Environmental Engineering Reference
In-Depth Information
On the other hand, undoubtedly, a growing
environmental consciousness, including invest-
ments in environmental technologies, carries with
it a source of business risk, particularly to brand,
reputation, and shareholder value (Sigma, 2006).
Therefore, a measurement on a balanced scorecard
should consist of a linked set of objectives and
measurements that are consistent and mutually
reinforcing (Kaplan and Norton, 1997). Although
various approaches to the IT balanced-scorecard
have been adopted, IT researchers and practitioners
should be aware of their applicability to measure-
ments of environmental technology alignment.
The adoption of Green IT could differ from other
IT adoption approaches due to the importance of
ethical and eco-sustainability considerations in
the decision-making process (Molla, 2009). IT
adoption is generally motivated by the potential
economic benefits associated with the use of a
technology, whereas Green IT practices may be
motivated by concern for the environment, even if
economic benefits might not prove tangible in the
short-term (Molla, 2009). Therefore, continuing in
this vein, the Green IT balanced scorecard can be
viewed as “
a nomological management tool to sys-
tematically align IT strategy with business strategy
from environmental sustainability perspective in
order to achieve competitive advantage”.
Kaplan and Norton (1997) also asserted that a
balanced scorecard must contain the appropriate
mixture of outcome measures (lagging indicators)
and performance drivers (leading indicators).
Performance drivers provide early indicators as
to whether or not the strategy is being success-
fully implemented, whereas outcome measures
help to show whether operational improvements
have been successfully translated into financial
performance. The scorecard should strongly
emphasize financial outcomes. Additionally, the
scorecard should include measurements critical
to the success of the unit's established strategy.
The needs, demands, goals, objectives, and/or
structures of one component should be consistent
structure of another component (Oh and Pinson-
neault, 2007). Thus, the measures that appear on
the scorecard should be integrated thoroughly into
the cause-and-effect relationship that describes the
trajectory of the strategy. Because the balanced
scorecard is a technique for the implementation of
strategy, the prerequisite for the companies before
they implement a Green IT balanced scorecard
approach is described as:
“they have committed
to environmental responsibility”
. The objectives
of the Green IT balanced scorecard are as fol-
lows:
(1) to measure technology performance
by effectively integrating environmental aspects,
(2) to investigate both tangible and intangible
assets of Green IT investment, and (3) to align
IT performance and business performance, and
transform the results into competitive advantage.
2 BASIC PILLARS
Our Green IT BSC model is comprised of two
distinct pillars: environmental aspects of tech-
nology and competitive advantages of Green IT
implementation. These two factors are responsible
for the relative significance of sustainable IT vision
in the business environment. They also constitute
a foundation for the formulation of further metrics
scorecards.
1. Environmental Aspects
of Technology
A number of previous studies have demonstrated
that environmental aspects are strategically rel-
evant as a driver of performance (e.g. Aragon-Cor-
rea and Rubio- Lopez., 2007; Carmona-Moreno
et al.
, 2004; Cohen
et al.
, 1995; Cordeiro and
Sarkis, 1997; Edwards, 1998; Gilley
et al.
, 2000;
Hamilton, 1995; Hart and Ahuja, 1996; Klassen
and McLaughlin, 1996; Klassen and Whybark,
1999; Link and Naveh, 2006; Russo and Fouts,
1997; Sharma and Vredenburg, 1998; Wagner
et al.
, 2002; Wagner, 2005;). However, in fact,
