Article ID: | iaor20125151 |
Volume: | 140 |
Issue: | 1 |
Start Page Number: | 28 |
End Page Number: | 34 |
Publication Date: | Nov 2012 |
Journal: | International Journal of Production Economics |
Authors: | Thoumy Mira, Vachon Stephan |
Keywords: | geography & environment, management |
In several manufacturing organizations, environmental management systems are often operationalized through a series of green projects that can lead to a reduction of waste or a more efficient use of the resources. In turn, these types of green projects contribute directly to the bottom line. Using detailed reports of 79 environmental projects that took place in manufacturing organizations in the Province of Quebec over the last decade; this paper examines the influence of four project characteristics on the project's financial outcome. The results suggest that projects related to the main product or its underlying production process (as opposed to peripheral projects) can be financially more beneficial despite their disruptive nature. Evidence was also found that green projects involving changes in the management systems are more profitable than the ones that entail a structural transformation. Finally, a positive linkage between organizational size and project's financial performance has been supported, as larger organizations have more capabilities to implement such green initiatives.