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1. Distilling the Interplay Between Corporate Environmental Management, Financial, and Emissions Performance: Evidence From U.S. Firms

   https://doi.org/10.1109/TEM.2020.3040158  

   Ogunrinde, Olawale; Shittu, Ekundayo; Dhanda, Kanwalroop Kathy (December 2020, IEEE Transactions on Engineering Management)

   This article investigates the relationship between firms’ carbon intensity, carbon management practices, and their financial performance. The extant literature on firms’ financial performance and their environmental performance has mostly considered a single dimension of firms’ environmental performance leading to restricted, and often, mixed outcomes. With panel data collected on financial statements and climate change related activities from 136 corporate firms in the U.S. between 2011 and 2018, this article integrates a process dimension based on an environmental management score with an outcome dimension represented by firms’ carbon emissions intensity. A regression model is employed to investigate the relationships between corporate environmental performance and corporate financial performance. We find evidence of a nonlinear relationship between corporate firms’ environmental performance and financial performance across both high and low-carbon intensive sectors. Specifically, we find that for firms in the high-carbon intensive sector, a U-shaped relationship exists between firms’ corporate environmental performance outcome dimension and their financial performance while for the low-carbon intensive sector, the converse is the case. The results show that the interaction between the outcome dimension of environmental performance and financial performance is moderated by the process dimension of environmental performance for firms in the low- and high-carbon intensive sectors. 

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2. Incentive-Aware Models of Financial Networks

   https://doi.org/10.1287/opre.2022.0678  

   Jalan, Akhil; Chakrabarti, Deepayan; Sarkar, Purnamrita (August 2024, Operations Research)

   A financial network is a web of contracts between firms. Each firm wants the best possible contracts. However, a contract between two firms requires the cooperation of both firms. This contest between cooperation and competition is studied in “Incentive-Aware Models of Financial Networks” by Akhil Jalan, Deepayan Chakrabarti, and Purnamrita Sarkar. They show how contract negotiations lead to a stable network where no firm wants to change contract sizes. In this network, the size of any contract depends on the beliefs of all firms, not just the contract’s two parties. Minor news about one firm can affect these beliefs, causing drastic changes in the network. Moreover, under realistic settings, a regulator cannot trace the source of such changes. This research illustrates the importance of firms’ beliefs and their implications for network stability. The insights could inform regulatory strategies and financial risk management. 

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3. Advancing external firm knowledge and building network ties: A mixed method examination of apparel industry conditions.

   Miller, N.J. and (January 2020, Twenty-first International Conference on Knowledge, Culture, and Change in Organizations)

   Understanding how manufacturers engage in knowledge sharing with other firms is key in providing insights for the reshoring and strengthening of US apparel and sewn products manufacturing. Based on both social capital theory and the knowledge-based view of the firm perspective, this paper analyzes the conditions within the firm that support knowledge absorptive capacity, social interaction, and a people-oriented culture in building network ties to advance sharing of resources along the supply chain. Manufacturers of apparel and sewn products operating within a western US state form the sample population for this mixed method exploration. Study 1 involves a four-year qualitative examination of manufacturers across the state. Findings highlighted the frequency of knowledge as a topic of external organizational discussion. Study 2 probed aspects of knowledge quantitatively using an online survey with 38 participating manufacturing firm owners. Results suggested strong associations among the three independent variables and network ties generating an adjusted R2 of 0.766. A significant two-way interaction effect was found for absorptive capacity and social interaction indicating their positive effect on network ties. The relationship between absorptive capacity and network ties was found to be greater with higher levels of social interaction. Theoretical implications and suggestions for application of findings are offered. 

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4. Dataset associated with U.S. Apparel Manufacturers Survey

   https://doi.org/10.25675/10217/234595  

   Miller, Nancy J.; Engel-Enright, Carol (January 2022, Mountain Scholar)

   Firms do not continue and prosper purely on their own individual endeavors, as each firm is influenced by the activities of others, and thus direct and indirect relationships shape the firm’s strategic management. These relationships form the tactics by which knowledge and other strategically important resources are accessed and created. Forming and maintaining ties among members of a network have been the subject for numerous research studies in the social, economic, and business literature. Our work is framed by the resource-based view of the firm perspective along with social capital theory and its shared constructs in network theory. Prior findings suggest that networking ties are strategic actions generated for firm growth and continuance. The ties may be short-term or develop into long-term relationships. The purpose of this research is to fill some of the gaps in interorganizational networking strategy by analyzing five antecedents that have been suggested in the literature as individually associated with entrepreneurs’ engagement in network ties. In this way, our work provides another research avenue for examining networking’s contribution to strategic management. We hypothesized positive connections to entrepreneurs’ engagement in network ties from antecedents involving the firm’s knowledge absorptive capacity, business goals, entrepreneurial orientation, social interactions, and support from their environment. We tested our proposed macrolevel direct and moderating connections through an online survey of 125 U.S. apparel manufacturing firms. The apparel manufacturing sector in the U.S., as in many countries, has struggled with multiple disrupting factors contributing to the sector’s decline in firm continuance. Networks, serving to build domestic and international supply chain ties, may provide one solution for adapting the firm’s resources enhancing global competitiveness. Findings from OLS regression analyses support our hypothesized connections in that each of the five antecedents significantly contributed to entrepreneurs’ engagement in network ties; however, when all five were collectively examined only absorptive capacity, social interaction, and business goals were significant (R2 = 0.58). Further examination of moderation effects found the entrepreneurs’ perceptions of a supportive environment to modify both entrepreneurial orientation and business goals. The effects of a supportive environment on business goals’ relationship with network ties were greater when perceptions of a supportive environment decreased, while the effects of a supportive environment on entrepreneurship orientation’s relationship with network ties were greater when perceptions of a supportive environment increased. Future studies may direct attention to other industry sectors or countries for replication with larger sample sizes as we recognize the limitations to generalizability and scale refinement due to our limited sample size. Examining the five constructs sheds light on how an organization’s decisions may relate to engaging in networking and provides theoretical as well as practical implications that contributes to the larger organizational system framework. This dataset contains responses from 97 U.S. apparel manufacturers collected via an online survey during the fall of 2019. The apparel manufacturing sector in the U.S., as in many countries, has struggled with multiple disrupting factors contributing to the sector’s decline in firm continuance. Networks, serving to build domestic and international supply chain ties, may provide one solution for adapting the firm’s resources enhancing global competitiveness. The purpose of the study was to examine connections to entrepreneurs’ engagement in network ties from antecedents involving the firm’s knowledge absorptive capacity, business goals, entrepreneurial orientation, social interactions, and support from their environment. 

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5. Investigating factors impacting U.S. small sized apparel manufacturers’ subjective evaluation of firm performance.

   Miller, Nancy J. (November 2021, International Journal of Business Management and Commerce)

   The purpose of this study was to learn more about U.S. small-sized apparel and sewn products manufacturing firms through an analysis of their firm performance with the multiple aims of improving management practice and advancing the reshoring of U.S. apparel manufacturing. We know relatively little about new companies and small-sized entrepreneurs who operate apparel production businesses, and specifically what impacts their perceptions of firm performance in navigating the complex and rapidly changing apparel industry. We build upon stakeholder theory and the knowledge-based view of the firm. Accordingly, this study involved a quantitative investigation as to what degree the following three attributes explained a subjective evaluation of U.S. apparel producing firm performance; entrepreneurial orientation, new product; and the ability of the firm to acquire knowledge in this competitive industry. Results of hierarchical multiple regression suggest that all three variables predicted significant change in firm performance with an adjusted R2 of 0.29. 

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