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/10547/622177
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.
Affiliation:
University of Bedfordshire; Nottingham Trent University
Citation:
Ramanathan R., Ramanathan U., Bentley Y. (2016) 'The debate on flexibility of environmental regulations, innovation capabilities and financial performance - A novel use of DEA', Omega 75 131-138
Publisher:
Elsevier Ltd
Journal:
Omega
Issue Date:
7-Sep-2017
URI:
http://hdl.handle.net/10547/622177
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
Sponsors:
A part of data has been collected from funds from Nottingham Innovative Manufacturing Research Centre
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.accessioned2017-09-07T11:40:16Z-
dc.date.available2017-09-07T11:40:16Z-
dc.date.issued2017-09-07-
dc.identifier.citationRamanathan R., Ramanathan U., Bentley Y. (2016) 'The debate on flexibility of environmental regulations, innovation capabilities and financial performance - A novel use of DEA', Omega 75 131-138en
dc.identifier.issn0305-0483-
dc.identifier.doi10.1016/j.omega.2017.02.006-
dc.identifier.urihttp://hdl.handle.net/10547/622177-
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.description.sponsorshipA part of data has been collected from funds from Nottingham Innovative Manufacturing Research Centreen
dc.language.isoenen
dc.publisherElsevier Ltden
dc.relation.urlhttp://www.sciencedirect.com/science/article/pii/S0305048316305229en
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.subjectPorter's hypothesisen
dc.subjectinnovation performanceen
dc.subjectdata envelopment analysisen
dc.subjectflexibilityen
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.contributor.departmentUniversity of Bedfordshireen
dc.contributor.departmentNottingham Trent Universityen
dc.identifier.journalOmegaen
dc.date.updated2017-09-07T11:28:09Z-
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