The role of information technology in the environmental performance of the firm

Abstract

Purpose The purpose of this paper is to explore the role of information technologies (IT) in the impact of environmental practices on environmental performance. Design/methodology/approach The authors use data from the fifth (2009) round of the International Manufacturing Strategy Survey (IMSS) which includes responses from manufacturing plants within the manufacturing industry in Brazil, China, Germany, Hungary and USA. The authors use multiple regression analysis to test the relationship between environmental practices and environmental performance and the moderating effect of IT. Findings The paper finds evidence that IT strengthens the relationship between environmental practices and environmental performance. The IT construct is operationalized through IT-enabled control and IT-enabled coordination. The results confirm the established relationship between environmental practices and environmental performance and show that IT-enabled coordination moderates the relationship between environmental practices and environmental performance. Originality/value This research contributes to the literature of green operations in the following ways: First, this paper offers an alternative explanation about the role of IT; the authors provide evidence that existing IT resources that support the coordination between product design and manufacturing strengthen the effect of environmental practices. Second, this paper provides evidence that environmental practices can take advantages of the IT resources embedded in daily plants’ routines to enhance plants’ environmental performance. Overall, this research provides suggestions to managers about the role that IT plays in the implementation of environmental practices.

How can advanced information and communication technology support corporate environmental performance?

“…Our results say that the Cluster 1 companies using ICT on a more advanced level have significantly better environmental performance in 11 out of 17 dimensions. The results correspond with the results of Melville (2010) and Gimenez et al (2015) who emphasize that ICT tools can enable organizational practices and processes that improve environmental and economic performance. We also found that it is worth to interpret environmental performance in a wider sense, and add input, outcome and strategic dimensions to process and output-oriented indicators (Schultze & Trommer, 2012;Butti et al, 2019;Gaviglio et al, 2017).…”

“…In the paper, we analyzed the level of ICT use and the environmental performance of companies based on two theoretical models. Some previous scientific papers already connected ICT and environmental sustainability before (Ishida, 2015;Ollo-Lopez & Aramendía-Muneta, 2011;Yi & Thomas, 2007;Gimenez et al, 2015), but either they used a technology-oriented ICT approach (Becker et al, 2009;Weber & Kauffman, 2011;Gimenez et al, 2015) or interpreted sustainability only through output/processbased indicators (Ishida, 2015;Higón et al, 2017;Gimenez et al, 2015).…”

“…Cai, Chen and Bose (2013) found a positive relationship between IT and environmental sustainability strategy in companies, and they also find this important from the competitiveness point of view. It was proved that IT supports the coordination of product design and manufacturing, and strengthen the effect of environmental practices (Gimenez, Sierra, Rodon & Rodriguez, 2015). From another point of view, it was propounded that CSR reporting is a highly complex process and requires a large amount of data, which need to be stored, processed and analyzed (Watts, 2015).…”

Pathways towards Sustainability in Organizations: Empirical Evidence on the Role of Green Human Resource Management Practices and Green Intellectual Capital

“…Employees gainedmotivation when their performance waslinked with rewards such as promotion, fringe benefits, flexible working hours, bonuses, etc. [48] reported a positive and significant relationship between green rewards and sustainable performance. Similarly, [49] also reported a positive and significant association between green rewards and sustainable performance.…”

Using information technology to achieve management innovation

“…These seminal studies, although lacking a contrasted theoretical base to support the theses, had a strong impact on management decisions about investing in this technology. Over the years, papers have provided empirical support for the strategic nature of IT (Gimenez et al , 2015; Moliner-Velázquez et al , 2015; Sirirak et al , 2011). This study makes a contribution in this direction by justifying that, both directly and indirectly, IT use positively influences management innovation.…”