Steven A. Melnyk

Assessing the impact of environmental management systems on corporate and environmental performance

Abstract There has been an increase in interest towards corporate activities aimed at reducing or eliminating the waste created during the production, use and/or disposal of the firm’s products. Prior research has focused on the need for such activities, while current research tries to identify those components that encourage or discourage such activities. As a result of the introduction of ISO 14001, attention has turned to corporate environmental management systems (EMS). The underlying assumption is that such a system is critical to a firm’s ability to reduce waste and pollution while simultaneously improving overall performance. This study evaluates this assumption. Drawing on data provided by a survey of North American managers, their attitudes toward EMS and ISO 14001, this study assesses the relative effects of having a formal but uncertified EMS compared to having a formal, certified system. The results strongly demonstrate that firms in possession of a formal EMS perceive impacts well beyond pollution abatement and see a critical positive impact on many dimensions of operations performance. The results also show that firms having gone through EMS certification experience a greater impact on performance than do firms that have not certified their EMS. Additionally, experience with these systems over time has a greater impact on the selection and use of environmental options. These results demonstrate the need for further investigation into EMS, the environmental options a firm chooses, and the direct and indirect relationships between these systems and performance.

Applying environmental criteria to supplier assessment: A study in the application of the Analytical Hierarchy Process

Abstract Increasingly, purchasing managers are being asked not only to transform purchasing into a more strategic function but also to integrate environmental issues in their decisions. Introducing the environmental dimension into purchasing decisions embeds a new set of trade-offs in the decision, complicating the decision-making process with both qualitative and quantitative factors. Yet, few companies use any structured analysis to evaluate suppliers along environmental dimensions. In this study, we illustrate the use of the Analytical Hierarchy Process (AHP) as a decision support model to help managers understand the trade-offs between environmental dimensions. We then demonstrate how AHP can be used to evaluate the relative importance of various environmental traits and to assess the relative performance of several suppliers along these traits. Three case studies were carried out to demonstrate the benefits and weaknesses of using AHP in this manner. Finally, we examine how AHP can be incorporated into a comprehensive information system supporting Environmentally Conscious Purchasing (ECP).

'Green' value chain practices in the furniture industry

Abstract This paper draws on the results of interviews with five environmental managers in the furniture industry to develop a taxonomy of environmentally-friendly (‘green’) best practices within the operations management value chain. This taxonomy is then extended to develop a group of propositions concerning the role of management in promoting environmentally-friendly practices. The results suggest that in order to be successful, environmental management strategies must be integrated into all stages of the value chain, which includes all of the processes spanning product design, procurement, manufacturing and assembly, packaging, logistics, and distribution. While the potential for environmental performance improvement in all five of the companies is evident, all of them demonstrated ‘pockets’ of environmentally-friendly practices (EFP) in different areas of their respective value chain functions. The propositions and results emerging from the analysis also suggests that reacting to regulations is no longer sufficient. World-class EFP must anticipate and pre-empt changing environmental regulations and customer expectations, and proactively prepare products, processes and infrastructure for these changes without sacrificing competitive advantage.

The scientific theory-building process: a primer using the case of TQM

Abstract As Operations Management (OM) researchers begin to undertake and publish more empirical research, there is a need to understand the nature of the scientific theory-building process implicit in this activity. This tutorial presents a process map approach to this process. We begin by defining the nature of scientific knowledge, and proceed through the stages of the theory-building process, using illustrations from OM research in Total Quality Management. The tutorial ends with a discussion of the criteria for OM journal reviewers to consider in evaluating theory-driven empirical research, and suggests a number of OM topic areas that require greater theory development.

An institutional theory perspective of business continuity planning for purchasing and supply management

Supply chains are increasingly susceptible to unplanned, unanticipated disruptions. With the implementation of the practices of lean systems, total quality management (TQM), time-based competition and other supply chain improvement initiatives, managers now realize that their supply chains are fragile, particularly to environmental disruptions outside their control. As a result of recent events including 11 September 2001, a system is now emerging in purchasing to manage supply risk characterised as having a very low probability of occurrence, difficult to predict, and with a potentially catastrophic impact on the organization. This paper presents case study research findings examining how and why firms create business continuity plans to manage this risk. Propositions are then presented from an institutional theory perspective to examine how various isomorphic pressures result in firms having similar risk management practices embedded in their supply management practices over time.

Order review/release: research issues and perspectives

SUMMARY This paper examines the order review/release (ORR) function and its impact on the operation of the shop floor. A source of disagreement between practitioners and researchers, ORR is an important element of any shop floor control system. This paper attempts to provide a better understanding of this element by presenting a framework for ORR. This framework not only identifies the important dimensions of ORR but also new dimensions for research. The paper also explores the relationship between ORR and job dispatching through a simple computer simulation model. The results indicate that the ORR, while reducing time spent in queue on the shop floor, does not always reduce the total time spent in the system.

The new product design process and design for environment: “Crossing the chasm”

This paper examines the role played by environmental issues during the new product design process. These issues are studied through an exploratory research project based on case studies of ten companies. The firms studied can be categorized into one of five major groups: innovators, early adopters, early majority, late majority and laggards. These groups strongly parallel the model of new product acceptance initially developed in the computer industry, as presented by Moore (1991). Of interest is the gap that exists between the early adopters and early majority users. This gap forms a chasm. Those factors that account for acceptance of environmentally responsible manufacturing in the innovators and early adopters are significantly different from those factors observed in the early majority, late majority, and laggards. This paper examines these and other differences, and the impact of these differences on the acceptance and use of environmental concerns within the new product design process.

Mapping the future of supply chain management: a Delphi study

Supply chain management, a field that developed from business practice and research, is undergoing a major transformation. It is changing from tactical in nature (where the major focus is on cost and delivery) to a field that is strategic in nature. However, the future issues and challenges facing managers and executives are just now becoming understood. This paper reports these issues by drawing on the findings generated by a three-phase study consisting of a literature review, a two-round Delphi study, and a workshop. Unique in this Delphi study is that it brings together leading practitioners in supply chain management with leading supply chain management researchers. The findings show that while the focus of the current tactical supply chain view is relatively limited to issues of delivery, risk, and leadership, the supply chain view of the future (i.e., five years from now) is more complex and demanding. The findings also show that there is generally no difference between researchers and practitioners in terms of how they view the issues. Finally, the study uncovers major obstacles that must be resolved before the strategic potential of future-state supply chains can be realised.

Investigating the linkage between total quality management and environmentally responsible manufacturing

This paper explicitly examines the relationship that exists between total quality management (TQM) and environmentally responsible manufacturing (ERM) systems. It has been presumed in numerous past studies that such a relationship does exist. It has been argued that those firms that have successfully implemented a TQM system are better positioned to successfully implement an ERM system. This relationship, however, has not yet been statistically and empirically evaluated. In this study, the authors evaluate this relationship using a large-scale survey of plant managers as the data source and confirmatory factor analysis and structural equation modeling as the statistical tools. The study develops a series of measures for various aspects of both TQM and ERM. The results show that there is indeed a strong relationship between TQM and ERM. In many ways, ERM is conditioned by the presence of TQM. Furthermore, ERM systems have a parallel structure when compared to TQM systems.

Operational Capabilities: The Secret Ingredient

We develop a theoretical definition of operational capabilities, based on the strategic management and operations management literature, and differentiate this construct from the related constructs of resources and operational practices, drawing upon the resource-based view of the firm as our foundation. We illustrate the key features of operational capabilities using the illustration of a restaurant kitchen. Because the traits of operational capabilities are distinct, they create a barrier to imitation, making them a potential source of competitive advantage. However, operational capabilities are particularly challenging to measure, because they emerge gradually and are tacit, embedded, and manifested differently across firms. In solving this measurement conundrum, we draw upon similar situations experienced by Schein (2004) and Eisenhardt and Martin (2000) in operationalizing organizational culture and dynamic capabilities. A taxonomy of six emergent operational capabilities is developed: operational improvement, operational innovation, operational customization, operational cooperation, operational responsiveness, and operational reconfiguration. A set of measurement scales is developed, in order to measure each of the operational capabilities, and validated using two different datasets. This allows replication of the psychometric properties of the multi-item scales and helps to ensure the validity of the resulting measures.