Yuxiao Ye, Andy C.L. Yeung and Baofeng Huo
In this research, we examine the impact of ISO 14001, an international environmental management accreditation, on the long-term financial risk and sales growth of firms.
Abstract
Purpose
In this research, we examine the impact of ISO 14001, an international environmental management accreditation, on the long-term financial risk and sales growth of firms.
Design/methodology/approach
We employ a quasi-experimental design and construct 682 treated and control firms that are matched using propensity score matching. We then test our hypotheses using the difference in difference model.
Findings
We find that, although ISO 14001 leads to lower financial risk, standard management systems such as ISO 14001 actually hinder the sales growth of firms, an unanticipated outcome. In particular, this trade-off worsens over time, becoming particularly more severe among firms that adopt ISO 14001 early and operate in less-polluting industries.
Research limitations/implications
We present a hidden side of environmental accreditations, indicating a potential trade-off in the long-term efficacy of environmental standard management systems.
Practical implications
Firms must be cautious about adopting environmental management systems. Over time, a focus on environmental certification could potentially hinder firms' long-term growth. Firms should also be aware of certification timing and levels of industry pollution to resolve the tension in the trade-off.
Originality/value
This research is one of the first studies demonstrating that environmental accreditations result in a trade-off between reducing financial risk and improving sales growth.
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Lu Yang, Baofeng Huo and Yuxiao Ye
This study aims to empirically test the direct effects of three types of information technology (IT) use on three dimensions of supply chain coordination (SCC). It further…
Abstract
Purpose
This study aims to empirically test the direct effects of three types of information technology (IT) use on three dimensions of supply chain coordination (SCC). It further explores the spillover effects of IT use on coordination beyond its domain across the SC. Besides, this study probes into the moderating effects of environmental uncertainty (EU).
Design/methodology/approach
Structural equation modelling (SEM) is used to examine data collected from 202 firms in Hong Kong. Furthermore, multi-group SEM analysis with a series of invariance tests was used to test the moderating effects of EU.
Findings
Internal, supplier and customer IT use have direct effects on internal, supplier and customer coordination, respectively. Besides, IT use generates forward spillover effects beyond its domain along the forward physical flow in an SC. EU positively moderates the relationships between external IT use and SCC but does not shape the effectiveness of internal IT use in enhancing SCC. Moreover, under a high EU, the spillover effects of IT use on coordination can be intensified. Besides, the spillover effects further expand to benefit coordination on a larger scale of the SC under a high EU.
Originality/value
This study contributes by revealing that in addition to direct effects, IT use in a specific domain could generate spillover effects on coordination beyond its domain throughout an SC. More importantly, it contributes by explaining the difference in the effectiveness of IT use under different levels of EU using multi-group SEM analysis.
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Yuxiao Ye, Yiting Han and Baofeng Huo
In this research, we explore the adverse impact of foreign ownership on operational security, a critical operational implication of the liability of foreignness (LOF).
Abstract
Purpose
In this research, we explore the adverse impact of foreign ownership on operational security, a critical operational implication of the liability of foreignness (LOF).
Design/methodology/approach
The empirical analysis is based on a multi-country dataset from the World Bank Enterprises Survey, which contains detailed firm-level information from over 8,902 firms in 82 emerging market countries. We perform a series of robustness checks to further confirm our findings.
Findings
We find that a high ratio of foreign ownership is associated with an increased likelihood of security breaches and higher security costs. Our results also indicate that high levels of host countries’ institutional quality and firms’ local embeddedness can mitigate such vulnerability in operational security.
Originality/value
This study is one of the first to uncover the critical operational implication of the LOF, indicating that a high ratio of foreign ownership exposes firms to operational security challenges.
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Mohammed Ali Suleiman, Baofeng Huo and Yuxiao Ye
Implementing just-in-time (JIT) practices on the supplier side is a common practice to streamline procurement and production planning in realization of cost efficiency and lead…
Abstract
Purpose
Implementing just-in-time (JIT) practices on the supplier side is a common practice to streamline procurement and production planning in realization of cost efficiency and lead time reduction. However, it is little known how supplier JIT is related to firm flexibility performance and what factors may facilitate the relationship. This study aims to investigate the effects of supplier JIT on flexibility performance and explore the moderating impacts of advanced manufacturing technology (AMT) and human resource empowerment (EMP).
Design/methodology/approach
This study applies hierarchical linear regression analysis to test the proposed model based on data collected from 213 manufacturing firms in China.
Findings
The results revealed a negative influence of supplier JIT on flexibility performance. However, the adoption of AMT and EMP reconciles the conflict between supplier JIT and flexibility performance. Besides, the results indicate the positive effects of AMT and EMP on flexibility performance.
Originality/value
This study contributes to supply chain JIT literature by providing a holistic view to understand the structural relationships between supplier JIT, AMT, EMP and flexibility performance.
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Xiaochen Yue, Baofeng Huo and Yuxiao Ye
The purpose of this paper is to understand whether firms are driven by external pressure or intrinsic value to conduct green management; this study examines the effects of…
Abstract
Purpose
The purpose of this paper is to understand whether firms are driven by external pressure or intrinsic value to conduct green management; this study examines the effects of coercive pressure and ethical responsibility on cross-functional green strategy alignment (GSA) and green process coordination (GPC), and in turn, market and environmental performance.
Design/methodology/approach
Based on data from 206 Chinese manufacturers, this study empirically tests the proposed relationships using structural equation modeling.
Findings
The results highlight the role of coercive pressure in promoting both GSA and GPC that represent functional green efforts at both strategic and operational levels, indicating firms’ critical concern of obtaining external legitimacy from stakeholders. Ethical responsibility as an intrinsic value promotes GPC that demands joint working from different functions at the operational level. Besides, the authors find that GSA improves market and environmental performance, whereas GPC only enhances environmental performance.
Originality/value
This study adds to the knowledge of the drivers of cross-functional green management from external pressure and intrinsic value perspectives. The findings are also fruitful for practitioners and policymakers.
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Yuxiao Ye, Lu Yang, Baofeng Huo and Xiande Zhao
Drawing on the resource-based view (RBV), this study aims to investigate the impact of social capital, namely, structural (information sharing), cognitive (shared value) and…
Abstract
Purpose
Drawing on the resource-based view (RBV), this study aims to investigate the impact of social capital, namely, structural (information sharing), cognitive (shared value) and relational (relationship commitment) capital in the supplier and the customer side on supply chain performance in a longitudinal design. It further aims to examine the moderating effect of change in competition intensity.
Design/methodology/approach
Based on two-wave data collected from 203 manufacturers in China, this study uses the ordinary least square and first-difference regression methods to test the proposed relationships.
Findings
The results show the effect of social capital on supply chain performance and the dynamic nature of supply chain social capital. The causal analysis further reveals the significance of supplier-side structural and relational capital in improving supply chain performance. Moreover, competitive intensity plays an important moderating role.
Originality/value
This study, to the best of the authors’ knowledge, is one of the first to demonstrate the longitudinal effect of supply chain social capital on supply chain performance.
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Yuxiao Ye, Baofeng Huo, Min Zhang, Bill Wang and Xiande Zhao
This study aims to investigate the impacts of product modularity (PM) and multiskilled employees (MEs) on new product development (NPD) outcomes and explore the moderating effect…
Abstract
Purpose
This study aims to investigate the impacts of product modularity (PM) and multiskilled employees (MEs) on new product development (NPD) outcomes and explore the moderating effect of supply chain involvement.
Design/methodology/approach
The authors used data collected from 317 manufacturers to empirically examine the conceptual model and conducted hierarchical regression analysis to test the hypotheses.
Findings
The results reveal that PM significantly improves NPD outcomes. The relationship between PM/MEs and NPD outcomes is strengthened when the level of supplier involvement is high, whereas the relationship between MEs and NPD outcomes is weakened when the level of customer involvement is high.
Research limitations implications
First, this study only focuses on PM and MEs as two types of modular designs. Second, the inter-relationship between modular designs and supply chain involvement might be contingent. Third, the authors use cross-sectional data that cannot reflect causal effects of modularity on NPD outcomes.
Originality/value
The findings contribute to the understanding of the alignment between modular designs and supply chain involvement considering NPD outcomes. This study also contributes to the concept of modularity by identifying MEs as a type of modular design.
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Yuxiao Ye, Mohammed Ali Suleiman and Baofeng Huo
The relationship between just-in-time (JIT) and supply chain disruption risk is unclear from the existing literature. This paper aims to investigate the impact of supplier JIT and…
Abstract
Purpose
The relationship between just-in-time (JIT) and supply chain disruption risk is unclear from the existing literature. This paper aims to investigate the impact of supplier JIT and customer JIT on supplier disruption risk (SDR), internal disruption risk (IDR), and customer disruption risk (CDR) and explore the moderating role of supply chain centralization.
Design/methodology/approach
Based on survey data collected from 213 manufacturing firms in China, this study employs structural equation modeling with SmartPLS 3.0 to test the main proposed model and applies an ordinary least square regression to test the moderating effect.
Findings
The results demonstrate that supplier JIT is positively related to SDR and negatively associated with IDR. Customer JIT is positively associated with CDR but has no significant effect on IDR. The results also show that SDR and CDR lead to IDR and mediate the relationship between supplier JIT, customer JIT, and IDR. In addition, supply chain centralization amplifies the positive impacts of supply chain JIT on SDR and IDR.
Originality/value
This study makes two main contributions. First, the study provides a comprehensive analysis of the relationship between supply chain JIT and disruption risk. Second, the study addresses that implementing JIT in a supply chain with a centralized decision-making structure leads to a higher level of disruption risk.