What drives a textile ﬁrm to adopt an eco-label?Naveed Hayat, Anwar Hussain and Heman D. Lohano
First published: 6 November 2018
This paper investigates the factors that inﬂuence a textile ﬁrm's decision to adopt an eco-label. Logit regression is conducted using data from 128 textile ﬁrms listed on the Pakistan Stock Exchange. Results reveal that environmental performance, proﬁtability, market share and ﬁrm size have signiﬁcant positive eﬀect on the adoption of eco-labels whereas tax burden has a signiﬁcant negative eﬀect. Furthermore, an exporting textile ﬁrm is more likely to adopt an eco-label than the others. Likewise, a yarn manufacturing ﬁrm is more likely to take on an eco-label relative to a fabric or textile composite manufacturing ﬁrm.
Keywords: Eco-label · Environment friendly products · Textile · Exporting ﬁrm · Logit regression.