IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v278y2024ics0925527324002676.html
   My bibliography  Save this article

Environmental and social performance relationships to firm efficiency: Evidence from the semiconductor industry

Author

Listed:
  • Sun, Lihua
  • Bai, Chunguang
  • Sarkis, Joseph

Abstract

Escalating global demand for high-performance computing and smart devices has driven rapid expansion in the semiconductor industry. This expansion raises environmental and societal sustainability concerns among stakeholders. Although there is a growing commitment to environmental and social responsibilities by semiconductor companies, the impact of these responsibilities and initiatives on corporate performance remains unclear—especially with respect to general firm operational efficiency. Thus, this study employs a sample of 129 listed Chinese semiconductor companies and a slack-based data envelopment analysis (SBM-DEA) methodology to examine the relationship between corporate environmental and social performance and firm efficiency. We also investigate how supply chain position—an important industrial characteristic—moderates these relationships. The findings reveal that: (1) China's semiconductor industry efficiency is relatively low, particularly in the chip design sub-sector; (2) there is a positive relationship between corporate environmental performance and firm efficiency; and (3) supply chain position moderates the relationship between both corporate environmental and social performance and firm efficiency. These findings offer important implications for managers and researchers aiming to foster greater semiconductor industry sustainable development.

Suggested Citation

  • Sun, Lihua & Bai, Chunguang & Sarkis, Joseph, 2024. "Environmental and social performance relationships to firm efficiency: Evidence from the semiconductor industry," International Journal of Production Economics, Elsevier, vol. 278(C).
  • Handle: RePEc:eee:proeco:v:278:y:2024:i:c:s0925527324002676
    DOI: 10.1016/j.ijpe.2024.109410
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527324002676
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ijpe.2024.109410?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. Gerda Barauskaite & Dalia Streimikiene, 2021. "Corporate social responsibility and financial performance of companies: The puzzle of concepts, definitions and assessment methods," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 278-287, January.
    2. Joseph Sarkis & Sherwat Ibrahim, 2022. "Building knowledge beyond our experience: integrating sustainable development goals into IJPR’s research future," International Journal of Production Research, Taylor & Francis Journals, vol. 60(24), pages 7301-7318, December.
    3. Ting-Kun Liu, 2020. "The Impact of Corporate Social Responsibility on Performance in the Financial Industry," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(9), pages 1037-1050.
    4. Christoph G. Schmidt & Kai Foerstl & Birte Schaltenbrand, 2017. "The Supply Chain Position Paradox: Green Practices and Firm Performance," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(1), pages 3-25, January.
    5. Carol Newman & John Rand & Finn Tarp & Neda Trifkovic, 2020. "Corporate Social Responsibility in a Competitive Business Environment," Journal of Development Studies, Taylor & Francis Journals, vol. 56(8), pages 1455-1472, July.
    6. Shahzad, Fakhar & Zaied, Younes Ben & Shahzad, Muhammad Asim & Mahmood, Faisal, 2024. "Insights into the performance of green supply chain in the Chinese semiconductor industry," International Journal of Production Economics, Elsevier, vol. 273(C).
    7. Chunya Ren & Irene Wei Kiong Ting & Wen‐Min Lu & Qian Long Kweh, 2022. "Nonlinear effects of ESG on energy‐adjusted firm efficiency: Evidence from the stakeholder engagement of apple incorporated," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1231-1246, September.
    8. Jun Xie & Wataru Nozawa & Michiyuki Yagi & Hidemichi Fujii & Shunsuke Managi, 2019. "Do environmental, social, and governance activities improve corporate financial performance?," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 286-300, February.
    9. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    10. Govindan, Kannan & Kilic, Merve & Uyar, Ali & Karaman, Abdullah S., 2021. "Drivers and value-relevance of CSR performance in the logistics sector: A cross-country firm-level investigation," International Journal of Production Economics, Elsevier, vol. 231(C).
    11. Kai Foerstl & Arash Azadegan & Thomas Leppelt & Evi Hartmann, 2015. "Drivers of Supplier Sustainability: Moving Beyond Compliance to Commitment," Journal of Supply Chain Management, Institute for Supply Management, vol. 51(1), pages 67-92, January.
    12. Zhu, Joe, 2000. "Multi-factor performance measure model with an application to Fortune 500 companies," European Journal of Operational Research, Elsevier, vol. 123(1), pages 105-124, May.
    13. Rebecca Stekelorum & Jean-Marie Courrent & Martine Spence, 2023. "Supply chain pressures and SMEs’ CSR practices: the moderation effect of supply chain position," Post-Print hal-04316413, HAL.
    14. Ting-Kun Liu, 2020. "The Impact of Corporate Social Responsibility on Performance in the Financial Industry," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(9), pages 1037-1050, September.
    15. Ana Beatriz Lopes de Sousa Jabbour & C.J. Chiappetta Jabbour & J. Sarkis & H. Latan & D. Roubaud & Moacir Godinho Filho & M. Queiroz, 2021. "Fostering Low-Carbon Production and Logistics Systems: Framework and Empirical Evidence," Post-Print hal-04275969, HAL.
    16. Hoff, Ayoe, 2007. "Second stage DEA: Comparison of approaches for modelling the DEA score," European Journal of Operational Research, Elsevier, vol. 181(1), pages 425-435, August.
    17. Hervani, Aref Agahei & Sarkis, Joseph & Helms, Marilyn M., 2017. "Environmental goods valuations for social sustainability: A conceptual framework," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 137-153.
    18. Que, Jiangjing & Zhang, Xueyong, 2021. "Money chasing hot industries? Investor attention and valuation of venture capital backed firms," Journal of Corporate Finance, Elsevier, vol. 68(C).
    19. Xuemei Xie & Qiwei Zhu & Ruoyi Wang, 2019. "Turning green subsidies into sustainability: How green process innovation improves firms' green image," Business Strategy and the Environment, Wiley Blackwell, vol. 28(7), pages 1416-1433, November.
    20. Grimes, Seamus & Du, Debin, 2022. "China's emerging role in the global semiconductor value chain," Telecommunications Policy, Elsevier, vol. 46(2).
    21. Jörg H. Grimm & Joerg S. Hofstetter & Joseph Sarkis, 2023. "Corporate sustainability standards in multi-tier supply chains – an institutional entrepreneurship perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 61(14), pages 4702-4724, July.
    22. Bui, Tat-Dat, 2024. "Assessing sustainable supply chain transparency practices in Taiwan semiconductor industry: A hierarchical interdependence approach," International Journal of Production Economics, Elsevier, vol. 272(C).
    23. Gerdin, Jonas & Greve, Jan, 2008. "The appropriateness of statistical methods for testing contingency hypotheses in management accounting research," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 995-1009.
    24. Lan Gao & Liang Wan, 2023. "Does corporate environmental responsibility contribute to financial performance? A dual path analysis through operational efficiency and the cost of debt," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 308-323, January.
    25. Zheng, Deyuan & Song, Hang & Zhao, Chunguang & Liu, Yujiao & Zhao, Wenhao, 2024. "Is it possible for semiconductor companies to reduce carbon emissions through digital transformation? Evidence from China," International Journal of Production Economics, Elsevier, vol. 272(C).
    26. Ullah, Muhammad & Zahid, Muhammad & All-e-Raza Rizvi, Syed Muhammad & Qureshi, Qazi Ghulam Mustafa & Ali, Farman, 2022. "Do green supply chain management practices improve organizational resilience during the COVID-19 crisis? A survival analysis of global firms," Economics Letters, Elsevier, vol. 219(C).
    27. Seongtae Kim & Kai Foerstl & Christoph G. Schmidt & Stephan M. Wagner, 2022. "Adoption of green supply chain management practices in multi-tier supply chains: examining the differences between higher and lower tier firms," International Journal of Production Research, Taylor & Francis Journals, vol. 60(21), pages 6451-6468, November.
    28. Muhammad Ullah & Muhammad Zahid & Syed Muhammad All-E-Raza Rizvi & Qazi Ghulam Mustafa Qureshi & Farman Ali, 2022. "Do green supply chain management practices improve organizational resilience during the COVID-19 crisis? A survival analysis of global firms," Post-Print hal-04102739, HAL.
    29. Longo, L. & Colantoni, A. & Castellucci, S. & Carlini, M. & Vecchione, L. & Savuto, E. & Pallozzi, V. & Di Carlo, A. & Bocci, E. & Moneti, M. & Cocchi, S. & Boubaker, K., 2015. "DEA (data envelopment analysis)-assisted supporting measures for ground coupled heat pumps implementing in Italy: A case study," Energy, Elsevier, vol. 90(P2), pages 1967-1972.
    30. Ana Beatriz Lopes de Sousa Jabbour & Charbel Jose Chiappetta Jabbour & Joseph Sarkis & Hengky Latan & David Roubaud & Moacir Godinho Filho & Maciel Queiroz, 2021. "Fostering low-carbon production and logistics systems: framework and empirical evidence," International Journal of Production Research, Taylor & Francis Journals, vol. 59(23), pages 7106-7125, December.
    31. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    32. Zarrin, Mansour & Brunner, Jens O., 2023. "Analyzing the accuracy of variable returns to scale data envelopment analysis models," European Journal of Operational Research, Elsevier, vol. 308(3), pages 1286-1301.
    33. Lee, Su-Yol & Klassen, Robert D. & Furlan, Andrea & Vinelli, Andrea, 2014. "The green bullwhip effect: Transferring environmental requirements along a supply chain," International Journal of Production Economics, Elsevier, vol. 156(C), pages 39-51.
    34. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    Full references (including those not matched with items on IDEAS)

    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. Petridis, Konstantinos & Tampakoudis, Ioannis & Drogalas, George & Kiosses, Nikolaos, 2022. "A Support Vector Machine model for classification of efficiency: An application to M&A," Research in International Business and Finance, Elsevier, vol. 61(C).
    2. Ben Lahouel, Béchir & Taleb, Lotfi & Ben Zaied, Younes & Managi, Shunsuke, 2022. "Does primary stakeholder management improve competitiveness? A dynamic network non-parametric frontier approach," Economic Modelling, Elsevier, vol. 116(C).
    3. Alperovych, Yan & Amess, Kevin & Wright, Mike, 2013. "Private equity firm experience and buyout vendor source: What is their impact on efficiency?," European Journal of Operational Research, Elsevier, vol. 228(3), pages 601-611.
    4. Veronese da Silva, Aline & Costa, Marcelo Azevedo & Lopes-Ahn, Ana Lúcia, 2022. "Accounting multiple environmental variables in DEA energy transmission benchmarking modelling: The 2019 Brazilian case," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    5. Bojiang Yang & Youliang Zhang & Hongjun Zhang & Rui Zhang & Baoyu Xu, 2016. "Factor-specific Malmquist productivity index based on common weights DEA," Operational Research, Springer, vol. 16(1), pages 51-70, April.
    6. Jorge Antunes & Peter Wanke & Thiago Fonseca & Yong Tan, 2023. "Do ESG Risk Scores Influence Financial Distress? Evidence from a Dynamic NDEA Approach," Sustainability, MDPI, vol. 15(9), pages 1-32, May.
    7. Karima Kourtit & Peter Nijkamp, 2013. "In Search of Creative Champions in High-Tech Spaces," Tinbergen Institute Discussion Papers 13-193/VIII, Tinbergen Institute.
    8. Berger, Michael & Sommersguter-Reichmann, Margit & Czypionka, Thomas, 2020. "Determinants of soft budget constraints: how public debt affects hospital performance in Austria," LSE Research Online Documents on Economics 116865, London School of Economics and Political Science, LSE Library.
    9. Thi Ngan Pham & Phung Phi Tran & Minh-Hieu Le & Hoang Nhi Vo & Cong Dat Pham & Hai-Dang Nguyen, 2022. "The Effects of ESG Combined Score on Business Performance of Enterprises in the Transportation Industry," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    10. Duzakin, Erkut & Duzakin, Hatice, 2007. "Measuring the performance of manufacturing firms with super slacks based model of data envelopment analysis: An application of 500 major industrial enterprises in Turkey," European Journal of Operational Research, Elsevier, vol. 182(3), pages 1412-1432, November.
    11. Jie Wu & Qingyuan Zhu & Junfei Chu & Liang Liang, 2015. "Two-Stage Network Structures with Undesirable Intermediate Outputs Reused: A DEA Based Approach," Computational Economics, Springer;Society for Computational Economics, vol. 46(3), pages 455-477, October.
    12. Qingyou Yan & Fei Zhao & Xu Wang & Guoliang Yang & Tomas Baležentis & Dalia Streimikiene, 2019. "The network data envelopment analysis models for non-homogenous decision making units based on the sun network structure," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 27(4), pages 1221-1244, December.
    13. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    14. Mei-Huan Kuo & Chyan Yang, 2012. "Does intellectual capital matter? Assessing the profitability and marketability of IC design companies," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(6), pages 1865-1881, October.
    15. Rezaeiani, M.J. & Foroughi, A.A., 2018. "Ranking efficient decision making units in data envelopment analysis based on reference frontier share," European Journal of Operational Research, Elsevier, vol. 264(2), pages 665-674.
    16. Standfuss, Thomas & Hirte, Georg & Schultz, Michael & Fricke, Hartmut, 2024. "Efficiency assessment in European air traffic management—A fundamental analysis of data, models, and methods," Journal of Air Transport Management, Elsevier, vol. 115(C).
    17. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min, 2016. "Research fronts in data envelopment analysis," Omega, Elsevier, vol. 58(C), pages 33-45.
    18. Berger, Michael & Sommersguter-Reichmann, Margit & Czypionka, Thomas, 2020. "Determinants of soft budget constraints: How public debt affects hospital performance in Austria," Social Science & Medicine, Elsevier, vol. 249(C).
    19. Pedro Moskovics & Peter Wanke & Yong Tan & Ali Meftah Gerged, 2024. "Market structure, ESG performance, and corporate efficiency: Insights from Brazilian publicly traded companies," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 241-262, February.
    20. Wei‐Kang Wang & Wen‐Min Lu & Qian Long Kweh & Wun‐Ya Siao, 2020. "Related‐party transactions and corporate performance following the adoption of International Financial Reporting Standards in Taiwan," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(3), pages 371-379, April.

    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:278:y:2024:i:c:s0925527324002676. 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.