Environmental Management System Adoption and the Operational Performance of Firm in the Textile and Apparel Industry of China
In China, more firms in the textile and apparel industry adopt environmental management systems compared to firms that manufacture other products. It is important to know how the firms’ financial and real performances are affected. We study the changes of firms’ performance in profitability, sales,...
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doaj-9e6c9dbb14f44825892b6b902227d9a42020-11-24T23:05:50ZengMDPI AGSustainability2071-10502017-06-019699210.3390/su9060992su9060992Environmental Management System Adoption and the Operational Performance of Firm in the Textile and Apparel Industry of ChinaBiao Li0Kekun Wu1School of Finance/MBA School, Zhongnan University of Economics and Law, No. 182 Nanhu Avenue, East Lake High-Tech Development Zone, Wuhan 430073, ChinaSchool of Finance/MBA School, Zhongnan University of Economics and Law, No. 182 Nanhu Avenue, East Lake High-Tech Development Zone, Wuhan 430073, ChinaIn China, more firms in the textile and apparel industry adopt environmental management systems compared to firms that manufacture other products. It is important to know how the firms’ financial and real performances are affected. We study the changes of firms’ performance in profitability, sales, and operational efficiency after environmental management system (EMS) adoption using an event study. Based on 22 events of EMS adoption, we found a significant decrease in firms’ profitability, sales, and inventory productivity. We explore the reasons which led to the decrease in firm performances. We found that the increase in sample firms’ total assets is the major reason. The loss in operational efficiency and flexibility are due to the requirements of the EMS.http://www.mdpi.com/2071-1050/9/6/992social sustainable performanceoperationsevent studytextile and apparel industry |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Biao Li Kekun Wu |
spellingShingle |
Biao Li Kekun Wu Environmental Management System Adoption and the Operational Performance of Firm in the Textile and Apparel Industry of China Sustainability social sustainable performance operations event study textile and apparel industry |
author_facet |
Biao Li Kekun Wu |
author_sort |
Biao Li |
title |
Environmental Management System Adoption and the Operational Performance of Firm in the Textile and Apparel Industry of China |
title_short |
Environmental Management System Adoption and the Operational Performance of Firm in the Textile and Apparel Industry of China |
title_full |
Environmental Management System Adoption and the Operational Performance of Firm in the Textile and Apparel Industry of China |
title_fullStr |
Environmental Management System Adoption and the Operational Performance of Firm in the Textile and Apparel Industry of China |
title_full_unstemmed |
Environmental Management System Adoption and the Operational Performance of Firm in the Textile and Apparel Industry of China |
title_sort |
environmental management system adoption and the operational performance of firm in the textile and apparel industry of china |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2017-06-01 |
description |
In China, more firms in the textile and apparel industry adopt environmental management systems compared to firms that manufacture other products. It is important to know how the firms’ financial and real performances are affected. We study the changes of firms’ performance in profitability, sales, and operational efficiency after environmental management system (EMS) adoption using an event study. Based on 22 events of EMS adoption, we found a significant decrease in firms’ profitability, sales, and inventory productivity. We explore the reasons which led to the decrease in firm performances. We found that the increase in sample firms’ total assets is the major reason. The loss in operational efficiency and flexibility are due to the requirements of the EMS. |
topic |
social sustainable performance operations event study textile and apparel industry |
url |
http://www.mdpi.com/2071-1050/9/6/992 |
work_keys_str_mv |
AT biaoli environmentalmanagementsystemadoptionandtheoperationalperformanceoffirminthetextileandapparelindustryofchina AT kekunwu environmentalmanagementsystemadoptionandtheoperationalperformanceoffirminthetextileandapparelindustryofchina |
_version_ |
1725625423630434304 |