Take actions or outsource? An empirical examination of strategic environmental options on greenhouse gas emissions
PurposeThe purpose of this study is to examine the effects of three strategic environmental options on reducing greenhouse gas (GHG) emissions. Namely, we examine the effects of pollution prevention and waste management (PPWM) practices, green supply chain (GSC) practices, and outsourcing on reducin...
Saved in:
Published in | International journal of operations & production management Vol. 40; no. 6; pp. 753 - 776 |
---|---|
Main Authors | , |
Format | Journal Article |
Language | English |
Published |
Bradford
Emerald Publishing Limited
21.09.2020
Emerald Group Publishing Limited |
Subjects | |
Online Access | Get full text |
Cover
Loading…
Summary: | PurposeThe purpose of this study is to examine the effects of three strategic environmental options on reducing greenhouse gas (GHG) emissions. Namely, we examine the effects of pollution prevention and waste management (PPWM) practices, green supply chain (GSC) practices, and outsourcing on reducing local and supply chain GHG emissions.Design/methodology/approachUsing ASSET4 and deploying first-differencing fixed-effects panel data models, the study conducts a large-scale empirical examination on the effects of these focal strategic environmental options on GHG emissions.FindingsThis study finds that PPWM practices reduce local GHG emissions and that GSC practices reduce supply chain GHG emissions. The results also show that outsourcing does not reduce local GHG emissions and has an adverse effect on supply chain GHG emissions.Practical implicationsThe study findings indicate that environmental practices are effective in reducing GHG emissions. However, they are effective only in their corresponding domain. Further, outsourcing is not a viable strategic option, and managers should be mindful of its undesired environmental consequences.Originality/valueFirms undertake strategic environmental options, such as implementing environmental practices and reallocating production activities, to improve their environmental performance. Nevertheless, the effectiveness of these options on reducing GHG emissions has not been thoroughly examined. |
---|---|
ISSN: | 0144-3577 1758-6593 |
DOI: | 10.1108/IJOPM-02-2020-0088 |