Going for gold by going green? - A study about the relation between energy and material saving activities and the financial performance of organizations.
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2020-07-07
Language
en
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Abstract
This study researches the relation between energy and material saving activities and business
performance. The theory of Hart and Dowell (2011) regarding pollution prevention strategies
forms the theoretical background for this study. Literature does not agree upon the nature of the
relation between sustainable activities and business performance, some studies outline a neutral
relation, whether other studies state that a negative relation is present. This study aims to
address this inconsistency by researching the influence of energy and material saving activities
on the revenue outcomes and production costs of manufacturing firms in the Netherlands.
Additionally, this study aims to understand how the moderating effects of organisational
capabilities and searching for sustainable practices influence the relation between energy and
material saving activities and revenue/production cost changes. The regression analysis and
several post-hoc analyses show that autonomously investing in energy and material saving
activities does not result in revenue growth or reductions in production costs. The possession
of organisational capabilities does not have an influence on this relation. However, a search for
energy and material saving activities that is motivated by laws and regulations results in
production cost savings or revenue growth. Prerequisites for this relation are that regulatory
forces highly motivate companies to search, are effective enough to overcome organisational
inertia, and customers should be aware of the sustainable activities of companies. Contrary,
voluntary searching for energy and material saving activities results in production cost
increasements in situations with high searching costs.
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Faculteit der Managementwetenschappen