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Supply chain environmental investments in dynamic industries: Comparing investment and performance differences with static industries

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  • Wiengarten, Frank
  • Pagell, Mark
  • Fynes, Brian
Abstract
Research linking investments in environmental practices to firm performance has matured over the past years. However, empirical research is still ambiguous on how and whether investments in environmental practices improve a plant's performance. We believe that contingency factors, especially the industry in which plants act has a significant role in the success of environmental investments. Using empirical data collected across a wide range of industries our results indicate that plants competing in dynamic industries such as apparel do on average invest less in supply chain environmental practices compared to plants in static industries. In addition, these environmental investments do not significantly improve operational performance in dynamic industries in terms of cost, quality, delivery and flexibility. However, in static industries environmental investments do significantly improve a plant's operational performance in terms of cost, quality and flexibility.

Suggested Citation

  • Wiengarten, Frank & Pagell, Mark & Fynes, Brian, 2012. "Supply chain environmental investments in dynamic industries: Comparing investment and performance differences with static industries," International Journal of Production Economics, Elsevier, vol. 135(2), pages 541-551.
    • Handle: RePEc:eee:proeco:v:135:y:2012:i:2:p:541-551
    DOI: 10.1016/j.ijpe.2011.03.011
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    References listed on IDEAS

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    7. Wiengarten, Frank & Pagell, Mark, 2012. "The importance of quality management for the success of environmental management initiatives," International Journal of Production Economics, Elsevier, vol. 140(1), pages 407-415.
    8. Bag, Surajit & Rahman, Muhammad Sabbir & Srivastava, Gautam & Chan, Hau-Ling & Bryde, David J., 2022. "The role of big data and predictive analytics in developing a resilient supply chain network in the South African mining industry against extreme weather events," International Journal of Production Economics, Elsevier, vol. 251(C).
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    11. Donna Marshall & Lucy McCarthy & Marius Claudy & Paul McGrath, 2019. "Piggy in the Middle: How Direct Customer Power Affects First-Tier Suppliers’ Adoption of Socially Responsible Procurement Practices and Performance," Journal of Business Ethics, Springer, vol. 154(4), pages 1081-1102, February.
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