Corporate Governance-Based Strategic Approach to Sustainability in Energy Industry of Emerging Economies with a Novel Interval-Valued Intuitionistic Fuzzy Hybrid Decision Making Model

The sustainability in energy industry is one of the most prominent issues in emerging economies because of needs for the long-term growth of production and managerial capacity. Accordingly, corporate governance could lead to develop the sustainable production of energy industry. The purpose of this study is to define a set of criteria and dimensions for analyzing the corporate governance-based strategic approach to sustainability in the energy industry of emerging economies. For this purpose, this study provides several novelties by extending a hybrid decision making model with interval-valued intuitionistic fuzzy sets (IVIF) and defining the related criteria and dimensions of corporate governance-based strategic approach with the supported literature. IVIF decision making trial and evaluation laboratory (DEMATEL) is constructed for measuring the relative importance of criteria and dimensions. IVIF VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) is applied for ranking the corporate governance-based performance of sustainable energy industries in emerging economies. Sensitivity analysis is also used for understanding the coherence of ranking results. Analysis results illustrate that the energy industry could provide more sustainable results than the conventional managerial policies by considering the social capital of board members. Additionally, mass-economies are closely related to the sustainable production capacities of energy industry and have the best performance results for the corporate governance-based sustainable energy production strategies. The results are discussed to provide the policy recommendations by comparing analysis results of emerging economies for further studies.

[1]  Xuemei Xie,et al.  The heterogeneous relationship between board social ties and corporate environmental responsibility in an emerging economy , 2018, Business Strategy and the Environment.

[2]  Guoqing Xu,et al.  Experimental investigations of fracturing fluid flowback and retention under forced imbibition in fossil hydrogen energy development of tight oil based on nuclear magnetic resonance , 2020 .

[3]  Jin-young Jung,et al.  When Do Firms Benefit from Affiliated Outside Directors? Evidence from Korea , 2018 .

[4]  Joakim Wincent,et al.  Does network board capital matter? A study of innovative performance in strategic SME networks , 2010 .

[5]  Robert LIN,et al.  NOTE ON FUZZY SETS , 2014 .

[6]  S. Tsai,et al.  Does a Board Chairman’s Political Connection Affect Green Investment?—From a Sustainable Perspective , 2018 .

[7]  Shaker A. Zahra,et al.  Boards of Directors and Corporate Financial Performance: A Review and Integrative Model , 1989 .

[8]  Metin Dagdeviren,et al.  A hybrid multi-criteria decision-making model for personnel selection in manufacturing systems , 2010, J. Intell. Manuf..

[9]  S. Mangla,et al.  A step to clean energy - Sustainability in energy system management in an emerging economy context , 2020 .

[10]  Mehmet Kabak,et al.  A Fuzzy DEMATEL-ANP Based Multi Criteria Decision Making Approach for Personnel Selection , 2013, J. Multiple Valued Log. Soft Comput..

[11]  B. Mazur.  Corporate Social Responsibility in Poland :Businesses' Self-Presentations , 2015 .

[12]  Abdeen Mustafa Omer,et al.  Green energies and the environment , 2008 .

[13]  Krassimir T. Atanassov,et al.  Intuitionistic fuzzy sets , 1986 .

[14]  M. Torchia,et al.  Do boards of directors foster strategic change? A dynamic managerial capabilities perspective , 2020, Journal of Management and Governance.

[15]  Constance E. Helfat,et al.  Dynamic Managerial Capabilities , 2015 .

[16]  T. Hafsi,et al.  Boardroom Diversity and its Effect on Social Performance: Conceptualization and Empirical Evidence , 2013 .

[17]  Jindong Qin,et al.  An analytical solution to fuzzy TOPSIS and its application in personnel selection for knowledge-intensive enterprise , 2015, Appl. Soft Comput..

[18]  J. Aragón-Correa,et al.  Boards and Sustainability: the Contingent Influence of Director Interlocks on Corporate Environmental Performance , 2015 .

[19]  Jurgita Antucheviciene,et al.  Hybrid multiple criteria decision-making methods: a review of applications for sustainability issues , 2016 .

[20]  Vivek Roy,et al.  Mapping the business focus in sustainable production and consumption literature: Review and research framework , 2017 .

[21]  Josep García-Blandón,et al.  Sustainable or not sustainable? The role of the board of directors , 2019, Journal of Cleaner Production.

[22]  Nuria E. Hurtado-Torres,et al.  Environmental strategy and performance in small firms: a resource-based perspective. , 2008, Journal of environmental management.

[23]  Margaret M. Blair,et al.  Director Accountability and the Mediating Role of the Corporate Board , 2001 .

[24]  Mirjam Knockaert,et al.  Service tasks of board of directors: A literature review and research agenda in an era of new governance practices , 2019, European Management Journal.

[25]  M. Fakoya,et al.  Board characteristics and sustainable energy performance of selected companies in South Africa , 2019, Sustainable Production and Consumption.

[26]  B. Davidsdottir,et al.  Drivers that motivate energy companies to be responsible. A systematic literature review of Corporate Social Responsibility in the energy sector , 2020 .

[27]  A. Rahdari,et al.  Designing a General Set of Sustainability Indicators at the Corporate Level , 2015 .

[28]  D. Iribarren,et al.  Harmonised carbon and energy footprints of fossil hydrogen , 2020 .

[29]  A. Calabrò,et al.  Board of Directors’ Diversity, Creativity, and Cognitive Conflict , 2015 .

[30]  A. Jantunen,et al.  Competitive and responsible? The relationship between corporate social and financial performance in the energy sector , 2014 .

[31]  Swarnodeep Homroy,et al.  Do Board Expertise and Networked Boards Affect Environmental Performance? , 2019 .

[32]  Dimitris Askounis,et al.  A new TOPSIS-based multi-criteria approach to personnel selection , 2010, Expert Syst. Appl..

[33]  Jorge-Andrés Polanco.  Exploring governance for sustainability in contexts of violence: the case of the hydropower industry in Colombia , 2018, Energy, Sustainability and Society.

[34]  H. Di̇nçer,et al.  Balanced scorecard based performance measurement of European airlines using a hybrid multicriteria decision making approach under the fuzzy environment , 2017 .

[35]  Chaminda Wijethilake,et al.  Proactive sustainability strategy and corporate sustainability performance: The mediating effect of sustainability control systems. , 2017, Journal of environmental management.

[36]  M. Rasti-Barzoki,et al.  A game theoretic approach for the duopoly pricing of energy-efficient appliances regarding innovation protection and social welfare , 2020 .

[37]  B. Johannisson,et al.  Recruiting outside board members in the small family business: an ideological challenge , 2000 .

[38]  K. R. Sekar,et al.  A novel extension to VIKOR method under intuitionistic fuzzy context for solving personnel selection problem , 2020, Soft Comput..

[39]  Lotfi Karoui,et al.  SME growth trajectories, transitions and board role portfolios: A critical review and integrative model , 2016 .

[40]  Ruth V. Aguilera,et al.  Are Boards Designed to Fail? The Implausibility of Effective Board Monitoring , 2016 .

[41]  Eduardo Ortas,et al.  The effect of the size of the board of directors on corporate social performance: A meta‐analytic approach , 2020 .

[42]  Valeria Naciti.  Corporate governance and board of directors: The effect of a board composition on firm sustainability performance , 2019, Journal of Cleaner Production.

[43]  A. Cook,et al.  Do Women Leaders Promote Sustainability? Analyzing the Effect of Corporate Governance Composition on Environmental Performance , 2016 .

[44]  C. Tilt,et al.  Board diversity and CSR reporting: an Australian study , 2016 .