Enhancing Sustainability Performance Research Articles

Efficacy of Enterprise Risk Management in Enhancing Sustainability and Financial Performance in the Solar PV Industry: A Conceptual Framework

As an alternative to fossil fuels, solar PV electricity can help mitigate global warming and improve the environment by lowering greenhouse gas emissions (GHG). More nations have developed programs to encourage the production and use of PV electricity, considering the potential of renewable energy for sustainable development. The government of Malaysia wants solar PV to be the primary source of renewable energy by 2030. To reduce global warming, renewable energy technology must be implemented more widely. However, the production of solar photovoltaic modules raises serious sustainability concerns. These concerns include using conflict minerals, toxicity, and limited supply or supply chain governance risks of rare materials. Even though solar energy projects are technically feasible, stakeholders still view the region’s initiatives as risky due to ongoing governance problems. Domains related to solar project deployment that involve installation, operation, and management are particularly susceptible to governance issues, such as a lack of accountability and transparency. Renewable energy investments upfront are risky and expensive. Risks in the solar PV value chain include subpar design and manufacturing decisions, inventory losses, quality problems during the execution process, and cultural and societal problems brought on by the absence of an effective risk management system. This study thus investigates how the implementation of ERM influences the company’s financial performance. Enterprise Risk Management (ERM) is a technique that regulates, and coordinates offset risks all over the firm to manage and integrate all risks holistically. As a result, this paper provides a conceptual and theoretical framework for how corporations use risk management to lower the cost of capital and improve sustainable development in the solar PV industry. The suggested theoretical and conceptual framework, supported by stakeholder and legitimacy theory, provides a foundation for empirically validating the entangled interaction between the relevant variables. It is advocated that measuring variables such as enterprise risk management, financial performance, and sustainability performance be based on previous research and frameworks and recommendations produced by major organizations. The purpose of this paper is to guide Malaysian solar PV companies in the implementation of sustainability and risk management.
 Keywords: enterprise risk management, sustainability, solar PV, financial performance

Unlocking circular economy potential: evaluating production processes through circular value stream mapping in real case studies

PurposeThe purpose of this study is to propose a new mapping tool called Circular Value Stream Mapping (C-VSM) that combines Circular Economy principles with Lean tools to enhance sustainability performance in operations.Design/methodology/approachTo develop the C-VSM tool, the researchers conducted a literature review and a focus group. The tool was then applied to two real case studies in the agri-food sector, specifically analyzing an artichoke and olive oil producer, to assess its validity and effectiveness.FindingsThe study introduces the Circular Resource Box (CRB) as a key innovation in the C-VSM tool. This visual representation effectively captures resource circularity and how resources and wastes are managed, making it easy to identify circularity in the production process. By combining qualitative and quantitative information with this visual representation, companies can identify improvement opportunities aligned with the CE.Research limitations/implicationsThe research is limited in scope as it focuses on the application of the C-VSM tool in the agri-food sector. Further research could explore its applicability in other industries and settings to understand its broader impact.Practical implicationsThe C-VSM tool provides practical benefits to companies seeking to transition from linear to circular production processes. It enables practitioners to identify opportunities to reduce environmental impacts and optimize production operations in line with CE.Originality/valueThe introduction of the C-VSM tool is a novel approach that bridges the gap between Lean Manufacturing and CE concepts, advancing the understanding of how CE thinking can be effectively implemented in operations.

Stop Auditing and Start to CARE: Paradigm Shift in Assessing and Improving Supplier Sustainability

Traditional auditing has been commonly practiced by multinational companies to monitor their suppliers for sustainability violations. Based on a collaborative supplier sustainability performance improvement program at Koninklijke (Royal) Philips N.V., we introduce a framework that offers a paradigm shift to an improvement-based proactive approach that makes use of suppliers’ self-assessments. We refer to this framework as CARE, consisting of the following phases: collecting supplier sustainability data, assessing suppliers’ sustainability levels, reacting to future violations proactively, and enhancing sustainability performance. The framework integrates analytics techniques to understand the link between the general characteristics of the carefully assessed suppliers—such as location, size, and sector—and their sustainability profile, enabling large-scale supplier assessment and improvement. This information is then used to leverage machine learning techniques to predict current and future sustainability levels of suppliers and to determine best actions for sustainability improvement using mathematical programming. The utilization of analytics constitutes a pivotal element in this endeavor and notably makes CARE highly scalable because it harnesses limited supplier data—namely, only general supplier information—while there is a need to support decision making concerning thousands of suppliers. Philips makes use of this framework and reports that the overall 2021 year-on-year improvement in sustainability performance was 24% for suppliers that entered the program in 2020, indicating the efficacy of the suggested approach. History: This paper was refereed. Funding: The authors gratefully acknowledge the support of TKI Dinalog–Dutch Institute for Advance Logistics on the project entitled “Supplier Sustainability Improvement” [Grant 2017-2-132TKI].

Application of a novel multi-criteria decision analysis approach for evaluating the sustainability of contaminated site management: An example from China

The performance of contaminated site management in terms of its sustainability can be inherently uncertain, considering that this performance depends not only on individual site characteristics and variability, but also on integrated (and potentially long-term) environmental, social, economic and technical impacts. The present study proposes a combination weights-based TOPSIS model (Technique for Order Preference by Similarity to Ideal Solution), following a multi-criteria decision analysis (MCDA) approach, to quantitatively analyze the most influential measures and indices over the entire life cycle of contaminated site management (from site investigation to land reuse) in China. Results indicate that the sustainability performance of different sites varies widely due to differences in the best management practices (BMPs) implemented. Environmental dimensions in strategy design and remediation implementation processes contribute most to the overall sustainability performance when whole life-cycle management is considered, with social dimensions relatively under-emphasised. Based on a sensitivity analysis of the TOPSIS method, random variations of indices' weights did not result in significant alteration of the modelled sustainability performance of the evaluated sites, which indicates that the method provides a relatively robust approach. The MCDA approach developed enables stakeholders to adopt optimal BMPs for risk control and to enhance sustainability performance in contaminated site management, covering the whole life cycle of site remediation and redevelopment, although further work is required to determine its international applicability.

Sustainability factors affecting caregivers' toy preferences: An evaluation of e‐commerce best sellers in Turkey

AbstractToys make a considerable clutter in homes over time unless managed responsibly. Given the ease of buying anything these days, especially toys, due to the rise of online shopping (Richards et al., 2020), toy piles can grow quickly. Current literature on the sustainability of toys is based on physical touch points, such as material, design, assembly, or transport, and suggested methods to enhance sustainability performance up to the “before‐use” phase. Our study focuses on how consumers address the issue of sustainability in toys, from the moment they intend to buy a toy to the time they terminate the toys' use, with a focus on green purchase behavior. We used data from a survey to depict 220 Turkish caregivers' perceptions of sustainability with snowball sampling to build an analytic hierarchy process system. The aim was to understand caregivers' approaches to toy sustainability factors in general and to interpret their motivations for green purchase activity. Among the eight sustainability criteria explicitly set for toys, child development‐related factors dominated durability, while price was found to be ineffective. This study of six best‐selling toys for 3–6‐year‐olds on a shopping site revealed that long‐term use is crucial for sustainability in toys. We observed that digital platforms are insufficient to convey the sustainability features of products, and thus propose a concept that evaluates the sustainability performance of toys and advises the consumer about the sustainability potential of the toys on the sales site.

How to enhance circular supply chains? Aligning R-imperatives, uncertainty management and sustainability

PurposeOperationalizing R-imperatives in firms is seen as vital to bolstering circularity through reduce, reuse and recycle and building circular supply chains (CSCs). However, this process introduces various uncertainties to firms within CSCs. This is a gap that still requires an in-depth analysis, particularly to answer the question of how firms align the operationalization of R-imperatives with uncertainty management to improve sustainability performance and accelerate the transition toward CSCs.Design/methodology/approachThis paper fills this gap through a multiple-case study, whereby nine firms from varying structures, regions and manufacturing industries were examined. Qualitative content analysis was employed to examine the collected primary (27 semi-structured interviews) and secondary data (internal management reports, publicly available corporate reports and website content).FindingsThe findings support the evidence that the operationalization of R-imperatives is not a straightforward process. Within-firm and SC uncertainties largely emerged and made the building of CSCs complex. Consequently, strategies aimed at reducing uncertainty were paramount to managing uncertainties and enhancing sustainability performance. For instance, implementing durable or modular designs helped firms easily reuse, repair and recycle products. In turn, firms achieved material efficiency and contributed to extending the life cycle of products.Practical implicationsThis paper explains how firms can align R-imperatives operationalization with uncertainty management to improve sustainability performance and enhance CSCs. Accordingly, firms should complement R-imperatives operationalization with proactive uncertainty management and an assessment of all environmental, economic and social sustainability dimensions.Originality/valueThis paper fills a critical gap in circular supply chain management literature by unveiling its linkage with uncertainty management and sustainability performance. Empirical insights from nine firms within CSCs are provided to guide scholars and managers interested in implementing R-imperatives.

Integrating Bioeconomy Principles in Bionic Production: Enhancing Sustainability and Environmental Performance

The integration of bioeconomy principles in bionic production holds promise for enhancing sustainability and resource efficiency. This scientific article aims to investigate the potential of bioeconomy-driven approaches in bionic production, focusing on the utilization of renewable biological resources, sustainable manufacturing techniques, and circular design strategies. The research questions guide the exploration of resource utilization, manufacturing techniques, waste reduction, environmental impact assessment, and economic considerations. The article presents a conceptual framework that integrates bioeconomy principles throughout the life cycle of bionic products, validating the proposed concepts and methodologies. By embracing bioeconomy principles, this article highlights the potential of bionic production to contribute to sustainable development, resource conservation, and the transition toward a bioeconomy.

The role of green strategic alliances and their impact on green organizational identity and sustainability

PurposeThis study aims to investigate the role of green strategic alliances (GSAs) in fostering a green shared vision (GSVis) and green shared value (GSV) and their impact on green organizational identity (GOI) and sustainability.Design/methodology/approachThe authors employed structural equation modeling to analyze data collected through a 60-item questionnaire administered in Portugal and China, allowing the authors to test their theoretical model.FindingsThe findings of the authors' study indicate that green strategic alliances have a positive influence on the development of a GSVis and GSV in both countries. This, in turn, contributes to improved sustainability and the establishment of a GOI. Furthermore, the authors' results demonstrate that these alliances enhance GSV, resulting in enhanced sustainability performance and a stronger green identity, with a notable increase in awareness of environmental and social practices.Originality/valueThis article is innovative as it applies organizational learning and value creation theories to gain a deeper understanding of how alliances can shape the green identity of companies and contribute to their overall sustainability.

Making Our Firm More Sustainable: The Role of CEO Vision Communication of Sustainability on Sustainability Performance

Despite awareness of the importance and value of sustainability for organizations, how sustainable development can be achieved remains poorly understood. This article aims to address this issue by examining the role of vision communication in promoting organizational sustainability. Drawing on the Upper Echelon Theory (UET) and existing literature on sustainability, we propose that sustainable vision communication can enhance sustainability performance by promoting and facilitating organizational change. Furthermore, we argue that CEO’s dialectical leadership behavior can supplement the efforts of leaders in achieving sustainable development, thereby strengthening the aforementioned relationship. Through a field study of 130 CEOs and their 562 top management team members, we tested our model and found evidence to support the hypotheses. This study thus advances our understanding of the processes underlying organizational sustainability and highlights the crucial role of leadership in this regard. We also discuss the theoretical implications of our findings and outline potential avenues for future research.

Sustainability Covenants as a Financial Measure to Enhance the Efficiency of Companies

This article aims to identify the status quo of sustainability covenants firstly, secondly analyze their possibilities in enhancing sustainability performance and thirdly present further research directions. Covenants are additional contractual agreements mainly used in financial contracts, e.g. loans. They often focus on financial performance indicators, e.g., equity and net debt ratio, which the borrower must fulfil. However, the purpose of this article is to present a new approach to non-financial covenants, so-called sustainability covenants. Therefore, also nowadays ecological and social challenges are addressed. Banks have a huge impact on sustainable development by introducing more non-financial indicators in evaluating the creditability of borrowers. As a key hypothesis, this article argues that the approach of integrating ecological and social objectives through non-financial covenants is underrepresented in economic and business practice. Therefore, this article wants to examine how those objectives can be integrated into the financial concept of covenants and rely on research towards an integrative sustainability approach. In addition, a systematic literature review was conducted from October 2022 to July 2023 to analyze the status quo and derive future research directions. The review was based on two databases – Google Scholar and Scopus. As one key result, it was revealed that there is scarce existing literature on sustainability covenants, which refers to them as a policy measure. Only a few publications analyze their usage in financial contracts. However, this study implies the necessity for further research on sustainability covenants, emphasizing that they are powerful indicators to enhance the sustainability performance of the borrower.

Digital transformation as an enabler of sustainability innovation and performance – Information processing and innovation ambidexterity perspectives

As sustainability gains increased importance among investors and regulators, firms are resorting to digitalization as a means to facilitate innovations and significantly improve their sustainability performances. Drawing on innovation ambidexterity and information processing theory, a framework was curated to assess the effect of digital transformation factors on sustainability innovation ambidexterity as well as sustainability performance. A survey questionnaire was administered to 187 maritime professionals who held relevant roles in innovation, performance management, sustainability, or digitalization. The data collected was then assessed using structural equation modelling, which revealed that the factors influencing sustainability performance, in decreasing order of importance, were digital capabilities, digital technology and business strategy alignment, sustainability exploration innovation, sustainability exploitation innovation, and digital flexibility. These findings contribute to the existing literature by employing the concepts of the identified theories to examine the triadic relationship between digital transformation factors, sustainability innovation ambidexterity, and sustainability performance. This provides a deeper understanding of the interactions between variables that lead to sustainability performance. In addition, it offers directions for managers to enhance sustainability performance through resource optimization in prioritizing training for employees, portfolio management, scheduling regular meetings between information technology and business management teams, and adopting forward-looking approaches to implement digital architecture.

HOW ARE EMOTIONAL ATTACHMENT STRATEGIES CURRENTLY EMPLOYED IN PRODUCT-SERVICE SYSTEM CASES? A SYSTEMATIC REVIEW UNDERSCORING DRIVERS AND HINDRANCES

AbstractAiming to decouple value creation from resource consumption, the Circular Economy is considered an alternative to the current linear model of production and consumption. Among the innovative circular business models, Product-Service Systems (PSS) have been recognized as a possible route to achieve enhanced sustainability performance through the extension of product lifespans and the reduction of product substitution. However, PSS may lead to rebound effects due to less careful behavior during the use phase, which compromises product durability. Currently, the effect of non-ownership models on product care is not yet fully understood, nor are the strategies that could enable better product care. This research aims to deeper comprehend the consumer-product relationships in PSS solutions, as well as to shed light on the potential role of emotional durability in PSS development for product attachment. In order to do so, this paper analyses twelve Product-Service System cases derived from a systematic literature review, categorizing the emotional attachment strategies in each case, and identifying how these strategies might hinder or potentialize PSS solutions.

Design of Steel Fibre Reinforced Concrete Structures According to the Annex L of the Eurocode-2 2023

The Annex L of the new Eurocode – 2 gathers -for the first time- provisions for the design of Steel Fibre Reinforced Concrete (SFRC) structures. This response to the necessity of the construction sector for provisions and regulations of this composite material within the European space and this Annex is supported by the solid background derived from consistent research and experiences carried out along the last two decades. The existence of these design provisions could both favour competitiveness and enhance sustainability performance within the construction sector since new concrete reinforcement alternatives could be considered while ensuring the structural reliability level accepted for traditional reinforced concrete structures. This paper is aimed to cover -not exhaustively- all those features concerning SFRC included into the EC-2 and complement those -when considered necessary- with scientific literature.

Enhancing sustainability performance of universities: A DMAIC approach

AbstractThis paper aims to assess and improve the sustainability performance at a higher educational institute (HEI) in UAE using DMAIC methodology, considering five sustainability aspects (knowledge, behaviour, concern, awareness and attitude). One primary and six secondary research questions were defined in the define phase. In the measure phase, a questionnaire was designed to measure the current sustainability level based on the five sustainability aspects. A questionnaire was distributed among campus populations and statistically analysed in the analysis phase. Participation in UI GreenMetric was used in the control phase to monitor the performance from 2018 to 2020. It was found that the communication college has the lowest sustainability level at 25% marginal error compared with other colleges. Also, students have the lowest sustainability level compared with faculty and staff at a 15% marginal error. The proposed framework can help HEI decision‐makers assess their sustainability levels and suggest plans to enhance sustainability performance.

Social media marketing, value creation and firm's sustainability performance: a study among young consumers

PurposeSocial media marketing (SMMT) is explored in the light of value creation (VC) and firms' sustainability performance. This research deals with the influence of both value co-creation (VCCR) and value co-destruction (VCDE) on SMMT and firm sustainability.Design/methodology/approachA quantitative approach is employed in this research. By means of structural equation modeling (SEM), specifically, PLS (partial least squares)-SEM, consumers' responses are analyzed.FindingsThe result confirms that SMMT influences firms' sustainability performance. Additionally, the study established a relationship between SMMT and VCCR and SMMT and VCDE. The study further showed that VCCR contributes to sustainability. Concerning the indirect relationships, the study indicates that VCDE influenced SMMT and sustainability performance.Research limitations/implicationsA theoretical basis for studying both VCCR and VCDE is provided. The current study especially encourages further study into VCDE.Practical implicationsThis work informs businesses about using SMMT to enhance sustainability performance. This work also warns about the reality of VCDE when using SMMT.Originality/valueThis research empirically explores SMMT and firm sustainability performance (SPFM) and also has a model that includes both VCCR and VCDE.

The Product–Service System Supply Chain Capabilities and Their Impact on Sustainability Performance: A Dynamic Capabilities Approach

In response to competition and other market challenges, many consumer manufacturing companies are offering Product–Service Systems (PSSs) in order to improve their sustainability performance. This paper aims to examine the relationship between the PSS supply chain (SC) capabilities and sustainability performance. It empirically investigates a framework that hypothesises the impact of seven PSS SC capabilities on sustainability performance. Data were collected from 447 official motorcycle service partners in Indonesia and analysed using structural equation modelling. The findings reveal that innovative service delivery and sustainable product–service capability positively affect sustainability performance, whereas partner development, reflexive control, and re-conceptualisation positively affect sustainable product–service capability. The results also validate that collaboration and knowledge assessment do not directly affect sustainability performance. A contribution of this study is the innovative use of quantitative methods to provide empirical evidence that the PSS SC capabilities can contribute to sustainability performance, directly and indirectly. It also broadens the utilisation of Dynamic Capabilities (DCs) in PSS SC research. The findings also guide managers and decision-makers in the implementation of the PSS SC capabilities required to enhance sustainability performance.

ANTECEDENTES, RESULTADOS E LIMITES DA GESTÃO DE RECURSOS HUMANOS VERDE: UMA REVISÃO BIBLIOGRÁFICA

ABSTRACT Green human resource management (GHRM) is a crucial element of the globally trending topic of green management. Although GHRM has received considerable research attention in recent years, confusion remains regarding its antecedents, the social, and psychological processes through which GHRM influences employee behavior, and the potential outcomes to be derived from its use. This paper aims to disentangle and summarize the components that have been explored in the GHRM-performance relationship. To achieve these goals, we conduct a systematic review based on the preferred reporting items method and then present a series of theoretical approaches to stimulate new debates on theory building and its subsequent use in GHRM research. We also carefully explain information on organizational and employee-level factors that motivate and hinder GHRM and display this information in a visual framework. The implications for practice provide focused recommendations to help managers understand how to create favorable conditions for enhancing sustainability performance. The gaps identified should open the way to new lines of research that still need attention.

Does it Make You Better Off? Initial Public Offerings (IPOs) and Corporate Sustainability Performance: Empirical Evidence

Going public (or an IPO) is a strategic decision for value creation motivated by various reasons such as capital raising, windows of opportunities that reflect the perfect market timing and publicity. It is associated with financial and business attributes. In this article, we establish an original linkage between the IPO event and sustainability performance post-IPO, emphasizing the impacts of listing on enhancing sustainability performance. We integrate IPO theories and sustainability views in explaining the effect of the IPO on sustainability measures. We study a sample of Italian firms that went public from 2009 to 2018. Sustainability performance is measured by a sustainability rating which is a composite rating that comprises of 10 elements. Using empirical testing, we show a positive effect of the IPO on sustainability and governance indicators in the 3 years following the IPO, suggesting an image-improving and better compliance practices. And a mixed impact on financial performance.

The Influence of Green Supply Chain Management on Sustainable Performance

This study examines the influence of green supply chain management on sustainable performance. The natural resource-based theory was tested on manufacturing firms in Karachi, Pakistan. A quantitative approach was adopted for this study, and a multi-item measurement scale was adapted from previous studies. A structured questionnaire was developed to collect primary data—the total number of 224 responses collected from textile manufacturing firms. Structural equation modeling was applied for hypothesis testing. The findings supported three hypotheses with positive and significant results, whereas two were rejected. This research study can be helpful for supply chain managers and decision-makers. It gives them guidance for enhancing sustainability performance. It provides a framework for manufacturing firms to enhance environmental sustainability to reduce global warming and nature destruction.

Hybrid Lean Practices Integrated with IR 4.0 and Sustainability in Malaysia Food and Beverages Companies: Conceptual Framework and Hypothesis Development

The growing competition within manufacturing practices has motivated organizations to upgrade their conventional production system to a smart, sophisticated systems. This study evaluates the impact of lean manufacturing practices (LMP) and industrial revolution 4.0 technologies on sustainability in the food and beverages industry. Past literature has revealed that lean practices significantly affect sustainable performance. However, the integrated effects of lean manufacturing practices and IR 4.0 technologies on sustainable performance have not been examined empirically. In order to fill the void of this gap, this study intends to have a preliminary investigation of the combined effects of LMP and IR 4.0 technologies on sustainable performance, specifically in the food and beverages industry. Furthermore, the study aims to confirm the future direction of the food industry that is recently employing new technologies in its manufacturing systems. This study is underpinned by the theories of contingency and practice-based view by highlighting the contributions of operations management practices to implement successful strategies in enhancing sustainability performance in food and beverages companies through performance variations. This study extends the current literature on IR 4.0 technologies and lean manufacturing practices as enablers of economic, environmental, and social sustainability. Also, the study provides implications and future direction for industry consultants, practitioners, and academicians.