Development of a Model Linking Physical Asset Management to Sustainability Performance: An Empirical Research

Damjan Maletič, Matjaž Maletič, Basim Al-Najjar and Boštjan Gomišček
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Damjan Maletič: Faculty of Organizational Sciences, University of Maribor, Kidričeva 55a, 4000 Kranj, Slovenia
Matjaž Maletič: Faculty of Organizational Sciences, University of Maribor, Kidričeva 55a, 4000 Kranj, Slovenia
Basim Al-Najjar: Department of Mechanical Engineering, Faculty of Technology, Linnaeus University, Building M, 351 95 Växjö, Sweden
Boštjan Gomišček: Faculty of Business, University of Wollongong in Dubai, Knowledge Park, Block 15, P. O. Box 20183, Dubai, UAE

Sustainability, 2018, vol. 10, issue 12, 1-20

Abstract: This article is aimed at exploring the relationship between physical asset management (PAM) practices and sustainability performance. A framework of interrelated constructs was developed based on the existing literature and consequently tested through empirical study. Survey data were collected from organizations operating in six European countries (i.e., Greece, Poland, Slovakia, Slovenia, Sweden, and Turkey) and analyzed using Partial Least Squares Path Modeling (PLS-PM). The results offer support for the proposed hypotheses, showing that PAM practices positively influence the sustainability performance outcomes, namely economic, environmental, and employee-related social performance. Overall, this study demonstrates that a PAM framework can be conceptualized by four sub-constructs, namely physical asset risk management, physical asset performance assessment, physical asset lifecycle management, and physical asset policy and strategy. Finally, this study brings to light some theoretical and managerial implications as well as directions for future research. The findings of the study underscore PAM areas in which managers should focus on in order to optimize costs, performance, and risk exposures concerning the physical assets, and therefore enhance sustainability performance.

Keywords: physical asset management; ISO 55001; maintenance; sustainability performance; research model; SEM—PLS (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:10:y:2018:i:12:p:4759-:d:190289

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