The effects of ESG management on process innovation: The case of cement industry

https://doi.org/10.35912/amor.v6i2.2031
Published: Nov 29, 2024

Abstract:

Purpose: In the past, companies placed significant emphasis on Earnings Per Share (EPS) financial performance, while Environment Social Governance (ESG) is now used to assess a company's comprehensive performance in the areas of environment, social responsibility, and corporate governance.

Research Methodology: This study employs qualitative research through in-depth interviews and utilizes the SWOT analysis method. This study aims to conduct an in-depth investigation into Taiwan Asia Cement's future carbon management strategy, anticipating and positioning itself to turn the crisis into an opportunity, ultimately becoming a major winner in the era of climate change and a low-carbon economy.

Results: The primary objectives are to understand the innovative process of promoting low-carbon cement manufacturing by Taiwan Asia Cement and to investigate consumers' willingness to use this cement. The study reveals that Asia Cement has established a low-carbon cement promotion team, actively collaborating with consumers to increase the adoption of low-carbon cement, resulting in a stable market growth rate.

Limitations: The marketing strategies in this study are more useful for the cement industry only and are not applicable to competitive marketing strategies in other industries.

Contribution: Additionally, interviews uncover that consumers using low-carbon cement are mainly located in eastern Taiwan. Many consumers in this region have not heard of or used low-carbon cement, indicating significant marketing opportunities.

Novelty: In an environment where the world is emphasizing ESG, it is important to enhance the corporate image of the cement industry through process innovation to contribute to environmental issues.

Keywords:
1. Environment Social Governance (ESG)
2. Interview method
3. Low carbon cement
4. Portland cement
5. Process innovation
Authors:
1 . Shun-Hsing Chen
Asia Eastern University of Science and Technology, Taiwan
2 . Yu-Chung Huang
National Taiwan Normal University, Taiwan
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How to Cite
Chen, S.-H., & Huang, Y.-C. . (2024). The effects of ESG management on process innovation: The case of cement industry. Annals of Management and Organization Research, 6(2), 167–179. https://doi.org/10.35912/amor.v6i2.2031
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Issue & Section
Vol. 6 No. 2 (2024): November
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

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    Tan, X., Yan, Y., & Dong, Y. (2022). Peer effect in green credit induced green innovation: An empirical study from China's Green Credit Guidelines. Resources Policy, 76, 102619.

    Taylor, J., Vithayathil, J., & Yim, D. (2018). Are corporate social responsibility (CSR) initiatives such as sustainable development and environmental policies value enhancing or window dressing? Corporate Social Responsibility and Environmental Management, 25(5), 971-980.

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    Usman, M., Javed, M., & Yin, J. (2020). Board internationalization and green innovation. Economics Letters, 197, 109625.

    Wang, Q., Voss, C., Zhao, X., & Wang, Z. (2015). Modes of service innovation: a typology. Industrial Management & Data Systems, 115(7), 1358-1382.

    Xiao, R. L. (2017). Research Without Numbers: Wu-Nan Publishing Co.

    Yahya, S., Jamil, S., & Farooq, M. (2021). The impact of green organizational and human resource factors on developing countries' small business firms tendency toward green innovation: A natural resource?based view approach. Creativity and innovation management, 30(4), 726-741.

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    Yuan, X., Li, Z., Xu, J., & Shang, L. (2022). ESG disclosure and corporate financial irregularities–Evidence from Chinese listed firms. Journal of cleaner production, 332, 129992.

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  2. Bans-Akutey, A. (2022). Entrepreneurship education and personality traits as predictors of entrepreneurial intention: A qualitative approach. Annals of Management and Organization Research, 4(2), 147-158.
  3. Capelle-Blancard, G., & Petit, A. (2019). Every little helps? ESG news and stock market reaction. Journal of Business Ethics, 157, 543-565.
  4. Chang, C.-H. (2011). The influence of corporate environmental ethics on competitive advantage: The mediation role of green innovation. Journal of Business Ethics, 104, 361-370.
  5. Chekima, B., Chekima, F. Z., & Adis, A.-A. A. (2020). Social media influencer in advertising: The role of attractiveness, expertise and trustworthiness. Journal of Economics and Business, 3(4).
  6. Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches: Sage publications.
  7. Cunningham, J. A., & Walsh, G. S. (2019). Disciplinary perspectives on innovation: management. Foundations and Trends® in Entrepreneurship, 15(3-4), 391-430.
  8. Eccles, R. G., Lee, L.-E., & Stroehle, J. C. (2020). The social origins of ESG: An analysis of Innovest and KLD. Organization & Environment, 33(4), 575-596.
  9. Eisingerich, A. B., Rubera, G., & Seifert, M. (2009). Managing service innovation and interorganizational relationships for firm performance: to commit or diversify? Journal of service research, 11(4), 344-356.
  10. Garud, R., Tuertscher, P., & Van de Ven, A. H. (2013). Perspectives on innovation processes. Academy of Management Annals, 7(1), 775-819.
  11. GII. (2024). Cement - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029). Retrieved from https://www.giiresearch.com/report/moi1431024-cement-market-share-analysis-industry-trends.html
  12. Hamzah, R. S., Gozali, E. O. D., Annisa, M. L., & Pratiwi, C. N. (2022). The Role of Corporate Social Responsibility on the Performance of Indonesian Banking Corporation. International Journal of Financial, Accounting, and Management, 4(3), 365-377.
  13. He, X., & Jiang, S. (2019). Does gender diversity matter for green innovation? Business Strategy and the Environment, 28(7), 1341-1356.
  14. Hoerlsberger, M. (2019). Innovation management in a digital world. Journal of Manufacturing Technology Management, 30(8), 1117-1126.
  15. Huang, K. F. (2021). Energy Efficiency Analysis of the Cement Industry. 2021 Seminar on Enhancing Energy Efficiency in the Cement Industry.
  16. Innocent, O. C., Okafor, T., & Egolum, P. (2014). An assessment of environmental information disclosure practices of selected Nigerian manufacturing companies. International Journal of Finance and Accounting, 3(6), 349-355.
  17. Kempeneer, S., Peeters, M., & Compernolle, T. (2021). Bringing the user Back in the building: an analysis of ESG in real estate and a behavioral framework to guide future research. Sustainability, 13(6), 3239.
  18. Khan, M. R., & Hossain, S. S. (2021). Perception of distance learning in Bangladeshi tertiary education: prospects and obstacles in the Covid-19 era. Journal of Social, Humanity, and Education, 1(3), 197-207.
  19. Larsen, M. S. S., Lassen, A. H., & Schou, C. (2023). Manufacturing Innovation: A Heuristic Model of Innovation Processes for Industry 4.0. Applied System Innovation, 6(6), 98.
  20. Lauer, T. (2020). Change management: fundamentals and success factors: Springer Nature.
  21. Mey, G. (2022). Qualitative methodology International handbook of psychology learning and teaching (pp. 1-26): Springer.
  22. Nguyen, C., Nguyen, T., & Luu, V. (2022). Relationship between influencer marketing and purchase intention: focusing on Vietnamese gen Z consumers. Independent journal of management & production, 13(2), 810-828.
  23. Peterdy, K. (n.d.). ESG (Environmental, Social, & Governance). Retrieved from https://corporatefinanceinstitute.com/resources/esg/esg-environmental-social-governance/
  24. Platform, I. V. C. I. (2024).
  25. Putri, S., & Utama, A. A. (2024). Reliability improvement process case study: PT HMS Tbk. Journal of Multidisciplinary Academic Business Studies, 1(4), 427-446.
  26. PwC. (2023). What is ESG? Why should companies pay attention? Deciphering the key to enterprise. Retrieved from https://www.pwc.tw/zh/topics/trends/what-is-esg.html
  27. Roberts, K., Dowell, A., & Nie, J.-B. (2019). Attempting rigour and replicability in thematic analysis of qualitative research data; a case study of codebook development. BMC medical research methodology, 19, 1-8.
  28. Siedschlag, I., & Yan, W. (2021). Firms’ green investments: What factors matter? Journal of cleaner production, 310, 127554.
  29. Singh Panesar, S., & Markeset, T. (2008). Development of a framework for industrial service innovation management and coordination. Journal of Quality in Maintenance Engineering, 14(2), 177-193.
  30. Song, W., & Yu, H. (2018). Green innovation strategy and green innovation: The roles of green creativity and green organizational identity. Corporate Social Responsibility and Environmental Management, 25(2), 135-150.
  31. Tan, X., Yan, Y., & Dong, Y. (2022). Peer effect in green credit induced green innovation: An empirical study from China's Green Credit Guidelines. Resources Policy, 76, 102619.
  32. Taylor, J., Vithayathil, J., & Yim, D. (2018). Are corporate social responsibility (CSR) initiatives such as sustainable development and environmental policies value enhancing or window dressing? Corporate Social Responsibility and Environmental Management, 25(5), 971-980.
  33. Tettamanzi, P., Venturini, G., & Murgolo, M. (2022). Sustainability and financial accounting: A critical review on the ESG dynamics. Environmental Science and Pollution Research, 29(11), 16758-16761.
  34. Usman, M., Javed, M., & Yin, J. (2020). Board internationalization and green innovation. Economics Letters, 197, 109625.
  35. Wang, Q., Voss, C., Zhao, X., & Wang, Z. (2015). Modes of service innovation: a typology. Industrial Management & Data Systems, 115(7), 1358-1382.
  36. Xiao, R. L. (2017). Research Without Numbers: Wu-Nan Publishing Co.
  37. Yahya, S., Jamil, S., & Farooq, M. (2021). The impact of green organizational and human resource factors on developing countries' small business firms tendency toward green innovation: A natural resource?based view approach. Creativity and innovation management, 30(4), 726-741.
  38. Yang, S., Zhang, H., Zhang, Q., & Liu, T. (2022). Peer effects of enterprise green financing behavior: Evidence from China. Frontiers in Environmental Science, 10, 1033868.
  39. Yeye, O., & Egbunike, C. F. (2023). Environmental, Social and Governance (ESG) disclosure and firm value of manufacturing firms: The moderating role of profitability. International Journal of Financial, Accounting, and Management, 5(3), 311–322.
  40. Yuan, X., Li, Z., Xu, J., & Shang, L. (2022). ESG disclosure and corporate financial irregularities–Evidence from Chinese listed firms. Journal of cleaner production, 332, 129992.
  41. Zhao, J., Pongtornkulpanich, A., & Cheng, W. (2022). The impact of board size on green innovation in China’s heavily polluting enterprises: The mediating role of innovation openness. Sustainability, 14(14), 8632.