Organizational Design and Environmental Performance: Clues from the Electronics Industry

Based on a congruence model of organizational design, we argue that direct reporting relationships between plant managers and environmental quality managers, monetary incentives for environmental performance, and cross-functional coordination between environmental quality managers and business strategists will reduce plant-level toxic emissions. Empirical tests of these three relationships were conducted using a large sample of U. S. electronics facilities. Results indicate that only a link between plant manager compensation and environmental performance elicits emissions reductions. These results lead us to ask if organizational characteristics may be the result of emissions performance—not its cause. Subsequent analyses support this reverse causality, suggesting that firms are still in a reactive mode regarding environmental issues. These findings confront theories of environmental management and congruence with provocative questions. As the key takeaways from the study, they are discussed in depth. Formatted