The Relationship between Environmental, Social, Governance, and Export Performance in Manufacturing Companies: A Literature Review
Abstract
The swiftness with which environmental, social, and governance (ESG) has progressed and taken root in the manufacturing industry has had an immense impact on performance. The impact of ESG on the environment in the manufacturing context, however, remains ambiguous. This investigation endeavors to present a review of the recent literature on the relationship between ESG and export performance, while simultaneously providing a roadmap for future inquiries. Employing content analysis techniques and the VOS viewer tool, this analysis scrutinizes salient research components such as journals, countries, regions, plausible links between ESG and corporate performance, and trends, with particular emphasis on the environmental pillar. Subsequently, a research agenda for ESG implementation is proposed that encompasses both conceptual and empirical perspectives, which includes: (i) identifying the optimum ESG level and its effects on export performance; (ii) exploring the inherent inverse causality within the ESG-export performance nexus; (iii) conducting international comparisons; and (iv) presenting various arguments that support an indirect link between ESG and export performance.
References
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[41] Palma, E.P., et al. 2014. Sustainable Strategies and Export Performance: an analysis of companies in the gems and jewelry industry. Rbgn-Revista Brasileira De Gestao De Negocios, 16(50): 25-42.
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[43] Perrini, F., et al. 2011. Deconstructing the relationship between corporate social and financial performance. Journal of Business Ethics, 102: 59-76.
[44] Perrini, F. 2006. SMEs and CSR theory: Evidence and implications from an Italian perspective. Journal of business ethics, 67: 305-316.
[45] Perry, P. and Towers, N. 2013. Conceptual framework development CSR implementation in fashion supply chains. International Journal of Physical Distribution and Logistics Management, 43(5-6): 478-500.
[46] Porter, M.E. and Kramer, M.R. 2002. The competitive advantage of corporate philanthropy. Harvard business review, 80(12): 56-68.
[47] Porter, M.E. 1985. Technology and competitive advantage. Journal of business strategy, 5(3): 60-78.
[48] Rosen, M.A. and Kishawy, H.A. 2012. Sustainable manufacturing and design: Concepts, practices and needs. Sustainability, 4(2): 154-174.
[49] Sardana, D., et al. 2020. CSR 'sustainability' practices and firm performance in an emerging economy. Journal of Cleaner Production, 258.
[50] Sartal, A., et al. 2020. The sustainable manufacturing concept, evolution and opportunities within Industry 4.0: A literature review. Advances in Mechanical Engineering, 12(5): 1687814020925232.
[51] Shoham, A. 1996. Marketing-mix standardization: determinants of export performance. Journal of global marketing, 10(2): 53-73.
[52] Silva, G.M., et al. 2023. Drivers and outcomes of sustainable export marketing strategies in international environments. Review of International Business and Strategy, 2023.
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[54] Tatoglu, E., et al. 2019. Why do Emerging Market Firms Engage in Voluntary Environmental Management Practices? A Strategic Choice Perspective. British Journal of Management, 31(1): 80-100.
[55] Teplova, T., et al. 2022. The Multifaceted Sustainable Development and Export Intensity of Emerging Market Firms under Financial Constraints: The Role of ESG and Innovative Activity. Complexity.
[56] Tsai, K.H. and Liao, Y.C. 2017. Innovation Capacity and the Implementation of Eco-innovation: Toward a Contingency Perspective. Business Strategy and the Environment, 26(7): 1000-1013.
[57] Uddin, M.H., Razzak, M.R. and Abd Rahman, A. 2023. Sustainable supply chain management practices, dynamic capabilities and competitive advantage: Evidence from Bangladesh ready-made garments industry. Business Strategy and Development.
[58] Ullah, Z., Arslan, A. and Puhakka, V. 2021. Corporate social responsibility strategy, sustainable product attributes, and export performance. Corporate Social Responsibility and Environmental Management, 28(6): 1840-1853.
[59] Urban, B. and Govender, D.P. 2012. Empirical Evidence on Environmental Management Practices. Inzinerine Ekonomika-Engineering Economics, 23(2): 209-215.
[60] Wood, D.J. 1991. Corporate social performance revisited. Academy of management review, 16(4): 691-718.
[61] Yang, O.S. and Han, J.H. 2023. Assessing the Effect of Corporate ESG Management on Corporate Financial and Market Performance and Export. Sustainability, 15(3).
[2] Alcaraz, J.L.G., et al. 2022. Effect of the Sustainable Supply Chain on Business Performance- The Maquiladora Experience. Ieee Access, 10: 40829-40842.
[3] Aragón-Correa, J.A., and Sharma, S. 2003. A contingent resource-based view of proactive corporate environmental strategy. Academy of management review, 28(1): 71-88.
[4] Beleska-Spasova, E. 2014. Determinants and measures of export performance–comprehensive literature review. Journal of contemporary economic and business issues, 1(1): 63-74.
[5] Benlemlih, M. 2017. Corporate social responsibility and firm financing decisions: A literature review. Journal of Multinational Financial Management, 42(12): 1-10.
[6] Bıçakcıoğlu, N., Theoharakis, V. and Tanyeri, M. 2019. Green business strategy and export performance. International Marketing Review, 37(1): 56-75.
[7] Birkin, F. et al. 2009. New Sustainable Business Models in China. Business Strategy and the Environment, 18(1): 64-77.
[8] Boehe, D.M. and Barin Cruz, L. 2010. Corporate social responsibility, product differentiation strategy and export performance. Journal of Business ethics, 91: 325-346.
[9] Buysse, K., and Verbeke, A. 2003. Proactive environmental strategies: A stakeholder management perspective. Strategic Management Journal, 24(5): 453-470.
[10] Cantrell, J.E., Kyriazis, E. and Noble, G. 2015. Developing CSR giving as a dynamic capability for salient stakeholder management. Journal of Business Ethics, 130: 403-421.
[11] Carroll, A.B. 1991. The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business horizons, 34(4): 39-48.
[12] Cavusgil, S.T. and Zou, S. 1994. Marketing strategy-performance relationship: an investigation of the empirical link in export market ventures. Journal of marketing, 58(1): 1-21.
[13] Chakraborty, D. and Mukherjee, S. 2013. How do trade and investment flows affect environmental sustainability? Evidence from panel data. Environmental Development, 6(1): 34-47.
[14] Chen, Z.Y. and Hamilton, T. 2020. What is driving corporate social and environmental responsibility in China? An evaluation of legacy effects, organizational characteristics, and transnational pressures. Geoforum, 110: 116-124.
[15] Cho, H.J. and Pucik, V. 2005. Relationship between innovativeness, quality, growth, profitability, and market value. Strategic management journal, 26(6): 555-575.
[16] Conceição, P., Heitor, M.V. and Vieira, P.S. 2006. Are environmental concerns drivers of innovation? Interpreting Portuguese innovation data to foster environmental foresight. Technological Forecasting and Social Change, 73(3): 266-276.
[17] Donaldson, T. and Preston, L.E. 1995. The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of management Review, 20(1): 65-91.
[18] Fandos-Roig, J., et al. 2021. Does CSR help to retain customers in a service company? Sustainability, 13 (1), 300.
[19] Fombrun, C. and Shanley, M. 1990. What's in a name? Reputation building and corporate strategy. Academy of management Journal, 33(2): 233-258.
[20] Freeman, R.E. 2004. The stakeholder approach revisited. Zeitschrift für wirtschafts-und unternehmensethik, 5(3): 228-254.
[21] Giallonardo, L. and Mulino, M. 2012. Heterogeneous producers’ cooperatives and corporate social responsibility. in European Business Research Conference Proceedings.
[22] Guang, S.V., Lenny, K. S. C. Baldwin, J. and Cucchiella, F. 2012. Natural resource based green supply chain management. Supply Chain Management, 17(1): 54-67.
[23] Hart, C. 2018. Doing a Literature Review: Releasing Research Imagination. 2018, London, UK: Sage Publications Ltd.
[24] Hofman, P.S. and Newman, A. 2014. The impact of perceived corporate social responsibility on organizational commitment and the moderating role of collectivism and masculinity: evidence from China. International Journal of Human Resource Management, 25(5): 631-652.
[25] Hu, Q.Q., et al. 2021. Corporate Social Responsibility and Firm Performance in China's Manufacturing: A Global Perspective of Business Models. Sustainability, 13(4).
[26] Joo, H.Y., Seo, Y.W. and Min, H. 2018. Examining the effects of government intervention on the firm's environmental and technological innovation capabilities and export performance. International Journal of Production Research, 56(18): 6090-6111.
[27] Joung, C.B., et al. 2013. Categorization of indicators for sustainable manufacturing. Ecological indicators, 24: 148-157.
[28] Karlsson, C. 2016. Research Methods for Operations Management, 2nd ed. 2016, New York, NY, USA: Routledge. 336.
[29] Katsikeas, C.S., Leonidou, L.C. and Morgan, N.A. 2000. Firm-level export performance assessment: review, evaluation, and development. Journal of the academy of marketing science, 28(4): 493-511.
[30] Li, Y. and Li, J. 2023. CSR, Environmental and Export Performance: The Moderating Effect of Green Business Strategy and Innovation on Chinese Manufacturing SMEs. International Journal of Social Science and Human Research, 6(03): 1589-1610.
[31] Li, Y. 2022. Corporate Social Responsibility of Chinese Manufacturing Companies' effect on Green Business Strategy, Innovation and Performance. Technium Soc. Sci. J., 31: p. 522.
[32] Malshe, H., et al. 2015. Profile of sustainability in additive manufacturing and environmental assessment of a novel stereolithography process. In International Manufacturing Science and Engineering Conference. 2015. American Society of Mechanical Engineers.
[33] Mason, C. and Simmons, J. 2014. Embedding corporate social responsibility in corporate governance: A stakeholder systems approach. Journal of Business Ethics. 119: 77-86.
[34] Mendoza-Fong, J.R., et al. 2018. Role of Information and Communication Technology in Green Supply Chain Implementation and Companies' Performance. Sustainability, 10(6).
[35] Mijatovic, I., Maricic, M. and Horvat, A. 2019. The Factors Affecting the Environmental Practices of Companies: The Case of Serbia. Sustainability, 11(21).
[36] Murray, K.B. and Montanari, J.B. 1986. Strategic management of the socially responsible firm: Integrating management and marketing theory. Academy of management review, 11(4): 815-827.
[37] Nguyen, H., et al. 2022. Handling customer green pressures: The mediating role of process innovation among export-oriented manufacturing industries. Business Strategy and the Environment, 2022.
[38] Nguyen, H., et al. 2023. The dual environmental customer and green reputation pressures on environmental management systems: the performance implications of manufacturing exports. Supply Chain Management.
[39] Norman, W. and MacDonald, C. 2004. Getting to the bottom of “triple bottom line”. Business ethics quarterly, 14(2): 243-262.
[40] Padilla-Lozano, C.P. and Collazzo, P. 2022. Corporate social responsibility, green innovation and competitiveness – causality in manufacturing. Competitiveness Review, 32(7): 21-39.
[41] Palma, E.P., et al. 2014. Sustainable Strategies and Export Performance: an analysis of companies in the gems and jewelry industry. Rbgn-Revista Brasileira De Gestao De Negocios, 16(50): 25-42.
[42] Pawłowski, A. 2008. How many dimensions does sustainable development have? Sustainable development, 16(2): 81-90.
[43] Perrini, F., et al. 2011. Deconstructing the relationship between corporate social and financial performance. Journal of Business Ethics, 102: 59-76.
[44] Perrini, F. 2006. SMEs and CSR theory: Evidence and implications from an Italian perspective. Journal of business ethics, 67: 305-316.
[45] Perry, P. and Towers, N. 2013. Conceptual framework development CSR implementation in fashion supply chains. International Journal of Physical Distribution and Logistics Management, 43(5-6): 478-500.
[46] Porter, M.E. and Kramer, M.R. 2002. The competitive advantage of corporate philanthropy. Harvard business review, 80(12): 56-68.
[47] Porter, M.E. 1985. Technology and competitive advantage. Journal of business strategy, 5(3): 60-78.
[48] Rosen, M.A. and Kishawy, H.A. 2012. Sustainable manufacturing and design: Concepts, practices and needs. Sustainability, 4(2): 154-174.
[49] Sardana, D., et al. 2020. CSR 'sustainability' practices and firm performance in an emerging economy. Journal of Cleaner Production, 258.
[50] Sartal, A., et al. 2020. The sustainable manufacturing concept, evolution and opportunities within Industry 4.0: A literature review. Advances in Mechanical Engineering, 12(5): 1687814020925232.
[51] Shoham, A. 1996. Marketing-mix standardization: determinants of export performance. Journal of global marketing, 10(2): 53-73.
[52] Silva, G.M., et al. 2023. Drivers and outcomes of sustainable export marketing strategies in international environments. Review of International Business and Strategy, 2023.
[53] Sinkovics, R.R., Kuivalainen, O. and Roath, A.S. 2018. Value co-creation in an outsourcing arrangement between manufacturers and third party logistics providers: resource commitment, innovation and collaboration. Journal of Business and Industrial Marketing, 2018.
[54] Tatoglu, E., et al. 2019. Why do Emerging Market Firms Engage in Voluntary Environmental Management Practices? A Strategic Choice Perspective. British Journal of Management, 31(1): 80-100.
[55] Teplova, T., et al. 2022. The Multifaceted Sustainable Development and Export Intensity of Emerging Market Firms under Financial Constraints: The Role of ESG and Innovative Activity. Complexity.
[56] Tsai, K.H. and Liao, Y.C. 2017. Innovation Capacity and the Implementation of Eco-innovation: Toward a Contingency Perspective. Business Strategy and the Environment, 26(7): 1000-1013.
[57] Uddin, M.H., Razzak, M.R. and Abd Rahman, A. 2023. Sustainable supply chain management practices, dynamic capabilities and competitive advantage: Evidence from Bangladesh ready-made garments industry. Business Strategy and Development.
[58] Ullah, Z., Arslan, A. and Puhakka, V. 2021. Corporate social responsibility strategy, sustainable product attributes, and export performance. Corporate Social Responsibility and Environmental Management, 28(6): 1840-1853.
[59] Urban, B. and Govender, D.P. 2012. Empirical Evidence on Environmental Management Practices. Inzinerine Ekonomika-Engineering Economics, 23(2): 209-215.
[60] Wood, D.J. 1991. Corporate social performance revisited. Academy of management review, 16(4): 691-718.
[61] Yang, O.S. and Han, J.H. 2023. Assessing the Effect of Corporate ESG Management on Corporate Financial and Market Performance and Export. Sustainability, 15(3).
Published
2023-12-20
How to Cite
LI, Yan; LI, Jilian.
The Relationship between Environmental, Social, Governance, and Export Performance in Manufacturing Companies: A Literature Review.
Theoretical and Practical Research in Economic Fields, [S.l.], v. 14, n. 2, p. 345 - 356, dec. 2023.
ISSN 2068-7710.
Available at: <https://journals.aserspublishing.eu/tpref/article/view/8220>. Date accessed: 23 nov. 2024.
doi: https://doi.org/10.14505/tpref.v14.2(28).14.
Section
Articles
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