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International Orientation and the Environmental Management System: The Indian Automotive Firms

Vol 6, Issue 2, July - December 2019 | Pages: 1-22 | Research Paper  

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Author Details ( * ) denotes Corresponding author

1. * Neelam Singh, Formerly Associate Professor, Department of Economics, Lady Shri Ram College, Delhi University, Delhi, India (

This study examines the factors, especially the international orientation affecting the environmental management system, ISO 14001 certification for auto component producers in India. The existing micro-level evidence for emerging economies is limited. Exploring the role of type-of-exports, outward FDI (OFDI) and industry-specific quality management system (QMS), this study provides some novel evidence. Little is known so far about (i) the mechanisms through which the OFDI affects the Home operations, and (ii) the influences of industry-specific QMS Standards, notwithstanding their increasing adoption, vis-à-vis the generic Standard ISO 9001, by global firms. The Logit model indicates that the industry-specific QMS and OFDI, commenced in recent years, increase the likelihood of ISO 14001 certification. Compared to non-exporters, the exporters to original-equipment-manufacturers, OEMs/Tier-1 firms have similar certification probability, while the only‑aftermarket exporters have much lower likelihood. The government should promote ‘high-level’ exports and OFDI, and recognize the synergy between international management system certifications.


ISO 14001; OEM exports; Outward FDI; Industry-specific QMS Standard; Auto components

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