TY - JOUR
T1 - Corporate material flow management in Thailand
T2 - The way to material flow cost accounting
AU - Yagi, Michiyuki
AU - Kokubu, Katsuhiko
N1 - Funding Information:
As the International Organization for Standardization (ISO) has standardized ISO 14051 and 14052 for material flow cost accounting (MFCA) ( ISO, 2011 , 2017 ), mechanisms for companies to manage their material flow (MF) have been gradually put in place in recent years. MFCA is an accounting method that directly connects to resource efficiency and can bring cost reduction. Expanding the use of MFCA is an important issue for sustainability, improving resource efficiency at the corporate and even the country level (c.f., Sustainable Consumption and Production [SCP] in Sustainable Development Goals proposed by the United Nations; United Nations Development Program, 2015 ). In recent years, the Asian Productivity Organization (APO), supported by the Japanese Ministry of Economy, Trade, and Industry (METI), has conducted a project to expand the use of MFCA in Asia ( APO, 2012 and 2016 ). In Thailand, MFCA programs and promotion activities have been conducted mainly at Chiang Mai University, and several case studies are progressing as well ( Chompu-Inwai et al., 2015 ; Kasemset et al., 2013 ; Jakrawatana et al., 2016 ). According to two surveys of the Japanese manufacturing industry ( Kitada et al., 2016 ; Nakajima et al., 2013 ), while MFCA has been gradually spreading, at least in Japan, it is not presently at the stage where it can become popular in Japan and other Asian countries ( Kasemset et al., 2013 ).
Funding Information:
This research was supported by JSPS KAKENHI Grant numbers JP17K12856 and JP16H03679 and the Environment Research and Technology Development Fund (S-16) of the Environmental Restoration and Conservation Agency , Japan. We would like to thank Dr. Pakpong Pochanart (Graduate School of Environmental Development Administration, National Institute of Development Administration, Thailand) and Dr. Jittima Tongurai (Graduate School of Business Administration, Kobe University, Japan) for their assistance in the questionnaire survey in Thailand and also thank all anonymous reviewers for their constructive suggestions and comments.
Publisher Copyright:
© 2018 Elsevier Ltd
PY - 2018/10/10
Y1 - 2018/10/10
N2 - In recent years, material flow cost accounting (MFCA) has gradually been recognized in Asia by the standardization of ISO 14051 and 14052 and by the project of dissemination undertaken by the Asian Productivity Organization (APO). However, MFCA is still not used across the board. This study analyzes the characteristics of material flow (MF) management to facilitate the expanded use of MFCA. The research framework of this study investigates the degree of MF management and the sequential relationships among financial factors, MF management, and waste performance, based on a questionnaire survey of non-financial listed companies in Thailand. Fifty-eight percent of the respondent firms answer that they are managing MF information (self-rating). Meanwhile, 50%, 49%, 29%, and 24% of the firms actually disclose the amounts of total waste, hazardous waste, raw materials consumed, and recycled waste, respectively. The results of this study show that respondent firms with MF management (self-rating) are more likely to manage/disclose total waste, hazardous waste, and raw materials consumed than those without it. In terms of financial factors, cost ratio and profitability are likely to affect firm decisions regarding whether to manage the MF. Additionally, MF management is likely to decrease the hazardous waste ratio. The series of results shows that firms in Thailand are more likely to be concerned about hazardous waste management than resource efficiency. Therefore, hazardous waste should probably be thoroughly managed, as a preliminary step in the promotion of MFCA.
AB - In recent years, material flow cost accounting (MFCA) has gradually been recognized in Asia by the standardization of ISO 14051 and 14052 and by the project of dissemination undertaken by the Asian Productivity Organization (APO). However, MFCA is still not used across the board. This study analyzes the characteristics of material flow (MF) management to facilitate the expanded use of MFCA. The research framework of this study investigates the degree of MF management and the sequential relationships among financial factors, MF management, and waste performance, based on a questionnaire survey of non-financial listed companies in Thailand. Fifty-eight percent of the respondent firms answer that they are managing MF information (self-rating). Meanwhile, 50%, 49%, 29%, and 24% of the firms actually disclose the amounts of total waste, hazardous waste, raw materials consumed, and recycled waste, respectively. The results of this study show that respondent firms with MF management (self-rating) are more likely to manage/disclose total waste, hazardous waste, and raw materials consumed than those without it. In terms of financial factors, cost ratio and profitability are likely to affect firm decisions regarding whether to manage the MF. Additionally, MF management is likely to decrease the hazardous waste ratio. The series of results shows that firms in Thailand are more likely to be concerned about hazardous waste management than resource efficiency. Therefore, hazardous waste should probably be thoroughly managed, as a preliminary step in the promotion of MFCA.
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U2 - 10.1016/j.jclepro.2018.07.007
DO - 10.1016/j.jclepro.2018.07.007
M3 - Article
AN - SCOPUS:85053184659
SN - 0959-6526
VL - 198
SP - 763
EP - 775
JO - Journal of Cleaner Production
JF - Journal of Cleaner Production
ER -
