Framing the Direction of Environmental Performance Using Theory of Dynamic Capabilities
Abstract
Considerable interest of environmental studies has appeared in the literature over the past decade. Environmental performance indicates a way to minimize environmental damages caused by business activity. It is evident that good environmental performance signals wise protection of the natural environment. However, it is still not entirely understood the factors that affect the environmental performance. As such, the purpose of this paper is to examine factors that contribute to the environmental performance utilizing the theory of Dynamic Capabilities and investigate the body of literature constituting the field. The outcome of this study is expected to provide useful direction for the policy makers and companies to combat environmental issues
References
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[23] http://www.worldbank.org
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[25] Latan H., Jabbour C.J.C., Jabbour A.B.L.D, Wamba S.F, and Shahbaz M. 2018. Effects of environmental strategy, environmental uncertainty and top management's commitment on corporate environmental performance: The role of environmental management accounting. Journal of Cleaner Production, 180: 297-306. DOI: 10.1016/j.jclepro.2018.01.106
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[28] Magaji, A, M., Ridzwana, M. S., Amalina, A., and Fauziah, M. 2017. Environment operational performance effect on costs of capital structure financing of the Nigerian listed manufacturing companies. International Journal of Accounting and Financial Reporting, 7 (1): 372 - 391. DOI: 10.5296/ijafr.v7i1.11381
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[30] Nuwan, G., and Lee K.H., 2015. Environmental Management Accounting (EMA) for environmental management and organizational change: An eco-control approach. Journal of Accounting & Organizational Change, 11(3): 62-383. DOI: 10.1108/JAOC-10-2013-0078
[31] Paulraj, A. and de Jong, P. 2011. The effect of ISO 14001 certification announcements on stock performance. International Journal of Operations and Production Management, 31 (7): 765-788 DOI: 10.1108/01443571111144841
[32] Qian, W., Burritt, R., and Monroe, G., 2011. Environmental management accounting in local government: a case of waste management. Account. Audit. Account. J., 24: 93-128. DOI: 10.1108/09513571111098072
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[34] Sambasivan, M., Bah, S.M., and Ann H.J. 2013. Making the case for operating “Green”: impact of environmental proactivity on multiple performance outcomes of Malaysian firms. Journal of Cleaner Production, 42:69-82. DOI: 10.1016/j.jclepro.2012.11.016
[35] Schaltegger, S., Gibassier, D. and Zvezdov, D. 2013. Is environmental management accounting a discipline? A bibliometric literature review, Meditari Accountancy Research, 21(1): 4-31. DOI: 10.1108/MEDAR-12-2012-0039
[36] Solovida, G. T., and Latan, H. 2017. Linking environmental strategy to environmental performance: Mediation role of environmental management accounting. Sustainability Accounting, Management and Policy Journal, 8(5): 595 - 61. DOI: 10.1108/SAMPJ-08-2016-0046
[37] Spencer, S.Y., Adams, C., and Yapa, P.W.S. 2013. The mediating effects of the adoption of an environmental information system on top management's commitment and environmental performance. Sustainability Accounting, Management and Policy Journal, 4 (1): 75-10. DOI: 10.1108/SAMPJ-10-2011-0030
[38] Sulaiman, M., and Mokhtar, N. 2010. Environmental Management Accounting: Some empirical evidence from Malaysia. Malaysian Institute of Accountants: 11–51.
[39] Teece D. J., Pisano, G. and Shuen, A. 1990. Firm Capabilities, Resources, and the Concept of Strategy. CCC Working Paper 90–8, Center for Research on Management, University of California–Berkeley.
[40] Teece, D. J. 2007. Explicating Dynamic Capabilities: The Nature and Microfoundations of (Sustainable) Enterprise Performance. Strategic Management J., 28(13): 1319 - 1350. DOI: 10.1002/smj.640
[41] Teece, D. J. 2012. Dynamic capabilities: routines versus entrepreneurial action, Journal of Management Studies, 49(8): 1395 – 401. DOI: 10.1111/j.1467-6486.2012.01080.x
[42] Teece, D. J. 2014. The foundations of enterprise performance: dynamic and ordinary capabilities in an (economic) theory of firms, Academy of Management Perspectives, 28(4): 328–52. DOI: 10.5465/amp.2013.0116
[43] Teece, D. J. 2017. A capability theory of the firm: an economics and (strategic) management perspective, New Zealand Economic Papers, forthcoming. DOI: 10.1080/00779954.2017.1371208
[44] Teece, D. J., Pisano, G. and Shuen, A. 1997. Dynamic capabilities and strategic management, Strategic Management Journal, 18(7): 509–33.
[45] Vachon, S. and Klassen, R.D. 2008. Environmental management and manufacturing performance: the role of collaboration in the supply chain, International Journal of Production Economics, 111(2): 299-315.
[46] Vachon, S., and Klassen, R.D. 2006. Extending green practices across the supply chain: the impact of upstream and downstream integration. Int. J. Oper. Prod. Manag, 26: 795–821. DOI: 10.1108/01443570610672248
[47] Wilden, R., Gudergan, S., Nielsen, BB. and Lings, I. 2013. Dynamic Capabilities and Performance: Strategy, Structure and Environment, Long Range Planning, 46(12): 72 - 96. DOI: 10.1016/j.lrp.2012.12.001
[2] Ann, G.E., Zailani, S., and Wahid, N.A. 2006. A study on the impact of environmental management system (EMS) certification towards firms’ performance in Malaysia. Management of Environmental Quality, 17: 73-93. DOI:https://doi.org/10.1108/14777830610639459
[3] Bae, H. S. 2017. The Effect of Environmental Capabilities on Environmental Strategy and Environmental Performance of Korean Exporters for Green Supply Chain Management. The Asian Journal of Shipping and Logistics, 33(3):167-176. DOI: 10.1016/j.ajsl.2017.09.006
[4] Bauer, C., Hofer, J., Althaus, H. J., Del Duce, A., and Simons, A. 2015. The environmental performance of current and future passenger vehicles: life cycle assessment based on a novel scenario analysis framework. Applied Energy, 157: 871-883. DOI: 10.1016/j.apenergy.2015.01.019
[5] Berrone, P., and Gomez-Mejia, L. R. 2009. Environmental performance and executive compensation: An integrated agency–institutional perspective. Academy of Management Journal, 52: 103–126. DOI: 10.5465/amj.2009.36461950
[6] Blome, C., Hollos, D., Paulraj, A. 2014. Green procurement and green supplier development: antecedents and effects on supplier performance. Int. J. Prod. Res. 52: 32–49. DOI:10.1080/00207543.2013.825748
[7] Burritt, R.L., Herzig, C., Schaltegger, S., and Viere, T. 2019. Diffusion of environmental management accounting for cleaner production: Evidence from some case studies. Journal of Cleaner Production, 224: 479-491. DOI: 10.1016/j.jclepro.2019.03.227 0959-6526/
[8] Burritt, R.L., Schaltegger, S., and Zvezdov, D. 2011. Carbon management accounting: explaining practice in leading German companies. Australian Accounting Review, 56 (21): 80-98. DOI:10.1111/j.1835-2561.2010.00121.x
[9] Burritt, R.L., Hahn, T., and Schaltegger, S. 2002.Towards a comprehensive framework for environmental management accounting links between business actors and environmental management accounting tools. Aust. Account. Rev., 12: 39-50. DOI: 10.1111/j.1835-2561.2002.tb00202.x
[10] Cassells, S., Lewis, K., and Findlater, A. 2011. SMEs and ISO 14001 adoption: A New Zealand perspective. Small Enterprise Research, 18(1):19–32. DOI: 10.5172/ser.18.1.19
[11] Cuesta C.F., Castro, P., Tason M.T., and Castano F.J. 2019 The effect of environmental performance on financial debt. European evidence. Journal of Cleaner Production, 207: 379-390. DOI: 10.1016/j.jclepro.2018.09.239
[12] Darnall, N., Henriques, I. and Sadorsky, P. 2008. Do environmental management systems improve business performance in an international setting? Journal of International Management, 14(4): 364-376. DOI: 10.1016/j.intman.2007.09.006
[13] De Villiers, C., Naiker, V. and Van Staden, C. 2011. The effect of board characteristics on firm environmental performance, Journal of Management, 37(6): 1636-1663. DOI: 10.1177/0149206311411506
[14] Delmas, M., and Blass, V. D. 2010. Measuring corporate environmental performance: The trade-offs of sustainability ratings. Business Strategy and the Environment, 19: 245–260. DOI10.1002/bse.676
[15] Ferreira, A., Moulang, C., and Hendro, B., 2010. Environmental management accounting and innovation: an exploratory analysis. Account Audit. Account. J., 23 (7): 920 - 948. DOI:10.1108/09513571011080180
[16] Golgeci, I., Gligor, D.M., Tatoglu, E., and Arda, O.A. 2019. A relational view of environmental performance: What role do environmental collaboration and cross-functional alignment play? Journal of Business Research 96: 35 - 46. DOI: 10.1016/j.jbusres.2018.10.058
[17] Graham, S., and McAdam, R. 2016. The effects of pollution prevention on performance. International Journal of Operations & Production Management, 36(10): 1333 - 1358. DOI: 10.1108/IJOPM-05-2015-0289
[18] Graham, S., and Potter, A., 2015. Environmental operations management and its links with proactivity and performance: a study of the UK food industry. International Journal of Production Economics, 170: 146-159. DOI: 10.1016/j.ijpe.2015.09.021
[19] Green, K. W., Zelbst, P. J., Bhadauria, V. and Meacham, J. 2012. Do environmental collaboration and monitoring enhance organisational performance? Industrial Management and Data systems, 112(2): 186-205. DOI: 10.1108/02635571211204254
[20] Henri, J., and Journeault, M. 2010. Eco-control: The influence of management control systems on environmental and economic performance. Accounting, Organizations and Society, 35(1): 63-80. DOI: 10.1016/j.aos.2009.02.001
[21] Herzig, C., Viere, T., Schaltegger, S., and Burritt, R. 2012. Environmental management accounting. Case studies of South-East Asian companies. Oxon (UK)/New York: Routledge. DOI: 10.4324/9780203125366
[22] Hsu, A., and Zomer, A. 2016. Environmental Performance Index. New Haven, CT: Yale University. DOI: 10.1002/9781118445112.stat03789.pub2
[23] http://www.worldbank.org
[24] Iwata, H. and Okada K. 2011. How does environmental performance affect financial performance? Evidence from Japanese manufacturing firms Ecol. Econ., 70: 1691-1700. Available at https://mpra.ub.uni-muenchen.de/27721.pdf
[25] Latan H., Jabbour C.J.C., Jabbour A.B.L.D, Wamba S.F, and Shahbaz M. 2018. Effects of environmental strategy, environmental uncertainty and top management's commitment on corporate environmental performance: The role of environmental management accounting. Journal of Cleaner Production, 180: 297-306. DOI: 10.1016/j.jclepro.2018.01.106
[26] Li, D. and Liu, J. 2014. Dynamic Capabilities, Environmental Dynamism, and Competitive Advantage: Evidence from China. Journal of Business Research, 67 (1): 2793-2799. DOI: 10.1016/j.jbusres.2012.08.007
[27] Linton, JD, Klassen, R. and Jayaraman, V. 2007. Sustainable supply chains: An introduction. Journal of Operations Management, 25(6): 1075 – 1082. DOI: 10.1016/j.jom.2007.01.012
[28] Magaji, A, M., Ridzwana, M. S., Amalina, A., and Fauziah, M. 2017. Environment operational performance effect on costs of capital structure financing of the Nigerian listed manufacturing companies. International Journal of Accounting and Financial Reporting, 7 (1): 372 - 391. DOI: 10.5296/ijafr.v7i1.11381
[29] Makkonen, H., Pohjola, M., Olkkonen, R. and Koponen, A. 2014. Dynamic capabilities and firm performance in a financial crisis. Journal of Business Research, 67(1): 2707 - 2719. DOI: 10.1016/j.jbusres.2013.03.020
[30] Nuwan, G., and Lee K.H., 2015. Environmental Management Accounting (EMA) for environmental management and organizational change: An eco-control approach. Journal of Accounting & Organizational Change, 11(3): 62-383. DOI: 10.1108/JAOC-10-2013-0078
[31] Paulraj, A. and de Jong, P. 2011. The effect of ISO 14001 certification announcements on stock performance. International Journal of Operations and Production Management, 31 (7): 765-788 DOI: 10.1108/01443571111144841
[32] Qian, W., Burritt, R., and Monroe, G., 2011. Environmental management accounting in local government: a case of waste management. Account. Audit. Account. J., 24: 93-128. DOI: 10.1108/09513571111098072
[33] Roberts L., and Gehrke, T. 1996. Linkages between best practice in business and good environmental performance by companies. Journal of Cleaner Production, 4(3–4): 189 - 202.
[34] Sambasivan, M., Bah, S.M., and Ann H.J. 2013. Making the case for operating “Green”: impact of environmental proactivity on multiple performance outcomes of Malaysian firms. Journal of Cleaner Production, 42:69-82. DOI: 10.1016/j.jclepro.2012.11.016
[35] Schaltegger, S., Gibassier, D. and Zvezdov, D. 2013. Is environmental management accounting a discipline? A bibliometric literature review, Meditari Accountancy Research, 21(1): 4-31. DOI: 10.1108/MEDAR-12-2012-0039
[36] Solovida, G. T., and Latan, H. 2017. Linking environmental strategy to environmental performance: Mediation role of environmental management accounting. Sustainability Accounting, Management and Policy Journal, 8(5): 595 - 61. DOI: 10.1108/SAMPJ-08-2016-0046
[37] Spencer, S.Y., Adams, C., and Yapa, P.W.S. 2013. The mediating effects of the adoption of an environmental information system on top management's commitment and environmental performance. Sustainability Accounting, Management and Policy Journal, 4 (1): 75-10. DOI: 10.1108/SAMPJ-10-2011-0030
[38] Sulaiman, M., and Mokhtar, N. 2010. Environmental Management Accounting: Some empirical evidence from Malaysia. Malaysian Institute of Accountants: 11–51.
[39] Teece D. J., Pisano, G. and Shuen, A. 1990. Firm Capabilities, Resources, and the Concept of Strategy. CCC Working Paper 90–8, Center for Research on Management, University of California–Berkeley.
[40] Teece, D. J. 2007. Explicating Dynamic Capabilities: The Nature and Microfoundations of (Sustainable) Enterprise Performance. Strategic Management J., 28(13): 1319 - 1350. DOI: 10.1002/smj.640
[41] Teece, D. J. 2012. Dynamic capabilities: routines versus entrepreneurial action, Journal of Management Studies, 49(8): 1395 – 401. DOI: 10.1111/j.1467-6486.2012.01080.x
[42] Teece, D. J. 2014. The foundations of enterprise performance: dynamic and ordinary capabilities in an (economic) theory of firms, Academy of Management Perspectives, 28(4): 328–52. DOI: 10.5465/amp.2013.0116
[43] Teece, D. J. 2017. A capability theory of the firm: an economics and (strategic) management perspective, New Zealand Economic Papers, forthcoming. DOI: 10.1080/00779954.2017.1371208
[44] Teece, D. J., Pisano, G. and Shuen, A. 1997. Dynamic capabilities and strategic management, Strategic Management Journal, 18(7): 509–33.
[45] Vachon, S. and Klassen, R.D. 2008. Environmental management and manufacturing performance: the role of collaboration in the supply chain, International Journal of Production Economics, 111(2): 299-315.
[46] Vachon, S., and Klassen, R.D. 2006. Extending green practices across the supply chain: the impact of upstream and downstream integration. Int. J. Oper. Prod. Manag, 26: 795–821. DOI: 10.1108/01443570610672248
[47] Wilden, R., Gudergan, S., Nielsen, BB. and Lings, I. 2013. Dynamic Capabilities and Performance: Strategy, Structure and Environment, Long Range Planning, 46(12): 72 - 96. DOI: 10.1016/j.lrp.2012.12.001
Published
2019-07-15
How to Cite
APPANNAN, Jeya Santhini et al.
Framing the Direction of Environmental Performance Using Theory of Dynamic Capabilities.
Journal of Environmental Management and Tourism, [S.l.], v. 10, n. 3, p. 491-498, july 2019.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/3734>. Date accessed: 20 nov. 2024.
doi: https://doi.org/10.14505//jemt.v10.3(35).03.
Section
Article
Copyright© 2024 The Author(s). Published by ASERS Publishing 2024. This is an open access article distributed under the terms of CC-BY 4.0 license.