Environmental and social performance relationships to firm efficiency: Evidence from the semiconductor industry

Lihua Sun, Chunguang Bai and Joseph Sarkis

International Journal of Production Economics, 2024, vol. 278, issue C

Abstract: Escalating global demand for high-performance computing and smart devices has driven rapid expansion in the semiconductor industry. This expansion raises environmental and societal sustainability concerns among stakeholders. Although there is a growing commitment to environmental and social responsibilities by semiconductor companies, the impact of these responsibilities and initiatives on corporate performance remains unclear—especially with respect to general firm operational efficiency. Thus, this study employs a sample of 129 listed Chinese semiconductor companies and a slack-based data envelopment analysis (SBM-DEA) methodology to examine the relationship between corporate environmental and social performance and firm efficiency. We also investigate how supply chain position—an important industrial characteristic—moderates these relationships. The findings reveal that: (1) China's semiconductor industry efficiency is relatively low, particularly in the chip design sub-sector; (2) there is a positive relationship between corporate environmental performance and firm efficiency; and (3) supply chain position moderates the relationship between both corporate environmental and social performance and firm efficiency. These findings offer important implications for managers and researchers aiming to foster greater semiconductor industry sustainable development.

Keywords: Supply chain; Sustainability; Environmental; Firm efficiency; Semiconductors (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:278:y:2024:i:c:s0925527324002676

DOI: 10.1016/j.ijpe.2024.109410

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