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Hybrid Approach to Corporate Sustainability Performance in Indonesia’s Cement Industry

Author

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  • Ching-Hsin Wang

    (Department of Leisure Industry Management, National Chin-Yi University of Technology, Taichung 411030, Taiwan
    Institute of Innovation and Circular Economy, Asia University, Taichung 41345, Taiwan)

  • Yi-Chun Chen

    (Department of Business Administration, Asia University, Taichung 41345, Taiwan)

  • Jovi Sulistiawan

    (Department of Management, Universitas Airlangga, Surabaya 60115, Jawa Timur, Indonesia)

  • Tat-Dat Bui

    (Institute of Innovation and Circular Economy, Asia University, Taichung 41345, Taiwan)

  • Ming-Lang Tseng

    (Institute of Innovation and Circular Economy, Asia University, Taichung 41345, Taiwan
    Department of Medical Research, China Medical University Hospital, China Medical University, Taichung 404333, Taiwan)

Abstract

This study aimed to create a solid framework for decision-making in Indonesia’s cement industry, emphasizing those factors which bring about the most impactful results. The framework was developed using the fuzzy Delphi method, the fuzzy decision-making trial and evaluation laboratory, and a fuzzy Kano model. This study builds a hierarchical structure to approach the impact of corporate sustainability performance. We classify important factors into causes or effects and further identify those factors which are critical to improving the performance of Indonesia’s cement industry. Although corporate sustainability performance is a crucial topic in today’s business environment, sustainability strategies remain underrated in Indonesia. We confirm the validity of 19 factors within the following dimensions: environmental impact, social sustainability, economic gain, technological feasibility, and institutional compliance. The sub-dimensions of community interest, risk-taking ability, and regulatory compliance were identified as causes of perceived risks and benefits. In contrast, the following factors were identified as critical to improving corporate sustainability performance: renewable energy resources, contributions to charity, the perception of management regarding technology as a differentiator, and firm readiness to collaborate with high-tech companies.

Suggested Citation

  • Ching-Hsin Wang & Yi-Chun Chen & Jovi Sulistiawan & Tat-Dat Bui & Ming-Lang Tseng, 2021. "Hybrid Approach to Corporate Sustainability Performance in Indonesia’s Cement Industry," Sustainability, MDPI, vol. 13(24), pages 1-21, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:24:p:14039-:d:706373
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    References listed on IDEAS

    as
    1. Tseng, Ming-Lang & Wu, Kuo-Jui & Ma, Li & Kuo, Tsai Chi & Sai, Fuyume, 2019. "A hierarchical framework for assessing corporate sustainability performance using a hybrid fuzzy synthetic method-DEMATEL," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 524-533.
    2. Tseng, Ming-Lang & Bui, Tat-Dat & Lan, Shulin & Lim, Ming K. & Mashud, Abu Hashan Md, 2021. "Smart product service system hierarchical model in banking industry under uncertainties," International Journal of Production Economics, Elsevier, vol. 240(C).
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    Cited by:

    1. Felicia Chețan & Cornel Chețan & Ileana Bogdan & Paula Ioana Moraru & Adrian Ioan Pop & Teodor Rusu, 2022. "Use of Vegetable Residues and Cover Crops in the Cultivation of Maize Grown in Different Tillage Systems," Sustainability, MDPI, vol. 14(6), pages 1-14, March.
    2. Alberto J. Costa & Denise Curi & Ana Maria Bandeira & Augusta Ferreira & Brízida Tomé & Carla Joaquim & Carlos Santos & Cristina Góis & Deolinda Meira & Graça Azevedo & Helena Inácio & Mafalda Jesus &, 2022. "Literature Review and Theoretical Framework of the Evolution and Interconnectedness of Corporate Sustainability Constructs," Sustainability, MDPI, vol. 14(8), pages 1-23, April.
    3. Robin Hogrefe & Sabine Bohnet-Joschko, 2023. "The Social Dimension of Corporate Sustainability: Review of an Evolving Research Field," Sustainability, MDPI, vol. 15(4), pages 1-22, February.
    4. Abdurrahman Mawlood Mustafa & Asil Azimli & Rizgar Abdullah Sabir Jaf, 2022. "The Role of Resource Consumption Accounting in Achieving Competitive Prices and Sustainable Profitability," Energies, MDPI, vol. 15(11), pages 1-23, June.

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