Complexity and the triple bottom line: an information-processing perspective.

Journal article


Wiengarten, Frank, Ahmed, Muhammad Usman, Longoni, Annachiara, Pagell, Mark and Fynes, Brian 2017. Complexity and the triple bottom line: an information-processing perspective. International Journal of Operations & Production Management. https://doi.org/10.1108/IJOPM-06-2016-0292
AuthorsWiengarten, Frank, Ahmed, Muhammad Usman, Longoni, Annachiara, Pagell, Mark and Fynes, Brian
Abstract

The purpose of this paper is to empirically investigate the impact of complexity on the triple bottom line by applying information-processing theory. Specifically, the paper assesses the impact of internal manufacturing complexity on environmental, social, and financial performance. Furthermore, the paper assesses the moderating role of connectivity and shared schema in reducing the potential negative impact of complexity on performance. Multi-country survey data collected through the Global Manufacturing Research Group were utilized to test the hypotheses. The authors used structural equation modeling to test the measurement and initial structural model. Furthermore, to test the proposed moderating hypotheses, the authors applied the latent moderated structural equations approach. The results indicate that while complexity has a negative impact on environmental and social performance, it does not significantly affect financial performance. Furthermore, this negative impact can be reduced, to some extent, through connectivity; however, shared schema does not significantly impact on the complexity-performance relationship. This study presents a comprehensive analysis of the impact of complexity on sustainability. Furthermore, it provides managerial applications as it proposes specific tools to deal with the potential negative influences of complexity.

The purpose of this paper is to empirically investigate the impact of complexity on the triple bottom line by applying information-processing theory. Specifically, the paper assesses the impact of internal manufacturing complexity on environmental, social, and financial performance. Furthermore, the paper assesses the moderating role of connectivity and shared schema in reducing the potential negative impact of complexity on performance.

Multi-country survey data collected through the Global Manufacturing Research Group were utilized to test the hypotheses. The authors used structural equation modeling to test the measurement and initial structural model. Furthermore, to test the proposed moderating hypotheses, the authors applied the latent moderated structural equations approach.

The results indicate that while complexity has a negative impact on environmental and social performance, it does not significantly affect financial performance. Furthermore, this negative impact can be reduced, to some extent, through connectivity; however, shared schema does not significantly impact on the complexity-performance relationship.

This study presents a comprehensive analysis of the impact of complexity on sustainability. Furthermore, it provides managerial applications as it proposes specific tools to deal with the potential negative influences of complexity.

KeywordsTriple bottom line; Complexity
Year2017
JournalInternational Journal of Operations & Production Management
PublisherEmerald
ISSN0144-3577
Digital Object Identifier (DOI)https://doi.org/10.1108/IJOPM-06-2016-0292
Web address (URL)http://hdl.handle.net/10545/623148
hdl:10545/623148
Publication dates09 Apr 2017
Publication process dates
Deposited23 Nov 2018, 10:07
Accepted17 Oct 2016
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Archived with thanks to International Journal of Operations & Production Management

ContributorsRamon Llull University, Clarkson University, University College Dublin, Department of Operations and Innovation, ESADE – Ramon Llull University, Barcelona, Spain, Clarkson University, Potsdam, New York, USA, Business School, ESADE – Ramon Llull University, Barcelona, Spain, University College Dublin, Dublin, Ireland and University College Dublin, Dublin, Ireland
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