The impact of servitization on the environmental and social performance in manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jingsi Zhang ◽  
Liangqun Qi ◽  
Chengdong Wang ◽  
Xichen Lyu
Keyword(s):  
Human Resource ◽  
Absorptive Capacity ◽  
Environmental Performance ◽  
Positive Impact ◽  
Social Performance ◽  
Secondary Data ◽  
Manufacturing Firms ◽  
Content Type ◽  
Resource Slack ◽  
The Impact

PurposeThis study aims to examine how servitization affects the environmental and social performance of manufacturing firms.Design/methodology/approachThe hypotheses are tested using fixed-effect panel models based on secondary data of 1,413 manufacturing firms publicly listed in the USA.FindingsResults show that servitization is positively related to the social performance of manufacturing firms; this positive relationship is more prominent under high levels of human resource slack. However, the impact of servitization on environmental performance depends on the level of absorptive capacity and human resource slack. Servitization improves environmental performance under high levels of absorptive capacity and human resource slack, while this positive impact is insignificant under low levels of absorptive capacity and human resource slack.Research limitations/implicationsThe study focuses on the degree (depth) of servitization but ignores the scope of services provided by manufacturing firms (breadth of servitization).Practical implicationsThis research suggests that servitization is an effective way of achieving simultaneous improvements in environmental and social performance. However, high levels of absorptive capacity and human resource slack are needed to achieve this goal.Originality/valueThis study contributes to the servitization literature by demonstrating the environmental and social sustainability benefits of servitization. The findings also highlight the crucial role of absorptive capacity and human resource slack on improving environmental and social performance through servitization.

scholarly journals The Impact of Innovation Strategy on the Financial, Social and Environmental Performance

2021 ◽  
Vol 1 (1) ◽  
pp. 33-39
Author(s):  
Hamid Saremi ◽  
Masoud Mahmoudi ◽  
Mojtaba Soltaninezhad ◽  
Mohammad Hosseinpour
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Social Performance ◽  
Point Of View ◽  
Innovation Strategy ◽  
Management Tools ◽  
Social And Environmental Performance ◽  
The Impact

The core purpose of this study is to investigate the effect of innovation strategy on financial, social and environmental performance of companies listed on the Tehran Stock Exchange (TSE). The information used is from 129 companies listed on TSE in different industries between 2011 and 2018 (1032 observations). In order to analyze the data, a multivariate regression test was used. The results showed a positive and significant relationship between innovation strategy on financial performance and environmental performance. Also, the relationship between innovation strategy and social performance has a positive but insignificant. Innovation tools are also among the few management tools that can have a positive impact on both financial performance and the company's environmental performance. In this research, an attempt has been made to look at the idea of innovation from a financial point of view, and its results in the long run indicate the right choice of management to invest in the company's research and development unit.

Sustainable supply chain collaboration: incentives in emerging economies

2018 ◽  
Vol 29 (2) ◽  
pp. 273-294 ◽  
Author(s):  
Nutcharee Pakdeechoho ◽  
Vatcharapol Sukhotu
Keyword(s):  
Supply Chain ◽  
Environmental Performance ◽  
Manufacturing Industry ◽  
Social Performance ◽  
Emerging Economy ◽  
Manufacturing Firms ◽  
Supply Chain Collaboration ◽  
Sustainable Supply Chain ◽  
Food Manufacturing ◽  
Content Type

Purpose The purpose of this paper is to investigate the relationship between sustainable supply chain collaboration (SSCC) and sustainability performance, and examine whether two types of incentives moderate this relationship. This empirical investigation of the Thai food manufacturing industry provides insight in the context of an emerging economy. Design/methodology/approach Survey data were collected from 215 food manufacturing firms in Thailand, and the hypotheses were tested by exploratory factor analysis, hierarchical regression analysis, and cluster analysis. Findings The results indicate that SSCC leads to better economic and social performance, but not necessarily better environmental performance; incentives provided by firms in the supply chain enhance the effects of SSCC on social performance. Practical implications The findings provide useful suggestions for supply chain managers and policy makers about effective collaboration and the use of incentives to improve the sustainability of individual firms in the supply chain. They also reveal the challenges faced by manufacturing firms in improving environmental performance in an emerging economy. Originality/value This study contributes to the literature on the implementation of sustainable supply chain management by explaining the role of incentives.

Sustainable supply chain management practices and performance

2018 ◽  
Vol 118 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Jing Wang ◽  
Jun Dai
Keyword(s):  
Economic Performance ◽  
Environmental Performance ◽  
Social Performance ◽  
Performance Model ◽  
Sustainable Supply Chain ◽  
Chinese Firms ◽  
Chain Management ◽  
Content Type ◽  
And Performance ◽  
The Impact

Purpose The purpose of this paper is to contribute significantly to the empirical investigations related to the impact of sustainable supply chain management (SSCM) practices on performance in Chinese firms. The paper also aims to theorize and empirically assess a comprehensive SSCM practices and performance model. The model incorporates two aspects of SSCM practices: internal and external management, and analyses the impact on corporate sustainability performance from all dimensions. Design/methodology/approach This paper develops a conceptual model to investigate the impact of SSCM practices on the firm performance. Based on the data of 172 Chinese firms, this paper analyzes the impact of SSCM practices on firm economic performance, environmental performance, and social performance for each dimension by using PLS structural equation methods. Findings The results show that firm’s internal SSCM practices have a positive impact on firm’s environmental performance and social performance. Moreover, environmental performance and social performance are positively related to economic performance. Originality/value A comprehensive SSCM practices performance model is proposed and empirically assessed for Chinese firms. The results of this investigation support the hypotheses that SSCM practices are environmentally and socially necessary and are favorable for business. A series of approach and implications of SSCM practices is recommended.

The Impact of Human Resource Management on Corporate Social Performance Strengths and Concerns

2016 ◽  
Vol 56 (3) ◽  
pp. 391-418 ◽  
Author(s):  
Sandra Rothenberg ◽  
Clyde Eiríkur Hull ◽  
Zhi Tang
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Human Resource ◽  
High Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Secondary Data ◽  
Third Party ◽  
Corporate Social ◽  
The Impact

Although high-performance human resource practices do not directly affect corporate social performance (CSP) strengths, they do positively affect CSP strengths in companies that are highly innovative or have high levels of slack. High-performance human resource management (HRM) practices also directly and negatively affect CSP concerns. Drawing on the resource-based view and using secondary data from an objective, third-party database, the authors develop and test hypotheses about how high-performance HRM affects a company’s CSP strengths and concerns. Findings suggest that HRM and innovation are important capabilities because they create and enhance other capabilities.

The effect of shipping knowledge and absorptive capacity on organizational innovation and logistics value

2015 ◽  
Vol 26 (2) ◽  
pp. 218-237 ◽  
Author(s):  
Eon-Seong Lee ◽  
Dong-Wook Song
Keyword(s):  
Organizational Performance ◽  
Absorptive Capacity ◽  
Organizational Innovation ◽  
Positive Impact ◽  
Business Environment ◽  
Positive Influence ◽  
Maritime Logistics ◽  
Logistics Industry ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine what types of shipping knowledge are crucial in order for shipping companies to survive in dynamic business environment, and to investigate how the shipping knowledge affects the company’s performance (i.e. organizational innovation and logistics value). This paper also diagnoses the moderating effect of absorptive capacity on the relationship between the shipping knowledge and its effectiveness. Design/methodology/approach – Based on the literature, a theoretical framework and relevant hypotheses are established so as to show associated relationships between shipping knowledge, absorptive capacity, and organizational innovation and logistics value. Data are collected for an empirical analysis and a moderated hierarchical regression analysis is conducted to test the hypotheses. Findings – Results show that a high level of shipping knowledge has a positive influence on the organizational innovation and logistics value of shipping companies. The findings also indicate that, while the absorptive capacity of shipping companies moderates the positive impact of shipping knowledge on the logistics value, it directly affects the improvement of organizational innovation. Research limitations/implications – This research verifies that effective knowledge management of shipping companies plays a significant role in developing organizational innovation and improving logistics performance. The research findings provide shipping companies with a strategic insight into the identification of critical sources for competitive advantage and greater organizational performance from an organizational learning perspective. Practical implications – This line of research is served as an indicator of a good strategic direction for the practitioners engaged in the maritime transport and logistics industry, in order for them to become better integrated entities in a global logistics system as well as maximize their competitive advantages. Originality/value – This paper makes the first attempt in its kind at empirically examining the types of shipping knowledge and its overall effectiveness in terms of the improvement of organizational innovation and logistics value. The moderating role of absorptive capacity on the impact of knowledge on organizational performance has also been initiated in the maritime logistics research.

Sustainability and competitive advantage from a developing economy

2016 ◽  
Vol 7 (1) ◽  
pp. 110-125 ◽  
Author(s):  
Amoako Kwarteng ◽  
Samuel Ato Dadzie ◽  
Samuel Famiyeh
Keyword(s):  
Competitive Advantage ◽  
Corporate Performance ◽  
Positive Impact ◽  
Manufacturing Firms ◽  
Corporate Image ◽  
Partial Least Square ◽  
Policy Implications ◽  
Bottom Line ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to empirically examine the impact of sustainability as measured by the triple bottom line constructs on the competitive advantage of manufacturing firms in Ghana. Design/methodology/approach To understand the impact of sustainability on competitive advantage, a survey was conducted where managers were asked about their engagement in the sustainability issues and how it affects their competitive advantage. The study uses the structural equation modelling (SEM) and, in particular, the partial least square (PLS) approaches to SEM. Findings The results of this study indicate that economic and social have a positive impact on the corporate image but not the environment. In addition, corporate image and social have positive impact on corporate performance, whilst economic and environment seem not to have any impact on corporate performance. Research limitations/implications The study is limited to only manufacturing firms operating in the Ghanaian environment. It is important, therefore, for firms in Ghana to invest in social sustainability initiatives, as it will ultimately affect their bottom line performance. This study provides policy implications to Ghana and other developing countries to implement the necessary policies and provide incentives to improve environmental awareness. Originality/value There have been just a few studies that tried to find out the impact of sustainability constructs and performance and how corporate image mediates this relationship.

The impact of environmental performance on capital structure and firm performance: the case of Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Kalash
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Returns ◽  
Environmental Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Ordinary Least Squares ◽  
Content Type ◽  
The Impact ◽  
The Capital Structure

Purpose The purpose of this study is to investigate the effect of environmental performance on the capital structure and financial performance of Turkish listed firms. Design/methodology/approach This study used data of 49 firms listed on Istanbul Stock Exchange during the period between 2014 and 2019, resulting in 205 firm-year observations. The environmental performance data were drawn from the carbon disclosure project Turkey climate change reports. Ordinary least squares and binary logistic regression models were used to examine whether environmental performance impacts the capital structure and financial performance. Findings The findings of this research revealed that environmental performance significantly positively affects the firm leverage. Findings also showed that environmental performance has a significantly positive impact on return on assets, operating profitability and return on equity, but no significant impact on stock returns. Practical implications Given the increased borrowing costs for Turkish firms after the 2018 currency crisis in Turkey, the findings of this study are very important as they enable managers of Turkish firms to make better decisions related to capital structure and to understand the role of environmental performance in reducing the cost of debt and enhancing financial performance. Originality/value To the author’s knowledge, this research is the first to investigate the effect of environmental performance on capital structure in the Turkish context, and is one of few that explained how environmental performance affects the financial performance of Turkish firms.

scholarly journals Eco-control change and environmental performance: a longitudinal perspective

2017 ◽  
Vol 13 (2) ◽  
pp. 188-215 ◽  
Author(s):  
Jean-Francois Henri ◽  
Marc Journeault ◽  
Carl Brousseau
Keyword(s):  
Environmental Performance ◽  
Design Methodology ◽  
Manufacturing Firms ◽  
Management Control ◽  
Content Type ◽  
Control Change ◽  
Mere Presence ◽  
The Impact ◽  
Survey Approach ◽  
Specific Impact

Purpose The aim of this longitudinal study is to quantitatively examine the impact of changes in the mix of eco-controls. More specifically, the purpose of this study is twofold. First, it investigates the nature of change occurring in eco-controls by analyzing three attributes of change, namely, direction of change, scope of change and scale of change. Second, this study investigates the impact of changes in eco-controls by examining to what extent the three attributes of change specifically explain environmental performance. Design/methodology/approach Longitudinal survey approach is used to collect data from a sample of manufacturing firms at two points in time. Findings The results suggest three main conclusions: changes leading to more (less) importance devoted to eco-controls within the organization contribute positively (negatively) to environmental performance; concerted changes on all aspects of the mix of eco-controls contribute more to environmental performance than piecemeal changes on specific aspects of the mix; and the aspect which contributes to environmental performance is not the scale of that change but the mere presence of a credible signal which reflects the seriousness of the intentions. Originality/value This paper contributes to management accounting change literature by breaking down the nature of change of management control practices in attributes (direction, scope and scale) and examining their specific impact on performance.

Is ISO14001 certification of the corporate effective?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhaoguo Zhang ◽  
Chi Zhang ◽  
Danting Cao
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Positive Impact ◽  
Developed Countries ◽  
Moderating Effect ◽  
Institutional Pressures ◽  
Corporate Environmental Performance ◽  
Positive Role ◽  
Content Type ◽  
The Impact

Purpose At present, the number of corporates certified by ISO14001 in China is ranked first in the world. This paper aims to explore the effectiveness of ISO14001 certification and the moderating effect of financial performance and external institutional pressures on the effectiveness. Design/methodology/approach This paper selects Shenzhen and Shanghai A-share listed companies in the heavy polluting industry from 2010 to 2017 as the research sample, and studies the impact of ISO14001 certification on corporate environmental performance and the moderating effect of financial performance and external institutional pressures. Findings This paper finds that ISO14001 certification has a positive impact on corporate environmental performance; corporate financial performance has a positive moderating effect in the relationship between ISO14001 certification and corporate environmental performance; government regulation, industry competition and media supervision also have positive moderating effects; and corporate environmental information disclosure has not yet had a positive moderating effect. Originality/value Most of the current empirical research on this topic are carried out in the context of developed countries, and lack empirical evidence from developing countries. This paper will help to make up for this deficiency. In addition, this paper will help explain why the effectiveness of ISO14001 certification generates variation in different corporates and under what conditions it will play a positive role.

Do green policies build green reputations?

2016 ◽  
Vol 7 (2) ◽  
pp. 226-246 ◽  
Author(s):  
Dina Abdelzaher ◽  
William Newburry
Keyword(s):  
Environmental Management ◽  
Multinational Corporations ◽  
Environmental Performance ◽  
Manufacturing Industry ◽  
Secondary Data ◽  
Environmentally Conscious ◽  
Content Type ◽  
Green Policy ◽  
Environmental Footprints ◽  
The Impact

Purpose Today, we are witnessing a wave of multinational corporations who seek to be recognized for being environmentally conscious, which can become a source of competitive advantage. But how many of them actually have the policies in place to achieve this? Drawing from the strategy literature, this paper aims to argue that firms who seek to achieve green reputation must align their policies in a way to achieve this goal. Design/methodology/approach This paper presents a framework that discusses the key elements of the corporate environmental management process, and then empirically examines the impact of green policy on green reputation among Fortune 500 US firms. Findings The findings support a positive significant relationship between green policy and green reputation, with environmental performance to partially mediate this relationship. Insights from this study highlight the importance of focusing on company-level green policy for building green reputation as well as for discriminating across the flux of corporations that all claim to be environmentally conscious or green. Research limitations/implications First, the study is limited by the unavailability of environmental performance data at the subsidiary level, which, if incorporated, would yield a better specified model. Second, to strengthen the causal relationships examined in the models, time-series analyses would likely be useful. Third, other informal measures that could be incorporated can include other forms of corporate verbal communications, which include 10K reports as well as shareholder letters. Practical implications Given the increased flux of firms that are racing to be known as environmentally conscious firms, one can benefit from the use of an internal mechanism that can discriminate between rhetoric and action. Therefore, when differentiating between firms’ environmental consciousness, investors and key stakeholders should investigate more internal environmental firm policies, because they are likely to be more indicative of their actions. Originality/value This study uses a quantified assessment of companies’ actual environmental footprints, drawing from a cross-sector sample within the manufacturing industry. The secondary data used in this study are combined from a number of prominent data sources in corporate social responsibility/environmental management literature.

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