This study applies information-processing theory to empirically investigate the impact of complexity on the triple bottom line. Specifically, we assess the impact of internal manufacturing complexity on environmental, social, and financial performance. Furthermore, we assess the moderating role of connectivity and shared schema in reducing the potential negative impact of complexity on performance. Multi-country survey data collected through the Global Manufacturing Research Group (GMRG) was utilized to test our hypotheses. We used structural equation modeling to test our measurement and initial structural model. Furthermore, to test the proposed moderating hypotheses we applied the latent moderated structural equations approach. Results indicate that while complexity has a negative impact on environmental and social performance, it does not significantly affect financial performance. Furthermore, this negative impact can be reduced, to some extent, through connectivity, however shared schema does not significantly impact on the complexity-performance relationship. This study presents a comprehensive analysis of the impact of complexity on sustainability. Furthermore, it provides managerial applications as it proposes specific tools to deal with the potential negative influences of complexity.

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Wiengarten, Frank; Ahmed , Muhammad Usman; Longoni, Annachiara; Pagell , Mark; Fynes, Brian

Complexity and the triple bottom line: An information processing perspective

09/2017
This study applies information-processing theory to empirically investigate the impact of complexity on the triple bottom line. Specifically, we assess the impact of internal manufacturing complexity on environmental, social, and financial performance. Furthermore, we assess the moderating role of connectivity and shared schema in reducing the potential negative impact of complexity on performance. Multi-country survey data collected through the Global Manufacturing Research Group (GMRG) was utilized to test our hypotheses. We used structural equation modeling to test our measurement and initial structural model. Furthermore, to test the proposed moderating hypotheses we applied the latent moderated structural equations approach. Results indicate that while complexity has a negative impact on environmental and social performance, it does not significantly affect financial performance. Furthermore, this negative impact can be reduced, to some extent, through connectivity, however shared schema does not significantly impact on the complexity-performance relationship. This study presents a comprehensive analysis of the impact of complexity on sustainability. Furthermore, it provides managerial applications as it proposes specific tools to deal with the potential negative influences of complexity.
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Complexity and the triple bottom line: An information processing perspective
Wiengarten, Frank; Ahmed , Muhammad Usman; Longoni, Annachiara; Pagell , Mark; Fynes, Brian
International Journal of Operations & Production Management
Vol. 37, n 9, 09/2017, p. 1142 - 1163

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