Greenovation and Sustainable Manufacturing in
Africa
Abstract
Addressing a paucity of research about industrial adoption of green innovation
in Africa and, more generally, in tropical developing countries, we examined
the Nigerian chemical and pharmaceutical industry as a case study. Qualitative
interviews with one hundred and forty upper echelon executives representing
thirty five Nigerian firms challenge conventional expectations that energy
intensive industries in developing markets operate amid highly pollutionintensive conditions, within weak or non-existent formal environmental
regulatory frameworks, and with limited institutional capacity. Our findings
suggest a strong positive relationship between green innovation and financial
performance and positive relationship between green innovation and
sustainable manufacturing of African firms.
JEL classifications:
Q0 - General - Q01 - Sustainable Development
Q5 - Environmental Economics - Q55-Technological
Innovation
Keywords: Green Innovation, Sustainable Manufacturing, Environmental
Policy, Climate Change, Chemical and Pharmaceutical Industry
0
1.0
Introduction
Manufacturing industries are in a position to help overcome global environmental challenges
but their future contribution will depend on how well they adopt and integrate the green
innovative approaches when modifying their production patterns (Charter and Clark, 2007).
This requires a broad perspective on what is understood by the sustainability of
manufacturing and a strong focus on identifying areas in which green innovative solutions
can substantially reduce environmental impacts. Furthermore, industry must recognise that
because the main features of any innovation are determined early in the innovation process
(Reid and Miedzinski, 2008), important benefits of green innovation may be lost if broad
environmental aspects do not have priority from the beginning of the process (OECD, 2009).
Manufacturing industries account for a significant part of the world’s consumption of
resources and generation of waste. Worldwide, the energy consumption of manufacturing
industries grew by 61% from 1971 to 2004 and accounts for nearly a third of today’s global
energy usage. Likewise, they are responsible for 36% of global carbon dioxide (CO2)
emissions (IEA, 2007).
Manufacturing industries nevertheless have the potential to become the driving force for the
creation of sustainable future. They can design and implement integrated sustainable
practices and develop products and services that contribute to better environmental
performance. This requires a shift in the perception and understanding of industrial
production and adoption of a more holistic approach to conducting business (Maxwell, et al,
2006).
The environmental impact of industrial production has historically been dealt with by
dispersing pollution in less harmful or less apparent ways (UNEP and UNIDO, 2004). Driven
in part by stricter environmental regulations, industry has used various control and treatment
measures to reduce the amount of emissions and effluents. More recently, its efforts to
improve environmental performance have moved towards thinking in terms of lifecycles and
integrated environmental strategies and management systems, and companies have also
begun to accept larger environmental responsibilities throughout their value chains.
Manufacturing remains one of the most powerful engines for economic growth. It acts as a
catalyst to transform the economic structure of countries, from simple, slow-growing and
low-value activities to more productive activities that enjoy greater margins, are driven by
technology, and have higher growth prospects. But its potential is even greater today. With
rapid technological change, sweeping liberalization and the increased defragmentation and
internationalization of production, manufacturing has become the main means for developing
countries to benefit from globalization and bridge the income gap with the industrialized
world. These are some of the many arguments that justify the importance of promoting
manufacturing in the developing world.
According to the directory of the Manufacturers Association of Nigeria (MAN, 1994; MAN,
2000), Standards Organisation of Nigeria, and Raw Materials Research Development Council
classification of manufacturing sectors, the following products sectoral groups exist in
Nigeria: Food, Beverages & Tobacco; Chemical and Pharmaceuticals; Domestic and
Industrial Plastic and Rubber; Basic Metal, Iron and Steel and Fabricated Metal Products;
1
Pulp, Paper & Paper Products, Printing & Publishing; Electrical & Electronics; Textile,
Wearing Apparel, Carpet, Leather & Footwear; Wood and Wood Products Including
Furniture; Non-Metallic Mineral Products; Motor Vehicle & Miscellaneous Assembly.
2.0
Justification for the Study
A number of studies have examined the drivers of green innovation adoption in developed
countries and several emerging economies in South-East Asia (Hart and Ahuja, 1994; Cohen,
et al, 1995; Russo and Fouts, 1997). We know little, however, about their association in
tropical developing countries.
The present research was designed to illuminate green innovation adoption in one such
economy – Nigeria – in one illustrative industrial sector – chemical and pharmaceutical
industry. This sectoral group was selected because this is a sector that has demonstrated
sustainable manufacturing practices in developed and emerging economies – from traditional
pollution control through green chemistry, cleaner production initiatives to a lifecycle model,
to the establishment of closed loop production systems (Geels, 2005, Charter and Clark,
2007, Reid and Miedzinski, 2008).
In developed countries the prevailing regime of environmental regulation drives green
innovation (USEPA, 1992; UNEP, 1993). However, the case might be different in tropical
developing economies where environmental policy usually takes the form of traditional
command-and-control. Hence, decisions for green innovation adoption in this context might
be motivated by factors other than those that characterize developed economies.
The “Porter hypothesis’’ has spurred substantial amount of research on the influence of
environmental regulation on green innovation. While adherents of the Porter hypothesis have
sought to demonstrate the empirical relevance of the win-win claim, neoclassical economists
have argued that such win-win opportunities are exceptions. They have pointed to significant
compliance costs of industry, competitive advantages of domestic firms in international
markets, and opportunity costs of forced environmental activities (Jaffe, et al, 1995; Palmer,
et al, 1995). Recent research has sought to bridge the boundaries between “traditional
economists’’ and ‘’revisionist’’ by combining assumptions from neoclassical and
evolutionary economists (Johnstone et al, 2005). But thus far, the results have remained
inconclusive. Hence, this research is designed to contribute to this body of knowledge from
tropical developing countries context.
In addition, only very few political scientist have thus far ventured into research on green
innovation. They have focused on cross-sector and cross-country comparisons (Jaenicke et al,
2000; Jacob et al, 2005). Recent quantitative studies by management experts and economists
have surveyed green innovations at the facility level (Adeoti, 2001; Johnstone et al, 2005),
whereas the development of product innovations usually happens at the firm level.
Furthermore, the simple empirical definitions of green innovation at the facility level cannot
provide direct insights into the causal linkages between regulation and green innovation –
notably, the design of these studies can usually not exclude the possibility that green
innovation (if reported yes/no) is in another field than those targeted by existing
environmental regulation (Bernauer, 2006). That is, firms may report green innovations and
2
state that they experience strict regulation, but the two phenomena may be causally unrelated.
Hence, this carefully designed qualitative study with comparative case studies will provide
important insights into the processes that lead from firm-external stimuli (such as regulation
or market forces) to green innovation.
3.0
Research Questions
What are the drivers for the adoption of green innovation technologies in the Nigerian
chemical and pharmaceutical industry? What are the conditions under which a decision to
adopt green innovation is reached, leading to sustainable manufacturing.
4.0
Research Hypotheses
The research hypotheses are stated in null form as follows:
H1: The stringency of environmental regulation does not influence green innovation. The
direction and extent of this influence does not depend on market and firm-internal factors.
H2: Sustainable manufacturing initiatives – from traditional pollution control through
green chemistry, cleaner production initiatives, to a life cycle concept, to the establishment of
closed-loop production is not facilitated by green innovation.
5.0
Literature Review and Theoretical
Framework
Green innovations encompass all innovations that have a beneficial effect on the environment
regardless of whether this effect was the main objective of the innovation. They include
process, product and organisational innovations (OECD, 2005a; OECD, 2005b). Green
innovations are different from other innovations; besides producing the spill over effect over
typical of most research and development efforts, they also produce costs of production or
products (Rennings, 2000).
Sustainable manufacturing involves changes that are facilitated by green innovation.
Evolving sustainable manufacturing initiatives – from traditional pollution control through
cleaner production initiatives, to a life cycle view, to the establishment of closed-loop
production can be viewed as facilitated by green innovation (OECD, 2009). Figure 1 below
provides a simple illustration of the general conceptual relations between sustainable
manufacturing and green innovation. The steps in sustainable manufacturing are depicted in
terms of their primary association with respect to green innovation, that is, with innovation
targets on the left and mechanisms at the bottom. The waves spreading towards the upper
right corner indicate the path dependencies of the different sustainable manufacturing
3
concepts (OECD, 2005; UNEP and UNIDO, 2004). While more integrated sustainable
manufacturing initiatives such as closed-loop production can potentially yield higher
environmental improvements in the medium to long term, they can only be realised through a
combination of a wider range of innovation targets and mechanisms.
Industrial ecology
Institutions
Closed-loop production
Non-technological
NNnnnnn
Organization
and
marketing
methods
Processes
and
products
Green
innovation
targets
Life-cycle thinking
Eco-efficiency
Cleaner production
technological
Pollution
control
Modification
Re-design
Alternatives
Creation
Green innovation mechanisms
Figure 1: Conceptual relationships between Green Innovation and Sustainable
Manufacturing (OECD, 2009)
The literature on the drivers of innovation is vast. Yet, most of this literature focuses on
particular drivers of innovation and only a small parts of this literature focus on green
innovation. Contemporary research on the relationship between green innovation and
regulation is based on the assumption that technology push and market pull factors, firm
internal conditions, and regulatory conditions drive the extent and form of green innovations
(Bernauer, 2006; Kemp et al, 2000; Rennings, 2000).
Environmental regulation is viewed in neoclassical economics as a means to force firms to
internalise external costs they would otherwise impose on society. The neoclassical economic
view has been that strict regulation has negative effects on productivity and competitiveness,
as it leads to higher expenses by businesses and imposes constraints on industry behaviour.
Regulation can also increase uncertainty associated with future investments, so that they are
postponed. Given that investment budgets are limited, enforced research and development for
cleaner technology can have the effect of reduced research and development expenditure in
other, more profitable areas, such as a firm’s core business (Gray and Shadbegian, 1995).
Porter and van der Linde popularized the claim that properly structured environmental
regulation may not only benefit the environment – and hence society as a whole – but also the
regulated industries by making firms realize otherwise neglected investment opportunities
4
(Porter and van der Linde, 1995a; Porter and van der Linde, 1995b). Specifically, Porter et al
(1990). argued that (strict) environmental regulation and associated compliance costs could
force industry to innovate and thus increase resource efficiency and enhance productivity.
They suggested that environmental regulation could also increase turnovers and profits by
creating markets for environmentally improved products and technologies, and that
compliance costs may be offset by the gains from these innovations, so called innovation
offsets.
However, neoclassical economists have heavily criticized the “win-win” hypothesis. They
have argued that regulation might motivate firms to develop green innovations, but that these
efforts would produce opportunity costs offset only in exceptional cases (Jaffe et al., 1995;
Palmer et al., 1995). Some authors have refined Porter’s argument and have offered more
nuanced theoretical explanations for the existence of previously overlooked win-win
opportunities that could be stimulated by regulation (Roediger-Schluga, 2004). Applying
principal-agent theory, bounded rationality, and spillover effects, Gabel and Sinclair
Desgagné (1998), Bonato and Schmutzler (2000), Schmutzler (2001) and Mohr (2002) derive
possible but rare conditions under which regulation can induce innovations that fully offset
compliance costs. This theoretical controversy has motivated empirical research on a
considerable scale on the relationship between regulation and green innovation.
While qualitative case studies (Bonifant et al., 1995; Porter and van der Linde, 1995b; 1995a;
Shrivastava, 1995) provides some useful insights, more systematic econometric studies have
failed to produce unequivocal results (Jaffe et al., 1995). Quantitative studies in particular
often use (overly) simple indicators, for instance measuring innovation by the number of
patents and research and development investment (including also non-environmental research
and development). Jaffe and Palmer (1997) for instance obtain different results for the
aforementioned two innovation indicators. Brunnermeier and Cohen (2003) find that
increases in pollution abatement expenditure influence green innovation (measured by the
number of successful environmental patent applications granted to industry), but only
marginally. Using a theoretical model, Bonato and Schmutzler (2000) derive strategic
(spillover effects) and organizational (principal agent problem) factors explaining why
environmental regulation could stimulate cost-reducing innovations that would not have been
undertaken without regulation.
In addition, research in innovation economics has long centered on whether technological
development (technology push) or demand factors (market pull) are more important drivers
of technological innovation. Empirical research has shown both to be relevant (Pavitt, 1984).
Technology push seems to be more important at the beginning of the product cycle, market
opportunities seem to be more important at later stages (Mowery and Rosenberg, 1979;
Freeman, 1994; Jaenicke et al, 2000). A peculiarity of green innovation, however, may be
that market pull and technology push are comparatively weak, calling for a “regulatory
push/pull effect” (Rennings, 1998). Market pull includes aspects such as competitiveness
(mostly considered by the industrial organization literature) and customer demand (be it the
end consumer or corporate customers; mainly studied by strategic management research).
The industrial organization literature focuses on market structure as a key determinant of
innovation. Many of these studies are, in one way or another, derived from Schumpeter’s
hypothesis (Schumpeter, 1942), postulating a positive influence of market concentration and
firm size on innovation. Schumpeter argued that market concentration reduces market
uncertainty and motivates firms to invest in research and development. Other authors argue
5
the opposite, claiming that concentration leads to inertia and hinders innovation due to
missing competitive pressure (Levin et al., 1985).
The strategic management literature provides insights into firm-internal conditions and firm
strategies. Theoretically, the consideration of firm-internal factors is often based on
evolutionary theory and most notably the resource-based view of the firm (Nelson and
Winter, 1982; Wernerfelt, 1984; Barney, 1991). The resource-based view of the firm holds
that firm-internal characteristics, such as strategy, structure, and core capabilities, are
important determinants of innovation. There are, of course, also non-monetary, say ideational
or ideological benefits for certain customers from buying a “green” product without material
benefits. But such products tend to occupy very small niche markets (Fagerberg et al., 2005)
and important to competitive advantage.
Building on the resource-based view, Hart (1995) links competitive advantage to a firm’s
relationship with the natural environment. The strategic implications focus on pollution
prevention, product stewardship, and sustainable development. Pollution prevention can
provide win-win opportunities through process innovations (resource-efficiency). Product
stewardship can foster competitive advantage through product differentiation and prevention
of potential regulation. Russo and Fouts (1997) elaborate on this concept and postulate a
positive link between firms' environmental and economic performance based on reputation
benefits from environmental performance. Sharma and Vredenburg (1998) find empirical
evidence that companies develop green organizational capabilities after having adopted a
proactive environmental strategy. Building on the Porter hypothesis, a considerable body of
literature classifies and analyze corporate environmental strategies and their potential for
gaining competitive advantage. Figure 2 below highlights the framework for studying the
determinants or divers of green innovation.
Regulatory Drivers
Market Drivers
Firm Internal Drivers
Stringency
Predictability
Competitiveness
Customer benefit
Green capabilities
Innovativeness
Firm size
Green
Innovation
Figure 2:
Figure 2: Framework for studying the determinants of Green Innovation (Bernauer,
2006)
6
6.0
Justification for the use of
Qualitative Study for the Research
The drivers of green innovation require analysis of the effects of environmental regulation
alongside market and firm-internal conditions (Klemmer, et al, 1999; Kemp, 1997).
Presently, research on green innovation is scattered across different academic disciplines and
are largely quantitative. Each piece of research tends to focus on narrow range of drivers and
particular level of analysis. Industrial organisation specialists concentrate on market structure
while strategic management specialists focus primarily on firm-internal variables. The
economists and political scientists studying the impact of environmental regulation on green
innovation tend to sideline non-regulatory drivers (Bernauer, 2006).
There is principal weakness in these existing quantitative research primarily in problem
definition, operationalisation of the dependent variable (that is, green innovation), level of
analysis problems (that is, sector/industry, firm and facility) and poor understanding of the
causal effects of explanatory variables on each other and on green innovation). However,
changing the focus of the research from sector/industry level to the firm and innovation field
level – the level at which green innovation actually takes place can improve the
understanding of the causal mechanisms.
Few political scientists have thus far ventured into research on green innovation. They have
focussed on cross-sector and cross country comparisons Jaenicke et al, 2000; Jacob et al,
2005). Recent quantitative studies by management experts and economists have surveyed
innovation at facility level (Johnstone et al, 2005; Adeoti, 2001). This research has offered
very useful insights into macro-level trends in this field but needs to be combined with
stronger insights into the underlying micro-level processes, principally green innovation
related decisions and behaviour at the level which qualitative research is most appropriate.
In addition, most quantitative studies on green innovation use questionable indicators for the
dependent variable. Green innovation is usually measured in a binary fashion (yes/no), often
at the facility level, or in terms of patents or research and development expenditure (Adeoti,
2001; Bonifant, et al, 1995). However, research and development does not necessarily lead to
innovation and many patents do not lead to innovations, and some of the innovations are not
patented. Also many industry sectors cannot and/or do not patent their innovations at all.
Hence, green innovation should be measured in more comprehensive ways involving
qualitative case studies. Green innovation should be explained in terms of the extent and type
of green innovation as well as environmental performance improvement for individual
innovations. The number of green innovations within each field of innovation provides a
better understanding of firms’ innovation activities than the simple yes/no measurement of
innovation in quantitative studies.
Another justification for the use of qualitative research is the level of analysis. At the
sector/industry level of analysis, the effects of changes in regulation on sector-wide green
innovation can be studied over time (that is, with panel-data). Regulation is usually designed
for and applied to entire industries. It is not tailor-made for individual firms. Yet, generating
comparable macro-level green innovation data for industries or sectors without surveying
individual firms is difficult. One option is to measure green innovation in terms of relative
7
improvement in environmental outcomes (e.g. the emissions, concentration of pollutants,
energy and water and raw materials consumption, extent of recycling, EMS certification, etc).
Unfortunately, reliable environmental and innovation data is usually not available for many
sectors and certainly not for long periods of time. Moreover, drawing inferences in respect to
firm-level decision-making and behaviour from sectoral or industry-level data is vulnerable
to ecological fallacies.
Hence, the solution is to collect data on decision-making and behaviour at the firm level – the
level at which environmental innovation actually occurs which is justified with the use of
qualitative case studies. Qualitative case studies also allow for the study of certain innovation
fields, that is, the various aspects of a product or process that can be improved. Regulations
are usually targeted at such particular aspects or environmental media (e.g. water or air
pollution). Such data for such research will have to be generated at the firm level. Examples
include energy use, concentration of pollutants, and prohibition or limitation of certain toxic
substances in products.
The main disadvantage of using large sample size surveys based on questionnaires with pure
or stratified random samples of several hundred to several thousand firms as evidenced from
surveys in the field of green innovation carried out to date, stems from response rates that are
usually less than 30% (sometimes no more than 10%). (Adeoti, 2001; Bernauer, 2006). Since,
it is virtually impossible to control for selection bias with such low response rates; the results
are quite vulnerable because the coefficients may be strongly biased despite the inherent
advantage of sophisticated statistical procedures for drawing broadly generalizable
inferences. Moreover, large sample size surveys are usually based on closed end questions
but do not generate very detailed data on the characteristics of green innovations, how they
emerged in firms, and what their drivers were.
In addition, medium sample size surveys of less than one hundred can obtain much higher
response rates. The downside is the smaller number of observations and the measurement of
green innovation in a binary fashion (yes/no) at the sector level whereas green innovation
should be measured in more comprehensive ways. Hence, the need to rely on simpler
statistical tools - usually descriptive statistics, contingency tables, simple OLS, logit or probit
regression with few explanatory variables (Bernauer, 2006). Notwithstanding the potential for
contributing important insights into green innovation processes, research based on medium
sample size surveys is very rare, probably because it is time consuming.
Hence, the adoption of comparative small sample size qualitative study based on case designs
using semi-structured questionnaires (Mitchell and Bernauer, 2004) eliminates the
disadvantages in both the large and medium sample size surveys. Although this method is
still very rare in research on the drivers of green innovation, however, carefully designed
qualitative, comparative case studies will provide important insights into the processes that
lead from firm-external stimuli (such as regulation or market forces) to green innovation.
There is also acute dearth of literature on the drivers of green innovation in tropical
developing countries. Hence, this study is novel both in the research method and contribution
to knowledge.
8
7.0
Description of Theoretical Sampling
Technique in Qualitative Research
Theoretical sampling is a method of data collection in qualitative research based on
concepts/themes derived from the data. The purpose of theoretical sampling is to collect data
that will maximize opportunities to develop concepts in terms of their properties and
dimensions, uncover variations, and identify relationships between categories.
Theoretical samplings begin with general target population and continue to sample from the
group. Theoretical sampling is especially important when studying new or uncharted areas
because it allows for discovery. What makes theoretical sampling different from conventional
methods of sampling is that it is responsive to the data rather than established before the
research begins. This responsive approach makes sampling open and flexible. Concepts are
derived from data during analysis and questions about those concepts drive the next round of
data collection. Rather than being used to verify or test hypotheses about concepts, theoretical
sampling is about discovering relevant concepts and their properties and dimensions.
As against conventional research methods of sampling where the researcher sample people
and controlling variables, the researcher is purposely looking for indicators of those concepts
so as to examine the data to discover how concepts vary under under different conditions.
Unlike conventional researcher methods of sampling, the researcher does not go out and
collect the entire data set before beginning the analysis. Analysis begins after the first day of
data gathering. Data collection leads to analysis. Analysis leads to concepts. Concepts
generate questions. Question leads to more data collection so that the researcher might learn
more about those concepts. This circular process continues until the researcher reaches the
point of saturation. Saturation is usually explained in terms of “when no new data are
emerging”. But saturation is more than a matter of no new data. It also denotes the
development of categories in terms of their properties and dimensions, including variation,
and if theory building, the delineating of relationships between concepts.
8.0
Methods
8.1
Methodological Approach
This research utilized a comparative qualitative case designs. Much social science research
has been directed toward the task of testing formal theories. Our objective, however, was to
generate a grounded theory, that is, one “grounded” in the data (Spradley, 1979; Glaser and
Strauss, 1967). Qualitative research is an appropriate methodology when the objective is to
generate grounded theory (Glaser and Strauss, 1967), a methodological approach employed
in a variety of disciplines to describe and interpret the “lived worlds” of subjects (Glaser,
1978; Schatzman and Strauss, 1973).
9
A major function of theory is to provide a model (Strauss, 1995; Maxwell, 2005). Grounded
theory does not refer to any particular level of theory, but to theory that is inductively
developed during a study (or series of studies) in constant interaction with the data from the
study (Glaser and Strauss, 1967). This theory is grounded in the actual data collected, in
contrast to theory that is developed conceptually and then simply tested against empirical
data. In qualitative research, both existing theory and grounded theory are legitimate and
valuable (Clarke, 2005).
8.2
Sample
The directory of the Manufacturers Association of Nigeria (MAN) listed 409 chemical and
pharmaceutical companies (MAN, 1994; MAN, 2000). The Federal Office of Statistics (FOS)
country wide industrial survey listed 382. Since the MAN directory was published in 1994
and the FOS (1998) statistics refer to the 1992 country wide industrial survey, we did not
expect much discrepancy in the figures from the two sources. However, the 2005 Standards
Organisation of Nigeria, and Raw Materials Research Development Council classification
listed 364 Chemical and Pharmaceutical companies. However, the rate of firms’ exit from
manufacturing activities in the sector might have had a negative sum due global downturn
economic situation.
The research adopted a theoretical sampling technique. Theoretical samplings begin with
general target population and continue to sample from the group. Our general target
population includes 75 upper echelon executives in the Nigerian chemical and
pharmaceutical industry. The general target population consist of a mix of 30 medium and 40
large scale enterprises in the Nigerian chemical and pharmaceutical industry. Our ultimate
selected target population includes 35 upper echelon executives which consist of a mix of 17
medium and 18 large scale enterprises.
In literature, there has been diverse classification of firms into small, medium and large-scale
enterprises, either based on sales turnover, capital outlay or persons employed. In Africa,
according to Lall et al (1994) and Oyelaran-Oyeyinka (1997a), firms employing 10 to 49
persons are usually considered small scale, 50 to 199 medium-scale, and firms employing
200 or more persons are regarded as large scale (Winston, 1981; Liedholm, 1992; OyelaranOyeyinka, 1997b). Table 1 below shows the distribution of the selected target population.
The research was conducted in two cities of Nigeria - Lagos and Ibadan, as over 90 percent of
the chemical and pharmaceutical industry is located in Lagos State. Lagos is former capital of
Nigeria and Ibadan is the largest indigenous city in Tropical Africa. The research was carried
out with the support of the Manufacturers Association of Nigeria (MAN). Letters were sent
by the Director of the Pharmaceutical and Allied Products Group of MAN to all the 364
companies in the distribution below to facilitate recruitment of interview candidates. Follow
up phone calls were made to the companies by MAN two weeks after dispatching the letters.
Follow up visits were also made to the companies to confirm acceptance. Four upper echelon
executives from each of the companies will be interviewed for diversified opinion on
corporate strategy and operations. Respondents include the Chief Executive Officers (CEOs),
the Operation Directors (ODs), Procurement Directors (PDs) and Human Resources Directors
(HRDs)
10
Table 1: Distribution of companies in the Nigerian chemical and pharmaceutical
industry
Distribution
Paints,
vanishes and
allied products
Total number
Selected target
population
52
5
24
3
Agro chemicals
(Fertilizers &
Pesticides)
12
2
Pharmaceutical
80
8
46
4
Safety matches
16
3
Candle manufacturer
12
2
Printing ink
manufacturers
12
2
74
4
36
2
Soap & Detergents
Foam manufacturers
Toiletries & Cosmetics
Basic Industrial
Chemicals
Total
364
35
Theoretical sampling technique characteristic of grounded theory was utilized. Grounded
theory has no predetermined guidelines for sample size selection (Locke, 2000). Hence,
sample size cannot be predicted. While general target population or initial sample selection
was based on general inclusion criteria, theoretical sampling is directed by theme emerging
from concurrent data collection and analysis (Strauss and Cobin, 1998; Glaser and Strauss,
1967). Sampling continues until data provided a thick rich description of the study
phenomenon and no new themes emerges (Glaser and Strauss, 1967).
Hence, in seeking to reach theoretical saturation, the data collection evolved from general
sampling to relational sampling (that is, seeking to understand relationships) and ending with
discriminate sampling (that is, seeking to differentiate relationship) (Strauss and Cobin,
1998).
8.3
Data Collection
Data was collected over a six months period from October 2012 to March, 2013 in Nigeria.
Semi-structured interviews with open ended questions of approximately 50 minutes duration
were conducted on the premises of the companies who participate in the study. Some
interviews were conducted in the office of the Manufacturers Association of Nigeria during
the monthly review meetings of the Pharmaceutical and Allied Products Group of MAN in
January, February and March 2013. Four interviews were conducted for each company Chief
Executive Officers (CEOs), the Operation Directors (ODs), Procurement Directors (PDs) and
Human Resources Directors (HRDs)
11
The interviews were set at time and venue convenient to the participant. A face-to-face
interview was conducted in an enclosed, private, comfortable office in order to mitigate
interruption or ambient noise. A digital audio recording was made of each interview for ease
of obtaining information and for accuracy in reflecting the comments. A follow up visit were
made for some companies to clarify some points discussed during the original interview,
which were not udio-taped for clarification purposes only.
The semi-structured questionnaires include open ended questions on closed –loop production
systems and sustainable manufacturing concepts and practices adopted by the industries.
Specific focus include: pollution control, cleaner production, eco-efficiency, lifecycle
thinking, closed loop production and industrial ecology. Issues on process optimization,
lower resources input and output, substitution of materials, environmental strategies and
monitoring, environmental management systems, green supply chain management, corporate
social responsibility and integrated systems of production were also addressed.
Maxwell’s (2005) situation specific interview process was adopted to develop the interview
protocol used for all the respondents. The guide allowed interviewee’s personal experience
and stories to emerge as recommended by Spradley (1980). A convergent interview technique
was also adopted for the interview. A convergent approach was considered appropriate
because the research is exploratory and designed to build rather than test theory. In addition,
the interview process was cyclic in nature creating room for continuous streamlining of the
research issues and allowing a gradual convergence of the interpretation of the research data
(Boyatzis, 1998).
At the conclusion of the interviews, each participant was given the opportunity to provide
additional information. This opportunity to expand on earlier commentary opens up new
discoveries. In addition to the digital audio recording of the interview sessions, important
comments and references were noted and used as journal and referenced during the data
analysis phase. The researcher also observed some selected factories production processes
and green innovation technologies. Digital audio recordings of answers to questions asked
during the factory inspection were made as hand notes.
The records of the research were kept private. Following the interview, the recorded
information was transferred to a password protected computer and the interview erased from
the recorder immediately. All identifiers were removed from all records, including but not
limited to, the master list at the completion of the follow-up interviews. Further, no
identifying information were included in the research findings. A transcription of the
recording was made by a reputable commercial transcription service that understands and
follows the precautions required for human subjects’ research. A transcribed word
processing file was stored with the associated audio file using the same security approach
described above. All transcriptions were loaded into coding software, QUALRUS.
8.4
Data Analysis
Data collection was carried out concurrently with data analysis and data collection continued
until saturation was reached (Glaser, 1978; Glaser and Strauss, 1967). The interview
transcripts and observational notes to be analyzed was read multiple times (Emerson, et al,
1995). The interview tapes was also listened to several times. During the period of reading
12
and listening, notes and memos were written on what was seen and heard in the data.
Tentative ideas were developed about categories and relationships.
An iterative process of data examination was adopted before formal data analysis was carried
out (Maxwell, 2005; Boyatzis, 1998) cycling through the interview data to capture emerging
ideas and link them to existing literature. This was followed by multiple iterations of coding
of the raw data.
The data was initially subjected to open (inductive) coding to identify “codable moments”
(Boyatzis, 1998) using intelligent qualitative analysis coding software, Qualrus. The codable
moments were captured. The codable moments were then grouped into sub-themes. Using a
simple affinity mapping technique, the sub-themes were grouped into logically connected
themes. Finally, the themes were grouped as described by Boyatzis (1998). Descriptive labels
were given to words, phrases and sentences at this stage. The next analytical step include the
development of major themes, a rigorous process involving re-examining the data relative to
the preliminary conceptual model as well as new insights (Maxwell, 2005).
Using grounded theory approach, the categorization reduced the number of substantive codes
generated from the initial data analysis. The codes were constantly compared against each
other until they are mutually exclusive (Strauss and Cobin, 1998). The third phase of the data
analysis was the theoretical coding. At this stage, second level categories were linked
together and theoretical codes emerge. The emerged theoretical codes were compared with
existing knowledge in the study domain. Observations made during the interview process
were also reviewed, revised and organized as data collection and analysis continued
(Maxwell, 2005). The codable moments were then be grouped generate the findings.
In total, 96 percent (4,045) of the 4,389 codable moments grouped into three key findings
discussed in the next section. Table 2 below shows the allocation of the codable moments
across the findings.
9.0
Findings
Our analysis generated the following three key findings:
1. Investment in green innovation in developing markets is driven by six factors:
a.
b.
c.
d.
e
f.
Raw material scarcity
Economic considerations
Regulatory push
Technology push
Ownership
Management characteristics
2. There is a strong positive relationship between environment-benign and cleaner
technologies and corporate financial performance
13
3. There is a positive relationship between adoption of green innovation and
sustainable manufacturing practices
The table below summarizes the allocation of the codable moments across the findings and
between the executives interviewed (Managing Directors (MDs), Operations Directors
(ODs), Procurement Directors (PDs) and Human Resources Directors (HRDs)).
9.1
Finding 1: Drivers of Investment in
Green Innovation
Our data revealed that chemical and pharmaceutical industry executives in Nigeria appreciate
the benefits of eco-friendly technologies and, surprisingly, are investing in them to a degree
uncommon in most developing countries. Our executives explained that investment is
influenced by six specific factors:
Table 2: Allocation of Codable Moments across the Findings
Findings
% MDs % ODs
%
PDs
1. Green innovation technologies
drivers
32%
28%
23%
 Raw material scarcity
36%
22%
32%
 Economic considerations
28%
42%
16%
 Regulator push
33%
45%
16%
 Technology push
40%
25%
21%
 Ownership
28%
24%
22%
 Management
characteristics
2. Positive relationship between
41%
31%
17%
sustainable manufacturing practices
and financial performance
3. Positive relationship between
adoption of greenovation and
sustainable manufacturing practices
Total
26%
44%
21%
%
HRDs
%
Codes
17%
10%
14%
6%
14%
16%
13%
20%
10%
7%
6%
6%
11%
21%
9%
13%
96%
Raw Material Scarcity
Chemical and pharmaceutical executives lamented the unavailability to source chemical and
pharmaceutical raw materials locally, the high cost of raw materials and outrageous local tax.
As demonstrated in Figure 3 below, respondent’s reported disillusionment with pessimism
about government policy regarding the chemical and pharmaceutical raw materials.
14
Figure 3: Unfavourable Government Policy
on Chemical and Pharmaceutical Raw
Materials
“Nigeria is deficient in technological
development. Refineries are failing in
technological synthesis of raw
materials .” (MD of Company # 4)
“Over 80% of the chemical and
pharmaceutical industry raw materials
come from chemical products. These
raw materials are imported” (OD of
Company # 16)
“There is no incentives and political will
to encourage the synthesis of our raw
materials locally. We import this
materials from Europe and Asia”. (MD
of Company # 32).
“The Federal Government tax
other duties on our imported
materials is 25%. This increases
production cost significant.
become uncompetitive” (MD
Company # 6).
and
raw
our
We
of
“Over 60% of our production cost is attributed to raw
materials. The cost of imported raw materials keep
increasing day after day. This erodes our profit margin
significantly. (HRD of Company #3)
Wrong attitudes of government on public sector operations including refineries for the
synthesis of chemical and pharmaceutical raw materials, they concurred (as exemplified in
Figure 4 below), has fueled foreign importation of raw materials in Nigeria.
Figure 4: Wrong attitudes of Government on Public Sector
Operations including Refineries for the Synthesis of Raw Materials
“While Nigeria is the largest producer of
oil in sub-Saharan Africa, the West
African country imports as much as 70%
of the oil products it needs to sustain its
economy as a result of a deficit in refining
capacity”. (MD of Company # 13)
“Nigeria refineries are not working.
People import crude oil and refine back
to us. We import pharmaceutical raw
materials. That is why we are not
competitive.” (OD of Company # 24)
“Nigeria has four operational refineries, but
together they produce less than 445,000
barrels a day owing to poor infrastructure and
substandard maintenance.
. (PD of Company #22)
“The worsening electricity problem in the
country has reduced production at the Port
Harcourt Refinery to near zero level owing to
frequent power outages”. (MD of Company #
2)
15
Economic Considerations
In this difficult operating environment of raw materials scarcity, executives looked to
greenovation as the key to building sustainable companies and maximizing the shareholders
wealth as indicated in Figure 5.
Figure 5: Greenovation is the one way to remain in business
in the Nigerian Chemical and Pharmaceutical Industry
“Nigeria imports chemical and pharmaceutical
raw materials. A lot of us now have recycling
plant to bring our cost of production down. I
am aware of six functional recycling plants in
Lagos. We have to do this to remain in
business. (HRD of Company # 18).
“We have the challenge of raw materials. We have
to innovate to survive. That is why we have to
invest in recycling and other cleaner production
techniques”. (OD of Company # 35)
“Nigeria has four operational refineries operating
below capacity. The problem is leadership. If you
see what we are loosing, you would weep for
Nigeria. We have to innovate to remain in
business”. (MD of Company # 12)
Nigeria has four refineries. All were working
initially. Like Government ventures, they were
run down”. The cost of importing raw materials is
high. We have to invest in recycling to still
remain in business”. (MD of Company #2 1).
Such greenovation, they reported, included investment in cleaner production strategies that
potentially reduce operating cost and facilitate environmental improvement of their
operations including improvement programmes aimed at recovery, reuse and recycling as
well as preventive measures to reduce waste at source and ultimate disposal as indicated in
Figure 6 below:
Figure 6: Cleaner Production the key to building sustainable
companies to maximise shareholders wealth
“We reduce our powdered spills by good
manufacturing practices in raw material
handling techniques and proper maintenance of
equipments. We do this to reduce our
production cost. This is the only way to remain
in business (HRD of Company # 7).
“We designed and operate water recovery and
wastewater re-use and reduction plan”. We also
engage in effective segregation, reuse and recycling
for cost effectiveness of our production cost (OD of
Company # 13)
“We are environmentally friendly. We run on gas.
We built a gas plant. We connect the gas plant to
our machines. We ensure effective operation of
our boiler to reduce fuel consumption. This has
reduced our energy consumption by 40%. This
has reduced our operating cost significantly”.
(MD of Company # 22)
“We adopt lean manufacturing and pollution
prevention including reduced lead time, defects,
and material loss and damage. Total cost
savings for the company are approximately
$140,000 per year”. (MD of Company # 29).
Regulatory Push
Without exception, all interviewees attested to the role of strong state regulation as a driver of
firm investment in greenovation in the four hundred and thirty nine codable moments
referenced this finding. In particular, respondents, as indicated in Figure 7, cited
16
environmental legislation including guidelines and standards for the abatement and control of
pollution and environmental impact assessment, audit, monitoring and compliance
regulations for their investments in pollution control and cleaner production.
Figure 7: Strong Environmental Regulation
“Lagos State Environmental Protection
Agency (LASEPA) makes it mandatory for
us to obtain Environmental Permit before
commencing the construction of our
factory (MD of Company # 11).
“LASEPA policy require that we submit an
environmental and social impact assessment and
environmental and social management plan
before commencing operation. There is strict
enforcement of regulation” (OD of Com # 21)
“We paid $60,000 to our consultant for
environmental audit. That is Government
regulation. We update that every 5 years”.
(MD of Company # 33)
“LASEPA is responsible for the enforcement of
pollution laws in Lagos State. You must submit
EIA report to LASEPA before operations.” (OD
of Company # 34)
“There is an edict on waste management in
Lagos State. LAWMA has a contract with
the industries to cart away waste to
sanitary landfill. This is not the case in
Oyo State”. (PD of Company # 35)
“We built a world class effluent treatment plant.
We are also registered with Lagos State Waste
Management Agency (LAWMA). LAWMA
collect our solid waste for disposal at
OLUSHOSUN Landfill site.” (OD of Com # 16).
Technology Push
Interviewees unanimously referenced sources of technological knowledge about plants,
equipment vendors and international consultants as important in their greenovation
investment decisions as shown in Figure 8 below:
Figure 8: Source of Technological Knowledge
“We are German affiliate company. We
built the first compliance pharmaceutical
company in Nigeria based the suggestion
from our international consultants” (HRD
of Company # 11)
“Our source of technological knowledge is
German. We have upgraded our factory to what
we saw in Europe in terms of cleaner production
and eco-effiency”. (OD of Company # 8)
“It is the policy of our parent company to
invest in pollution control and cleaner
production. It is part of our business set up
protocol”. (MD of Company # 16)
“We invest in both hardware and software
greenovation including energy savings, pollution
control and waste recycling based on the advice
of our Singapore partner” (PD of Company # 15)
“We have been pre-qualified by WHO. We
do machine acceptance test yearly. We
look outside the country regularly for
innovation” (MD of Company # 27)
“We draw out technological inspiration from
Singapore, Malaysia and Indonesia. Our
investment in greenovation based on the advise of
our technical consultant and equipment vendor in
Singapore” (HRD of Company # 15).
Most of the executives reported that their investment in greenovation resulted from advice
rendered by international consultants and their equipment was sourced mostly from vendors
in Europe (Germany) and Asia (Malaysia, India, Singapore and Indonesia). No Greenovation,
they reported, was Nigeria sourced.
17
Ownership
Foreign affiliation, foreign technical partnership and ownership of the firm whether
multinational, foreign or local emerged as a key driver of firm investment in greenovation as
highlighted in Figure 9 below. Executives acknowledged foreign ownership in the Nigerian
chemical and pharmaceutical industry which are predominantly Indian (about 20 percent).
We also have small percentage of British, German, Jordan and Swiss ownership. Local
ownership amount to about 60 percent however with strong foreign technical partnership and
foreign affiliation. However, pure local ownership account to about 5 percent. Hence, most of
the investment in greenovation is motivated by foreign ownership mostly multinationals,
foreign affiliation and foreign technical partnership. Most of the multinationals and foreign
firms have greenovation and sustainable manufacturing practices in place, and often featuring
the same technology that operates in their parent companies abroad.
Figure 9: Ownership of the Companies
“Indian has over 20% ownership of the
industry and the 60% ownership by
Nigerians has foreign partnership. This
result in capital flight. It is not good for the
economy of the country” (OD of Co # 11)
“The pharmaceutical industry is capital and
technologically intensive. Only a foreigner can
adopt greenovation and remain in business in this
industry with long payback period” (MD of
Company # 21)
“Less than 10% are purely indigenous.
Nigerian companies does not have the
technological back up to practice
greenovation ” (OD of Company # 13)
“Our liquid waste is treated. We do not emit
hazardous waste into the environment. This is our
organization policy as an Bfritish company”.
(HRD of Company #2 2).
“Our environmental policy is more
stringent than National Regulations. Our
policy is designed to meet more than
expected from Government regulatory
body”. (MD of Company # 2)
“Our company has German affliation. We built
the first compliance pharmaceutical industry in
Nigeria. We are WHO compliance. Our
environmental policy is more stringent than that
of NAFDAC and LASEPA” (PD of Comp #12)
Management Characteristics
Management education, experience and quality influence the adoption of greenovation and
sustainable manufacturing as illustrated in Figure 10. The majority of executives we
interviewed had advanced university degrees and an average of 20 years of experience in the
chemical and pharmaceutical industry, typically including international job and/or training
experience, mostly in Germany, Switzerland, United Kingdom, Jordan, Singapore, Malaysia,
Indonesia and India.
Typical was a Managing Director with 28 years experience who has worked with 8
pharmaceutical companies in Germany, Switzerland, Singapore, Malaysia, Indonesia and
South Korea where he had seen the benefits of greenovation and adopting the same
technology in Nigeria. A Managing Director of another firm and a lifelong veteran of the
pharmaceutical industry reported bringing cleaner production into this company based on his
overseas exposure. Hence, evidence from the study provides a link between adoption of
greenovation and sustainable manufacturing practices and management education and
experience.
18
Figure 10: Management education, experience and quality
“I worked with 8 companies in 6 countries
where I have seen the benefits of
greenovation. We are adopting the same
technology in Nigeria.” (MD of Com # 2).
“I became a Production Manager in 1984. I have
seen the benefits of cleaner production in United
Kingdom. We are working to make our
production system attain the same standard” (PD
of Company # 23)
“I have worked in 12 countries. I joined
this company 4 years ago. The overseas
training is highly important to our adoption
of
greenovation
and
sustainable
manufacturing practices” (PD of Com #21)
“I have been in chemical and pharmaceutical
industry for 30 years. This exposure overseas is
relevant for our innovation in cleaner production”
(MD of Company # 18)
I am a veteran in this industry. I worked
for 20 years in Germany. I have brought a
lot of innovation into this company based
on my overseas exposures in greenovation
technologies” ” (MD of Company # 34).
“I am an Indian and we are an Indian Company. I
have been in the pharmaceutical industry for 32
years. I have worked in United States and
Singapore. These experience are very useful in
my current position (MD of Company #33)
9.2
Finding 2: Positive Relationship
Established between Sustainable
Manufacturing
Practices
and
Financial Performance
Our data provide strong evidence of a positive relationship between sustainable
manufacturing and financial performance in the Nigerian Chemical and pharmaceutical
industry. Our interviewees stressed the salubrious bottom line effect of cleaner production
adoption. As expected, all respondents stressed the impact of economic conditions on their
investment decisions. More than 922 of the 4,389 codable moments representing 21 percent
captured in our analysis reflected the consensus of our interviewees that cost considerations
and economics, in fact, were considered the first and most significant driver of investments in
cleaner production in the Nigerian chemical and pharmaceutical industry.
Although adopting sustainable manufacturing practices tapped financial reserves, executives
looked upon that investment in terms of cost saving. As illustrated in the quote tree in Figure
11 below, respondents explained sustained implementation of cleaner production strategies
that potentially reducing operating costs and facilitates environmental improvement of
operations aimed at recovery, reuse and recycling as well as preventive measures to reduce
waste at source and ultimately disposal as a requirement to remain in business.
Conveying the spirit of the majority of the respondents, the Operations Director of one
company called it “smart economics” to implemented projects which included adjustments to
water pumping and compressed air systems which reduced their annual energy consumption
by 2 million kWh of electricity” and the Managing Director of a multinational company said
the only option in a raw material crises situation like Nigeria’s is cleaner production which
made investment in them compulsory.
19
Figure 11: Cleaner Production Technologies Investment Led to Profitability
“We adopt eco-efficiency to reduce our
operating cost by minimizing waste,
conserve energy, reuse materials and
focusing on lifecyclet”(HRD of Com # 14)
“We employ cleaner production to reduce
components of the effluent that contributes to
high BOD and effluent treatment cost. This
reduces our operating costs.” (OD of Com #34)
“Cleaner production have given us a brand
name which ultimately has led to increased
product acceptability and profitability”
(HRD of Company #2)
“We purchased of chillers and implement closed
loop system to cool heated components which
resulted in an 75% reduction in water use. (OD of
company #2)
“We implement projects which included
adjustments to water pumping and
compressed air systems. As a result, we
reduced its annual energy consumption by
2millionkWh ”(PD of Company # 2).
“We increase our energy efficiency which
enhances responsible business practices. By
adjusting boiler settings and repairing minor gas
line leakage, we reduced natural gas
consumption by 15%.”.. (OD of Company # 15)
Conveying the spirit of the majority of the respondents, the Operations Director of one
company called it “smart economics” to implemented projects which included adjustments to
water pumping and compressed air systems which reduced their annual energy consumption
by 2 million kWh of electricity”and the Managing Director of a multinational company said
the only option in a raw material crises situation like Nigeria’s is cleaner production which
made investment in them compulsory.
9.3
Finding 3: Positive Relationship
Established between Adoption of
Green Innovation and Sustainable
Manufacturing Practices
Our data provide strong evidence of a positive relationship between adoption of greenovation
mechanisms and targets and sustainable manufacturing practices. in the Nigerian Chemical
and pharmaceutical industry. As illustrated in the quote tree in Figure 12 below, our
interviewees stressed sustainability as a catalyst for greenovation to transform the way
companies economise with resources and do business. As expected, all respondents stressed
the impact of economic conditions on their investment decisions. More than 571 of the 4,389
codable moments representing 13 percent captured in our analysis reflected the consensus of
our interviewees.
20
Figure 12: Adoption of Greenovation Led to Sustainable Manufacturing
Practices
“Sustainable manufacturing stimulates us
to seek new approaches to production and
resource use and creates competitive
advantage for us” (HRD of Company # 2).
“Sustainable manufacturing is our catalyst for
greenovation to transform the way we economise
with resources and do business” (MD of
Company # 2)
“Sustainable manufacturing enable us to
decrease out costs by better waste and
resource management practices. We have
achieved this through reduced energy
consumption” (MD of Company # 31)
“Sustainable manufacturing is our source of
greenovation to create environmentally friendly
value chains to become more efficient”(PD of
Company #22)
“We adopt sustainable manufacturing
practices to gain a sustainable competitive
advantage. This encourages to seek new
products and technologies” (MD of
Company # 15)
“Sustainable manufacturing has brought us
opportunities for green innovation. We have
deployed a cutting edge technology that is
environmentally friendly to produce long lasting
competitive advantage .” (MD of Comp #1 4).
10.0
Discussion
Our findings challenge conventional expectations that energy intensive industries in
developing markets operate amid highly pollution-intensive conditions, within weak or nonexistent formal environmental regulatory frameworks and enforcement mechanisms, and with
limited institutional capacity, inadequate information on emissions and nearly zero
government-imposed “price of pollution.” We found the Nigerian chemical and
pharmaceutical industry is fast adopting environment benign and cleaner technologies that
are similar to those in developed countries and emerging economies in Asia.
Evidence from our analysis suggests that the adopted green innovation involves hardware and
software innovation that is related to green products and processes, including the innovation
in technologies that are involved in energy savings, pollution prevention, waste recycling,
green products designs and corporate environmental management.
Evidence from our study supports some of these previously noted factors, but our findings
include other drivers of greenovation that might be sector specific and also peculiar to
tropical developing countries. While economic considerations, technology push and
ownership characteristics, are all well demonstrated in our study as drivers of greenovation,
have been previously acknowledged, raw material scarcity, regulatory push and management
quality have not been.
Furthermore, the study provide strong evidence of a positive relationship between sustainable
manufacturing and financial performance in the Nigerian Chemical and pharmaceutical
industry. Positive relationship between sustainable manufacturing and green innovation was
also established. Such sustainable manufacturing initiatives includes cleaner production,
closed loop production, eco-efficiency and life-cycle thinking.
21
11.0
Limitations
Several limitations to the study are noteworthy:
Our findings were based on a sample that was small, non-random and geographically limited.
Our respondents represented only 35 out of a population of 364 chemical and related firms in
Nigeria. In addition, about 90 percent of them are located in Lagos State.
The institutional capacity for environmental regulation is an important determinant of firms'
technology responses to the imperatives of environmentally sustainable industrialization. The
institutional capacity for environmental regulation is difficult to quantify, and as such, could
not be incorporated into the study.
Our findings appear to be satisfactorily robust and appreciably achieved the study objectives.
However, quantitative research is recommended to verify the relationship between the
decision of the firms’ investment in green innovation in developing markets.
12.0
Policy Implication of the Study
The research will have implication for global greenhouse gas emission and climate change.
The finding from the research have implications for both industry and government to better
understand and determine how to move towards a sustainable future. This is critical in
tropical developing countries like Nigeria characterized by lack of formal regulatory
framework and enforcement mechanisms, limited institutional capacity and inadequate
information on emissions.
The study has indentified low carbon pathways through green innovation for industrial
development in Nigeria. This low carbon development will focus on the inter-linkages
between different environmental dimensions – carbon, water and materials. It will also focus
on the inter-linkages between water and different environmental dimensions – energy,
materials and carbon. In the context of growing concerns about water, this will have great
impact and appeal for country like Nigeria under water stress and likely to become further
stressed because of climate change.
These low carbon pathways suggested (three Rs – reduce, reuse and recycle) is an integral
part of the country’s industrial development strategy. These will provide a road map for
reducing the environmental footprint of value chain in Nigeria. Finally, the study provide
pathways for the factory of the future. This will include designing manufacturing plant to
minimise environmental footprints in Nigeria.
22
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Appendix
Interview Protocol
Subject ID # _______________
Chemical and Pharmaceutical Industry
1.
Tell me about yourself? How did you get involved with the chemical and pharmaceutical
industry?
2.
What are the technologies that you have adopted in your production processes?
3.
What are the technologies that you have adopted in the management of the waste (solid,
liquid and gaseous emission) from the production processes?
4.
Describe the decisions that went into the most recent adoption of the technologies for your
production processes and waste management?
5.
Describe the attitude of your organisation to environmental regulation and compliance?
6.
What is your understanding of sustainable manufacturing in the chemical and pharmaceutical
industry?
28