Is environmental management an economically sustainable business?

Exploring the impact of green logistics practices and relevant government policy on the financial efficiency of logistics companies

The coexistence of carbon neutrality and capitalism can be realized if environmentally friendly management is proven to enhance profitability. The focus of green logistics practices (GLPs) is on maximizing energy efficiency in logistics services, potentially leading to cost reductions for companies. Such practices can be supported through public reports, such as Environmental, Social, and Governance (ESG) reports, and government policies, including government certification. The primary objective of this study is to investigate whether the financial efficiency of logistics companies can be improved through the implementation of GLPs and a relevant government policy. To achieve this objective, a two-stage analysis was conducted using Data Envelopment Analysis - Slack-Based Measure (DEA-SBM) and Tobit regression analysis. The DEA-SBM was employed to assess whether the financial efficiency of logistics companies adopting GLPs and a relevant government policy was superior to that of companies not adopting such practices. Additionally, Tobit regression analysis was employed to analyze the effects of GLPs, ESG reports, and a government policy on the financial efficiency of logistics companies. The findings of the study indicate the necessity for collaboration between the private and public sectors to implement GLPs in a financially positive manner. In conclusion, the research demonstrated that the implementation of GLPs, coupled with public disclosure through ESG reports or equivalents and a government policy, had a positive impact on the financial efficiency of logistics companies.

Disentangling circular economy practices and firm's sustainability performance: A systematic literature review of past achievements and future promises

This paper systematically and critically reviews the literature on the intersection of circular economy practices (CEPs) and sustainability performance (SP). We synthesize and analyze the extant literature to uncover the knowledge gaps, highlight the contradictory views, and provide a comprehensive overview of the field. Following a detailed database search, we selected 104 empirical studies published in peer-reviewed journals for analysis. Our review reports the publication trends, top publishing journal outlets, research methodologies, and empirical contexts. We outline the theoretical underpinnings, identify the diverse circular economy practices and the key factors that impact circular economy practices and sustainable performance. The review shows a propensity for most authors to reuse established theories or not use theory at all, revealing the need for theory development. Furthermore, our analysis revealed that R&D and innovation, digital technologies, organizational capabilities/resources, and stakeholder and institutional pressure substantially influence the CEPs - SP relationship. Through our detailed assessment of the existing literature, we identified and proposed several themes and avenues for future research.

Understanding positive contributions to sustainability. A systematic review

Current approaches for measuring and assessing contributions of companies and their products to sustainability largely focus on reducing negative impacts. However, becoming "less bad" still means having adverse impacts on the environment. Various authors have therefore called for investigating how positive contributions can be made to further sustainable development. This systematic literature review explores how positive contributions to sustainability have been discussed in the environmental management literature dealing with sustainability performance measurement and assessment. Our review of 328 publications reveals an understanding of positive contributions to sustainability that is a mostly implicit or vague use. Inductive analysis, however, reveals three distinct understandings - an operationalization, a stakeholder and a transformation perspective - each of which is embedded in a different theoretical frame, namely decision, stakeholder and transition theory. These perspectives have so far been discussed separately in the literature. By drawing on theoretical foundations of performance measurement, we propose an integrated understanding of positive contributions to sustainability: A positive sustainability contribution has the goal of bringing about a sustainability transformation, considers the environmental, economic and social context through stakeholder participation, and is operationalized to facilitate decision-making and the implementation of effective sustainability measures. A clear definition is of key importance for both research and practice to both reduce negative and increase positive contributions to sustainable development.

How Does Green Innovation Strategy Influence Corporate Financing? Corporate Social Responsibility and Gender Diversity Play a Moderating Role

Global warming is becoming more and more of a concern, leading authorities to take action. The industrial sector is a key contributor to environmental and social problems. Based on stakeholder theory and agency theory, this research proposes that green innovation strategies at the firm level can overcome the industry’s negative environmental impact. As a result, the focus of this research is on green innovation strategies for corporate financing. In addition, this research suggests that corporate social responsibility and gender diversity directly affect corporate financing and their interaction. This study used Chinese 301 manufacturing firms (3010 observations) for the period 2010–2019 for this purpose. This study looks into panel data issues in depth by using approaches such as the fixed effect and generalized method of moment. The feasible generalized least square was employed to increase robustness. Furthermore, green innovation strategies were used for corporate financing. Second, the study discovered that corporate social responsibility aided firm financing. Our findings also imply that corporate social responsibility helps to attenuate the association amid green innovative strategies and corporate financing. Finally, these findings revealed that gender diversity had a favorable effect on corporate financing. Furthermore, this study confirmed that the moderating role of gender diversity is beneficial to green innovative strategies and corporate financing. These findings add to the literature by providing policymakers and regulatory bodies with useful information for advancing sustainable development.

Factors affecting managers' intention to adopt green supply chain management practices: evidence from manufacturing firms in Jordan

Global sustainability movement encourages companies to adopt and implement green supply chain management (GSCM) practices across the organization. Moreover, the integration of green practices into traditional supply chain is still to be a difficult task in manufacturing sector. However, empirical studies regarding the identification of influential factors affecting GSCM adoption among supply chain managers in manufacturing sector are under researched. This study assesses the factors affecting GSCM adoption in Jordan manufacturing firms. A well-structured questionnaire was administered for data collection. A valid 376 responses were collected from different manufacturing firms in Jordan. The data were analyzed, and the proposed model was validated using the structural equation modeling (SEM) approach. Results reveal that four factors, namely, supplier, environmental, customer, and cost factors significantly influence the intention to adopt GSCM among managers. The firm size had significantly moderated the relationship between market/financial and GSCM adoption, internal factor and GSCM adoption. The study will help the policymakers to understand the drivers of GSCM adoption among managers and assist them in implementing GSCM practices according to the size of the firm. This study is first of its kind to analyze the role of firm size as a moderator on the relationship between market/financial, supplier, governmental, environmental, internal, customers, cost factors, and GSCM in the context of Jordon.

The sustainability reporting-firm performance nexus: evidence from a threshold model

Purpose

This study aims to provide a convincing argument behind the mixed findings on the association between sustainability reporting and firm performance by investigating the possibility of a non-linear relationship through a threshold model.

Design/methodology/approach

This study used (Hansen’s 1999) threshold framework to investigate the relationship between firm performance and sustainability reporting using a sample of 210 Bombay Stock Exchange-listed firms spanning over 10 years from March 2010 to March 2019. This framework helps to test the threshold effect’s presence, estimate the threshold value and check the authenticity of the estimated threshold value.

Findings

Sustainability reporting has a differential threshold impact on the different indicators of firm performance. On the one hand, the authors’ results illustrate that the firms’ operating performance is positively impacted if and only if the sustainability reporting crosses a certain threshold. On the other hand, sustainability reporting positively impacts firms’ market performance only up to a cut-off point.

Practical implications

Managers should strive to balance sustainability reporting to reap its desired benefits on firm performance.

Originality/value

This study explores the possible non-linearity in the association between firm performance and sustainability reporting and explains the relationship’s inconclusive results. Further, this study explores the field in the novel emerging economy with unique institutional settings that mandate spending on sustainability activities.

Environment Practices Mediating the Environmental Compliance and firm Performance: An Institutional Theory Perspective from Emerging Economies

Coercive pressure has forced firms to take up environmental measures in the last two decades in emerging economies. Under normative pressure, large firms with farsightedness take up the environmental practices as industry leaders. In a little mature emerging economy, such as India, where triple bottom line awareness is growing, the government facilitates the firms to operate in an environment-friendly ecosystem. We investigate how do environmental compliance and environmental practices influence the overall firm performance? The performance was measured in terms of financial, customer, internal business process, and learning and growth performance. A survey instrument was designed using well-established scales and administered to the middle to top-level corporate management executives to gather 240 data from the Indian firms. A rigorous statistical validity, diagnostics, and SEM were used to test the hypotheses. The environmental practices showed a full mediation effect on the effect of environmental compliance on performance. The examination of mediation relationships in an environmental context is limited in the reported literature. This paper is among the initial works that deal with complicated mediation relationships drawn from institutional theory propositions. The study established and argued that environmental practices' ecosystem would turn firms towards voluntary environmental compliance and eventually enjoy the long-term performance.

Responsible Production for Sustainability: Concept Analysis and Bibliometric Review

Responsible production is receiving growing attention in manufacturing operations, but systematic analysis of its concept is scanty. This paper aims to advance the knowledge by examining the research evolution of responsible production for sustainability. Using the concept analysis approach, we first summarize four underlying attributes, including the change to sustainability, preventive initiatives, process management, and company-specific context. Next, we identify that contextual factors and firm characteristics are antecedents of responsible production, which consequently affects customer attitude, employee behavior, and firm performance. Through a bibliometric review of 518 most relevant articles, we observe that responsible production for sustainability has seen a research boom in developing countries and that China is one of the most conspicuous countries in this regard. We also recognize that the link of responsible production and financial performance receives particular interest, but it needs a more synthesized assessment framework. To promote research development of responsible production for sustainability, research collaboration, either at the author or country level, is highly desirable for knowledge creation and transfer. In view of the growing interest on its performance value, we propose a research framework with guideposts for studying responsible production and financial performance. This review provides managerial and policy implications for responsible production with insights to advance knowledge in this emerging research field.

Green warehousing, logistics optimization, social values and ethics and economic performance: the role of supply chain sustainability

Purpose

This study primarily explores the influence of green warehousing, logistics optimization and social values and ethics on supply chain sustainability and economic performance. The study further examines the mediating role of supply chain sustainability between economic performance and green warehousing, logistics optimization and social values and ethics.

Design/methodology/approach

The study employs a quantitative research approach where survey data are collected from 200 managers of manufacturing companies in Ghana. The dataset is analyzed using partial least square structural equation modeling software (PLS-SEM) SmartPLS 3.

Findings

The results show that green warehousing and logistics optimization negatively influence economic performance but improves economic performance through supply chain sustainability. It is further discovered that social values and ethics have a positive influence on supply chain sustainability and economic performance.

Originality/value

This paper proposes and tests a theoretical model that explores the relationships between green warehousing, supply chain sustainability, economic performance, logistics optimization and social values and ethics through the resource dependency theory (RDT) in the manufacturing firms in Ghana.

Sustainable Liquefied Natural Gas Supply Chain Management: A Review of Quantitative Models

Natural gas is an essential fuel in the transitions towards a sustainable energy future as it is considered a cleaner source of fuel when compared to other hydrocarbon sources. To enable natural gas delivery from the producer to consumers, natural gas is liquified to enhance transportation efficiency and reliability. The main contribution of this paper is to develop sustainable LNG supply chain through a review of different sustainable supply chain management tools and assessing their applicability in managing LNG supply chains. Energy security has evolved to include the protection of the entire energy supply chain and infrastructure rather than a consideration for the availability of resources alone. There is a particular focus on coupling sustainability and resilience/risk as part of the need to develop integrated approaches to manage energy supply chains to deliver cargo at minimal cost and environmental impact, and to ensure that supply chains can overcome vulnerabilities withstanding potential disruptions to the supply chain. Outcomes of this review demonstrate the possibility to develop multi criteria models, which consider sustainability dimensions within the LNG supply chains and to integrate parameters that form part of the annual delivery plan ensuring day to day LNG supply chain planning consider multiple objectives.

Influence of Environmental Management on Green Process Innovation: Comparison of Multiple Mediating Effects Based on Routine Replication

Although green process technology is vital to sustainable development, few articles focus on how to implement it from the perspective of firms. This article tries to answer this question. Being set as an antecedent of green process innovation, the influence of environmental management is analyzed and the influential path is elaborated. Hypotheses are tested by means of multivariate regression analysis and bootstrap method. The results show that environmental management is conducive to firms’ green process innovation, and the influence is through zero-order routine replication and higher-order routine replication. The mediating effect played by the interaction between the two is stronger than that of the individual. Implications are given to academia and practitioners.

Organizational Ambidexterity: Exploration and Exploitation

Systematic Review of Literature is done by this research with the purpose that it could be possible to analyze the existent interaction between exploration and exploitation that leads organizations to become ambidextrous ones. That is to say, that they have the faculty to look for opportunities at the same time they work to obtain a good performance in their daily activities. The methodology was based on a documentary review, through a chronological reading. The investigation was made using articles that deal with the issue of ambidextrous organizations, based on the Scopus scientific database, published between 2006 and 2016.

The complementarity of green supply chain management practices and the impact on environmental performance

Although the importance of integrating different Green Supply Chain Management (GSCM) activities has been highlighted in the literature, the potential interdependencies between these practices and their performance impacts have not been investigated. The purpose of this study is to examine the collective impact of internal and external GSCM practices on two aspects of environmental performance: environmental impact and environmental cost savings. GSCM is proposed as a collective competency, combining four distinct, but interrelated, sets of practices: environmental management systems, eco design, source reduction and external environmental practices. Using survey data from 138 Omani manufacturing firms and Structural Equation Modelling, we find strong empirical support for the complementarity of GSCM practices. We find a strong positive relationship between the level of collective GSCM competency and the environmental impact achieved. Our findings support the belief that complementarities between GSCM practices lead to better performance. Managers should therefore focus on implementing bundles of GSCM practices rather than searching for individual best practices. We find an indirect, mediated influence on environmental cost savings, which is consistent with previous results in other emerging market contexts.

The impact of innovation strategies on the relationship between supplier integration and operational performance

Purpose

The purpose of this paper is to investigate whether implementing certain innovation strategies and adopting a portfolio of innovations improve the relationship between supplier integration (SI) and operational performance (OP).

Design/methodology/approach

The authors test several research hypotheses by using a data set of 173 firms. Data were collected by interviewing managers, presidents and directors, from ten European countries and across nine different industries. The authors use structural equation modeling to estimate the relationships between SI and OP. The authors apply multi-group analysis to test the effects of certain innovation strategies and a portfolio of innovations on these relationships.

Findings

The authors show that SI improves internal OP but has no direct effect on external OP. The latter can only be improved through well-performing internal operations. The adoption of an incremental product innovation strategy improves the relationship between internal and external OP and leads to more effective SI. Other types of innovations do not help in improving the impact of SI on OP. Finally, the adoption of a portfolio of innovations does not enhance the influence of SI on OP. Thus, firms should focus on a small number of innovations rather than expanding their innovation portfolio to improve the effectiveness of SI on OP.

Practical implications

When firms aim to improve the impact of SI on OP, they should concentrate on incremental product innovations. Other strategies obtained by combining process, incremental and radical innovations are not adequate for that purpose. An expanded portfolio of innovations does not improve the effect of supplier innovation on OP.

Originality/value

This research suggests how the impact of SI on OP can be improved by adopting certain innovation strategies and without diversifying the portfolio of innovation projects.

Implementation of sustainable manufacturing practices in Indian manufacturing companies

Purpose

In the current global manufacturing scenario, all most all major players are now in a position to commit themselves to sustainability in all their operational initiatives and each of them follow their own methodology to attain their goal of sustainability. The purpose of this paper is to assess the sustainable manufacturing practice (SMP) in Indian manufacturing sector. This paper is also focused on the how lean practice leads to the sustainable manufacturing (SM).

Design/methodology/approach

A survey methodology is used for this research. The SMPs are identified for the literature review and survey questionnaire was framed. In all, 345 usable responses from four sectors namely automobile, electrical and electronics, machinery and process were collected through Google survey.

Findings

This research is focused on the SMPs. From this research it is found that sustainable product and process design (SPPD), lean practices (LP), agile practice and customization, sustainable supply operation and distribution and product recovery and return practices lead to the SM.

Research limitations/implications

This study has some limitations, which future researchers could consider. The large industries of Indian manufacturing across four sectors have been considered, the study can be further taken up to the micro, small and medium enterprises of the Indian manufacturing scenario. The questionnaire can be further developed as that it can be used for a global survey across various sectors and then comparison can be made between the Indian companies and their global counterpart. In future longitudinal studies can be conducted by considering the other SMPs like mass customization, smart manufacturing practices, etc.

Practical implications

The present research helps the stakeholders to develop strong regulatory norms/policies to promote the SMPs in Indian manufacturing industries. This research may help production/manufacturing managers/practitioners to understand various issues related to SM and how they can be used gainfully to improve their practices and performances towards sustainable development.

Social implications

This study enriches the corporate social responsibility in the organization. Corporate social responsibilities activities to be undertaken by the company shall include poverty and malnutrition, promoting health care including preventive health care and sanitation including contribution to the Swachh Bharat Kosh set-up by the Government of India for the promotion of sanitation and making available safe drinking water. This reinforces the company broader aim through its business activities to contribute to the wellbeing and sustainable development.

Originality/value

This study offers evidence of the implementation of SMPs namely SPPD, LP, agile practices and customization, sustainable supply operation and distribution and product recovery and return practices in Indian manufacturing organization. The authors propose a conceptual framework for SMPs and empirically tested.

Pathways for Sustainable Supply Chain Performance—Evidence from a Developing Country, Malaysia

Malaysia has recently started to adopt sustainable business best practices to benefit companies, environment and stakeholders. Therefore, this study demonstrates pathways to sustainable supply chain triple bottom line performance derived from linkages of institutional pressures (IP) and organizational identity (OI) to environment and social sustainable practices. It shows that the superordinate goal of sustainable supply chain management is met in spite of unyielding external pressures and desirable OI driving the unequivocal environmental and responsible social practices of firms. A survey approach was adopted to gather the data required for this study. A total of 118 completed questionnaires were received from respondents, who were managers and senior executives in supply chain management (SCM) in Malaysia. The data were analyzed using structural equation modeling with partial least squares (PLS-SEM) version 3.0. Our findings showed that all hypothesized relationships are significant except both process- and market-based social practices could not directly impact economic performance. This is in sharp contrast to environmental practices. However, the significant linkage between social practices and social performance is a pathway for the former to economic performance. Therefore, the economic benefits derived from social practices are salvaged through its performance outcomes. The novel and useful impact of institutional pressures on sustainable supply chain practices are also unearthed.

Risk Evaluation of EPC Supply Chain Based on SCOR and Multi-Level Grey Model

With the development of China's economy, large-scale engineering and complex engineering are emerging. The Engineering Procurement Construction (EPC) project general contracting model is widely used in civil engineering, water conservancy, railway, water treatment, waste incineration plants and other large engineering area. The increasing complexity of construction technology and the risks are facing overwhelming and fragile supply chain. Based on the deep analysis of supply chain operation reference (SCOR) model, which is widely used in various fields of industry, this article puts forward the preliminary index system of supply chain risk of EPC project by analytic hierarchy process (AHP). The risk index system of waste incineration project including 5 first-level risk indicators and 27 second-level risk indicators has been established and determined. The multi-level grey model is used to evaluate the risk index, calculate the grey evaluation coefficient and the grey evaluation weight vector as well as the weight matrix, draw the specific risk evaluation value of the project, and sort the first level index. Finally, an EPC example of a waste incineration in Hubei Province is used to verify the feasibility and reliability of the method.

A research framework of sustainable supply chain management

Purpose

The purpose of this paper is to develop a framework and propositions to advance research and practice in sustainable supply chain management (SSCM). Performance indicators (economic, environmental, and social) identified in the paper aim to facilitate empirical testing of a range of theoretical models derived or extended from the stated propositions.

Design/methodology/approach

The study of SSCM is truly complicated, and there is no one theory that applies in all instances. The authors analyzed over 200 critical articles published in major supply chain management and sustainability-based journals and grounded the proposed framework in a multi-theoretical perspective.

Findings

SSCM implementation entails linking stakeholder pressures, moral motives, and management commitment with relational practices. The paper further elucidates how relational practices, when bundled together, can create a set of relational capabilities, which in turn transform stakeholder pressures into sustainable outcomes.

Research limitations/implications

The research framework contributes to SSCM theory building insofar as it can be expanded into various theoretical models, allowing researchers to empirically test the links among SSCM drivers, management commitment, and relational capabilities, along with their individual or collective impact on supply chain performance.

Practical implications

The framework provides a roadmap for firms to develop and nurture relational capabilities while dealing with growing stakeholder pressures. Moral motives strengthen top management commitment, which helps channel stakeholder pressures toward the proactive development of relational capabilities.

Originality/value

The paper fulfills a call for utilizing multiple theoretical lenses to examine complex SSCM phenomena and, ultimately, to create a coherent theory of SSCM.

Environmental management practices in the Lebanese pharmaceutical industries: implementation strategies and challenges

This research attempts to provide an understanding of the Lebanese pharmaceutical industries' environmental management strategies, priorities, and perceptions as well as drivers, barriers, and incentives regarding the implementation of the voluntary ISO 14001 Environmental Management System. Accordingly, a semistructured in-depth interview was conducted with the pharmaceutical industries. The findings revealed a significant lack of knowledge about the standard among the industries. The main perceived drivers for adopting the ISO 14001 are improving the companies' image and overcoming international trade. The main perceived barriers for acquiring the standard are the lack of government support and the fact that ISO 14001 is not being legally required or enforced by the government. Moreover, results revealed that adopting the ISO 14001 standard is not perceived as a priority for the Lebanese pharmaceutical industries. Although the cost of certification was not considered as a barrier for the implementation of ISO 14001, the majority of the pharmaceutical industries are neither interested nor willing to adopt the Standard if they are not exposed to any regulatory pressure or external demand. They are more concerned with quality and safety issues with the most adopted international standard among the industries being the ISO 9001 quality management system. This study highlights the aspect that financial barriers are not always the hurdles for implementing environmental management strategies in developing countries and underscores the need for regulatory frameworks and enforcement.