Sustainability Practices, Performance and Competitiveness in the Export Furniture Industry Management

Johann, Gabriela Bertoletti; Silva, Givanildo; Mazzioni, Sady; Casagrande, Rodrigo Moreira

doi:10.1590/1809-4422asoc20210029r2r1vu2022L3OA

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Original Article • Ambient. soc. 25 • 2022 • https://doi.org/10.1590/1809-4422asoc20210029r2r1vu2022L3OA copy

Sustainability Practices, Performance and Competitiveness in the Export Furniture Industry Management

Prácticas de sostenibilidad, desempeño y competitividad en la gestión de la industria del mueble de exportación

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Stakeholders’ increasing concern with sustainability has been encouraging firms to adopt practices aimed at minimizing their negative externalities. The aim of the current article is to investigate the impact of adopting sustainability practices on the performance and competitiveness of the Brazilian furniture industry. Environmental management variables, operational practices, social practices focused on both the employees and the community were herein considered sustainability practices. Results have indicated the positive association of operational and social practices with sustainability performance and competitiveness. However, such behavior was not observed in environmental practices. The current study has shown the way each sustainability dimension influences performance by encouraging managers to invest in social and environmental practices, and by contributing to systemic changes on behalf of sustainability. Evidence has confirmed that investing in sustainability practices helps improving companies’ performance and competitiveness.

Keywords:
Furniture industry; sustainability practices; performance; competitiveness; organizational sustainability

Companies operating in the Brazilian furniture sector	N	Balance
Furniture companies listed in the Ministry of Economy	407	407
Bankrupt or in judicial recovery	30	377
Could not be contacted or refused to respond	10	367
Refused to respond	7	360
Total number of responses	83	23.05%
Sample comprising valid questionnaires	80	22.22%

SUSTAINABILITY PRACTICES ADOPTED IN SUPPLY CHAIN MANAGEMENT PROCESSES
Environmental Management Practices (EMP)	EMP1	Environmental management practices adopted by our organization are structured in compliance with the ISO 14001 certification or with the comparable Environmental Management System.
	EMP2	We provide project/design specifications to suppliers about environmental compliance per purchased item.
	EMP3	We help our suppliers to set environmental management systems and/or to get the ISO 14001 certification.
	EMP4	We address our customers’ environmental concerns by establishing eco-friendly products’ design/project and distribution.
	EMP5	We address our customers’ environmental concerns by adopting cleaner production processes.
	EMP6	Our products have been designed to consume less raw material and energy during the production process.
Operational Practices (OP)	OP1	We make the implementation of Total Quality Management, Six Sigma and Total Productive Maintenance by our suppliers easier in order to create quality products.
	OP2	We support our suppliers’ Value Engineering to help reducing costs with components.
	OP3	We consistently follow the Just-in-Time inventory control technique to maintain inventory and to minimize expenses.
	OP4	We keep our production lean and try to minimize expenses in all actions.
	OP5	We aim at achieving economies of scale in the incoming transport of inputs and raw materials and in the outgoing transport of finished products.
Supply Chain Management (SCM)	SCM1	We update our production plan based on our customers’ needs and we share it with our suppliers.
	SCM2	Our organization quickly responds to the needs of our customers, since it maintains a proper inventory.
	SCM3	We estimate our customers’ future needs based on realistic assessments.
	SCM4	We quickly inform our suppliers about our customers’ future needs.
Employee-oriented Social Inclusion Practices (EoSIP)	EoSIP1	Advanced safety measures adopted by the organization reduce the risk of accidents.
	EoSIP2	Our organization provides a positive and healthy work environment for our employees.
	EoSIP3	Slave, forced or child labor is not allowed in our organization.
	EoSIP4	Wages and benefits paid to employees are enough to cover their basic needs.
	EoSIP5	Employees are entitled to vacation, social security and health care, among other benefits.
Community-oriented Socially Inclusive Practices (CoSIP)	CoSIP1	We provide job and business opportunities to the local community.
	CoSIP2	We provide medical assistance to the local community.
	CoSIP3	We help primary education units focused on individuals living in the area surrounding our organization.
Performance Measurements applied to Sustainability Practices in Supply Chain Management Processes
Competitiveness-related Performance Measurement (CPM)	CPM1	Improving the levels of services based on equal or smaller inventory.
	CPM2	Improving the quality of products and services.
	CPM3	Improving the use of organization’s capacity/productivity.
	CPM4	Better competitive advantages in terms of offering differentiated products to customers.
	CPM5	Customer base retention.
	CPM6	Better opportunities for the company to reach and win new customers.
	CPM7	Improving company’s image because it is considered “green” (environmentally responsible).
Environmental Performance Measurement (EPM)	EPM1	Reduced costs with effluent treatment and discharge.
	EPM2	Reducing toxic waste discharge (solid, liquid or gaseous).
	EPM3	Reducing the frequency of environmental accidents.
	EPM4	Reducing the frequency of accidents in the operational sector.
	EPM5	Local biodiversity protection.
Operational Performance Measurement (OPM)	OPM1	Reducing production costs.
	OPM2	Reducing energy consumption.
	OPM3	Improving inbound logistics’ (inputs/raw materials) efficiency.
	OPM4	Improving outbound logistics’ (finished goods) efficiency.
Employee-based Social Performance (EbSP)	EbSP1	Reducing inequalities in the wage, among other benefits, paid to employees working at the same hierarchical level.
	EbSP2	Reducing differences in permissible compensation packages (wages + benefits) paid to employees working at different hierarchical levels.
	EbSP3	Improving organization’s working environment and workers’ morale.
Community-based Social Performance (CoSP)	CbSP1	Improving the company’s image based on its accountability towards the community.
	CbSP2	Better job and business opportunities generated by the organization to the local community.
	CbSP3	Improving the education level of individuals living in the area surrounding the company.
	CbSP4	Extending the time individuals remain disease-free by improving health services provided by the organization.

Panel A - Sustainability Practices	Min.	Max.	Mean	Standard Deviation	Variance
Environmental Management Practices	1	5	3.443	1.0157	1.032
Operational Practices	2	5	3.908	0.7807	0.610
Employee-oriented Social Practices	2	5	4.458	0.6055	0.367
Community-oriented Social Practices	1	5	3.254	0.9311	0.867
Panel B - Performance and Competitiveness	Min.	Max.	Mean	Standard Deviation	Variance
Environmental Performance	2	5	4.250	0.644	0.415
Operational Performance	1	5	4.157	0.753	0.568
Employee-based Social Performance	1	5	3.739	0.8981	0.807
Community-based Social Performance	1	5	3.939	0.8277	0.685
Global Sustainability Performance	3	5	4.063	0.578	0.335
Competitiveness	3	5	4.087	0.6016	0.362

Explanatory Variables (constants)	EP	OP	EbSP	CbSP	GSP	COMP
Constant	0.002	0.013	0.341	0.964	0.001	0.001
MeanESP	0.068	-0.125	0.168	0.038	0.16	-0.051
Mean EcSP	0.352**	0.738*	0.333**	0.432***	0.662***	0.742***
MeanSIPE	0.253**	0.042	0.075	0.210**	0.189**	0.160**
MeanSIPC	0.156*	0.090	0.196**	0.271***	0.201***	0.115*
F Statistic	13.194***	18.085***	9.986***	19.974***	54.477***	44.576***
Adjusted R²	0.382	0.464	0.313	0.490	0.730	0.688
VIF	From 1.082 to 2.363
DW	2.085	1.946	1.748	2.000	2.048	1.992
Pesarán-Pesarán	0.744	0.199	0.366	0.754	0.104	0.641

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[1] Gabriela Bertoletti Johann ✉ gabriela.johann@unochapeco.edu.br