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Evaluation of Decision-Making for the Optimal Value of Sustainable Enterprise Development under Global 100 Index Thinking

Author

Listed:
  • Tyrone T. Lin

    (Department of International Business, National Dong Hwa University, Hualien 97401, Taiwan)

  • Shu-Yen Hsu

    (Department of Business Administration, Dahan Institute of Technology, Hualien 97145, Taiwan)

  • Chiao-Chen Chang

    (EMBA in Biotechnology, Taipei Medical University, Taipei 11031, Taiwan)

Abstract

This study seeks the best economic returns of a company’s sustainable business process, employs the Triple Bottom Line Model using the Global 100 Index as the decision variable, and follows the Geometric Brownian Motion, so as to determine the optimal timing for the input of environmental and social costs. The results of the sensitivity analysis show that when the average growth rate of the Global 100 Index is low, the optimal timing for the company’s input of environmental costs and social costs can be obtained. Analysis of the numerical example shows that, based on the financial value of the economic factor, companies should invest in environmental costs as soon as possible. This study replaces the conventional net present value model with the options evaluation model, uses the Global 100 Index as the threshold for decision-making evaluation to provide a more complete decision-making evaluation reference for enterprises, and makes up for the gap in recent research regarding investment time and decision variables. The study results introduce potential strategic value evaluations into the evaluation model of long-term uncertain sustainable operation value, which is more appropriate for the evaluation of the real sustainable operation value. It also provides implementation strategies for decision-makers to mitigate risks under uncertain environments and is the major difference and value of the Real Options Approach (ROA) to supplement Net Present Value (NPV) principles. The results of this study provide a reference for the sustainable development decision-making of corporate sustainability and feasibility and offer an important link in the value chain of food industry operations and management.

Suggested Citation

  • Tyrone T. Lin & Shu-Yen Hsu & Chiao-Chen Chang, 2019. "Evaluation of Decision-Making for the Optimal Value of Sustainable Enterprise Development under Global 100 Index Thinking," Sustainability, MDPI, vol. 11(4), pages 1-21, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:4:p:1106-:d:207554
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    Cited by:

    1. Tyrone T. Lin & Tsai-Ling Liu, 2021. "An Optimal Compensation Agency Model for Sustainability under the Risk Aversion Utility Perspective," JRFM, MDPI, vol. 14(3), pages 1-16, March.
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    3. Bing Feng & Kaiyang Sun & Min Chen & Tao Gao, 2020. "The Impact of Core Technological Capabilities of High-Tech Industry on Sustainable Competitive Advantage," Sustainability, MDPI, vol. 12(7), pages 1-15, April.

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