Environmental, social, and governance and hierarchical network data envelopment analysis firm efficiencies of Japan Airlines' supply chain

Although environmental, social, and governance (ESG) have been recognized for its overall impact on firm efficiency, research on the effects of the three main and multiple sub elements of ESG, especially in the airline industry, has been lacking. Thus, we analyze the impacts of overall ESG, its thre...

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Main Authors: Kweh, Qian Long, Ting, Irene Wei Kiong, Asif, Jawad, Lu, Wen-Min
Format: Article
Language:English
Published: John Wiley and Sons Ltd 2024
Subjects:
Online Access:http://umpir.ump.edu.my/id/eprint/43402/
http://umpir.ump.edu.my/id/eprint/43402/1/Kweh%20et%20al.%20%282024%29_BSE.pdf
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author Kweh, Qian Long
Ting, Irene Wei Kiong
Asif, Jawad
Lu, Wen-Min
author_facet Kweh, Qian Long
Ting, Irene Wei Kiong
Asif, Jawad
Lu, Wen-Min
author_sort Kweh, Qian Long
building UMP Institutional Repository
collection Online Access
description Although environmental, social, and governance (ESG) have been recognized for its overall impact on firm efficiency, research on the effects of the three main and multiple sub elements of ESG, especially in the airline industry, has been lacking. Thus, we analyze the impacts of overall ESG, its three main elements, and each sub elements of ESG on the firm efficiency of 29 suppliers, partners, and customers of Japan Airlines over the period of 2013–2022. First, we employ a two-stage hierarchical network data envelopment analysis (DEA) technique that assesses the interrelationships and interdependencies among the supply chain players in contributing toward achieving their respective operating and profitability efficiencies. Second, we run ordinary least squares regression analyses with 5000 bootstrap replications and determine that overall ESG and its three main elements are positively linked with firm efficiencies. The sub elements of ESG have different impacts on firm efficiencies. That is, resource use and environmental innovation under the Environmental element and human rights and product responsibility under the Social element show significantly positive associations with firm efficiencies. All Governance sub elements positively affect firm efficiencies. The outcomes of this study will be valuable for managers at Japan Airlines and other policymakers within its supply chain because it highlights the importance of focusing on the three main and sub elements of ESG and employing the accurate firm efficiency measurement method when interrelationships and interdependencies of decision-making units exist.
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spelling ump-434022025-01-03T07:15:59Z http://umpir.ump.edu.my/id/eprint/43402/ Environmental, social, and governance and hierarchical network data envelopment analysis firm efficiencies of Japan Airlines' supply chain Kweh, Qian Long Ting, Irene Wei Kiong Asif, Jawad Lu, Wen-Min HG Finance Although environmental, social, and governance (ESG) have been recognized for its overall impact on firm efficiency, research on the effects of the three main and multiple sub elements of ESG, especially in the airline industry, has been lacking. Thus, we analyze the impacts of overall ESG, its three main elements, and each sub elements of ESG on the firm efficiency of 29 suppliers, partners, and customers of Japan Airlines over the period of 2013–2022. First, we employ a two-stage hierarchical network data envelopment analysis (DEA) technique that assesses the interrelationships and interdependencies among the supply chain players in contributing toward achieving their respective operating and profitability efficiencies. Second, we run ordinary least squares regression analyses with 5000 bootstrap replications and determine that overall ESG and its three main elements are positively linked with firm efficiencies. The sub elements of ESG have different impacts on firm efficiencies. That is, resource use and environmental innovation under the Environmental element and human rights and product responsibility under the Social element show significantly positive associations with firm efficiencies. All Governance sub elements positively affect firm efficiencies. The outcomes of this study will be valuable for managers at Japan Airlines and other policymakers within its supply chain because it highlights the importance of focusing on the three main and sub elements of ESG and employing the accurate firm efficiency measurement method when interrelationships and interdependencies of decision-making units exist. John Wiley and Sons Ltd 2024-11 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/43402/1/Kweh%20et%20al.%20%282024%29_BSE.pdf Kweh, Qian Long and Ting, Irene Wei Kiong and Asif, Jawad and Lu, Wen-Min (2024) Environmental, social, and governance and hierarchical network data envelopment analysis firm efficiencies of Japan Airlines' supply chain. Business Strategy and the Environment, 33 (7). pp. 7060-7076. ISSN 0964-4733. (Published) https://doi.org/10.1002/bse.3861 https://doi.org/10.1002/bse.3861
spellingShingle HG Finance
Kweh, Qian Long
Ting, Irene Wei Kiong
Asif, Jawad
Lu, Wen-Min
Environmental, social, and governance and hierarchical network data envelopment analysis firm efficiencies of Japan Airlines' supply chain
title Environmental, social, and governance and hierarchical network data envelopment analysis firm efficiencies of Japan Airlines' supply chain
title_full Environmental, social, and governance and hierarchical network data envelopment analysis firm efficiencies of Japan Airlines' supply chain
title_fullStr Environmental, social, and governance and hierarchical network data envelopment analysis firm efficiencies of Japan Airlines' supply chain
title_full_unstemmed Environmental, social, and governance and hierarchical network data envelopment analysis firm efficiencies of Japan Airlines' supply chain
title_short Environmental, social, and governance and hierarchical network data envelopment analysis firm efficiencies of Japan Airlines' supply chain
title_sort environmental, social, and governance and hierarchical network data envelopment analysis firm efficiencies of japan airlines' supply chain
topic HG Finance
url http://umpir.ump.edu.my/id/eprint/43402/
http://umpir.ump.edu.my/id/eprint/43402/
http://umpir.ump.edu.my/id/eprint/43402/
http://umpir.ump.edu.my/id/eprint/43402/1/Kweh%20et%20al.%20%282024%29_BSE.pdf