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Flexibility of Environmental Regulations and the Impact on Operations Innovation

In: Operations Management and Sustainability

Author

Listed:
  • Ramakrishnan Ramanathan

    (University of Bedfordshire)

Abstract

The field of sustainable operations management will benefit by linking with the strategy literature to understand complex issues facing firms. This chapter focuses on the role of environmental regulations. The literature on Porter’s hypothesis suggests that firms that face more flexible environmental regulations are able to perform better than those that face more inflexible regulations. Using data from a questionnaire survey in the UK and the resource-based view (RBV) theory, this hypothesis is empirically analyzed in this chapter. Data envelopment analysis and one-way ANOVA are used as analytic tools. Results confirm our hypothesis that operations innovation is significantly higher in firms that face more flexible environmental regulations than in those that face relatively more inflexible environmental regulations.

Suggested Citation

  • Ramakrishnan Ramanathan, 2019. "Flexibility of Environmental Regulations and the Impact on Operations Innovation," Springer Books, in: Luitzen de Boer & Poul Houman Andersen (ed.), Operations Management and Sustainability, chapter 3, pages 27-42, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-93212-5_3
    DOI: 10.1007/978-3-319-93212-5_3
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