IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v273y2024ics092552732400121x.html
   My bibliography  Save this article

How does heavy haze weather impact operational efficiency? An empirical study of Chinese manufacturing firms

Author

Listed:
  • Yang, Yefei
  • Wang, Ziwei
  • Dong, Ciwei
  • Cheng, T.C.E.

Abstract

Global warming has escalated the frequency of extreme climate events. Considering the escalating severity of air pollution, investigating its potential to cause operational problems is of value. Some studies have explored air pollution's effects from individual perspectives, including emotions, attitudes, and decision-making behaviors. Yet, the influence of heavy haze weather on firm performance from an operations management viewpoint remains uninvestigated. This study seeks to address this research gap. Utilizing a longitudinal dataset from 2255 manufacturing firms between 2014 and 2020, this study empirically examines heavy haze weather's impact on operational efficiency. Three contingency categories are identified: strategic positioning, structural contingency, and institutional factors. The findings suggest that heavy haze weather adversely impacts operational efficiency, notably for firms with cost leadership strategies and high labor productivity, whereas such effect can weaken in the firms with process standardization and governmental environment inspection. Enhancing the understanding about the effect of heavy haze weather on operational performance, these findings offer strategic insights for firms to mitigate heavy haze weather and provide empirical support for government to make environmental policy-making.

Suggested Citation

  • Yang, Yefei & Wang, Ziwei & Dong, Ciwei & Cheng, T.C.E., 2024. "How does heavy haze weather impact operational efficiency? An empirical study of Chinese manufacturing firms," International Journal of Production Economics, Elsevier, vol. 273(C).
    • Handle: RePEc:eee:proeco:v:273:y:2024:i:c:s092552732400121x
    DOI: 10.1016/j.ijpe.2024.109264
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S092552732400121X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2024.109264?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Teppo Felin & Nicolai J. Foss & Koen H. Heimeriks & Tammy L. Madsen, 2012. "Microfoundations of Routines and Capabilities: Individuals, Processes, and Structure," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1351-1374, December.
    2. Beske, Philip & Land, Anna & Seuring, Stefan, 2014. "Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature," International Journal of Production Economics, Elsevier, vol. 152(C), pages 131-143.
    3. Tan, Zhidong & Yan, Lina, 2021. "Does air pollution impede corporate innovation?," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 937-951.
    4. Qi He & Xinde (James) Ji, 2021. "The Labor Productivity Consequences of Exposure to Particulate Matters: Evidence from a Chinese National Panel Survey," IJERPH, MDPI, vol. 18(23), pages 1-22, December.
    5. Matthew Neidell & Nico Pestel, 2023. "Air pollution and worker productivity," IZA World of Labor, Institute of Labor Economics (IZA), pages 363-363, February.
    6. Younoh Kim & James Manley & Vlad Radoias, 2017. "Medium- and Long-run Consequences of Pollution on Labor Supply: Evidence from Indonesia's Forest Fires of 1997," Working Papers 2017-02, Towson University, Department of Economics, revised Mar 2017.
    7. Ma, Teng & Takeuchi, Kenji, 2020. "Cleaning up the air for the 2008 Beijing Olympic Games: Empirical study on China's thermal power sector," Resource and Energy Economics, Elsevier, vol. 60(C).
    8. Lu, Chuanyi & Tong, Qing & Liu, Xuemei, 2010. "The impacts of carbon tax and complementary policies on Chinese economy," Energy Policy, Elsevier, vol. 38(11), pages 7278-7285, November.
    9. Ma, Xiaotian & Zhang, Tianzuo & Ji, Changxing & Zhai, Yijie & Shen, Xiaoxu & Hong, Jinglan, 2021. "Threats to human health and ecosystem: Looking for air-pollution related damage since 1990," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    10. Tan, Jianhua & Tan, Zhidong & Chan, Kam C., 2021. "Does air pollution affect a firm's cash holdings?," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    11. Fang, Chang & Fan, Shuyi & Chi, Mingxiang & Wang, Weizhong, 2023. "The optimal remanufacturing strategy, returned quality choice and independent remanufacturers’ advantage for tackling extreme weather," International Journal of Production Economics, Elsevier, vol. 259(C).
    12. Dong, Rui & Fisman, Raymond & Wang, Yongxiang & Xu, Nianhang, 2021. "Air pollution, affect, and forecasting bias: Evidence from Chinese financial analysts," Journal of Financial Economics, Elsevier, vol. 139(3), pages 971-984.
    13. Levy, Tamir & Yagil, Joseph, 2011. "Air pollution and stock returns in the US," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 374-383, June.
    14. Wong, Christina W.Y. & Lai, Kee-hung & Shang, Kuo-Chung & Lu, Chin-Shan & Leung, T.K.P., 2012. "Green operations and the moderating role of environmental management capability of suppliers on manufacturing firm performance," International Journal of Production Economics, Elsevier, vol. 140(1), pages 283-294.
    15. Tom Chang & Joshua Graff Zivin & Tal Gross & Matthew Neidell, 2016. "Particulate Pollution and the Productivity of Pear Packers," American Economic Journal: Economic Policy, American Economic Association, vol. 8(3), pages 141-169, August.
    16. Friederike Welter, 2011. "Contextualizing Entrepreneurship—Conceptual Challenges and Ways Forward," Entrepreneurship Theory and Practice, , vol. 35(1), pages 165-184, January.
    17. Ortmann, Günther, 2010. "On drifting rules and standards," Scandinavian Journal of Management, Elsevier, vol. 26(2), pages 204-214, June.
    18. Wakelin, Katharine, 2001. "Productivity growth and R&D expenditure in UK manufacturing firms," Research Policy, Elsevier, vol. 30(7), pages 1079-1090, August.
    19. He, Guojun & Fan, Maoyong & Zhou, Maigeng, 2016. "The effect of air pollution on mortality in China: Evidence from the 2008 Beijing Olympic Games," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 18-39.
    20. Qiang Zhang & Xujia Jiang & Dan Tong & Steven J. Davis & Hongyan Zhao & Guannan Geng & Tong Feng & Bo Zheng & Zifeng Lu & David G. Streets & Ruijing Ni & Michael Brauer & Aaron van Donkelaar & Randall, 2017. "Transboundary health impacts of transported global air pollution and international trade," Nature, Nature, vol. 543(7647), pages 705-709, March.
    21. Xue, Shuyu & Zhang, Bohui & Zhao, Xiaofeng, 2021. "Brain drain: The impact of air pollution on firm performance," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    22. Younoh Kim & James Manley & Vlad Radoias, 2017. "Medium- and long-term consequences of pollution on labor supply: evidence from Indonesia," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-15, December.
    23. Peter Ping Li & Yuntao Bai & Youmin Xi, 2012. "The Contextual Antecedents of Organizational Trust: A Multidimensional Cross-level Analysis," Management and Organization Review, The International Association for Chinese Management Research, vol. 8(2), pages 371-396, July.
    24. Yang, Mian & Tang, Wenliang, 2022. "Air pollution, political costs, and earnings management," Emerging Markets Review, Elsevier, vol. 51(PA).
    25. Tajbakhsh, Alireza & Hassini, Elkafi, 2022. "A game-theoretic approach for pollution control initiatives," International Journal of Production Economics, Elsevier, vol. 254(C).
    26. Tang, Wenliang & Yang, Mian & Duan, Hongbo, 2023. "Temperature and corporate tax avoidance: Evidence from Chinese manufacturing firms," Energy Economics, Elsevier, vol. 117(C).
    27. Andrew King & Michael Lenox, 2002. "Exploring the Locus of Profitable Pollution Reduction," Management Science, INFORMS, vol. 48(2), pages 289-299, February.
    28. Morgan, Todd & Anokhin, Sergey Alexander & Wincent, Joakim, 2019. "New service development by manufacturing firms: Effects of customer participation under environmental contingencies," Journal of Business Research, Elsevier, vol. 104(C), pages 497-505.
    29. Ren, Shenggang & He, Duojun & Yan, Ji & Zeng, Huixiang & Tan, Justin, 2022. "Environmental labeling certification and corporate environmental innovation: The moderating role of corporate ownership and local government intervention," Journal of Business Research, Elsevier, vol. 140(C), pages 556-571.
    30. Zhang, Yonggang & Dilanchiev, Azer, 2022. "Economic recovery, industrial structure and natural resource utilization efficiency in China: Effect on green economic recovery," Resources Policy, Elsevier, vol. 79(C).
    31. Ertz, Myriam & Karakas, Fahri & Sarigöllü, Emine, 2016. "Exploring pro-environmental behaviors of consumers: An analysis of contextual factors, attitude, and behaviors," Journal of Business Research, Elsevier, vol. 69(10), pages 3971-3980.
    32. Lopes de Sousa Jabbour, Ana Beatriz & Ndubisi, Nelson Oly & Roman Pais Seles, Bruno Michel, 2020. "Sustainable development in Asian manufacturing SMEs: Progress and directions," International Journal of Production Economics, Elsevier, vol. 225(C).
    33. Glen Dowell & Stuart Hart & Bernard Yeung, 2000. "Do Corporate Global Environmental Standards Create or Destroy Market Value?," Management Science, INFORMS, vol. 46(8), pages 1059-1074, August.
    34. Shanling Li & Jennifer Shang & Sandra A. Slaughter, 2010. "Why Do Software Firms Fail? Capabilities, Competitive Actions, and Firm Survival in the Software Industry from 1995 to 2007," Information Systems Research, INFORMS, vol. 21(3), pages 631-654, September.
    35. Dong, Dayong & Yang, Mo & Yang, Gaoju & Chen, Chang-Chih & Zhang, Xinyi, 2022. "Talk less and do more: Expected strategic adjustments vs. actual changes in the Chinese firms," Pacific-Basin Finance Journal, Elsevier, vol. 75(C).
    36. Li, Peter Ping & Bai, Yuntao & Xi, Youmin, 2012. "The Contextual Antecedents of Organizational Trust: A Multidimensional Cross-level Analysis," Management and Organization Review, Cambridge University Press, vol. 8(2), pages 371-396, July.
    37. Michael E. Porter & Claas van der Linde, 1995. "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 97-118, Fall.
    38. Strobl, Andreas & Bauer, Florian & Degischer, Daniel, 2022. "Contextualizing deliberate learning from acquisitions: The role of organizational and target contexts," Journal of Business Research, Elsevier, vol. 139(C), pages 194-207.
    39. Mina Chandra & Chandra Bhushan Rai & Neelam Kumari & Vipindeep Kaur Sandhu & Kalpana Chandra & Murali Krishna & Sri Harsha Kota & Kuljeet Singh Anand & Anna Oudin, 2022. "Air Pollution and Cognitive Impairment across the Life Course in Humans: A Systematic Review with Specific Focus on Income Level of Study Area," IJERPH, MDPI, vol. 19(3), pages 1-39, January.
    40. Wang, Lianghu & Wang, Zhao & Ma, Yatian, 2022. "Does environmental regulation promote the high-quality development of manufacturing? A quasi-natural experiment based on China's carbon emission trading pilot scheme," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bertrand, Jean-Louis & Chabot, Miia & Brusset, Xavier & Courquin, Valentin, 2024. "Identifying assets exposed to physical climate risk: A decision-support methodology," International Journal of Production Economics, Elsevier, vol. 276(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hu, Zhenyu & Chang, Jui-Chin, 2022. "Does air pollution affect dividend policy," Finance Research Letters, Elsevier, vol. 49(C).
    2. Wang, Jie & Wang, Wanwan & Yuan, Fang, 2023. "Air pollution and corporate risk-taking: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 570-586.
    3. Luis Sarmiento, 2022. "Air pollution and the productivity of high‐skill labor: evidence from court hearings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(1), pages 301-332, January.
    4. Tan, Jianhua & Tan, Zhidong & Chan, Kam C., 2021. "Does air pollution affect a firm's cash holdings?," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    5. Ting Yao & Yue‐Jun Zhang, 2024. "The impact of air pollution on crude oil futures market," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 44(6), pages 1055-1068, June.
    6. He Xiao, 2022. "How does air pollution affect corporate information environment?," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 45(4), pages 987-1016, December.
    7. Weiping Li & Xuezhi Zhang & Shuyi Cheng & Xiaohang Ren, 2024. "Clear the air via dividends: Corporates' response to air pollution," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3383-3396, May.
    8. Altunbaş, Yener & Khan, Atiqur & Thornton, John, 2023. "Do M&As impact firm carbon intensity?11The views expressed in this paper are those of the authors and should not be attributed to the institutions with which they are affiliated.," Energy Economics, Elsevier, vol. 128(C).
    9. Nan Hu & Xingnan Xue & Ling Liu, 2022. "The impact of air pollution on financial reporting quality: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 3609-3644, September.
    10. Garcés-Ayerbe, Concepción & Cañón-de-Francia, Joaquín, 2017. "The Relevance of Complementarities in the Study of the Economic Consequences of Environmental Proactivity: Analysis of the Moderating Effect of Innovation Efforts," Ecological Economics, Elsevier, vol. 142(C), pages 21-30.
    11. Luis Sarmiento & Adam Nowakowski, 2023. "Court Decisions and Air Pollution: Evidence from Ten Million Penal Cases in India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 605-644, November.
    12. Jiang, Dequan & Li, Weiping & Shen, Yongjian & Zhang, Ying, 2022. "Does air quality affect firms’ investment efficiency? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 79(C), pages 1-17.
    13. Li, Rong & Liu, Luxi & Qiu, Yun & Tian, Xiaohui, 2024. "Air pollution and stock returns: The cash flow risk channel," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    14. Vastola, Vincenzo & Russo, Angeloantonio & Vurro, Clodia, 2017. "Dealing with Cultural Differences in Environmental Management: Exploring the CEP-CFP Relationship," Ecological Economics, Elsevier, vol. 134(C), pages 267-275.
    15. Yu, Shuangli & Shen, Yuxin & Zhang, Fan & Shen, Yongjian & Xu, Zefeng, 2022. "Air pollution and executive incentive: Evidence from pay-performance sensitivity," International Review of Financial Analysis, Elsevier, vol. 82(C).
    16. Ma, Xinru & He, Jingbin, 2023. "Air pollution and corporate green innovation in China," Economic Modelling, Elsevier, vol. 124(C).
    17. Vasileiou, Efi & Georgantzis, Nikolaos & Attanasi, Giuseppe & Llerena, Patrick, 2022. "Green innovation and financial performance: A study on Italian firms," Research Policy, Elsevier, vol. 51(6).
    18. Ghisetti, Claudia & Rennings, Klaus, 2013. "Environmental innovations and profitability: How does it pay to be green? An empirical analysis on the German innovation survey," ZEW Discussion Papers 13-073, ZEW - Leibniz Centre for European Economic Research.
    19. Eduardo Duque‐Grisales & Javier Aguilera‐Caracuel & Jaime Guerrero‐Villegas & Encarnación García‐Sánchez, 2020. "Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3286-3302, December.
    20. Shr, Yau-Huo & Hsu, Wen & Hwang, Bing-Fang & Jung, Chau-Ren, 2023. "Air quality and risky behaviors on roads," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:273:y:2024:i:c:s092552732400121x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.