Environmental Performance in Indonesia Automotive Industry

Abstract

A large number of firms still view the environmental protection as barrier to profitability or as a regulation to comply with rather than fundamental business strategy leading to a sustainable competitive advantage. Another research is argue integrating environmental issues into business strategy can become a strategic opportunity for companies. The capacity to formulate strategy leads to competitive advantage when aligned with the environment. This research aims to examine impact of environmental performance on firm performance. The survey is conducted on automotive companies in Indonesia. Literature study are conducted to obtain criteria of environmental management system, environmental performance and firm performance that will be used as variables in this research. The data is collected using questionnaire and analysed by experts in automotive industry. Pilot test of questionnaire is conducted in this research. The result of this research shows that the questionnaire has good validity and high reliability.