Environmental Engineering Reference
In-Depth Information
organizational ability to provide a systematic
framework for decision-making process during
the formulation and implementation of IT strategy
as a direction to achieve competitive advantages
for the corporation”.
The objectives of IT governance are as fol-
lows: (1) IT is aligned with business, enables
business success, and maximizes benefits; (2) IT
resources are utilized responsibly; (3) IT-related
risks are appropriately managed (COBIT, 2000).
The most critical element of IT governance is the
alignment of IT with the business, which leads
to the creation of business value (De Haes and
Van Grembergen, 2004). According to De Haes
and Van Grembergen (2008), IT governance
can be set up using a variety of structures, pro-
cesses, and relational mechanisms. In this case,
the relevant structures include structural devices
and mechanisms for connecting and enabling
horizontal, or liaison, contacts between business
and IT management functions. Processes refer
to the 'formalization and institutionalization of
strategic IT decision-making or IT monitoring
procedures (e.g. IT balanced scorecard), and
relational mechanisms refer to the active partici-
pation in, and collaborative relationships among
corporate executives, IT management, and busi-
ness management. With regard to environment, in
the past year, many organizations have integrated
environmental management systems into their IT
mechanisms. Thus, when companies perceive the
need to address the climate change issue in their
business strategy, they also must implement a
strategy aimed at balancing the social, environ-
mental, and economic needs of both the company
and the society at large (Epstein and Roy, 2001).
This integration with the environmental manage-
ment system will prevent adverse environmental
effects and improve environmental performance
by institutionalizing a variety of environmental
programs and practices such as the initiation of
environment-associated performance measures
and the development of green technologies, pro-
cesses, and products (Saha and Darnton, 2005).
TECHNOLOGY PERFORMANCE AND
ENVIRONMENTAL PERSPECTIVE
We begin by discussing performance measure-
ments, specifically by addressing the interrela-
tionship between technology and environmental
sustainability. The World Commission of Envi-
ronmental and Development defines sustainability
as “economic development that meets the needs
of the present generation without compromising
the ability of future generations to meet their
own needs”.
Hart (1995) noted previously that the concept
of the environment in management theory empha-
sizes political, economic, social and technologi-
cal aspects, but frequently neglects the natural
environment. Rasanen et al. (1994) also showed
that the greening of industry can involve any
fundamental change in the managerial logic of
action. Moreover, Garrod and Chadwick (1996)
determined that some firms have adopted envi-
ronmental management tools only to the extent
that such a strategy will enable the firms to pursue
more effectively their profit-centered approach.
Also, while the companies decided to invest in
environmental technology to comply with gov-
ernment regulations, they also need to spend and
allocate their budget into a range of cost (Jaffe et
al ., 1995), such as: governmental administration
of environmental costs (statutes and regulations,
monitoring, and enforcement), private sector
compliance expenditures (capital and operating),
other direct costs (legal and other transactional,
shifted management focus, disrupted production),
negative costs (natural resource inputs, worker
health, and innovation stimulation), general equi-
librium effects (product substitution, discouraged
investment, retarded innovation), transaction costs
(unemployment, obsolete capital), and social
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