IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v248y2016i3p971-981.html
   My bibliography  Save this article

Eco-activities and operating performance in the computer and electronics industryAuthor-Name: Chopra, Sunil

Author

Listed:
  • Wu, Pei-Ju

Abstract

Despite the complexity of implementing environmentally sustainable practices, an increasing number of firms have invested in eco-activities. This study investigates the association between eco-activities and operating performance over time. Moreover, this study explores the impact of eco-approaches (eco-collaboration and eco-certification) on operating performance. A difference-in-differences research design is established using operating performance data (COMPUSTAT) and eco-activity data (eco-announcements, eco-certification providers, and ASSET4). Empirical results reveal that eco-activities in the computer and electronics industry are associated with increased margin and revenue performance; however, the realization of benefits takes time (improvement typically occurs within three years of the corresponding eco-announcement). Furthermore, although eco-collaboration tends to be expensive to establish, operating performance is improved over the long term. This study also finds that eco-certification is associated with increased improvement in operating performance delivered by eco-activities.

Suggested Citation

  • Wu, Pei-Ju, 2016. "Eco-activities and operating performance in the computer and electronics industryAuthor-Name: Chopra, Sunil," European Journal of Operational Research, Elsevier, vol. 248(3), pages 971-981.
  • Handle: RePEc:eee:ejores:v:248:y:2016:i:3:p:971-981
    DOI: 10.1016/j.ejor.2015.08.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221715007249
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejor.2015.08.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Liu, Zugang (Leo) & Anderson, Trisha D. & Cruz, Jose M., 2012. "Consumer environmental awareness and competition in two-stage supply chains," European Journal of Operational Research, Elsevier, vol. 218(3), pages 602-613.
    2. Yenipazarli, A. & Vakharia, A., 2015. "Pricing, market coverage and capacity: Can green and brown products co-exist?," European Journal of Operational Research, Elsevier, vol. 242(1), pages 304-315.
    3. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    4. Mark P. Sharfman & Chitru S. Fernando, 2008. "Environmental risk management and the cost of capital," Strategic Management Journal, Wiley Blackwell, vol. 29(6), pages 569-592, June.
    5. Felipe Caro & Charles J. Corbett & Tarkan Tan & Rob Zuidwijk, 2013. "Double Counting in Supply Chain Carbon Footprinting," Manufacturing & Service Operations Management, INFORMS, vol. 15(4), pages 545-558, October.
    6. Cruz, Jose M., 2008. "Dynamics of supply chain networks with corporate social responsibility through integrated environmental decision-making," European Journal of Operational Research, Elsevier, vol. 184(3), pages 1005-1031, February.
    7. Franz Fuerst & Patrick McAllister, 2011. "Green Noise or Green Value? Measuring the Effects of Environmental Certification on Office Values," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 39(1), pages 45-69, March.
    8. Kevin B. Hendricks & Vinod R. Singhal, 2001. "The Long-Run Stock Price Performance of Firms with Effective TQM Programs," Management Science, INFORMS, vol. 47(3), pages 359-368, March.
    9. Faccio, M. & Persona, A. & Sgarbossa, F. & Zanin, G., 2014. "Sustainable SC through the complete reprocessing of end-of-life products by manufacturers: A traditional versus social responsibility company perspective," European Journal of Operational Research, Elsevier, vol. 233(2), pages 359-373.
    10. Erica Plambeck & Qiong Wang, 2009. "Effects of E-Waste Regulation on New Product Introduction," Management Science, INFORMS, vol. 55(3), pages 333-347, March.
    11. Chen, Chialin & Monahan, George E., 2010. "Environmental safety stock: The impacts of regulatory and voluntary control policies on production planning, inventory control, and environmental performance," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1280-1292, December.
    12. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    13. Paulo Albuquerque & Bart J. Bronnenberg & Charles J. Corbett, 2007. "A Spatiotemporal Analysis of the Global Diffusion of ISO 9000 and ISO 14000 Certification," Management Science, INFORMS, vol. 53(3), pages 451-468, March.
    14. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    15. Aguilar, Francisco X. & Vlosky, Richard P., 2007. "Consumer willingness to pay price premiums for environmentally certified wood products in the U.S," Forest Policy and Economics, Elsevier, vol. 9(8), pages 1100-1112, May.
    16. Vishal V. Agrawal & Mark Ferguson & L. Beril Toktay & Valerie M. Thomas, 2012. "Is Leasing Greener Than Selling?," Management Science, INFORMS, vol. 58(3), pages 523-533, March.
    17. Suresh Muthulingam & Charles J. Corbett & Shlomo Benartzi & Bohdan Oppenheim, 2013. "Energy Efficiency in Small and Medium-Sized Manufacturing Firms: Order Effects and the Adoption of Process Improvement Recommendations," Manufacturing & Service Operations Management, INFORMS, vol. 15(4), pages 596-615, October.
    18. Devika, K. & Jafarian, A. & Nourbakhsh, V., 2014. "Designing a sustainable closed-loop supply chain network based on triple bottom line approach: A comparison of metaheuristics hybridization techniques," European Journal of Operational Research, Elsevier, vol. 235(3), pages 594-615.
    19. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
    20. Barber, Brad M. & Lyon, John D., 1996. "Detecting abnormal operating performance: The empirical power and specification of test statistics," Journal of Financial Economics, Elsevier, vol. 41(3), pages 359-399, July.
    21. Theißen, Sebastian & Spinler, Stefan, 2014. "Strategic analysis of manufacturer-supplier partnerships: An ANP model for collaborative CO2 reduction management," European Journal of Operational Research, Elsevier, vol. 233(2), pages 383-397.
    22. James Kroes & Ravi Subramanian & Ramanath Subramanyam, 2012. "Operational Compliance Levers, Environmental Performance, and Firm Performance Under Cap and Trade Regulation," Manufacturing & Service Operations Management, INFORMS, vol. 14(2), pages 186-201, April.
    23. Katchova, Ani L., 2010. "Agricultural Cooperatives and Contract Price Competitiveness," Journal of Cooperatives, NCERA-210, vol. 24, pages 1-13.
    24. Georgiadis, Patroklos & Vlachos, Dimitrios, 2004. "The effect of environmental parameters on product recovery," European Journal of Operational Research, Elsevier, vol. 157(2), pages 449-464, September.
    25. Kevin B. Hendricks & Vinod R. Singhal, 1997. "Does Implementing an Effective TQM Program Actually Improve Operating Performance? Empirical Evidence from Firms That Have Won Quality Awards," Management Science, INFORMS, vol. 43(9), pages 1258-1274, September.
    26. Glen Dowell & Stuart Hart & Bernard Yeung, 2000. "Do Corporate Global Environmental Standards Create or Destroy Market Value?," Management Science, INFORMS, vol. 46(8), pages 1059-1074, August.
    27. Kevin B. Hendricks & Vinod R. Singhal, 2005. "Association Between Supply Chain Glitches and Operating Performance," Management Science, INFORMS, vol. 51(5), pages 695-711, May.
    28. Charles J. Corbett & Robert D. Klassen, 2006. "Extending the Horizons: Environmental Excellence as Key to Improving Operations," Manufacturing & Service Operations Management, INFORMS, vol. 8(1), pages 5-22, March.
    29. Erica L. Plambeck & Terry A. Taylor, 2013. "On the Value of Input Efficiency, Capacity Efficiency, and the Flexibility to Rebalance Them," Manufacturing & Service Operations Management, INFORMS, vol. 15(4), pages 630-639, October.
    30. Chonnikarn (Fern) Jira & Michael W. Toffel, 2013. "Engaging Supply Chains in Climate Change," Manufacturing & Service Operations Management, INFORMS, vol. 15(4), pages 559-577, October.
    31. Imbens,Guido W. & Rubin,Donald B., 2015. "Causal Inference for Statistics, Social, and Biomedical Sciences," Cambridge Books, Cambridge University Press, number 9780521885881.
    32. Sarkis, Joseph & Cordeiro, James J., 2001. "An empirical evaluation of environmental efficiencies and firm performance: Pollution prevention versus end-of-pipe practice," European Journal of Operational Research, Elsevier, vol. 135(1), pages 102-113, November.
    33. Robert D. Klassen & Curtis P. McLaughlin, 1996. "The Impact of Environmental Management on Firm Performance," Management Science, INFORMS, vol. 42(8), pages 1199-1214, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lui, Ariel K.H. & Lo, Chris K.Y. & Ngai, Eric W.T. & Yeung, Andy C.L., 2021. "Forced to be green? The performance impact of energy-efficient systems under institutional pressures," International Journal of Production Economics, Elsevier, vol. 239(C).
    2. Wen-Hsien Tsai, 2018. "A Green Quality Management Decision Model with Carbon Tax and Capacity Expansion under Activity-Based Costing (ABC)—A Case Study in the Tire Manufacturing Industry," Energies, MDPI, vol. 11(7), pages 1-30, July.
    3. Ulla A. Saari & Rupert J. Baumgartner & Saku J. Mäkinen, 2017. "Eco-Friendly Brands to Drive Sustainable Development: Replication and Extension of the Brand Experience Scale in a Cross-National Context," Sustainability, MDPI, vol. 9(7), pages 1-26, July.
    4. Dyna Seng & Chaiporn Vithessonthi, 2017. "Environmental Efforts and Firm Performance," PIER Discussion Papers 64, Puey Ungphakorn Institute for Economic Research.
    5. Marco Taliento & Christian Favino & Antonio Netti, 2019. "Impact of Environmental, Social, and Governance Information on Economic Performance: Evidence of a Corporate ‘Sustainability Advantage’ from Europe," Sustainability, MDPI, vol. 11(6), pages 1-26, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sining Song & Yan Dong & Thomas Kull & Craig Carter & Kefeng Xu, 2023. "Supply chain leakage of greenhouse gas emissions and supplier innovation," Production and Operations Management, Production and Operations Management Society, vol. 32(3), pages 882-903, March.
    2. Pieter Jong & Antony Paulraj & Constantin Blome, 2014. "The Financial Impact of ISO 14001 Certification: Top-Line, Bottom-Line, or Both?," Journal of Business Ethics, Springer, vol. 119(1), pages 131-149, January.
    3. Atalay Atasu & Charles J. Corbett & Ximin (Natalie) Huang & L. Beril Toktay, 2020. "Sustainable Operations Management Through the Perspective of Manufacturing & Service Operations Management," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 146-157, January.
    4. Konur, Dinçer, 2017. "Non-collaborative emission targets joining and quantity flow decisions in a Stackelberg setting," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 60-82.
    5. Suhong Li & Thomas Ngniatedema & Fang Chen, 2017. "Understanding the Impact of Green Initiatives and Green Performance on Financial Performance in the US," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 776-790, September.
    6. Fei Gao & Gilvan C. Souza, 2022. "Carbon Offsetting with Eco-Conscious Consumers," Management Science, INFORMS, vol. 68(11), pages 7879-7897, November.
    7. Tang, Ailie K.Y. & Lai, Kee-hung & Cheng, T.C.E., 2016. "A Multi-research-method approach to studying environmental sustainability in retail operations," International Journal of Production Economics, Elsevier, vol. 171(P3), pages 394-404.
    8. Joseph A. Clougherty, & Michał Grajek, & Oz Shy, 2016. "Taking ‘some’ of the mimicry out of the adoption process: Quality management and strategic substitution," ESMT Research Working Papers ESMT-16-05, ESMT European School of Management and Technology.
    9. Tajbakhsh, Alireza & Hassini, Elkafi, 2022. "A game-theoretic approach for pollution control initiatives," International Journal of Production Economics, Elsevier, vol. 254(C).
    10. Krishnan S. Anand & François C. Giraud-Carrier, 2020. "Pollution Regulation of Competitive Markets," Management Science, INFORMS, vol. 66(9), pages 4193-4206, September.
    11. Clougherty, Joseph A. & Grajek, Michal & Shy, Oz, 2016. "Taking ‘Some’ of the Mimicry Out of the Adoption Process: Quality-Management and Strategic Substitution," CEPR Discussion Papers 11661, C.E.P.R. Discussion Papers.
    12. Xue, Yu & Caliskan-Demirag, Ozgun & Chen, Youhua (Frank) & Yu, Yugang, 2018. "Supporting customers to sell used goods: Profitability and environmental implications," International Journal of Production Economics, Elsevier, vol. 206(C), pages 220-232.
    13. Xiaoyang Li & Yue Maggie Zhou, 2016. "Offshoring Pollution While Offshoring Production," Working Papers 16-09, Center for Economic Studies, U.S. Census Bureau.
    14. Charles J. Corbett & Robert D. Klassen, 2006. "Extending the Horizons: Environmental Excellence as Key to Improving Operations," Manufacturing & Service Operations Management, INFORMS, vol. 8(1), pages 5-22, March.
    15. Yang, Guangyong & Ji, Guojun & Tan, Kim Hua, 2020. "Impact of regulatory intervention and consumer environmental concern on product introduction," International Journal of Production Economics, Elsevier, vol. 230(C).
    16. Teck-Hua Ho & Noah Lim & Sadat Reza & Xiaoyu Xia, 2017. "OM Forum—Causal Inference Models in Operations Management," Manufacturing & Service Operations Management, INFORMS, vol. 19(4), pages 509-525, October.
    17. Gong, Yeming & Liu, Jiawen & Zhu, Joe, 2019. "When to increase firms’ sustainable operations for efficiency? A data envelopment analysis in the retailing industry," European Journal of Operational Research, Elsevier, vol. 277(3), pages 1010-1026.
    18. Ji, Guojun & Gunasekaran, Angappa & Yang, Guangyong, 2014. "Constructing sustainable supply chain under double environmental medium regulations," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 211-219.
    19. Charles J. Corbett & María J. Montes-Sancho & David A. Kirsch, 2005. "The Financial Impact of ISO 9000 Certification in the United States: An Empirical Analysis," Management Science, INFORMS, vol. 51(7), pages 1046-1059, July.
    20. Hammad Riaz & Abubakr Saeed, 2020. "Impact of environmental policy on firm's market performance: The case of ISO 14001," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 681-693, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:248:y:2016:i:3:p:971-981. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.