High Environmental Uncertainty Research Articles

Environmental Justice Specialization and Corporate ESG Performance: Evidence from China Environmental Protection Court

In order to implement the dual-carbon strategy and achieve sustainable economic development, it is essential to guarantee environmental protection through the establishment of an effective environmental rule of law. This study employs a quasi-natural experiment, namely the establishment of environmental protection courts in China’s intermediate people’s courts, to investigate the impact on the ESG performance of A-share listed companies from 2010 to 2022. A double-difference model is utilized for this purpose. This study reveals that the specialization of environmental justice is an effective means of promoting the ESG performance of enterprises. The results of mechanism tests indicate that the specialization of environmental justice has a positive impact on the ESG performance of enterprises, primarily by enhancing external supervision and garnering greater media attention and analyst interest. Furthermore, heterogeneity analysis reveals that the influence of environmental justice specialization on corporate ESG performance is particularly pronounced in eastern regions, contexts characterized by high environmental uncertainty and heavily polluting enterprises. These findings offer invaluable insights into the development of environmental justice and the advancement of sustainable economic growth.

An analysis of trust governance mechanism in airline-airport relationship with resource dependence theory and transaction cost theory perspectives

Developments have transformed airport operations into more commercially focused centers in the airport sector. This situation has raised the question of how to execute interdependent airport-airline relationships. In interdependent relationships, trust-based governance is the least costly governance structure and is crucial for fostering cooperation in long-term relationships. Trust-based governance is a management approach where relationships and decisions are guided by mutual trust, transparency, and collaboration between parties. When considering the nature of the relationship, it is observed that environmental uncertainty and asset specificity are high. Transaction cost theory suggests that trust governance mechanisms can be the least costly governance structure under high uncertainty and asset specificity. Similarly, resource dependency theory indicates that in situations with high environmental uncertainty, dependencies can be managed through trust governance mechanisms. Therefore, this study analyzes the trust governance mechanism in airport-airline relationships. Drawing from the perspectives of resource dependency theory and transaction cost theory, this research analyzes the trust governance mechanism in airport-airline relationships using case studies of Turkish Airlines and Istanbul Airport relationship is governed by contract-based trust, while the Pegasus Airlines and Istanbul Sabiha Gokcen Airport relationship is based on goodwill-based trust. It can be argued that the history of the airport-airline relationship and the belief in the continuity of the relationship have a positive impact on trust.

Evaluation of advanced control strategies for PMSG in wind turbines: backstepping fuzzy logic control and adaptive neural network control approaches

This study presents a comparative analysis of two advanced control strategies for Permanent Magnet Synchronous Generators (PMSGs) in wind turbines: Backstepping Fuzzy Logic Control and Adaptive Neural Network Control. The aim is to evaluate their effectiveness in handling structured and unstructured uncertainties and enhancing system performance. Backstepping Fuzzy Logic Control integrates backstepping techniques with fuzzy logic regulation to improve flexibility and robustness. This method addresses the limitations of traditional PI controllers by enhancing adaptability to parameter variations and external disturbances. In contrast, Adaptive Neural Network Control employs neural networks with dynamic compensators to address high uncertainties and nonlinearities, aiming to surpass the performance of conventional PI controllers. The study involves simulations to compare these control strategies based on several criteria: robustness in managing parameter changes and external disturbances, flexibility in adapting to dynamic conditions, and overall performance including efficiency and stability. Simulation results indicate that both strategies offer significant improvements over traditional PI controllers. Backstepping Fuzzy Logic Control demonstrates strong adaptability and robustness, while Adaptive Neural Network Control shows superior efficiency and optimality, particularly in high-uncertainty environments. This comparative analysis provides insights into the strengths and limitations of each approach, offering guidance for selecting the most suitable control strategy based on specific operational requirements. The findings contribute to advancing control methodologies in wind energy systems and suggest directions for future research and practical implementation.

Core-technology competence in perspective of supplier concentration: the mechanism of strategic aggressiveness and the influence of environmental uncertainty

ABSTRACT This study highlights the necessity of drawing more attention to core-technology competence, a specific dimension of firm innovation competence, when examining the overall supplier concentration-innovation relationship to respond to the unprecedented challenges in the supply chain and technological advancement. Still, the mechanism of strategic aggressiveness and the conditioning role of environmental uncertainty are not well explored in this concern. Therefore, it is necessary to combine these factors to analyse. Using the data from Chinese manufacturing firms from 2012 to 2020 and based on resource dependence theory, we construct a panel data model to conduct empirical analysis and obtain the following results: supplier concentration can hinder firms’ core-technology competence; supplier concentration would constrain firms’ strategic aggressiveness, subsequently impairing core-technology competence; while supplier concentration can limit strategic aggressiveness, high environmental uncertainty can mitigate these negative effects. The findings are beneficial for firms to cope with current challenges and enhance core-technology competence based on the global supply chain crisis and environmental uncertainty.

EVOLUTION OF THE BUSINESS INDUSTRY IN THE POST-COVID-19 ERA

This study examines the evolution of business industry in the post-COVID-19 era, aiming to identify key transformations and strategic imperatives for businesses. Utilizing a comprehensive analysis of organizational adaptation theories, disruptive innovation concepts, and dynamic capabilities frameworks, the research explores fundamental shifts in the global economic landscape. The study reveals accelerated digitalization, supply chain reconfiguration, and evolving consumer behavior as primary drivers of change. Three critical strategic imperatives emerge: digital transformation and innovation development, operational model flexibility, and integration of sustainability principles. The findings suggest that successful navigation of the new reality requires companies to fundamentally rethink their role in society and ecosystems, balancing short-term efficiency with long-term sustainability. This research contributes to the understanding of organizational change dynamics in high-uncertainty environments and provides a multidimensional model for analyzing strategic decisions in the post-pandemic era.

Impact of sentiment tendency of media coverage on corporate green total factor productivity: The moderating role of environmental uncertainty

In the context of China's carbon neutrality goal and increasing environmental responsibilities, this study examines the impact of media sentiment on Corporate Green Total Factor Productivity (GTFP), especially considering environmental uncertainty. Utilizing data from the CNRDS financial news database and employing the non-radial SBM-ML index to assess GTFP, the research explores how positive, neutral, and negative media coverage influences corporate sustainability behaviors. Results indicate that positive media coverage significantly enhances GTFP during corporate growth and maturation phases by improving public perception and investor confidence. In contrast, negative media coverage tends to reduce GTFP, particularly under conditions of high environmental uncertainty, highlighting the challenges during vulnerable periods. This study contributes to understanding the nuanced effects of media sentiment on corporate sustainability practices and underscores the importance of managing media relations strategically according to corporate lifecycle stages and environmental contexts to optimize sustainability outcomes. The findings offer valuable insights for businesses to align their media strategies with sustainability goals and for policymakers to develop regulations that harness media influence to support corporate environmental accountability. By strategically managing media narratives and fostering a supportive policy environment, corporations can leverage the power of media to drive their sustainability agendas and contribute to the achievement of national and global environmental targets.

The impact of digital inclusive finance on ESG disputes: Evidence from Chinese non-financial listed companies

In the dynamic landscape of corporate sustainability, this study sheds light on the transformative role of digital inclusive finance (DIF) in fostering sustainable practices and responsible corporate behavior. The study employs a unique dataset consisting of Chinese nonfinancial A-share listed firms for the period 2017–2020. The findings demonstrate a significant positive relationship between DIF and the mitigation of environmental, social and governance (ESG) disputes. Moreover, the mechanism analysis reveals that DIF mitigates ESG disputes by reducing financial constraints and improving internal control. The heterogeneity results show that the impact of DIF on corporate ESG disputes is more pronounced for firms located in underdeveloped regions, belongs to sensitive industrial sectors, low industrial competition, and high environmental uncertainty. The research findings provide several implications for policymakers, regulators and managers seeking to navigate the intersection of finance, sustainability and corporate responsibility in digital era.

Adaptive strategic analysis models in a volatile market: case studies of today’s organizations

Adaptive models of strategic analysis are crucial in unstable market conditions for modern organizations. These models assist organizations in identifying and responding to the changing business environment, ensuring their sustainable development and competitive market position. The use of adaptive management allows companies to make flexible and informed decisions considering the impact of digitalization on business relationships. Factors such as leadership, culture, structure, and business strategy play an essential role in supporting organizational changes and adaptation. This paper discusses the fundamentals of adaptive management, including models of strategic analysis and strategic management. It covers the theoretical foundations of adaptive management, organizational structures with an adaptive management type, adaptive analysis models, and provides examples of companies that employ various tools. Additionally, a model of adaptive organizational management is developed, enabling companies to evolve in uncertain conditions. This model includes three subsystems: diagnostic of premises, selection of the optimal option, and implementation of the strategic scenario. The article concludes that adaptive strategic management is quite relevant in the context of variability and high environmental uncertainty; however, the strategy should not remain static.

Is it possible for semiconductor companies to reduce carbon emissions through digital transformation? Evidence from China

The semiconductor industry serves as both a driver of digital transformation (DT) and a bearer of energy preservation and lower emissions. This study focuses on the Chinese-listed semiconductor businesses from 2013 to 2021, delving into the mechanism of digital transformation on reducing carbon emissions. It validates the moderating function of supply chain configuration and reveals heterogeneity at both the regional and corporate levels. The following important results are reached by this work: Among semiconductor enterprises, firstly, digital transformation considerably reduces enterprises' carbon emission intensity, a conclusion that stands robust after robustness checks. Secondly, digital transformation achieves carbon mitigation by improving both green and traditional innovation efficiency. Thirdly, the increased centralization of supply chain configuration propels enterprises to achieve carbon reductions through digital transformation. Lastly, heterogeneity research finds that digital transformation in the eastern area inhibits the increase in carbon intensity, while the central-western and northeastern regions do not exhibit a similar trend. At the enterprise level, the carbon mitigation effect of digital transformation is especially noticeable in semiconductor enterprises that are highly labor-intensive, large in size, have high environmental uncertainty, and are state-owned. These findings provide empirical evidence for semiconductor enterprises to implement differentiated digital transformation practices and coordinate the creation of green transformation policies.

Punishment or deterrence? Environmental justice construction and corporate equity financing––Evidence from environmental courts

In this study, we explore the impact of the establishment of environmental courts, an environmental justice system, on the cost of equity capital. Based on a quasi-natural experiment of establishing environmental courts in China, we find that they have a deterrent effect and reduce the cost of equity capital for heavily polluting firms in localities. We also find that a low proportion of managerial ownership, a low level of analyst attention, and high environmental uncertainty induce this deterrent effect. Furthermore, mechanism tests indicate that environmental courts enhance corporate environmental engagement and corporate ESG ratings, increase long-term institutional investor ownership, and reduce urban environmental violations to achieve a deterrent effect. The findings are more pronounced for the trial court sample, firms in cities with lower public participation in environmental protection, and firms with lower environmental information transparency. We also suggest the impacts and underlying mechanisms of the environmental justice system on the equity capital market, which is conducive to long-term planning by firm managers.

Does social capital affect supply chain performance? Establishing an underlying mechanism and a boundary condition

PurposeThis study examines the direct and indirect effects of social capital on supply chain performance via supply chain quality integration (SCQI), which refers to integrating supply chain partners from the perspective of quality management. It also examines the moderating role of environmental uncertainty in the link between social capital and SCQI and determines the conditional indirect effect of social capital on supply chain performance via SCQI.Design/methodology/approachData were collected using a time-lagged research design through a self-administered survey of supply chain professionals in manufacturing firms in Pakistan. Hayes’ PROCESS Macro was used to test the hypotheses.FindingsThe results show a positive relationship between social capital and supply chain performance. SCQI partially mediates the relationship between social capital and supply chain performance. Environmental uncertainty significantly moderates that relationship in such a way that firms that operate under high environmental uncertainty are more likely to use their social capital to develop SCQI than firms that operate under low environmental uncertainty.Practical implicationsThe study has practical implications for managers who seek to implement SCQI practices using social capital. Leveraging social capital across the supply chain fosters strong connections and a quality-oriented approach across the supply chain, and improves overall performance. Managers can use the power of social capital to navigate environmental uncertainty.Originality/valueThis study’s originality lies in its drawing on the dynamic capability theory and contingency theory and integrating the dispersed scholarly work on social capital, SCQI, and supply chain performance under the boundary condition of environmental uncertainty.

How does social density influence consumer subjective well‐being under high environmental uncertainty?

AbstractSubjective well‐being is an important research topic in consumer psychology. We conducted two experimental studies to examine the joint effects of environmental uncertainty and social density on consumer subjective well‐being. The first study (N = 200) adopted a 2 (environmental uncertainty: high vs. baseline) × 2 (social density: high vs. low) design. Analysis of covariance (ANCOVA) analysis indicated that low social density improved consumers' life happiness after they experienced high environmental uncertainty. Moderated mediation analysis using the PROCESS macro found that the psychological process of control compensation was the underlying mechanism. The second study (N = 193) aimed to further demonstrate the control compensation effect and adopted a 2 (control boost: boost vs. no boost) × 2 (social density: high vs. low) design. ANCOVA analysis indicated that low social density improved life happiness reported by consumers who received no control boost after they experienced high environmental uncertainty. These findings provide significant implications for consumer advocacy from theoretical and practical standpoints.

Perception of social entrepreneurship competence in university business students

The ability to transform social and environmental problems into strategic actions to face the challenges of a changing environment in a creative and innovative way drives the need to train social entrepreneurs who anticipate new scenarios. Society needs social entrepreneurs who create business opportunities by bringing resources to impoverished places and using technology to generate social inclusion for people with disabilities; These ventures apply innovation to improve people's standard of living. The objective of this research was to determine the level of perception of the social entrepreneurship competence in business students of a private university in Lima, capital of Peru. The methodology used was quantitative, with a transactional approach, the sample was random considering 185 business students, the data collected was analyzed using the statistical program SPSS. The results show that 94.1% have a high level of perception of competence in social entrepreneurship; in social and personal traits they present 91.4% and 96.2% respectively; however, a lower level in innovative traits with 76.2%. The investigation concluded in the determination of a high level of competence in social entrepreneurship, however, the innovative traits must be reinforced and for this the innovation component can be included in the courses, to generate viable products and services that contribute to the creation of sustainable organizations improving their value proposition, competitiveness and economic growth. Likewise, it is advisable to reinforce personal and social traits in the training of professionals to face an environment of high uncertainty. This work will contribute to other scientific research to compare the level of competence in social entrepreneurship in other national and international contexts.

Economic policy uncertainty and firm green commitment

As coercive regulatory control amplifies, environmental responsibility is one of the most important dimensions in stakeholder demands for corporate social responsibilities. This study interprets green commitments as the approach adopted by firms to seek environmental legitimacy and stakeholder recognition in situations of high environmental uncertainty in the external environment. Then, this study delves into the effects of economic policy uncertainty (EPU) on firm-level green commitment using data of 1914 firms in the A-share market. Specifically, the evidence illustrates that: (1) EPU has a significant positive effect on firm green commitment; (2) R&D investment has a partial intermediary effect between EPU and firm-level green commitments; (3) EPU has a stronger impact on green commitments for non-SOE, manufacturing, and non-heavily polluting firms than others; and (4) positive commitments under uncertainties can improve firm resilience in swaths of economic output, supply chain financing, and debt accessibility.

Does digital transformation foster corporate social responsibility? Evidence from Chinese mining industry

Mining activities induce some social problems, such as polluted environments, the destruction of aquatic live, which have long been debated by scholars and practitioners. To mitigate this problem, underpinning dynamic capability view, our study explores whether the digital transformation (DT) affects corporate social responsibility (CSR) by using 1308 Chinese mining A-shared listed firms from 2010 to 2021, and how the potential relationship is moderated by environmental uncertainty (EU) and supply chain concentration (SCC). Applying fixed effects regressions, we find that DT fosters CSR in the mining industry, but CSR performance is weakened when DT processed at higher EU and SCC respectively. Our findings enrich the literature on CSR of mining industry and highlight that DT is an important driver that shapes CSR practice.

Green Environmental Management System to Support Environmental Performance: What Factors Influence SMEs to Adopt Green Innovations?

In the current era of high environmental uncertainty, the advancement of green technologies has led to innovative practices in the manufacturing sector, becoming the preferred approach for achieving sustainable development in today’s business markets. Manufacturing firms require green innovation to improve their environmental performance and monitor operations effectively, but the adoption and implementation of these innovations is still low among manufacturing industries. To bridge this gap, a study was conducted using resource-based view (RBV) theory and the technology–organization–environment (TOE) framework to develop and validate a model that encourages firms to adopt green innovation. A survey was administered to 179 respondents from manufacturing firms, and the data were analyzed using structural equation modeling (PLS-SEM). The integrated constructs of the model—perceived benefits, top management support, coercive pressure, normative pressure, and mimetic pressure—all predicted green management accounting practices. Additionally, the study found that green management accounting practices directly and significantly impacted green environmental performance. The developed model provides clear implications for decision makers, highlighting the importance of adopting green practices and innovative technologies in order to enhance environmental performance. Advanced green technologies have shown a significant connection between green management accounting practices and environmental performance, particularly in developing economies.

PENGARUH OTORITAS PEMIMPIN DAN UNCERTAINTY ENVIRONTMENT TERHADAP BUDGETARY SLACK

Budgetary slack is the tendency of management to intentionally lower revenues or higher costs. Budget slack can cause losses for the company because the company's performance is less than optimal in determining the targets to be achieved. This action is influenced by various factors such as the authority of the leader and the uncertainty of the environment. This research is an experimental study to examine the influence of the leader's authority and uncertainty environment on the occurrence of budgetary slack. The object of this research is the undergraduate students majoring in Accounting at Widya Mandala Catholic University Surabaya as many as 64 participants, using a 2x2 experimental design. Participants were divided into 4 different cells which were given different treatments. The ANOVA test tool is used to test the results of the data that has been collected in order to test the predetermined hypothesis. Before carrying out the ANOVA test, a Levene test will be carried out to determine the level of homogeneity of the data that has been collected, if the data is not homogeneous then the data cannot be used to continue the test. The results of this test prove that leaders who use coercive power encourage subordinate behavior to do budgetary slack compared to leaders who use legitimate power. For environmental uncertainty variables, subordinates who are in low environmental uncertainty tend to do budgetary slack compared to subordinates who are in high environmental uncertainty.

Relationships between empathy and creativity in collective games: a comparison between handball and sitting ball.

In collective motor situations, creativity and empathy are central and strongly connected to cognitive and affective processes. Indeed, in the environment of high social uncertainty of games and sports, empathy would allow the player to anticipate motor behaviors in order to promote creative decision-making, i.e., to destabilize his opponents. On this basis, this study pursues two objectives. The first is to propose indicators to question the links between sociomotor empathy and motor creativity in an ecological situation. The second is to investigate the potential influence of the internal logic of two very different collective games (handball and Sitting ball) on the type of links that are woven between empathy and creativity. Two groups of students were recruited (n = 22 and 23) and participated in each of the games mentioned. The games were video recorded. The praxical communications made by each player were recorded and sorted by two trained observers. The results revealed major differences between the two studied collective games. In handball, there was a correlation between instrumental empathy (valuing cognitive aspects) and indicators of motor creativity (p < 0.05). The more creative the players are (quantity, diversity and quality of performance), the more they manage to accurately anticipate the behavior of other players. In Sitting Ball, there was no correlation between creativity indicators and instrumental empathy. On the other hand, it is noticed that instrumental empathy was correlated with socio-affective empathy (p < 0.001). To make their motor decisions, the players do not rely exclusively on the decoding of behaviors but significantly mobilize the feelings that they ascribe to the other co-participants. The results of this work invite reflection on the diversity of playful reading grids to be offered to students in order to develop their motor adaptability.

How and When Does Big Data Analytics Capability Boost Innovation Performance?

The diffusion of big data in recent years has stimulated many companies to develop big data analytics capability (BDAC) to boost innovation performance. However, research regarding how and when BDAC can increase innovation performance is still scant. This study aims to test how (i.e., the mediating role of strategic flexibility and strategic innovation) and when (i.e., the moderating role of environmental uncertainty) BDAC can boost a firm’s innovation performance drawing on resource-based theory. Through a survey of 421 Chinese managers and employees who are engaged in the field of big data analytics, this study reveals that (1) BDAC has a positive effect on innovation performance, (2) strategic flexibility and strategic innovation play a significant serial mediating role in this relationship, and (3) the positive effect of BDAC on innovation performance is more significant under high (vs. low) environmental uncertainty conditions. This study contributes to the extant literature by verifying how BDAC can increase a firm’s innovation performance through the serial mediating role of strategic flexibility and strategic innovation. It also confirms a contingent factor (i.e., environmental uncertainty) regarding the positive effect of BDAC on innovation performance.

EFFECT OF BOARD DIVERSITY ON FINANCIAL PERFORMANCE OF QUOTED HOSPITALITY FIRMS IN NIGERIA

This study examined the effect of board diversity on financial performance of quoted hospitality firms in Nigeria for a period of nineteen years (19) years spanning from 2003 to 2021. Specifically, this study ascertained the effect of gender diversity, age diversity and board independence diversity on cash flow return on investment. The panel data sets used in this study were obtained from the annual reports and accounts and Nigerian Exchange (NGX) Group fact books for the study period. Ex-post facto research design was employed. Inferential statistics using Pearson Coefficient Correlation and Panel Least Square Regression analysis were applied to test the hypotheses of the study. The findings showed that Gender diversity has a significant and positive effect on cash flow return on investment (β1 = 0.141799; P-value = 0.0000 &lt; 0.05); Age diversity has a significant and positive effect on cash flow return on investment (β2 = 0.018494; P-value = 0.0000 &lt; 0.05); Board independence has a significant and positive effect on cash flow return on investment (β3 = 0.289258; P-value = 0.0000 &lt; 0.05) at 5% level of significance respectively. The study recommended inter alia that Company boards should have an independent majority since an independent majority on the board is more likely to consider the best interests of shareowners first. In times of high environmental uncertainty, outside directors can link the firm with scarce resources, help in effective strategy development and execution which can ultimately improve firm performance