116 страниц. 2012 год. LAP Lambert Academic Publishing Environmental factor must be included in managing and producing output in economics activities. This study gives a new view on environmental issue in management and production. It also helps to identify industrial needs in implementing environmental management and producing environmental friendly product and services. This study will focus on Malaysian batik industry. Questionnaires were given to batik entrepreneurs to get base line data information about batik industry in Malaysia in terms of management, and business performance. To interpret and to estimate the quantitative variables in this study, we use Logit Model as a behaviourial model. From the results, we may conclude that ownership, initial paid up capital, number of employee, total sales and annual profit are the considerable indicators to measure degree of awareness and behaviour towards environmental management and performance in Malaysian batik industry.