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Compensation systems for green strategy implementation: parametric and non‐parametric approaches

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  • Solveig Lothe
  • Ingunn Myrtveit

Abstract

This paper presents a design for compensation systems for green strategy implementation based on parametric and non‐parametric approaches. The purpose of the analysis is to use formal modeling to explain the issues that arise with the multi‐task problem of implementing an environmental strategy in addition to an already existing profit‐oriented strategy. For the first class of compensation systems (parametric), a multi‐task model is used as a basis. For the second class of compensation systems (non‐parametric), data envelopment analysis is applied.Copyright © 2003 John Wiley & Sons, Ltd. and ERP Environment

Suggested Citation

  • Solveig Lothe & Ingunn Myrtveit, 2003. "Compensation systems for green strategy implementation: parametric and non‐parametric approaches," Business Strategy and the Environment, Wiley Blackwell, vol. 12(3), pages 191-203, May.
    • Handle: RePEc:bla:bstrat:v:12:y:2003:i:3:p:191-203
    DOI: 10.1002/bse.359
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    References listed on IDEAS

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    1. Solveig Lothe & Ingunn Myrtveit & Teresa Trapani, 1999. "Compensation systems for improving environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 8(6), pages 313-321, November.
    2. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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    4. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-598, October.
    5. Daniel Tyteca, 1997. "Linear Programming Models for the Measurement of Environmental Performance of Firms—Concepts and Empirical Results," Journal of Productivity Analysis, Springer, vol. 8(2), pages 183-197, May.
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    1. Biswaraj Ghosh & Christian Herzig & Musa Mangena, 2019. "Controlling for sustainability strategies: findings from research and directions for the future," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(1), pages 5-24, April.
    2. Muzammel Shah, 2019. "Green human resource management: Development of a valid measurement scale," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 771-785, July.
    3. Mats Williander, 2007. "Absorptive capacity and interpretation system's impact when ‘going green’: an empirical study of ford, volvo cars and toyota," Business Strategy and the Environment, Wiley Blackwell, vol. 16(3), pages 202-213, March.
    4. James J. Cordeiro & Joseph Sarkis, 2008. "Does explicit contracting effectively link CEO compensation to environmental performance?," Business Strategy and the Environment, Wiley Blackwell, vol. 17(5), pages 304-317, July.
    5. Ans Kolk & Paolo Perego, 2014. "Sustainable Bonuses: Sign of Corporate Responsibility or Window Dressing?," Journal of Business Ethics, Springer, vol. 119(1), pages 1-15, January.
    6. Karen Maas & Sanne Rosendaal, 2016. "Sustainability Targets in Executive Remuneration: Targets, Time Frame, Country and Sector Specification," Business Strategy and the Environment, Wiley Blackwell, vol. 25(6), pages 390-401, September.
    7. Abagail McWilliams & Annaleena Parhankangas & Jason Coupet & Eric Welch & Darold T. Barnum, 2016. "Strategic Decision Making for the Triple Bottom Line," Business Strategy and the Environment, Wiley Blackwell, vol. 25(3), pages 193-204, March.
    8. Dutta, Saurav K. & Lawson, Raef A. & Marcinko, David J., 2016. "A management control system to support corporate sustainability strategies," Advances in accounting, Elsevier, vol. 32(C), pages 10-17.

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