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

Frank Wiengarten, Mark Pagell, Brian Fynes

Research output: Indexed journal article Articlepeer-review

71 Citations (Scopus)

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 plants 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 plants operational performance in terms of cost, quality and flexibility.

Original languageEnglish
Pages (from-to)541-551
Number of pages11
JournalInternational Journal of Production Economics
Volume135
Issue number2
DOIs
Publication statusPublished - Feb 2012
Externally publishedYes

Keywords

  • Environmental issues
  • Industry clockspeed
  • Supply chain management
  • Sustainability

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