The effect of environmental management practice on firm performance: An Indonesian study.

This study aims to examine the relationship between environmental management practice to firm performance in Indonesia. This study uses manufacture firms listed on the Indonesian Stock Exchange for the period 2012 to 2016. A total of 171 firm-year observations were examined. The analysis technique used is the ordinary least squares regression by SPSS 20 program. In this study, environmental management practice is measured using the efficiency of energy usage and efficiency of water usage. The research result shows that environmental management practice has a moderately positive relationship to firm performance. This result is mainly driven by the efficiency of water usage, while the efficiency of energy usage has no relationship to firm performance. This study is vital for the firm in the context of environmental management practice decision-making. It suggests that environmental management practice is needed to achieve a firm's objectives and improve its performance.