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The Interactions of Absorptive Capacity, Buffer Inventory, and Toxic Emissions on Firm Value

A significant amount of research has been conducted on the impacts of emissions reduction, absorptive capacity, and buffer inventory on firm performance. According to the resource-based view (RBV), absorptive capacity and buffer inventory are organizational capabilities and resources to create susta...

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Autores principales: Yiu, Lik Man Daphne, Wu, Ka Yui Karl
Formato: Online Artículo Texto
Lenguaje:English
Publicado: MDPI 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7922200/
https://www.ncbi.nlm.nih.gov/pubmed/33670749
http://dx.doi.org/10.3390/ijerph18041979
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author Yiu, Lik Man Daphne
Wu, Ka Yui Karl
author_facet Yiu, Lik Man Daphne
Wu, Ka Yui Karl
author_sort Yiu, Lik Man Daphne
collection PubMed
description A significant amount of research has been conducted on the impacts of emissions reduction, absorptive capacity, and buffer inventory on firm performance. According to the resource-based view (RBV), absorptive capacity and buffer inventory are organizational capabilities and resources to create sustainable competitive advantages. Yet, the resource orchestration perspective (ROP) of the RBV emphasizes that firms need to develop a new capability to orchestrate and deploy their existing capabilities and resources. From an organizational learning perspective, firms with the low-level release of toxic chemicals have established a structured system and systematic organizational routines, strengthening their learning capabilities to share and use internal and external information across functional areas for continuous improvements. This study explores and seeks to understand toxic emissions through systematic operational routines as an organizational mechanism. These routines orchestrate and deploy the firm-specific absorptive capacity and buffer inventory to generate a sustainable competitive advantage. We examine the impacts of the absorptive capacity and buffer inventory on firm value in terms of Tobin’s Q, respectively. We also explore how such impacts are moderated by toxic emissions. Our results show that the absorptive capacity significantly enhances the market value of firms. However, the relationship between the buffer inventory and firm value is insignificant. Our additional analyses indicate that the impacts of the absorptive capacity and buffer inventory on the firm value are both significantly positive when firms release low toxic chemicals. Our results further suggest that firms can maximize their market value with a high absorptive capacity, high buffer inventory, and low toxic emissions.
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spelling pubmed-79222002021-03-03 The Interactions of Absorptive Capacity, Buffer Inventory, and Toxic Emissions on Firm Value Yiu, Lik Man Daphne Wu, Ka Yui Karl Int J Environ Res Public Health Article A significant amount of research has been conducted on the impacts of emissions reduction, absorptive capacity, and buffer inventory on firm performance. According to the resource-based view (RBV), absorptive capacity and buffer inventory are organizational capabilities and resources to create sustainable competitive advantages. Yet, the resource orchestration perspective (ROP) of the RBV emphasizes that firms need to develop a new capability to orchestrate and deploy their existing capabilities and resources. From an organizational learning perspective, firms with the low-level release of toxic chemicals have established a structured system and systematic organizational routines, strengthening their learning capabilities to share and use internal and external information across functional areas for continuous improvements. This study explores and seeks to understand toxic emissions through systematic operational routines as an organizational mechanism. These routines orchestrate and deploy the firm-specific absorptive capacity and buffer inventory to generate a sustainable competitive advantage. We examine the impacts of the absorptive capacity and buffer inventory on firm value in terms of Tobin’s Q, respectively. We also explore how such impacts are moderated by toxic emissions. Our results show that the absorptive capacity significantly enhances the market value of firms. However, the relationship between the buffer inventory and firm value is insignificant. Our additional analyses indicate that the impacts of the absorptive capacity and buffer inventory on the firm value are both significantly positive when firms release low toxic chemicals. Our results further suggest that firms can maximize their market value with a high absorptive capacity, high buffer inventory, and low toxic emissions. MDPI 2021-02-18 2021-02 /pmc/articles/PMC7922200/ /pubmed/33670749 http://dx.doi.org/10.3390/ijerph18041979 Text en © 2021 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
spellingShingle Article
Yiu, Lik Man Daphne
Wu, Ka Yui Karl
The Interactions of Absorptive Capacity, Buffer Inventory, and Toxic Emissions on Firm Value
title The Interactions of Absorptive Capacity, Buffer Inventory, and Toxic Emissions on Firm Value
title_full The Interactions of Absorptive Capacity, Buffer Inventory, and Toxic Emissions on Firm Value
title_fullStr The Interactions of Absorptive Capacity, Buffer Inventory, and Toxic Emissions on Firm Value
title_full_unstemmed The Interactions of Absorptive Capacity, Buffer Inventory, and Toxic Emissions on Firm Value
title_short The Interactions of Absorptive Capacity, Buffer Inventory, and Toxic Emissions on Firm Value
title_sort interactions of absorptive capacity, buffer inventory, and toxic emissions on firm value
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7922200/
https://www.ncbi.nlm.nih.gov/pubmed/33670749
http://dx.doi.org/10.3390/ijerph18041979
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