Operational Values of Information Technology and Green Initiatives: The Stochastic Production Frontier Approach

Winston T Lin, Chia-Ching Chou

Research output: Contribution to journalArticlepeer-review

Abstract

Previous studies regarding environmental issues in the field of Information Technology (IT) focused on the direct effect of IT on the environment and indicated a trade-off relationship between them. This study employs the resource-based view, theory of production, and stochastic production frontier approach to empirically investigate the supporting role of IT in green initiatives among different industries and provide evidence that the joint presence of IT and green initiatives can positively contribute to operational performance. By adopting the built- in performance measure of the stochastic production frontier approach, this study investigates the relationships among IT, green initiatives, and productive efficiency. With sector, industry, and firm level analysis, this study shows detailed information on how IT and green initiatives contribute to operational performance in different ways, provides managers and decision makers a guideline for IT and green initiative investment decision-making, and develops a more realistic stochastic production frontier model for researchers to apply.<br> <br><br>
Original languageEnglish
JournalInternational Journal of Applied Decision Sciences
StatePublished - 2022

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