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Environmental projects and financial performance: Exploring the impact of project characteristics

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  • Thoumy, Mira
  • Vachon, Stephan

Abstract

In several manufacturing organizations, environmental management systems are often operationalized through a series of green projects that can lead to a reduction of waste or a more efficient use of the resources. In turn, these types of green projects contribute directly to the bottom line. Using detailed reports of 79 environmental projects that took place in manufacturing organizations in the Province of Quebec over the last decade; this paper examines the influence of four project characteristics on the project's financial outcome. The results suggest that projects related to the main product or its underlying production process (as opposed to peripheral projects) can be financially more beneficial despite their disruptive nature. Evidence was also found that green projects involving changes in the management systems are more profitable than the ones that entail a structural transformation. Finally, a positive linkage between organizational size and project's financial performance has been supported, as larger organizations have more capabilities to implement such green initiatives.

Suggested Citation

  • Thoumy, Mira & Vachon, Stephan, 2012. "Environmental projects and financial performance: Exploring the impact of project characteristics," International Journal of Production Economics, Elsevier, vol. 140(1), pages 28-34.
  • Handle: RePEc:eee:proeco:v:140:y:2012:i:1:p:28-34
    DOI: 10.1016/j.ijpe.2012.01.014
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Graham, Stephanie & Potter, Antony, 2015. "Environmental operations management and its links with proactivity and performance: A study of the UK food industry," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 146-159.
    2. Galeazzo, Ambra & Furlan, Andrea & Vinelli, Andrea, 2014. "Understanding environmental-operations integration: The case of pollution prevention projects," International Journal of Production Economics, Elsevier, vol. 153(C), pages 149-160.
    3. Nath, Prithwiraj & Ramanathan, Ramakrishnan, 2016. "Environmental management practices, environmental technology portfolio, and environmental commitment: A content analytic approach for UK manufacturing firms," International Journal of Production Economics, Elsevier, vol. 171(P3), pages 427-437.
    4. repec:gam:jsusta:v:9:y:2017:i:5:p:740-:d:97499 is not listed on IDEAS
    5. Kimitaka Nishitani & Katsuhiko Kokubu, 2014. "Corporate Environmental Initiatives and Shareholder Value: Focusing on the Role of Environmental Information and Its Credibility," Discussion Paper Series DP2014-34, Research Institute for Economics & Business Administration, Kobe University.
    6. Sara Hajmohammad & Stephan Vachon, 2014. "Safety Culture: A Catalyst for Sustainable Development," Journal of Business Ethics, Springer, vol. 123(2), pages 263-281, August.
    7. Lin, Chin-Sen & Su, Chao-Ton, 2013. "The Taiwan national quality award and market value of the firms: An empirical study," International Journal of Production Economics, Elsevier, vol. 144(1), pages 57-67.
    8. Kimitaka Nishitani & Katsuhiko Kokubu & Takehisa Kajiwara, 2016. "Does low-carbon supply chain management reduce greenhouse gas emissions more effectively than existing environmental initiatives? An empirical analysis of Japanese manufacturing firms," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 33-60, February.
    9. Rodrigo Zeidan & Claudio Boechat & Angela Fleury, 2015. "Developing a Sustainability Credit Score System," Journal of Business Ethics, Springer, vol. 127(2), pages 283-296, March.
    10. Liu, Yang & Zhu, Qinghua & Seuring, Stefan, 2017. "Linking capabilities to green operations strategies: The moderating role of corporate environmental proactivity," International Journal of Production Economics, Elsevier, vol. 187(C), pages 182-195.

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