The debate on flexibility of environmental regulations, innovation capabilities and financial performance : a novel use of DEA

2.50
Hdl Handle:
http://hdl.handle.net/10547/622027
Title:
The debate on flexibility of environmental regulations, innovation capabilities and financial performance : a novel use of DEA
Authors:
Ramanathan, Ramakrishnan ( 0000-0002-8861-2209 ) ; Ramanathan, Usha; Bentley, Yongmei ( 0000-0002-4597-4664 )
Abstract:
Operational research models have been employed to understand development issues associated with environmental sustainability. This article describes a novel application of Data Envelopment Analysis (DEA) to help extend a specific debate in the literature on Porter’s hypothesis in environmental policy. The debate deals with the impact of flexibility of regulations on the relationship between innovation capabilities on financial performance in organisations. Using the resource based view of a firm, we hypothesise that relationship between innovation capabilities and financial performance in firms depends on how flexible or inflexible environmental regulations are. We apply DEA to capture the flexibility of environmental regulations. Our results indicate that innovation capabilities significantly influence financial performance of firms if firms feel that the environmental regulations they face are flexible and offer more freedom in meeting the requirements of regulations. On the other hand, corporations that feel that they face more inflexible regulations are not so effective in improving their financial performance with their innovation capabilities.
Citation:
Ramanathan R, Ramanathan U, Bentley Y (2017) 'The debate on flexibility of environmental regulations, innovation capabilities and financial performance : a novel use of DEA', Omega.
Publisher:
Elsevier
Journal:
Omega
Issue Date:
27-Mar-2017
URI:
http://hdl.handle.net/10547/622027
DOI:
10.1016/j.omega.2017.02.006
Additional Links:
http://www.sciencedirect.com/science/article/pii/S0305048316305229
Type:
Article
Language:
en
ISSN:
0305-0483
Appears in Collections:
Business and management

Full metadata record

DC FieldValue Language
dc.contributor.authorRamanathan, Ramakrishnanen
dc.contributor.authorRamanathan, Ushaen
dc.contributor.authorBentley, Yongmeien
dc.date.accessioned2017-02-24T10:32:57Z-
dc.date.available2017-02-24T10:32:57Z-
dc.date.issued2017-03-27-
dc.identifier.citationRamanathan R, Ramanathan U, Bentley Y (2017) 'The debate on flexibility of environmental regulations, innovation capabilities and financial performance : a novel use of DEA', Omega.en
dc.identifier.issn0305-0483-
dc.identifier.doi10.1016/j.omega.2017.02.006-
dc.identifier.urihttp://hdl.handle.net/10547/622027-
dc.description.abstractOperational research models have been employed to understand development issues associated with environmental sustainability. This article describes a novel application of Data Envelopment Analysis (DEA) to help extend a specific debate in the literature on Porter’s hypothesis in environmental policy. The debate deals with the impact of flexibility of regulations on the relationship between innovation capabilities on financial performance in organisations. Using the resource based view of a firm, we hypothesise that relationship between innovation capabilities and financial performance in firms depends on how flexible or inflexible environmental regulations are. We apply DEA to capture the flexibility of environmental regulations. Our results indicate that innovation capabilities significantly influence financial performance of firms if firms feel that the environmental regulations they face are flexible and offer more freedom in meeting the requirements of regulations. On the other hand, corporations that feel that they face more inflexible regulations are not so effective in improving their financial performance with their innovation capabilities.en
dc.language.isoenen
dc.publisherElsevieren
dc.relation.urlhttp://www.sciencedirect.com/science/article/pii/S0305048316305229-
dc.rightsGreen - can archive pre-print and post-print or publisher's version/PDF-
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/*
dc.subjectdata envelopment analysisen
dc.subjectPorter’s hypothesisen
dc.subjectflexibilityen
dc.subjectinnovationen
dc.subjectperformanceen
dc.subjectN100 Business studiesen
dc.titleThe debate on flexibility of environmental regulations, innovation capabilities and financial performance : a novel use of DEAen
dc.typeArticleen
dc.identifier.journalOmegaen
dc.date.updated2017-02-24T10:30:30Z-
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