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Development of a Model Linking Physical Asset Management to Sustainability Performance: An Empirical Research

Author

Listed:
  • Damjan Maletič

    (Faculty of Organizational Sciences, University of Maribor, Kidričeva 55a, 4000 Kranj, Slovenia)

  • Matjaž Maletič

    (Faculty of Organizational Sciences, University of Maribor, Kidričeva 55a, 4000 Kranj, Slovenia)

  • Basim Al-Najjar

    (Department of Mechanical Engineering, Faculty of Technology, Linnaeus University, Building M, 351 95 Växjö, Sweden)

  • Boštjan Gomišček

    (Faculty of Business, University of Wollongong in Dubai, Knowledge Park, Block 15, P. O. Box 20183, Dubai, UAE)

Abstract

This article is aimed at exploring the relationship between physical asset management (PAM) practices and sustainability performance. A framework of interrelated constructs was developed based on the existing literature and consequently tested through empirical study. Survey data were collected from organizations operating in six European countries (i.e., Greece, Poland, Slovakia, Slovenia, Sweden, and Turkey) and analyzed using Partial Least Squares Path Modeling (PLS-PM). The results offer support for the proposed hypotheses, showing that PAM practices positively influence the sustainability performance outcomes, namely economic, environmental, and employee-related social performance. Overall, this study demonstrates that a PAM framework can be conceptualized by four sub-constructs, namely physical asset risk management, physical asset performance assessment, physical asset lifecycle management, and physical asset policy and strategy. Finally, this study brings to light some theoretical and managerial implications as well as directions for future research. The findings of the study underscore PAM areas in which managers should focus on in order to optimize costs, performance, and risk exposures concerning the physical assets, and therefore enhance sustainability performance.

Suggested Citation

  • Damjan Maletič & Matjaž Maletič & Basim Al-Najjar & Boštjan Gomišček, 2018. "Development of a Model Linking Physical Asset Management to Sustainability Performance: An Empirical Research," Sustainability, MDPI, vol. 10(12), pages 1-20, December.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4759-:d:190289
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    References listed on IDEAS

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    1. Caropul Mendes & Hugo Raposo & Ricardo Ferraz & José Torres Farinha, 2023. "The Economic Management of Physical Assets: The Practical Case of an Urban Passenger Transport Company in Portugal," Sustainability, MDPI, vol. 15(15), pages 1-19, July.
    2. José Edmundo de Almeida Pais & Hugo D. N. Raposo & José Torres Farinha & Antonio J. Marques Cardoso & Pedro Alexandre Marques, 2021. "Optimizing the Life Cycle of Physical Assets through an Integrated Life Cycle Assessment Method," Energies, MDPI, vol. 14(19), pages 1-24, September.
    3. Lima, Eliana Sangreman & Costa, Ana Paula Cabral Seixas, 2019. "Improving Asset Management under a regulatory view," Reliability Engineering and System Safety, Elsevier, vol. 190(C), pages 1-1.
    4. José Torres Farinha & Hugo D. N. Raposo & José Edmundo de-Almeida-e-Pais & Mateus Mendes, 2023. "Physical Asset Life Cycle Evaluation Models—A Comparative Analysis towards Sustainability," Sustainability, MDPI, vol. 15(22), pages 1-23, November.
    5. Elizaveta Gavrikova & Irina Volkova & Yegor Burda, 2020. "Strategic Aspects of Asset Management: An Overview of Current Research," Sustainability, MDPI, vol. 12(15), pages 1-31, July.
    6. Xin Liu, 2019. "The Role of Enterprise Risk Management in Sustainable Decision-Making: A Cross-Cultural Comparison," Sustainability, MDPI, vol. 11(10), pages 1-15, May.
    7. Damjan Maletič & Matjaž Maletič & Basim Al-Najjar & Boštjan Gomišček, 2020. "An Analysis of Physical Asset Management Core Practices and Their Influence on Operational Performance," Sustainability, MDPI, vol. 12(21), pages 1-20, October.
    8. Alice Consilvio & José Solís-Hernández & Noemi Jiménez-Redondo & Paolo Sanetti & Federico Papa & Iñigo Mingolarra-Garaizar, 2020. "On Applying Machine Learning and Simulative Approaches to Railway Asset Management: The Earthworks and Track Circuits Case Studies," Sustainability, MDPI, vol. 12(6), pages 1-24, March.
    9. Lima, Eliana Sangreman & McMahon, Paul & Costa, Ana Paula Cabral Seixas, 2021. "Establishing the relationship between asset management and business performance," International Journal of Production Economics, Elsevier, vol. 232(C).
    10. Małgorzata Jasiulewicz-Kaczmarek & Patryk Żywica & Arkadiusz Gola, 2021. "Fuzzy set theory driven maintenance sustainability performance assessment model: a multiple criteria approach," Journal of Intelligent Manufacturing, Springer, vol. 32(5), pages 1497-1515, June.

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