IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i12p4759-d190289.html
   My bibliography  Save this article

Development of a Model Linking Physical Asset Management to Sustainability Performance: An Empirical Research

Author

Listed:
  • Damjan Maletič

    () (Faculty of Organizational Sciences, University of Maribor, Kidričeva 55a, 4000 Kranj, Slovenia)

  • Matjaž Maletič

    () (Faculty of Organizational Sciences, University of Maribor, Kidričeva 55a, 4000 Kranj, Slovenia)

  • Basim Al-Najjar

    () (Department of Mechanical Engineering, Faculty of Technology, Linnaeus University, Building M, 351 95 Växjö, Sweden)

  • Boštjan Gomišček

    () (Faculty of Business, University of Wollongong in Dubai, Knowledge Park, Block 15, P. O. Box 20183, Dubai, UAE)

Abstract

This article is aimed at exploring the relationship between physical asset management (PAM) practices and sustainability performance. A framework of interrelated constructs was developed based on the existing literature and consequently tested through empirical study. Survey data were collected from organizations operating in six European countries (i.e., Greece, Poland, Slovakia, Slovenia, Sweden, and Turkey) and analyzed using Partial Least Squares Path Modeling (PLS-PM). The results offer support for the proposed hypotheses, showing that PAM practices positively influence the sustainability performance outcomes, namely economic, environmental, and employee-related social performance. Overall, this study demonstrates that a PAM framework can be conceptualized by four sub-constructs, namely physical asset risk management, physical asset performance assessment, physical asset lifecycle management, and physical asset policy and strategy. Finally, this study brings to light some theoretical and managerial implications as well as directions for future research. The findings of the study underscore PAM areas in which managers should focus on in order to optimize costs, performance, and risk exposures concerning the physical assets, and therefore enhance sustainability performance.

Suggested Citation

  • Damjan Maletič & Matjaž Maletič & Basim Al-Najjar & Boštjan Gomišček, 2018. "Development of a Model Linking Physical Asset Management to Sustainability Performance: An Empirical Research," Sustainability, MDPI, Open Access Journal, vol. 10(12), pages 1-20, December.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4759-:d:190289
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/12/4759/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/10/12/4759/
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hossam A. Kishawy & Hussien Hegab & Elsadig Saad, 2018. "Design for Sustainable Manufacturing: Approach, Implementation, and Assessment," Sustainability, MDPI, Open Access Journal, vol. 10(10), pages 1-15, October.
    2. Cory Searcy, 2012. "Corporate Sustainability Performance Measurement Systems: A Review and Research Agenda," Journal of Business Ethics, Springer, vol. 107(3), pages 239-253, May.
    3. Juhong Chen & Ruijun Zhang & Di Wu, 2018. "Equipment Maintenance Business Model Innovation for Sustainable Competitive Advantage in the Digitalization Context: Connotation, Types, and Measuring," Sustainability, MDPI, Open Access Journal, vol. 10(11), pages 1-20, October.
    4. Al-Najjar, Basim, 2007. "The lack of maintenance and not maintenance which costs: A model to describe and quantify the impact of vibration-based maintenance on company's business," International Journal of Production Economics, Elsevier, vol. 107(1), pages 260-273, May.
    5. Jorge M. Simões & Carlos F. Gomes & Mahmoud M. Yasin, 2016. "Changing role of maintenance in business organisations: measurement versus strategic orientation," International Journal of Production Research, Taylor & Francis Journals, vol. 54(11), pages 3329-3346, June.
    6. Wagner Cezar Lucato & José Carlos da Silva Santos & Athos Paulo Tadeu Pacchini, 2017. "Measuring the Sustainability of a Manufacturing Process: A Conceptual Framework," Sustainability, MDPI, Open Access Journal, vol. 10(1), pages 1-12, December.
    7. 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. Lima, Eliana Sangreman & Costa, Ana Paula Cabral Seixas, 2019. "Improving Asset Management under a regulatory view," Reliability Engineering and System Safety, Elsevier, vol. 190(C), pages 1-1.
    2. Elizaveta Gavrikova & Irina Volkova & Yegor Burda, 2020. "Strategic Aspects of Asset Management: An Overview of Current Research," Sustainability, MDPI, Open Access Journal, vol. 12(15), pages 1-29, July.
    3. Xin Liu, 2019. "The Role of Enterprise Risk Management in Sustainable Decision-Making: A Cross-Cultural Comparison," Sustainability, MDPI, Open Access Journal, vol. 11(10), pages 1-15, May.
    4. Alice Consilvio & José Solís-Hernández & Noemi Jiménez-Redondo & Paolo Sanetti & Federico Papa & Iñigo Mingolarra-Garaizar, 2020. "On Applying Machine Learning and Simulative Approaches to Railway Asset Management: The Earthworks and Track Circuits Case Studies," Sustainability, MDPI, Open Access Journal, vol. 12(6), pages 1-24, March.

    More about this item

    Keywords

    physical asset management; ISO 55001; maintenance; sustainability performance; research model; SEM—PLS;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    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:gam:jsusta:v:10:y:2018:i:12:p:4759-:d:190289. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: https://www.mdpi.com/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.