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The Role of Information Systems in Balancing Environmental, Social and Economic Organizational Decision-Making

Balanici, Eduard (2024) The Role of Information Systems in Balancing Environmental, Social and Economic Organizational Decision-Making.

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Abstract:This study explores the role of information systems in supporting organizations to enhance their decision-making by balancing environmental, social and economic factors. This research has its theoretical foundations in environmental frameworks such as the Triple Bottom Line, Environmental, Social and Governance (ESG) and Stakeholder Theory that explores how organizations can balance their sustainability decision-making outcomes. Information systems are investigated from a Resource-Based View perspective, as a key strategic tool leveraged by organizations to enhance their sustainability performance. This study takes a mixed-methods approach. The first approach consists of analyzing environmental and economic performance data of Amazon and Tesla. The second approach investigates the information systems Tesla and Amazon use for leveraging their sustainable outcomes. The case studies on Tesla and Amazon highlight the role of Monitoring and Control, Business Intelligence, and ERP systems in enhancing sustainability performance. The findings indicate that Tesla's more diversified information systems architecture, which integrates these systems effectively, outperforms Amazon's less advanced information systems architecture in balancing environmental and economic outcomes. By leveraging its comprehensive IS infrastructure, Tesla has gained a significant competitive advantage in driving sustainable outcomes. This study concludes that Monitoring and Control Systems, Business Intelligence, and ERP systems play a critical role in supporting organizations to achieve sustainable outcomes by enabling efficient data monitoring, informed decision-making, and integration of operations across environmental, social, and economic dimensions.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:43 environmental science, 85 business administration, organizational science
Programme:Business Administration BSc (56834)
Link to this item:https://purl.utwente.nl/essays/104804
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