Proceedings of the 43rd Hawaii International Conference on System Sciences - 2010

The Green IT Practices of Nokia, Samsung, Sony, and Sony Ericsson: Content Analysis Approach Yulia Wati Chosun University [email protected]

Chulmo Koo Chosun University [email protected]

Abstract

communication equipment, and other electronics devices is increasing steadily [4]. Thus, it is necessary to raise awareness in the IT sector (particularly electronic companies) regarding IT environmental problems, as well as the creation of a sustainable environment [3]. This suggests that the manner in which electronics companies respond to the green IT issue must be investigated from an academic perspective. However, there have been some very limited studies conducted that have discussed this topic empirically and conceptually. The objective of the current study was to explore the reactions of companies from a general conceptual perspective, ignoring the importance of focused discussions in particular industries. For instance, a study by Newton and Harte [5] put specific emphasis on green business; Maxwell et al. [6] used a case study approach to evaluate environmental strategies, and addressed three different company sectors; Rugman and Verbeke [7] focused on the relationship between corporate strategies and environmental regulation. Nonetheless, Green IT research has been relatively unexplored from an academic perspective. The current study conducted by Murugesan [3] discussed Green IT in a general conceptual way, and suggested some future directions for the “greening” of companies. The practice-based literature, however, remains somewhat sparse. Going green in the IT industry is proving to be a challenge, as a shift in thinking is necessary to secure the benefits of being green [8]. Porter and Van de Linde [9] previously discussed the manner in which green issues can generate competitive advantages for the organization. They also pointed out some issues regarding how different sectors, such as electronic manufacturing, can secure the benefits associated with the green issue. However, this concept should be proven from the perspective of the actual business world. Hence, the principal objectives of this study were to investigate and expand the concept of Green IT as implemented by electronic companies. Secondly, we have attempted to establish the theoretical concepts of Green IT driven by

The challenge of responding to the environmental issues has changed many aspects of the ways businesses operate, and this is particularly true of electronics companies. “Going green” in the IT industry is proving a major challenge, as significant shifts in thinking are needed to secure the benefits associated with being green. Using a content analysis method, we have investigated and expanded the concept of Green IT, as implemented by four major electronic companies. By analyzing these companies’ environmental reports, we have established a set of theoretical concepts of Green IT, driven by companies’ practical implementations. We proposed nine propositions outlining the theoretical implications. Additionally, our analysis demonstrated that the principal focus of electronic companies is green disposal practices, followed by energy efficiency efforts. We also concluded that regulations and policies coupled with heightened awareness and environmental responsibility on the part of the company can encourage Green IT innovation. This paper also provides a discussion of the results and of the contributions made by this research.

1. Introduction Recently, concern with environmental protection has become sufficiently mainstream that many businesses are altering their practices in order to become more environmentally responsible [1]. The challenge of responding to issues of the natural environment has changed many aspects of the ways in which businesses operate [2]. Over the years, the use of information technology has exploded, offering convenience along with a range of other benefits [3]. However, IT has also been contributing to environmental problems, although these contributions are generally imperceptible to the general population. For instance, electricity usage is the major cause of climate change [3], and total electrical energy consumption by servers, computers, monitors, data

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companies’ practical implementation. For the purposes of this research, we selected four electronic companies (Nokia Corporation, Samsung Electronic Ltd., Sony, and Sony Ericsson) which had successfully embedded green technologies into their business [10] as our case study subjects. Using a content analysis method, we reviewed the sustainability reports of these companies. The key questions of this paper were, therefore, as follows: 1. How do these four major electronic companies react to the environmental issue? 2. What are the antecedents of Green IT in the electronic companies? 3. What is the role of the antecedents in influencing IT-related aspects inside the companies? 4. What are the Green IT activities proposed by these companies as reflected in the environmental report? This paper is structured as follows. In the following section, a literature review is provided. The following section provides the research method we employed, followed by the research methodology. Then, we presented our analysis and results in the fifth section and our discussion in the sixth section. Finally, in the seventh section, we provided the implications and limitations of the study.

2. Literature Review 2.1. Green IT Green IT refers to environmentally sound IT [3]. Green IT includes the dimensions of environmental sustainability, the economics of energy efficiency, and the total cost of ownership--which includes the cost of disposal and recycling. According to Murugesan [3], there are 3 green IT strategies: (1) Tactical incremental approach. In this approach, an enterprise preserves its existing IT infrastructure and policies, and incorporates simple measures to achieve their moderate green goals, such as reducing energy consumption; (2) Strategic approach. In this approach, an enterprise conducts an audit of its IT infrastructure and its use from an environmental perspective, develops a comprehensive plan that addresses broader aspects of greening its IT, and implements distinctive new initiatives; (3) Deep green approach. This approach expands on the measures highlighted in the strategic approach, wherein an enterprise adopts additional measures, such as implementing a carbon offset policy to neutralize greenhouse gas emissions. Additionally, there are four holistic approaches to green IT that can be adopted [3]: (1) Green use, Green disposal, Green design, and Green

manufacturing. According to Murugesan [3], the key concepts of Green IT include: design for environmental sustainability; energy-efficient computing; power management; data center design, layout, and location; server virtualization; responsible disposal and recycling; regulatory compliance; green metrics, assessment tools, and methodology; environment-related risk mitigation; use of renewable energy sources; and eco-labeling of IT products. Thus, in accordance with the previously mentioned literature, we elected to include 9 key concepts in this research (discussed in the next section).

3. Research Method 3.1. Content Analysis The research approach is used to assess the key concepts of companies’ environmental reports. Content analysis is defined as a systematic, replicable technique for compressing many words of text into fewer content categories based on explicit coding rules [11; 12]. This is a popular technique in diverse fields of social science research [11] for collating publicly available information (for example, company reports), and systematically categorizing the data to highlight trends or differences within the dataset, allowing the researcher the opportunity to comment on its ‘latent content’ [13; 14]. Content analysis enables researchers to sift through large volumes of data with relative ease in a systematic fashion [11]. The most common notion in qualitative research is that a content analysis simply entails conducting a word-frequency count [12]. According to Lijphart’s study [16], content analysis plays 5 roles in theory development. First, content analysis is valuable in collecting data in cases in which no theoretical underpinnings are available. Second, this method is useful in cases in which scholars use a theoretical perspective as the basis for collecting data, without intending to make generalizations to a larger population (interpretative content analysis). Third, in cases in which researchers make inconclusive predictions regarding a phenomenon, the exploratory value of content analysis may be used to provide evidence for specific hypotheses (hypothesis-generating content analyses). Fourth, theory-confirming content analyses would examine what is being predicted by established theories, thereby confirming or invalidating the theoretical position. Finally, deviant-results content analyses would assess those stimuli that fail to comply with the balance of the sample [15].

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According to Krippendorff [11], six questions must be addressed in every content analysis: (1) Which data are being analyzed?; (2) How are they defined?; (3) From what population are they drawn?; (4) What is the context relative to which the data are analyzed?; (5) What are the boundaries of the analysis?; and (6) What is the target of the inferences? For the objectives of this research, however, content analysis can provide a transparent analysis of the environmental reporting content, thereby enabling the authors to observe objectively the attitudes of companies with regard to Green IT. Because this research only assessed companies’ activities as described in the environmental reports, the other activities not reported on the website or sustainability reports are not reflected in the results presented herein.

3.2. Data Construction A total of 4 companies were analyzed in this research, all of which were from the Telecommunications and Information Technology sector. We selected Nokia, Samsung, Sony Ericsson, and the Sony Company as our empirical subjects, since these companies have been reported as the best companies in terms of implementing green technology [10]. Another reason for our selection is that these companies are multinational companies with relatively equivalent firm size aspects. The significant information for this research was obtained from companies’ sustainability reports. We utilized the CSR report for 2008; however, we utilized the 2007 CSR report for Nokia, since this is the final version provided on the website. For each company, the following information was obtained and categorized as follows: 1. Corporate environmental concerns, including whether a company has an environmental report, which includes climate change and environmental concerns. This context is measured simply by assessing whether the company mentions climate change or environmental issues in their reporting. 2. Whether a company mentions regulation and international policy issues, such as the Kyoto Protocol, RoHS, UNFCCC, the Bali Communique, etc. 3. Whether the company has established environmental management system procedures, such as ISO 14001 or OSHAS18001. 4. Whether the company has implemented (a) energy efficiency actions, and (b) substance materials reduction actions. 5. The key concepts of green words used by the companies in their sustainability reports--including

whether they used “green” ideas in the description of their business processes. 6. Whether the company mentioned innovative solutions for dealing with energy efficiency, such as alternative energy. 7. Whether there is any external party involvement behind the companies’ green activities, e.g. a supplier or business partner. According to Fraser and Fraser (2008), using public information provided by the companies in their public media, such as a website or a sustainability report, was consistent with the content analysis methodology outlined above.

4. Research Methodology In order to establish whether our key concepts of green IT (including climate change and environmental concerns, international regulation and policies, environmental management system, energy efficiency, emission/reduction actions, green outcomes, green disposal, alternative energies, and suppliers) can be utilized as the key indicators, chisquare analysis was conducted. This analysis was performed to determine whether these 4 companies evidenced different environmental reporting patterns. The hypotheses were developed to determine the differences in the following attributes. H1-H9 tested the significant differences in the availability of the following information within the report: ‚ H1: mention of climate change and environmental concerns ‚ H2: mention of international regulation and policies (e.g. Kyoto Protocol) ‚ H3: mention of environmental management systems (e.g. ISO14001) ‚ H4: mention of energy efficiency issues (e.g. reduce energy consumption) ‚ H5: mention of emission/reduction actions (e.g. greenhouse gases emission) ‚ H6: mention of “green” related issues (e.g. green product, green operation, green workplaces) ‚ H7: mention of “green” disposal (e.g. take back campaign, e-waste recycling) ‚ H8: mention of alternative energy (e.g. solar power) ‚ H9: mention of involvement of suppliers or business partners. The hypotheses results can be seen below, in Table 1. The results demonstrated a significant association between companies and the key concepts of green IT. However, climate change (β= 3.226) and international regulations and policy (β= 4.919) were not significantly associated with the companies, which means that the companies evidenced similar

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patterns in referencing climate change and the role of international regulations and policy in their reports. In sum, the chi-square test results demonstrated the relationship between company and Green IT concepts in environmental reports, with climate change and international regulations and policy as the fixed factors driving the companies to conduct green activities. Table 1. Chi-Square test result for association between the companies and key concepts of green IT X2 test Hypotheses statistics Climate change

3.226

Energy alternative

29.467*

Energy efficiency

20.921*

Environmental Mng. and Ass.

14.228**

Green disposal

44.367*

Green IT initiatives

12.591**

Reduction

14.800**

Regulations and policy Suppliers

4.919 17.000**

* Significant at 1% level, ** Significant at 5% level

5. Analysis and Result The HyperRESEARCH 2.7 software issued by Research Ware was used for analysis. This software offers several advantages for content analysis, such as allowing the researchers to encode the data and to test the proposed hypothesis as the basis of theory building. Via the use of automatic content analysis, it requires several procedures for handling texts. According to Neuendorf [22], these procedures include problem identification, conceptualization decisions, operationalization, the development of coding schemes, sampling, coding, and the interpretation and reporting of results. The coding scheme is at the heart of content analysis. The first step in developing a coding scheme is to define the content categories. The second step is to define the basic unit of text to be classified. Individual words, phrases, sentences, paragraphs, or entire texts may be established as the unit of analysis. The final step is to develop lists of words and phrases associated with each of the content analysis terms.

5.1. Content Analysis Results In order to make sense of the data, the

environmental reports of 4 companies were coded into 9 categories. The frequency report lists were based on the frequency with which the codes appeared in each case in the study. The standard deviations represent the distribution of the codes across cases. The larger the standard deviation was, the more variation there was in the use of a given code. For example, the standard deviations of climate change and regulations and policy were 3.775 and 2.062, reflecting a very small variation across cases. The means represent the average number of times a given code was employed across all cases in the study. The descriptive coding results can be seen below, in Table 2. Table 2. Descriptive results Code Total Mean Climate change 53 13.25 energy alternatives 30 7.50 energy efficiency 125 31.25 Envi. Mng. and Ass. 57 14.25 Green disposal 195 48.75 Green IT initiatives 44 11.00 Reduction 50 12.5 Regulations and policy 37 9.25 Suppliers 40 10.00

SD 3.775 8.583 15.283 8.221 26.663 10.456 7.853 2.062 7.528

Additionally, we provided the detail scores for each company in table 3. Confirming the chi-square results, the level of reporting associated with climate change and regulation was similar, regardless of any other keywords. Interestingly, these electronic companies appeared to place more emphasis on green disposal and energy efficiency. There also appeared to be a significantly higher level of reporting conducted on matters associated with disposal and energy efficiency. From the graphic (see Figure 1), we can observe that these four companies are responding to the same trend. Table 3. Detail score for each case CaseIDs C1 C2 C3 C4 Climate change 18 14 12 9 Energy alternatives 6 1 20 3 Energy efficiency 39 31 45 10 EMS 13 11 26 7 Reduction 11 7 24 8 Regulations and policy 9 12 7 9 Suppliers 19 13 6 2 Green disposal 73 35 69 18 Green related activities 13 25 3 3 C1: Nokia; C2: Samsung; C3: Sony; C4: Sony Ericsson

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IF Climate change and Regulation and Policies, THAN ADD Reduction Output: Enough rules were found to be applicable to this case to reach the GOAL of your hypothesis. Therefore, your hypothesis has been shown to be supported for this case. Hence, proposition 2 was accepted.

Figure 1. Code frequency graph Using hypotheses tools provided by HyperRESEARCH, we constructed the hypotheses to be evaluated herein. We proposed 8 propositions, and for each proposition, we established a hypothesis. Proposition 1: Energy efficiency initiatives are influenced by international regulations and policies as a response to the climate change issue. For instance, in Nokia’s report, it was stated that “Nokia signed an international communiqué, along with over 150 other global organizations, ahead of the December 2007 United Nations Climate Change Conference”. Additionally, Samsung claimed that “our climate change response strategies…improved the energy efficiency of our products”. “Sony Ericsson signed up in support of The Bali Communiqué, a comprehensive United Nations framework to tackle climate change.” Thus, we generated the following rule: Rule 1 was applicable: IF Climate change and Regulation and Policies, THAN ADD Energy Efficiency, GOAL REACHED EFFICIENCY Output: Enough rules were found to be applicable to this case to reach the GOAL of your hypothesis. Therefore, your hypothesis has been shown to be supported for this case. Therefore, proposition 1 was accepted. Proposition 2: Substances emission/reduction initiatives are influenced by international regulations and policies as a response to the climate change issue. As noted in Nokia’s report, The European Union Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals (known as REACH) aims to evaluate and register tens of thousands of chemicals. Thus, we generated the rule below: Rule 2 was applicable:

Proposition 3: Environmental management and association may encourage companies to reduce energy usage by providing green programs. Samsung reported that “these activities (energy reduction activities) earned us several voluntary energy reduction certifications from Energy Star, Korean e-Standby Program, and Chinese Energy Conservation Program”. Sony stated that “Sony has been in the Green Power Certification System since their first purchase in December 2001”. Thus, we generated the rule below: Rule 3 was applicable: IF Envi Mng and Assc. THEN ADD Energy Efficiency, GOAL REACH EFFICIENCY Output: Enough rules were found to be applicable to this case to reach the GOAL of your hypothesis. Therefore, your hypothesis has been shown to be supported for this case. Hence, proposition 3 was accepted. Proposition 4: Greenhouse gases/CO2 Emission activities are influenced by environmental management and association. Sony joined the Climate Savers Programme, organized by the world-renowned environmental NGO, the World Wide Fund for Nature (WWF), and established the goal of achieving an absolute reduction in greenhouse gas emissions. In addition, Nokia stated “….work with WWF to achieve targets to reduce greenhouse gas emissions”. It is clear that environmental management systems and associations such as WWF, MPPI, WEEE, GeSi, etc. contribute to the emissions efforts of the companies. Moreover, Samsung stated “We assist the overseas production subsidiaries to acquire ISO14001 and OHSAS18001 certifications”. Thus, we generated the rule below: Rule 4 was applicable: IF Envi Mng and Assc. THEN ADD Reduction Output: Enough rules were found to be applicable to this case to reach the GOAL of your hypothesis. Therefore, your hypothesis has been shown to be supported for this case. Hence, proposition 4 was accepted.

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Proposition 5: Companies try to find an energy alternative to tackle with energy efficiency and emission activities. In Japan, Sony began by considering introducing wind power. Samsung also stated, “We are exploring new business opportunities in the ever-expanding market of renewable energy”. Hence, our next rule was established as follows: Rule 5 was applicable: IF energy efficiency and emission activities, THEN ADD energy alternative, GOAL REACH ENERGY ALTERNATIVE Output: Enough rules were found to be applicable to this case to reach the GOAL of your hypothesis. Therefore, your hypothesis has been shown to be supported for this case. Hence, proposition 5 was accepted. Proposition 6: Companies’ energy efficiency practices and emission/reduction efforts drive them to carry out green disposal practices. Nokia stated that “Our priorities in environmental management are energy efficiency, managing substances in our products and take-back of used devices for proper recycling.” Samsung also reported, “we developed a slurry renewal system to recycle 99% of the used slurry”. “Sony not only saves energy but also reduces the amount of new materials used at time of manufacture.” Currently, the recycling issue and take-back have become the most important issues in the electronics industry. This is reflected in the proposition of our content analysis. Thus, we generated the rule below: Rule 6 was applicable: IF energy efficiency and emission activities, THEN ADD Green Disposal, GOAL REACH GREEN DISPOSAL Output: Enough rules were found to be applicable to this case to reach the GOAL of your hypothesis. Therefore, your hypothesis has been shown to be supported for this case. Therefore, proposition 6 was accepted. Proposition 7: Companies’ energy efficiency practices and emission/reduction efforts drive them to carry out green related activities (green products, green operation, green workplace, green packaging, etc.) By 2015, the goal is to reduce total greenhouse gas emissions throughout the entire life cycle of Sony Ericsson’s products. Samsung also claimed, “we will continue to develop initiatives for reducing our

environmental footprint and for green workplaces”. “Our strategy includes changing workplace practices to reduce travel, as well as improving the energy efficiency of our buildings”, Nokia noted. Thus, we generated the rule below: Rule 7 was applicable: IF energy efficiency and emission activities, THEN ADD Green IT Initiative, GOAL REACH GREEN IT INITIATIVES Output: Enough rules were found to be applicable to this case to reach the GOAL of your hypothesis. Therefore, your hypothesis has been shown to be supported for this case. Thus, proposition 7 was accepted. Proposition 8: Supplier involvement in energy efficiency and emission processes influences the companies to produce green IT innovation (e.g. Green IT initiatives and green disposal) Nokia stated that, “….in close cooperation with its suppliers, has full material declarations for our mobile devices. This means we can respond swiftly if new concerns arise about substances we use.” Moreover, Samsung involved and encouraged its suppliers to implement environmental systems. They reported that “raw material inspection has been completed on around 800 business partners in Korea and overseas, and all parts and finished products used in the production site are subjected to hazard substance tests”. Similarly, Sony noted, “Sony acts responsibly in all areas and strives to resolve environmental issues together with our peers and business partners”. Thus, we generated the rule below: Rule 8 was applicable: IF INCLUDE (“Energy Efficiency”, “Reduction”) and Supplier, THEN ADD Green activities, ADD Green disposal, GOAL REACH GREEN INNOVATION Output: Enough rules were found to be applicable to this case to reach the GOAL of your hypothesis. Therefore, your hypothesis has been shown to be supported for this case. Therefore, proposition 8 was accepted. Proposition 9: Companies’ climate change awareness/environmental responsibility has driven the companies to innovate through Green IT. Sony stated “Innovation is Key to Efforts to Reduce Global Warming”. Sony Ericsson also reported that they were using “….innovation to bring you phones that offer you a greener choice”. Thus, we generated the rule below:

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Rule 9 was applicable: IF Climate change, THEN ADD Green IT initiative, ADD Green disposal, GOAL REACH GREEN INNOVATION Output: Enough rules were found to be applicable to this case to reach the GOAL of your hypothesis. Therefore, your hypothesis has been shown to be supported for this case. Therefore, proposition 9 was accepted. In sum, we create a code map of a Green IT Scheme in Electronic Companies generated from our content analysis.

Figure 2. Green IT Scheme in Electronic Company In relation to Green IT components, energy efficiency and greenhouse gas/carbon reduction refer essentially to green manufacturing; whereas “green initiatives” refers to green design; green disposal (and take back) refers to green disposal, and all activities during the process implementation might be argued as constituting green use.

5.2. Regression Analysis One of the most basic approaches in content analysis is regression analysis. Regression analysis based on the frequencies with which content words appear is both simpler and more effective than other alternatives [23]. Content analysis data are often not normally distributed, and thus when transforming content measures to percentages and using sophisticated statistical analysis, data should be checked to ascertain whether they fit assumptions (e.g linearity, independence of mean and variant) [12]. Riffe et al. [24] recommended that regression with a chi-square significant test should be associated with content analysis. In accordance with this procedure, we conducted regression analysis using frequency data generated by content analysis. As our focus was Green IT in electronic companies, we

analyzed the factors influencing Green IT innovation. Green IT was measured by the summation of the Green IT innovation ideas of companies, including environmental friendly products, ecological packaging, green supply chain, and product life cycle concepts. Table 4. Regression coefficient Variable Coefficient Constant -110.053 Climate 5.480* EMS 2.614* Regulation 7.049* R2 1.000 *Significant at level 0.05 The results demonstrated a saturned model, whereas the awareness of climate change and environmental hazards, regulations and policy, and environmental management systems and association could explain 100% of the green initiatives of the companies. International regulations and policies; climate change awareness, and environmental management have positive impacts on the Green IT initiatives of companies. The interpretation of the coefficient is that for each change of one standard deviation in the regulation and policy, the Green IT innovation would increase by 7.049.

6. Discussion The principal objectives of this paper were to investigate and expand the concept of Green IT strategies as implemented by electronic companies. Secondly, we attempted to establish the theoretical concepts of Green IT as driven by companies’ practical implementations. We proposed nine propositions derived from companies’ sustainability reports. Using content analysis, it became clear that these companies had attempted to become involved in environmental actions; furthermore, they practiced suggestions made by both environmentalists and governments, and made Green IT a component of their business practices. Proposition 1: Energy efficiency initiatives are influenced by international regulations and policies as a response to the climate change and environmental issue. Porter and V.D. Linde [9] argued that companies need to assess the effects of international regulation on industry competitiveness toward the implementation of Green IT. In order to assist in improving environmental performance within the electronics industry, a variety of initiatives and legislation have been introduced internationally [4].

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Thus, we determined that electronic industries have been reducing their energy usage as a positive response to these policies. Proposition 2: Substance emission/reduction initiatives are influenced by international regulations and policies as a response to climate change and environmental issues. According to the US EPA, 2 percent of solid waste in the waste stream derives from consumer electronic components, including computers and cell phones [17]. Such international regulations and policies like the Kyoto Agreement attempt to compel industrialized countries and the European community to reduce their greenhouse gas (GHG) emissions. As a response, electronic companies have been reducing GHG, CO2, and substance emissions via Green IT practices. Proposition 3: Environmental management and association may encourage the companies to reduce energy usage by providing green programs. For instance, the new Energy Star 4.0 standard regulates the energy performance of external and internal power supplies and provides power consumption specifications for idle, sleep, and standby modes for a number of different devices, including PCs, desktops, and gaming consoles [3]. In order to acquire this certificate, companies must perform green activities, most specifically by reducing their energy usage. Thus, the participation of environmental management and association can encourage companies to go green. Proposition 4: Emission activities are influenced by environmental management and association. For example, the Epeat certification evaluates electronic products on the basis of 23 required criteria and 28 optional criteria, which are grouped into eight performance categories, including: reducing and eliminating environmentally sensitive materials, and selecting materials [9]. As stated above, in order to acquire these kinds of certification, companies should reduce their carbon emissions, usage of sensitive materials, etc. Proposition 5: Companies try to find energy alternatives to tackle energy efficiency and emission activities. Alternative sources of clean energy might be the key to eliminating our reliance on the fossil fuels that lead to increased emissions [17]. Thus, such constraints have been viewed by electronic companies as an chance for innovation and to discover a new source of energy. Proposition 6: Companies’ energy efficiency practices and emission/reduction efforts drive them to conduct green disposal practices.

Currently, legislation requires electronic and electrical companies to significantly reduce their use of energy in the components or materials used in their manufacturing processes, the number of intended uses for their products, and even their “end-of-life” recovery protocols [4]. The green disposal practices recorded in our content analysis consist of e-waste recycling and a take-back program. According to the analysis above, green disposal is the principal activity engaged in by electronic companies today. Proposition 7: Companies’ energy efficiency practices and emission/reduction efforts drive them to carry out green related activities (green products, green operation, green workplace, green packaging, etc.) In the study of Porter and V.D. Lende [9], this proposition can be explained by regulation which creates innovation. This innovation occurs in two forms: process and product innovations. Companies’ efforts to reduce energy use and greenhouse gas emissions encourage them to innovate via IT. Proposition 8: Supplier involvement in energy efficiency and emission processes influences the companies to engage in green IT innovation Sony gives a good example of this proposition. Sony has issued its own list of restricted hazardous substances, and the result was the disqualification of any of its suppliers who did not fulfill their requirements. Thus, suppliers can contribute to the green IT innovation of the companies. Green IT innovations may occur in the form of environmental friendly products or green products, life cycle concept implementation, eco-labeling, green supply chains, green workplace, and green product information. We should also note that these innovations are also associated with green disposal. Proposition 9: Companies’ climate change awareness/environmental responsibility has driven the companies to innovate through Green IT. Porter and V.D. Linde [9] also argued that if innovation in response to the environmental regulation can prove profitable, if a company can actually offset the cost of compliance via improvements in resource productivity, then why is regulation necessary at all? Innovating to meet regulations can bring offsets: using input better, creating better products, or improving product yield. From the results of this study, we clarified that Green IT was driven not only by regulations and policies, but also by the awareness of the companies themselves to innovate via green IT innovation. Innovation to comply with environmental regulations often improves products, performance, or quality [9]. To answer our research questions, firstly, electronic companies can respond to environmental

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issues by altering their business process (see propositions 1 to 9). Secondly, the principal antecedent of green IT in the electronic company is two-fold: regulations and policies, and the awareness of the company itself. Our result supported the findings of the study conducted by Porter and V.D Linde [9], who also argued that regulations can drive innovation. In sum, innovation is the key concept in green IT. Our regression analysis results also bolstered this finding. Regulation and policies and climate change awareness, coupled with environmental management associations, were shown to perfectly explain Green IT innovation in electronics companies. All these antecedents have encouraged the companies to innovate via IT. The key players in Green IT are: government, which formulates regulations and policies; customers, with their bargaining power; suppliers in the supply chain process; and social parties who can provide guidelines and systems of recommendations. From a practical perspective, it can be noted that Environmental Management Information Systems are engaged in many areas as a component of “Green” technologies. For instance, Nokia [Product with low energy consumption (e.g. reducing the no-load energy consumption used by chargers), Environmental content (eco-catalogue), MobileEdu, Mobile carbon offset application, Transport and travel (e.g. teleworking, virtual conference), Renewable energy and materials, Emission of high global-warming potential gases, Technical systems both in factories and office building, Factory energy system, Ecology packaging, Innovative materials (e.g. Bioplactics), Remade concept (a device made from recycled materials), Eco censor concept, Recycling system, and Design of products based on the life-cycle concept]; Samsung: [Eco-friendly products; GHG in production processes, Adopted PFCs reduction technologies, Product energy efficiency, Transport, Packaging, Green product development, Supply chain environmental management (e.g. building e-HMS for hazardous material management), Technology development for green workplace, Life cycle concept for each product, and Developing green recycling technology]; Sony: [Emission of high global-warming potential gases by improving processes in semiconductor and LCD manufacturing sites, Transport, Packaging, Energy saving-system (e.g. Sony semiconductor, high efficiency cooling and heating system), Building and infrastructure, Renewable energy (wind power, solar power generation system), Reduce product in use CO2 emissions, Energy efficiency products (e.g. bio baterai), Use of highly efficient panel modules and circuit integration, Introduction to energy saving

functions]; Sony Ericsson: [Green innovation such as the “green heart” program to reduce environmental effects of the phone, E-manuals to replace paper versions, Transport, Renewable energy sources, Green products (e.g. efficient chargers), Packaging, and Design of products based on the life-cycle concept (e.g. the usage of recycled plastics)].

7. Implications and Limitations Going green is now viewed as a potential competitive advantage. The green IT practices engaged in by these 4 companies have addressed the optimization of the digital infrastructure in which computing energy consumption is reduced and the efficient use of energy in manufacture, operation, and disposal of electronic devices is maximized. They utilized technology to conserve energy and lower carbon emissions. This practice is aligned with EPA’s strategic plan for compliance and environmental disclosure, which include the following: to significantly reduce hazardous material use, energy and water consumption, and GHG by 2012. The possible benefits accruing in the future from such a stance include the usage of alternative energies, such as wind and solar energy. Thus, based on the results of this research, we can make several recommendations for both policy makers and environmental parties. Firstly, the government may encourage the development and diffusion of environmentally friendly technology. Various types of energy technology and environmental management information systems have been utilized by these four companies to achieve substantial reductions in the emissions of greenhouse gases. The view from the life-cycle perspective/thinking is the best solution to reduce energy consumption. Another concern is how to tackle electronic waste. New policies are needed to increase the awareness of customers of the need to return their used and old devices, and to help the providers/companies to deal with their electronic waste from the customer’s side. As the United Nations [25] stated, until today, the conventional environmental management approach was largely focused on improving environmental performance by controlling and regulating pollution and effluents from production processes. Regulation is also necessary to control electronic waste from the customer’s side. This can be achieved via extended recycling targets and extensive environmental campaigns. Additionally, environmental management systems and governments must support the innovation efforts of producers by addressing and

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maintaining environmental sustainability during the process. This research successfully enhanced the concept of Green IT strategies implemented by electronic companies. Via content analysis, we also established some relevant theoretical concepts of Green IT, as driven by companies’ practical implementations. All nine of our propositions can be utilized in further research. Moreover, managers from other electronic companies may elect to employ these concepts to address environmental issues. First, by showing their own awareness, then, performing their strategies to deal with governmental regulation/policy, the companies may generate better sustainability reports as a component of environmental response from the perspective of their business. Limitations remain, however, with regard to whether other sectors will evidence similar behavior. Thus, further research needs to be conducted in other sectors. Secondly, as the results of this study were based on public information, empirical verification is also required, and further research should also proceed in that direction. Thirdly, there are some limitations associated with the content analysis methodology. Even though we have conducted statistics analyses, such as chi-square tests, to assess the validity of our tests, further research must be conducted in order to test this concept empirically.

[8] OpinionWire by Butler Group (www.butlergroup.com). Datamonitor, March 2007. Marketwatch Technology. www.datamonitor.com

8. References

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