therefore, have a specific responsibility to develop organizational capabilities among subordinates. Among the three organizational capabilities of team learning, stakeholder management and shared vision, the ability to establish relationships based on trust with entities that have interests in the organization or stakeholder management is found to be most important in implementing environmental strategies. The small and medium-sized restaurants in Manila are proactive in environmental management. This is largely because of voluntary environmental responsibility and not because of government regulation. Four proactive types in terms of levels of environmental strategies were identified, namely, the active, leading edge, environmentally excellent, and constructive types. These types or groups also differ in their levels of organizational capabilities. Environmental Strategies of Tourisms Restaurant Sector. The models developed in this study to depict the relationship between environmental strategies and organizational capabilities suggest that organizational capabilities are necessary but not sufficient to implement environmental strategies. They were found to be significant but they indicate moderate association only and have low explanatory power. Using the findings of this study as additional input, universities and industry associations should continue assessing and disseminating best practices and work with companies to develop proactive environmental management programs. The levels of environmental proactivity identified in this study can be used by government and industry associations to define the approach to promote the advancement of environmental strategies. Future studies can focus on identifying other factors that explain the levels of environmental management in SMEs. Since stakeholder management is most important in implementing environmental strategies, it is recommended that empirical work be further pursued on the relationship between environmental strategies and stakeholder management in several fronts. Future studies can be made to validate if firms truly attach importance to stakeholders when planning and implementing environmental strategies. A more inclusive stakeholder management analysis, detailing importance and coverage of specific stakeholder groups is recommended. Other methodologies can also be used, such as discriminant analysis to make the study predictive. A qualitative approach in the form of case studies done through interviews can also be adopted in areas of investigation that surveys cannot reveal. The study can also be replicated in other industries and locations. Environmental Strategies of Tourisms Restaurant Sector. In a developing country like the Philippines where there is a dearth of financial resources, the focus on skills that hinge on human resources to implement environmental strategies is most appropriate. This study is a good starting point.