Environmental technical and administrative innovations in the Canadian manufacturing industry

This paper explores whether the adoption of an EMS and/or TQM, both administrative innovations, lead to the development of cleaner technological innovations. We draw on the stakeholder influence literature and Daft's (1978) dual core model of organizational innovation to determine the factors affecting a facility's decision to undertake cleaner technological innovations. Using Canadian facility level manufacturing data, we find that an EMS reduces the likelihood that a facility will implement environmental technologies that change the production process (clean technologies) while TQM increases the likelihood that the facility will implement clean technologies. We also find that administrative pressures (corporate headquarters and shareholders/investors) have no impact on technological innovations while external stakeholders such as regulators, community groups and environmental groups as well as customers and suppliers each increase the likelihood that facilities will use cleaner technologies.