Eco-activities and operating performance in the computer and electronics industry

Despite the complexity of implementing environmentally sustainable practices, an increasing number of firms have invested in eco-activities. This study investigates the association between eco-activities and operating performance over time. Moreover, this study explores the impact of eco-approaches (eco-collaboration and eco-certification) on operating performance. A difference-in-differences research design is established using operating performance data (COMPUSTAT) and eco-activity data (eco-announcements, eco-certification providers, and ASSET4). Empirical results reveal that eco-activities in the computer and electronics industry are associated with increased margin and revenue performance; however, the realization of benefits takes time (improvement typically occurs within three years of the corresponding eco-announcement). Furthermore, although eco-collaboration tends to be expensive to establish, operating performance is improved over the long term. This study also finds that eco-certification is associated with increased improvement in operating performance delivered by eco-activities.