Exploring environmental management systems in the service industry : drivers, success factors, and implications : insights from Finland : a case study in Hanninen Siivous Palvelu Oy

Abstract

Environmental Management System (EMS) is a widely used tool in the manufacturing industry and holds immense potential for the service industry. Its adoption can significantly enhance performance, improve the company's reputation, gain a competitive edge, attract customers, and foster sustainability. This study delves into the drivers, success factors, consequences, and best practices for implementing environmental management systems, focusing on the service industry. The research methodology involved qualitative studies, with data collected through semi-structured interviews and analysed using thematic analysis. A triangulation method was employed to validate the research findings, underscoring the potential and relevance of this study. The findings of this study not only shed light on the unique challenges and opportunities in the service industry but also offer a promising path toward sustainable business practices.

This research uncovers unique drivers for the 1SO 14001 implementations in the service industry, setting it apart from other sectors. These include Internal and external drivers. The critical internal drivers are the ease of employment, HR development, and segregation from other competitors, factors not as prominent in different industries. Business growth and previous knowledge of the CEO also emerge as significant internal drivers. External drivers, such as competition among cleaning companies, public sector requirements, existing customer demands, legal requirements, and common values of the society mirror those in other sectors. The outcomes of implementing ISO 14001 for the organizations are noteworthy: the working culture becomes well-structured and planned, there is a significant increase in performance, improved company image, more opportunities, acceptance of the change to become more sustainable, the company becomes more socially sustainable and become environmental and economical sustainability. These findings are not only insightful but also have practical implications for the service industry, making this research highly relevant and valuable.

Factors influencing successful implementation are management commitment and guidance, individuals’ participation in the process, involvement of the entire organization and seeing the bigger context of the organization despite focusing on one section of the company, paying attention to sustainability, life cycle understanding, continuous improvements, allocation of resources, the genuine commitment of organizations to achieve the standard, suppliers’ selection and the company’s CEO’s knowledge about the standard. The best sustainable environmental management implementation requirements needed for ISO 14001 are to understand the requirements of the ISO 14001, understand the ecological effect of the organization and leadership, clients’ requirements, understand the risks of the environment that lie with the business process, leadership, commitment of the top management, environmental policies, and internal audits. KIWA tool provides advantages like understanding requirements, the ability to systematically fulfil the requirements of the standards and monitor compliance to assess the situation, avoiding being misled, the ability to maintain the system quickly, and easy access to information for everyone when implementing the ISO 14001.

This study brings knowledge into existing gaps in studies on EMS implementation in service industries, the connection between EMS and performance in service sector SMEs, vital successful factors to implement EMS, emphasizes the importance of SMEs with EMS to the economy, transformational impact, guidance to SEM implementation requirements, and how effective KIWA software as a tool to implement ISO 14001. Management can take insights on how to implement an EMS in the organizations; the most important things to consider are its effect on the business, tools that can be used to build an EMS quickly, profitability, and business growth through EMS implementation. Also, this could be important for academics, consultants, and policymakers to extract essential points related to environmental performance and ISO 14001, make decisions, and plan strategies. Further research could be done in the realm of how digital technologies could be integrated to implement EMS for an organization, long-term outcomes of implementing ISO 14001and a study could take place related to employee performance, behavior, or work safety practices concerning the implementation of ISO 14001 and the integration of digital technologies within the environmental management frameworks.

As for limitations of this research: This was conducted as qualitative research, in a single case, and a single country; the KIWA tool is in the pilot and testing stage, there are limited numbers of interviews, and the interview with the work manager was conducted in Finnish, and the CEO acted as a translator. There might be some changes in the meaning of the words when translating, and the company’s first internal audit is planned to be done in April; by the time the research is finalized, it might prevent getting some information related to auditing.