Show Me the Green: Three Essays on Information Systems Value and Environmental Performance ...

147 Pages·2015·1.52 MB·English

by  Dan Rush

Show Me the Green: Three Essays on Information Systems Value and
Environmental Performance in Global Organizations

by

Daniel E. Rush

A dissertation submitted in partial fulfillment
of the requirements for the degree of
Doctor of Philosophy
(Business Administration)
in the University of Michigan
2015

Doctoral Committee:
Associate Professor Nigel P. Melville, Chair
Professor Andrew John Hoffman
Professor Gautam Kaul
Professor MS Krishnan
Lake Pend Oreille, ID
Photo by Mark G. Murray, my childhood hero
© Daniel E. Rush 2015
DEDICATION

To my family: past, present, and future.

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ACKNOWLEDGMENTS
Too many people have provided material support to this effort for me to thank
them all by name. Despite the clear danger that I will omit someone who made an
absolutely vital contribution, I will nonetheless attempt a partial list.
First, I must thank my advisor, Nigel Melville for his patience, thoughtful
reflection and keen insights throughout the process of writing this dissertation. I also
thank my committee, Andrew Hoffman, Gautam Kaul and MS Krishnan, for their
attention, insights and support. I would not have reached the dissertation stage without
the engagement of many other Ross faculty, including Michael Gordon, Scott Moore,
Hila Etzion, Gerald Davis, Amitabh Sinha, and Gautam Ahuja. I am indebted to the
faculty of the then-BIT department who freely offered their comments and support in the
early stages of my career: Thomas Schriber, Dennis Severence, Joe Walls, Jerry Peterson,
Neil Nelson (and operations stalwart Eric Svaan). I am also appreciative for insights,
opportunities and guidance from faculty outside Ross, including Kai Zheng, Charles
Friedman, Julia Adler-Milstein, Ronald Ramirez and Kevin Kobelsky. The network of
Michigan Ross BIT alumni has been an invaluable support and delight to get to know, for
which I must thank Ajit Sharma, Suresh Malladi, Sanghee Lim, Terence Saldanha, Min-
Seok Pang, Mark Madrilejo, Andrea Walrath, Sajeev Cherian, Ali Tafti, Ramnath
Subramanyam, Narayan Ramasubbu, and Sunil Mithas.
Brian Jones, Kelsey Belzak and Roberta Perry of the Ross PhD office are simply
indispensable and I am fortunate to have had my administrative life in their charge.
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Similarly, my development as a teacher and writer was profoundly impacted by Karen
Bird, Christine Feak and Brenda Imber.
I also thank audiences at the following conferences and workshops at which prior
versions of this work were presented and refined: 2012 International Conference on
Information Systems, 2013 ICOS Dissertation Symposium, 2014 Big 10 IS Symposium,
2014 Americas Conference on Information Systems, 2014 INFORMS annual meeting,
and the 2014 Workshop on Information Technology and Systems. The financial support
of the Ross School of Business, its TO and BIT departments, ISEF, the Stark Family, the
U of M Office of Financial Aid, and the Horace Rackham Graduate School are gratefully
acknowledged. Without this support I would not have been in graduate school pursuing
my dream.
Few journeys are possible without fellow sojourners, and I wish to thank Genna
Cohen and many other ICOS participants for involving me in their projects, camps and
discussions and teaching me the benefits of collegiality. Similarly, members of the 2012-
2014 PhD forums are gratefully acknowledged for helping me to practice service in the
face of adversity. My R4431 office-mates are also thanked for their high-fives, support in
difficulty and celebration, not to mention senses of humor. Moving beyond campus, I
must thank many friends in Northwood, the men of Friday morning, and numerous
coffee-shop, backgammon, and brewing conversation partners who refreshed and revived
me throughout this journey. Lastly, this research would not have been possible without
the support of my family. To my grandparents, cousins, parents and daughters – thank
you for your encouragement, inspiration and love. To my wife – this journey would not
have been possible without you. I love you.
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To the almighty, my heavenly father, I thank you for the gift of creation, your
presence in it, and the responsibility to care for it.
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TABLE OF CONTENTS
DEDICATION .................................................................................................................... ii
ACKNOWLEDGMENTS ................................................................................................. iii
LIST OF TABLES .............................................................................................................. x
LIST OF FIGURES .......................................................................................................... xii
ABSTRACT ..................................................................................................................... xiii
Chapter 1. Introduction and Motivation.............................................................................. 1
Definitions and Positioning............................................................................................. 2
Research Questions ......................................................................................................... 4
Contents and Contributions............................................................................................. 5
References ....................................................................................................................... 8
Chapter 2. IT and Market Value in a Global Context: A Monte Carlo Investigation
Informing International Event Studies .............................................................................. 10
Introduction ................................................................................................................... 10
A Brief Literature Review of the Event Study and its Use in IS .................................. 15
Overview of Event Study Estimation Methodology ..................................................... 18
Single Factor (Market) Model .................................................................................. 18
Challenges in Multi-Country Event Studies ............................................................. 20
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Multiple-Factor (World Market) Model ................................................................... 20
Additional Analyses .................................................................................................. 22
Description of Experimental Setup ............................................................................... 23
Data Generating Process and Simulation Plan.......................................................... 23
Results and Discussion ................................................................................................. 25
Conclusion .................................................................................................................... 28
References ..................................................................................................................... 30
Chapter 3. Market Value of Carbon Management Systems: An International
Investigation ...................................................................................................................... 33
Introduction ................................................................................................................... 33
Literature Review.......................................................................................................... 39
CMS Characteristics ................................................................................................. 39
Related CMS Studies ................................................................................................ 40
Theory Foundations and Hypothesis Development .................................................. 42
Research Methodology ................................................................................................. 49
Conventional Event Study Approach........................................................................ 49
International Event Study Considerations ................................................................ 51
Regression Analysis Model ...................................................................................... 53
Data ............................................................................................................................... 56
Collection .................................................................................................................. 56
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Preparation ................................................................................................................ 59
Synchronize International Markets ........................................................................... 59
Analysis and Results ..................................................................................................... 60
Portfolio and Split Analyses ..................................................................................... 60
Regression Analysis ...................................................................................................... 64
Discussion ..................................................................................................................... 65
Conclusion .................................................................................................................... 67
Limitations ................................................................................................................ 67
Future Research ........................................................................................................ 68
Appendix A: Data Preparation Details ......................................................................... 70
Confounding Events.................................................................................................. 70
Synchronize International Markets ........................................................................... 71
References ..................................................................................................................... 73
Chapter 4. Impact of Enterprise Information Systems on GHG Pollution Emissions
Reduction .......................................................................................................................... 79
Introduction ................................................................................................................... 79
Theoretical Background ................................................................................................ 81
IS Impacts on Firm Performance .............................................................................. 82
IS Impacts on Greenhouse Gas Emissions ................................................................ 84
Other Literature Examining Organization‘s CO2 Emissions Output ....................... 86
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