Journal
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
Volume 135, Issue 2, Pages 541-551Publisher
ELSEVIER
DOI: 10.1016/j.ijpe.2011.03.011
Keywords
Environmental issues; Supply chain management; Industry clockspeed; Sustainability
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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. (C) 2011 Elsevier B.V. All rights reserved.
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