Regulating common‐pool resources is welfare enhancing for society but not necessarily for all users who may therefore oppose regulations. The purpose of this paper is to examine…
Abstract
Purpose
Regulating common‐pool resources is welfare enhancing for society but not necessarily for all users who may therefore oppose regulations. The purpose of this paper is to examine the short‐term impact of common‐pool resource regulations on welfare distribution.
Design/methodology/approach
The authors model a game of common‐pool resource extraction among heterogeneous users.
Findings
It was found that market‐based regulations such as fees and subsidies or tradable quotas achieve a higher reduction of extraction from free‐access than individual quotas with the same proportion of better‐off users. Also, they make more users better‐off for the same resource preservation.
Originality/value
The quota regulation has attractive fairness properties: it reduces inequality while still rewarding the more efficient users.
Details
Keywords
Sergey S. Barabanov, Anup Basnet, Thomas J. Walker, Wangchao Yuan and Stefan Wendt
This study aims to examine the determinants of corporate green investments (GI) by using a series of both firm- and country-level factors.
Abstract
Purpose
This study aims to examine the determinants of corporate green investments (GI) by using a series of both firm- and country-level factors.
Design/methodology/approach
The authors collect information on environmental expenditures of 763 firms from 40 countries and use random effects regressions to identify the determinants of GI.
Findings
The authors find that larger firms tend to invest more in green projects, whereas firms that are highly valued or more profitable are less likely to go green. In terms of country-level determinants, we find that the gross domestic product (GDP) per capita and population are positively related with GI, while GDP growth and surface area are negatively associated with GI. Additionally, firms in common-law countries and English-speaking countries make fewer GI than firms in other countries.
Social implications
The findings of this research not only contribute to the academic literature in these areas, but also have important implications for both regulators and policymakers in countries that exhibit sub-par GI or who otherwise aim to increase GI by firms operating in their country.
Originality/value
The authors identify and explore the key determinants of GI from both a firm- and country-level perspective.
Details
Keywords
Several indigenous credit and savings schemes have been accredited recently in developing countries for the benefit of households and entrepreneurs alike. Famous among them are…
Abstract
Purpose
Several indigenous credit and savings schemes have been accredited recently in developing countries for the benefit of households and entrepreneurs alike. Famous among them are the Rotating Savings and Credit Associations (ROSCAs) that exist in almost all continents currently. The rapid development of ROSCAs and their varied structures in many countries have been the subject of numerous studies. What has not been thoroughly analysed is the optimum size of these associations and the fact that lending and borrowing is without interest. The aim of this paper is to present a model that would determine the optimum size of ROSCAs and deal with the following issues: how the group size varies with changes in the income level of the members, the demand for the loan, the size of the collected loan and its duration. Further, the question of whether or not lending to the association in return for obtaining larger sums is a violation of the qarḍ (loan) contract is dealt with, and several Sharīʿah compatible formulations are provided.
Design/methodology/approach
Economic analysis has been applied to show the optimum size of Qarḍ Ḥasan Associations (QHAs), which are the Sharīʿah-compliant equivalent of ROSCAs, and the Sharīʿah rules of the qarḍ contract to illustrate the legitimacy of group lending.
Findings
The major findings of this study are determination of the optimum size of QHAs, the factors that affect the size and suggestion of alternative legal forms for group financing.
Research limitations/implications
Inaccessibility to sources of data to test the hypothesis that has been put forth is the main difficulty encountered when conducting research on the subject.
Practical implications
The paper concludes that the development of informal interest-free ROSCAs in both Muslim and non-Muslim countries is an efficient informal microfinance scheme and that it is compatible with Sharīʿah rules.
Originality/value
The optimum size of ROSCAs and QHAs has been presented in this paper.
Details
Keywords
L. Dam and B.N. Petkova
Multinationals are increasingly pressured by stakeholders to commit to environmental sustainability that exceeds their own firm borders. As a result, multinationals have started…
Abstract
Purpose
Multinationals are increasingly pressured by stakeholders to commit to environmental sustainability that exceeds their own firm borders. As a result, multinationals have started to commit to environmental supply chain sustainability programs (ESCSPs). However, little is known about whether such commitment is rewarded or punished by financial markets, and if the stock price reaction differs depending on the type of firm that commits to such a program. This paper aims to discuss these issues.
Design/methodology/approach
The authors conduct an event study followed by two-equation Heckman modeling, using a sample of 66 multinationals that committed to the ESCSP of the Carbon Disclosure Project (CDP).
Findings
It was found that generally there is a marginally significant negative stock price reaction to announcement of participation in this ESCSP (i.e. −0.8 percent, p<0.10). However, the authors argue and show that firms in industries that have historically faced more pressure from consumers are less likely to announce their participation. If one corrects for this industry bias, then the negative stock price reaction is even more pronounced (i.e. −3.2 percent, p<0.05).
Research limitations/implications
Using objective data, the study provides insights into the shareholder wealth effects of firms that commit to the ESCSP of the CDP. As such, the sample does not cover firms that set up their own ESCSPs.
Practical implications
The paper is valuable for practitioners and investors who are interested in finding out if participation in ESCSPs is financially attractive, and for (governmental) policy makers who may want to be assured that there is sufficient incentive for firms to pursue environmental supply chain sustainability.
Originality/value
This is the first paper that captures how financial markets react to announcements of ESCSPs.
Details
Keywords
Som Sekhar Bhattacharyya and Surabhi Verma
Corporate Social Responsibility (CSR) deliberated regarding business firms' actions for doing well to society and natural environment. Specifically, CSR has been about firms…
Abstract
Purpose
Corporate Social Responsibility (CSR) deliberated regarding business firms' actions for doing well to society and natural environment. Specifically, CSR has been about firms contributions towards stakeholder management. As world economy has prospered over the last couple of centuries, business firms have had also increased its footprints in social landscape. In such a scenario, the roles and responsibilities of business firms have expanded in society. Over the years, CSR as a domain of research and literature has developed into a very potent and rich field. Presently, CSR literature as a body of knowledge has become substantial. The authors in this literature review study attempts to conceptually map this complex field of CSR literature.
Design/methodology/approach
The objective of this literature review study was to present a visual mapping of intellectual structure of CSR in five-dimensions and to identify the subfields of CSR research concluded by co-citation analysis. All the citation research documents which were listed in the Web of Knowledge (WoK) database between 1998 and 2019 were analysed. Multivariate analysis was undertaken for the literature review. The study conducted a sequence of statistical analyses comprising of factor analysis, multidimensional scaling and cluster analysis.
Findings
This literature review research study summarised the contours and status of CSR research by categorizing the CSR literature into five classification factors, namely CSR Drivers CSR, Contextual Grounding of CSR, Historical Legacy of CSR, Strategic CSR and CSR Implementation. Further, based upon the analysis of literature review of extant research in CSR, both the contemporary and imminent CSR-related research themes were also deliberated upon.
Research limitations/implications
The results were helpful for academic scholars of CSR to comprehend both the gamut and focus of CSR literature over the years (between the years 1998 and 2019). The sequence of analyses involved factor, multidimensional scaling and cluster analysis. CSR literature was categorized into five factors namely- CSR Drivers, Contextual Grounding of CSR, Historical Legacy of CSR, Strategic CSR and CSR Implementation.
Originality/value
This study was one of the first set of studies to review the literature on CSR research articles by using citation, co-citation and social network analysis.
Details
Keywords
A.A. (Alex) Alblas, K. (Kristian) Peters and J.C. (Hans) Wortmann
This paper investigates the challenges encountered by manufacturing companies in managing sustainability in new product development (NPD). It describes six case studies of…
Abstract
Purpose
This paper investigates the challenges encountered by manufacturing companies in managing sustainability in new product development (NPD). It describes six case studies of manufacturers aiming for sustainability improvements but experiencing difficulties in implementing them.
Design/methodology/approach
The paper starts with a literature study. Academic literature offers explanations as to why manufacturers want to implement sustainability in NPD, and suggests methods for such implementations. This paper employs the systems theory of control to build a research framework for analyzing the challenges. Empirical data are gathered through workshops and interviews with NPD managers in the case companies.
Findings
In-depth analyses have provided three insights. First, the study shows that sustainability pressures and incentives in a firm's contexts can be fuzzy or even absent. The fuzziness of sustainability incentives is often neglected in the literature on sustainability and NPD. Second, the case companies face difficulties when setting the scope, goals, and ambitions that effectively direct NPD decisions and efforts toward designing sustainable products. Third, the results show that deploying sustainability methods, tools, and metrics, such as a life-cycle assessment or design for environment (DfE), are not sufficient to achieve sustainability in NPD. These findings call for research on sustainability and NPD processes in contexts where sustainability incentives and needs are fuzzy so as to acquire insights applicable to sustainable product development management that is proactive rather than reactive.
Originality/value
Instead of focusing only on the output of sustainable products, this paper presents a more nuanced perspective on managing sustainability in NPD. Moreover, by adopting the holistic perspective of the systems theory of control, the authors challenge the assumption that there are already sufficient external incentives to force companies toward greater sustainability. Consequently, in the light of proactive sustainability management, the authors recommend three tracks for further research: organization and filtering of information concerning sustainability pressures and incentives in a firm's context; and how to manage sustainability proactively rather than reactively.