Assessment of proactive environmental initiatives: Evaluation of efficiency based on interval-scale data

IEEE Transactions on Engineering Management

Volumn 62, Issue 2, 2015, Pages 280-293

  Mahapatra, Santosh ^a   Pal, Raktim ^b   Hult, Tomas ^c   Talluri, Srinivas ^c  

^a CLARKSON UNIVERSITY   (United States)

^b JAMES MADISON UNIVERSITY   (United States)

^c MICHIGAN STATE UNIVERSITY   (United States)

Author keywords

Content analysis; data envelopment analysis (DEA); environmental operations; financial performance; interval scale data

Indexed keywords

DATA ENVELOPMENT ANALYSIS;

CONTENT ANALYSIS; ENVIRONMENTAL INITIATIVES; ENVIRONMENTAL OPERATIONS; ENVIRONMENTAL PERFORMANCE; ENVIRONMENTAL PRACTICES; FINANCIAL PERFORMANCE; INTERVAL SCALE; MANAGERIAL IMPLICATIONS;

ENVIRONMENTAL MANAGEMENT;

EID: 85027954412     PISSN: 00189391     EISSN: None     Source Type: Journal    
DOI: 10.1109/TEM.2015.2413938     Document Type: Article

References (86)

1. D. J. Aigner, C. A. K. Lovell, and P. Schmidt, "Formulation and estimation of stochastic frontier production function models," J. Econometrics, vol. 6, no. 1, pp. 21-37, 1977.
2. M. Arndt, "Cat sink its claws into services," BusinessWeek, Dec. 20, 2005, pp. 56-59.
3. BASF Report. (2012). [Online]. Available: http://www.corporateregister. com
4. R.D.Banker, A. Charnes, andW.W.Cooper, "Somemodels for estimating technical and scale inefficiencies in data envelopment analysis," Manage. Sci., vol. 30, no. 9, pp. 1078-1092, 1984.
5. I. Bose and R. Pal, "Do green supply chain management initiatives impact stock prices of firms?" Decision Support Syst., vol. 52, no. 3, pp. 624-634, 2012.
6. A. Bussofiane, S. Martin, and D. Parker, "The impact of technical efficiency of the UK privatization programme," Appl. Econ., vol. 29, no. 3, pp. 297-310, 1997.
7. F. M. Cervelini and M. T. S. Souza, "A contribution of cleaner production program to ISO 14001 management system: A case study in metal mechanic sector," J. Oper. Supply Chain Manage., vol. 2, no. 1, pp. 61-76, 2009.
8. A. Charnes, W. Cooper, and E. Rhodes, "Evaluating program and managerial efficiency: An application of data envelopment analysis to program follow through," Manage. Sci., vol. 27, no. 6, pp. 668-697, 1981.
9. A. Charnes, W. Cooper, A. Lewin, and L. Seiford, Eds., Data Envelopment Analysis, Theory, Methodology and Applications. Boston, MA, USA: Kluwer, 1994.
10. C.-M.Chen and M. Delmas, "Measuring corporate social performance: An efficiency perspective," Prod. Oper. Manage., vol. 20, no. 6, pp. 789-804, 2011.
11. Y. Chen and J. Zhu, "DEA models for identifying critical performance measures," Ann. Oper. Res., vol. 124, no. 1, pp. 225-244, 2003.
12. J. Child, "Strategic choice in the analysis of action, structure, organizations and environment: Retrospect and prospect," Org. Stud., vol. 18, no. 1, pp. 43-76, 1997.
13. P. Christmann, "Effects of best practices of environmental management on cost advantage: The role of complementary assets," Acad. Manage. J., vol. 43, no. 4, pp. 663-680, 2000.
14. K. B. Clark, "Competing through manufacturing and the new manufacturing paradigm: Is manufacturing strategy passe?" Prod. Oper. Manage., vol. 5, no. 1, pp. 42-58, 1996.
15. J. A. Cook. (2014, Jan.-Mar.). Green supply chains are still too costly. CSCM's Supply Chain Quart. [Online]. Available: www.SupplyChainQuarterly.com
16. W. D. Cook and J. Zhu, "Rank order data in DEA: A general framework," Eur. J. Oper. Res., vol. 174, no. 2, pp. 1021-1038, 2006.
17. W. Cooper, L. Seiford, and K. Tone, Data Envelopment Analysis: A Comprehensive TextWith Models, Application, References. Boston, MA, USA: Kluwer, 2000.
18. C. J. Corbett and D. A. Kirsch, "International diffusion of ISO 14000 certification," Prod. Oper. Manage., vol. 10, no. 3, pp. 327-342, 2001.
19. Danfoss Sustainability Report. (2012). [Online]. Available: http://www.corporateregister.com
20. P. De Lancer Julnes, "Decision-making tools for public productivity improvement: A comparison of DEA to cost-benefit and regression analyses," J. Public Budget., Account. Financial Manage., vol. 12, no. 4, pp. 625-646, 2000.
21. J. J. De Vries, D. K. Bayramoglu, and T. van der Wiele, "Business and environmental impact of ISO 14001," Int. J. Quality Rel. Manage., vol. 29, no. 4, pp. 425-435, 2012.
22. A. Dehnokhalaji, P. J.Korhonen, M.Köksalan,N.Nasrabadi, and J.Wallenius, "Efficiency analysis to incorporate interval-scale data," Eur. J. Oper. Res., vol. 207, no. 2, pp. 1116-1121, 2010.
23. M. Delmas, "Stakeholders and competitive advantage: The case of ISO 14001," Prod. Oper. Manage., vol. 10, no. 3, pp. 343-358, 2001.
24. Dow Chemical Company Annual Sustainability Report. (2012). [Online]. Available: http://www.corporateregister.com
25. V. J. Duriau, R. K. Reger, and M. D. Pfarrer, "A content analysis of the content analysis literature in organization studies: Research themes, data sources, and methodological refinements," Org. Res. Methods, vol. 10, no. 1, pp. 5-34, 2007.
26. H. Dyckhoff and K. Allen, "Measuring ecological efficiency with data envelopment analysis (DEA)," Eur. J. Oper. Res., vol. 132, no. 2, pp. 312-325, 2001.
27. R. G. Dyson, R. Allen, A. S. Camano, V. V. Podinovski, C. S. Sarrico, and E. A. Shale, "Pitfalls and protocols in DEA," Eur. J. Oper. Res., vol. 132, no. 2, pp. 245-259, 2001.
28. J. Elkington, "Towards the sustainable corporation:Win-win-win business strategies for sustainable development," California Manage. Rev., vol. 36, no. 2, pp. 90-100, 1994.
29. A. Emrouznejad, A. L. Anouze, and E. Thanassoulis, "A semi-oriented radial measure for measuring the efficiency of decision making units with negative data, using DEA," Eur. J. Oper. Res., vol. 200, no. 1, pp. 297-304, 2010.
30. M. J. Epstein, "Improving environmental management with full environmental cost accounting," Environ. Quality Manage., vol. 6, no. 1, pp. 11-22, 1996.
31. Ford Motor Company Sustainability. (2012, Dec.). [Online]. Available: http://www.corporateregister.com
32. R. A. Frosch and N. E. Gallopoulos, "Strategies for manufacturing," Sci. Amer., vol. 261, no. 3, pp. 94-102, 1989.
33. D. Galagedera and P. Silvapulle, "Experimental evidence on robustness of data envelopment analysis," J. Oper. Res. Soc., vol. 54, no. 6, pp. 654-660, 2003.
34. K. Gilley, D.Worrell, andA. El-Jelly, "Corporate environmental initiatives and anticipated firm performance: the differential effects of process-driven versus product-driven greening initiatives," J. Manage., vol. 26, no. 6, pp. 1199-1216, 2000.
35. J. Gonzalez-Benito and O. Gonzalez-Benito, "Environmental proactivity and business performance: An empirical analysis," Omega, vol. 33, no. 1, pp. 1-15, 2005.
36. J. Gonzalez-Benito and O. Gonzalez-Benito, "Operational management practices linked to the adoption of ISO 14001: An empirical analysis of Spanish Manufacturers," Int. J. Prod. Econ., vol. 113, no. 1, pp. 60-73, 2008.
37. M. F. Grace and Y. Yuan, "The effect of premium taxation on U.S. life insurers," J. Insurance Regul., vol. 30, no. 1, pp. 227-259, 2011.
38. K.W. Green, P. J. Zelbst, J.Meacham, and V. S. Bhadauria, "Green supply chain management practices: Impact on performance," Int. J. SupplyChain Manage., vol. 17, no. 3, pp. 290-305, 2012.
39. M. Halme, T. Joro, and M. Koivu, "Dealing with interval scale data in data envelopment analysis," Eur. J. Oper. Res., vol. 137, no. 1, pp. 22-27, 2002.
40. G. S. Hansen and B.Wernerfelt, "Determinants of firm performance: The relative importance of economic and organizational factors," Strategic Manage. J., vol. 10, no. 5, pp. 399-411, 1989.
41. S. Hart, "A natural resource-based view of the firm," Acad. Manage. Rev., vol. 20, no. 4, pp. 874-907, 1995.
42. S. Hart and G. Ahuja, "Does it pay to be green? An empirical examination of the relationship between emission reduction and firm performance," Bus. Strategy Environ., vol. 5, no. 1, pp. 30-37, 1996.
43. K. B. Hendricks, V. R. Singhal, and J. K. Stratman, "The impact of enterprise systems on corporate performance: A study of ERP, SCM, and CRM system implementations," J. Oper. Manage., vol. 25, no. 1, pp. 65-82, 2007.
44. HP Global Citizenship Report. (2012). [Online]. Available: http://www.corporateregister.com
45. IBM and the Environment Report. (2012). [Online]. Available: http://www.corporateregister.com
46. L. R. James, R. G. Demaree, and G. Wolf, "Estimating within-group interrater reliability with and without response bias," J. Appl. Psychol., vol. 69, no. 1, pp. 85-98, 1984.
47. T. Joro, P. Korhonen, and J.Wallenius, "Structural comparison of data envelopment analysis and multiple objective linear programming," Manage. Sci., vol. 44, pp. 962-970, 1998.
48. A. A. King andM. J. Lenox, "Does it really pay to be green? An empirical study of firm environmental and financial performance," J. Ind. Ecol., vol. 5, no. 1, pp. 105-116, 2001.
49. A. A. King and M. J. Lenox, "Lean and green? An empirical examination of the relationship between lean production and environmental performance," Prod. Oper. Manage., vol. 10, no. 3, pp. 244-256, 2001.
50. A. A. King andM. J. Lenox, "Exploring the locus of pollution reduction," Manage. Sci., vol. 42, no. 2, pp. 289-299, 2002.
51. R. D. Klassen and C. P. McLaughlin, "The impact of environmental management on firm performance," Manage. Sci., vol. 42, no. 8, pp. 1199-1214, 1996.
52. P. R. Kleindorfer, K. Singhal, and L. N. Van Wassenhove, "Sustainable operations management," Prod. Oper. Manage., vol. 14, no. 4, pp. 482-492, 2005.
53. P. J. Korhonen and M. Luptacik, "Eco-efficiency analysis of power plants: An extension of data envelopment analysis," Eur. J. Oper. Res., vol. 154, no. 2, pp. 437-446, 2004.
54. S. Link and E. Naveh, "Standardization and discretion: Does the environmental standard ISO 14001 lead to performance benefits?" IEEE Trans. Eng. Manage., vol. 53, no. 4, pp. 508-519, Nov. 2006.
55. J. D. Linton and V. Jayaraman, "A conceptual framework for product life extension," Int. J. Prod. Res., vol. 43, no. 9, pp. 1807-1829, 2005.
56. F. H. Lotfi, A. A. Noora, G. R. Jahanshahloo, J. Gerami, and M. R. Mozaffari, "A slacks-base measure of super-efficiency for DEA with negative data," Australian J. Basic Appl. Sci., vol. 4, no. 12, pp. 6197-6210, 2010.
57. E. Lowitt, "How to survive climate change and still run a thriving business," Harvard Bus. Rev., vol. 92, no. 4, pp. 86-92, 2014.
58. S. Mahapatra, S. A. Melnyk, and R. J. Calantone, "Understanding environment management systems performance: An expanded empirical study," Int. J. Prod. Qual. Manage., vol. 2, no. 2, pp. 263-286, 2007.
59. I. Maslennikova and D. Foley, "Xerox's approach to sustainability," Interfaces, vol. 30, no. 3, pp. 226-233, 2000.
60. S. Melnyk, R. Sroufe, and R. Calantone, "Assessing the impact of environmental management systems on corporate and environmental performance," J. Oper. Manage., vol. 21, no. 3, pp. 329-351, 2003.
61. J. L. Miller, C. W. Craighead, and K. R. Karwan, "Service recovery: A framework and empirical investigation," J. Oper. Manage., vol. 18, no. 4, pp. 387-400, 2000.
62. F. Montabon, R. Sroufe, andR.Narasimhan, "An examination of corporate reporting, environmental management practices and firm performance," J. Oper. Manage., vol. 25, no. 5, pp. 998-1014, 2007.
63. J. K. H. Nga, "The influence of ISO 14000 on firm performance," Social Respon. J., vol. 5, no. 3, pp. 408-422, 2009.
64. R. Nidumolu, C. K. Prahalad, and M. R. Rangaswami, "Why sustainability is now the key driver of innovation," Harvard Bus. Rev., vol. 87, no. 9, pp. 57-64, 2009.
65. R. J. Orsato, "When does it pay to be green?" California Manage. Rev., vol. 48, no. 2, pp. 127-143, 2006.
66. A. C. Porter, "Measuring the content of instruction: Uses in research and practice," Educ. Researcher, vol. 31, no. 7, pp. 3-14, 2002.
67. I. M. Premachandra, G. S. Bhabra, and T. Sueyoshi, "DEA as a tool for bankruptcy assessment: A comparative study with logistic regression technique," Eur. J. Oper. Res., vol. 193, no. 2, pp. 412-424, 2009.
68. P. Rao and D. Holt, "Do green supply chains lead to competitiveness and economic performance?" Int. J. Oper. Prod. Manage., vol. 25, no. 9, pp. 898-916, 2005.
69. J. P. Royston, "An extension of the Shapiro andWilk'sWtest for normality to large samples," Appl. Statist., vol. 31, pp. 115-124, 1982.
70. J. Sarkis, "Manufacturing's role in corporate environmental sustainability-Concerns for the new millennium," Int. J. Oper. Prod. Manage., vol. 21, nos. 5/6, pp. 666-686, 2001.
71. R. Sroufe, "Effects of environment management systems on environment management practices and operations," Prod. Oper. Manage., vol. 12, no. 3, pp. 416-432, 2003.
72. T. Sueyoshi and M. Goto, "Environmental assessment by DEA radial measurement: U.S. coal-fired power plants in ISO (Independent System Operator) andRTO(Regional Transmission Organization)," Energy Econ., vol. 34, no. 3, pp. 663-676, 2012.
73. S. Sawilowsky and R. C. Blair, "A more realistic look at the robustness and type II error properties of the t test to departures from population normality," Psychol. Bull., vol. 111, no. 2, pp. 353-360, 1992.
74. Student, "The probable error of a mean," Biometrika, vol. 6, no. 1, pp. 1-25, 1908.
75. R. Sousa and C.AVoss, "Contingency research in operations management practices," J. Oper. Manage., vol. 26, no. 6, pp. 697-713, 2008.
76. S. Talluri and J. Sarkis, "A model for performance monitoring of suppliers," Int. J. Prod. Res., vol. 40, no. 16, pp. 4257-4269, 2002.
77. C. Tangpong, "Content analytic approach to measuring constructs in operations and supply chain management," J. Oper. Manage., vol. 29, pp. 627-638, 2011.
78. E. Thanassoulis, M. Kortelainen, G. Johnes, and J. Johnes, "Costs and efficiency of higher education institutions in England: A DEA analysis," J. Oper. Res., vol. 62, no. 7, pp. 1282-1297, 2011.
79. M. Thierry, M. Salomon, J. Van Nunen, and L. N. Van Wassenhove, "Strategic issues in product recovery management." California Manage. Rev., vol. 37, no. 2, pp. 114-136, 1995.
80. G. Vastag, C. J. Corbett, and D. A. Kirsch, "Revisiting ISO 14000 diffusion: A new "look" at the drivers of certification/response," Prod. Oper. Manage., vol. 13, no. 3, pp. 260-267, 2004.
81. R. P. Weber, Basic Content Analysis, 2nd ed. Newbury Park, CA, USA: Sage, 1990.
82. Weyerhaeuser Sustainability Report. (2012). [Online]. Available: http://www.corporateregister.com
83. L. Woellert, "HP wants your old PCs back," BusinessWeek, pp. 82-83, Apr. 2006.
84. R. A. Wolfe, R. P. Gephart, and T. E. Johnson, "Computer-facilitated qualitative data analysis: Potential contributions to management research," J. Manage., vol. 19, no. 3, pp. 637-660, 1993.
85. S. H. M. Zailani, T. K. Eltayeb, C. C. Hsu, and K. C. Tan, "The impact of external institutional drivers and internal strategy on environmental performance," Int. J. Oper. Prod. Manage., vol. 32, no. 6, pp. 721-745, 2012.
86. Q. Zhu and J. Sarkis, "Relationships between operational practices and performance, among early adopters of green supply chain management practices in Chinese manufacturing enterprises," J. Oper. Manage., vol. 22, no. 3, pp. 265-289, 2004.