A multicriterion classification approach for assessing the impact of environmental policies on the competitiveness of firms

Abstract

The key objective of the European Union's environmental policy is to successfully combine environmental protection with sustainable economic growth in the long term. Nowadays, it is increasingly recognized that environmental policies, besides increasing production cost, may at the same time give incentives to firms for undertaking innovative actions and/or developing and exploiting differentiation opportunities. Both differentiation capacity and cost increase are strongly dependent on a multiplicity of internal and external factors, such as energy intensity, type of technology used, characteristics of the competitive environment etc. The present paper presents a multicriterion approach for classifying firms into discrete categories of possible impact, according to their sensitivity to cost increases and their differentiation potential. The resulting environment-competitiveness matrix can be exploited for establishing sustainability strategies and designing effective policies in the industrial sector.

Variables Perceived by Managers as Antecedents That Lead Firms to Environmental Management: An Empirical Research in the Turkish Construction Sector

“…A positive change in financial and organizational structure directs firms to environmental management. In previous studies it is stated that the increases in three components of the financial structure, namely profit rate (Brammer and Pavelin, 2008;Hontou et al, 2007;Wagner and Schaltegger 2004), financial resources (Brammer and Pavelin, 2008;Clausen et al, 2003;Hamans, 2009a;Hoffman, 2000;Orsato, 2006;Wagner and Schaltegger 2004) and turnover (Wagner and Schaltegger, 2004) increases the environmental sensitivity of firms. Furthermore, it has been considered that the increases in two components of the organizational structure, number of employees (Brammer and Pavelin, 2008;Clausen et al, 2003;Delmas and Toffel, 2004;Esty and Porter, 2005;Henri and Journeault, 2008a;Sarmentoa et al, 2007;Wagner and Schaltegger 2004) and level of institutionalizing, leads (directs) firms toward environmental management.…”

“…In the present study, 3 ratios recognized as eco-efficiency ratios are used. The first eco-efficiency ratio is the ratio of energy consumption ($) to sales ($) (Albino et al, 2009;Denton, 1998;Henri and Journeault, 2008a;Henri and Journeault, 2008b;Hontou et al, 2007;Mebratu, 2001;Sarmentoa et al, 2007). The second eco-efficiency ratio is the ratio of material consumption ($) to sales ($) (Albino et al, 2009;Denton, 1998;Henri and Journeault, 2008b;Hoffman, 2000;Mebratu, 2001;Wagner and Schaltegger 2004).…”

“…Lastly, environmental dimension has been added as 6th dimension. Environment is a dimension which has been discussed in various studies in the literature (Claver et al, 2007;Curcio and Wolf, 1996;Hamner, 2001;Hamner, 2005;Henri and Journeault, 2008a;Henri and Journeault, 2008b;Henri and Journeault, 2008c;Hontou et al, 2007;Pfeffer, 2005;Wagner and Schaltegger 2004). As importance given to environmental dimension as strategic priority rises, individual companies would have to exhibit a growing inclination towards environmental issues.…”

“…A growing customer environmental sensitivity would, when so perceived by company executives, drive such executives to adopt environmental management practices. Expressions outlined in previous studies with respect to customer environmental sensitivity are as follows: Foreign environment-friendly products have been plentiful in the domestic market (Hontou et al, 2007;Wagner and Schaltegger 2004). Generally, the number of environmentally-conscious customers has increased day by day (Hontou et al, 2007, Wagner andSchaltegger 2004).…”

“…Generally, the number of environmentally-conscious customers has increased day by day (Hontou et al, 2007, Wagner andSchaltegger 2004). Price sensitivity of customers has decreased (Hontou et al, 2007). Customer loyalty toward firms producing environment -friendly products has increased (Hontou et al, 2007).…”