The Maritime Economist Magazine Spring 2015 | Page 10

THEMARITIME Economist

INPLAIN
GPR Score

We use the input/output approach to formulate
an equation to calculate the GPR score. The GPR
score is used to investigate greening capability and
performance outcomes. The GPR score of a firm
is determined by its efficiency in transforming
input (i.e., green shipping routines) into outputs (i.e.,
environmental and financial performance). By
assessing the ratios of inputs to outputs, the greening
capability can be evaluated. Depending on the values
of the input and output variables, the value of the
GPR score can be1.0, greater than 1.0, or less than
1.0. A GPR score of 1.0 suggests that the effort spent
by the firm to perform green shipping routines is
proportional to its outputs (i.e., environmental and
financial performance). If the value of its input is higher
than the value of its output, the GPR score will be
greater than1.0. If the value of its input is less than the
value of its output, the GPR score of the firm is less
than 1.0. A GPR score below 1.0 suggests that the
effort spent by the shipping firms to perform the green
shipping practices is lower than its output.

ME Mag

Figure 2: GPR score

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The GRP concept provides a useful tool for shipping
firms to evaluate their greening capability by assessing
the ratios of inputs (i.e., the values of implementing

“ Various institutional pressures
and the balance between
environmental protection
and firm performance are
the challenging issues facing
many shipping firms.

green shipping routines) to outputs (i.e., the values
of firm performance). Shipping firms achieving a high
GPR score indicates that they possess the ability to
perform GSPs competently. However, an excessively
high GPR score may imply that the deployment of
resources is inefficient with too much resource
allocated to performing some business processes or
business routines. On the other hand, a low GPR
score indicates that the degree of participation in green
shipping operations is inadequate. Shipping firms with
low GPR scores may need to put more effort or
allocate more resources to implement green
operations.
Data Analysis

To examine the relationships between greening
operations and firm performance, we employed
the 107 usable returned questionnaires in a survey
administered to a sample of 500 shipping firms
drawn from a population of 1266 of shipping firms
listed in the Hong Kong Shipping Gazette. These
respondents were requested to report the level of their
implementation of GSPs on the six dimensions of
GSPs (i.e., CPP SD, SE, SC, SM, and SDC) and
,
their firm performance (in terms of financial and
environmental outcomes) using the five-point scale.
After the collection of data, we validated a list of 30
measurement items on the six dimensions of GSPs.
The measurement items used for evaluating these six
dimensions are summarized in Table 1. The scales
for measuring the variables, the validity and reliability
issues, the survey administration procedures, and
the non-response and common method bias have
also been examined. With the use of survey date
collected from shipping firms in Hong Kong, the link
between environmental and financial performance is
empirically validated and application of the GPR