Effects of the value chain on environmental, social and governance effects practices: an analysis of companies listed on IBOVESPA
Abstract
Objective: To analyze the effect of the Value Chain on Environmental, Social and Governance (ESG) practices among companies belonging to the Bovespa index. The Value Chain corresponds to an interconnected set of activities that add value to companies, and through Open Innovation it would be possible to capture additional dimensions of performance, such as ESG practices.
Method: Descriptive, documentary research with a quantitative approach through Linear Regression of Ordinary Least Squares. The study sample corresponded to 64 non-financial companies belonging to the Bovespa index, during the period from 2016 to 2020.
Originality/Relevance: The originality of the research consists in investigating the research question from the point of view of open innovation, in addition to seeking evidence about strategic factors of companies that allow them to maximize organizational performance through the formation of global value chains and the generation of sustainable improvements.
Results: The results point to a positive and significant relationship between the Value Chain and ESG practices, revealing that companies with greater supplier-customer relationships have incentives to develop strategic initiatives for ESG practices. Additionally, the sensitivity test confirms the findings of the main analysis by individually checking each of the practices.
Theoretical/practical contributions: In the theoretical sphere, it contributes by using open innovation to investigate the research question. From a practical point of view, it contributes by demonstrating that the capabilities originated because of involvement in the value chain enable socio-environmental practices. Future research may look at specific sectors, as well as use other Value Chain measures and measurement methods for ESG practices.
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