To read the full version of this content please select one of the options below:

Do corporate sustainability practices enhance organizational economic performance?

Matjaž Maletic (Faculty of Organizational Sciences, University of Maribor, Kranj, Slovenia.)
Damjan Maletic (Faculty of Organizational Sciences, University of Maribor, Kranj, Slovenia.)
Jens Dahlgaard (Department of Management and Engineering, Linkoping University, Helsingborg, Sweden)
Su Mi Dahlgaard-Park (Institute of Service Management, Lund University, Lund, Sweden)
Boštjan Gomišcek (Faculty of Business, University of Wollongong in Dubai, Dubai, United Arab Emirates, AND, Faculty of Organizational Sciences, University of Maribor, Kranj, Slovenia)

International Journal of Quality and Service Sciences

ISSN: 1756-669X

Article publication date: 15 June 2015

Abstract

Purpose

The purpose of this study is to clarify the relation between sustainability practices and financial and market performance, and also, the role of non-financial performance outputs in this relation. Corporate sustainability is a growing area of importance for organizational development. Managing sustainability practices successfully is an imperative in achieving competitive advantage.

Design/methodology/approach

Using empirical data based on a large-scale survey among organizations in five countries (i.e. Germany, Poland, Serbia, Slovenia and Spain), this paper utilized mediation analysis to estimate and test the mediated effects in a multiple mediator model. As such, the sizes of indirect effects of sustainability practices on financial and market performance through potential mediators were estimated.

Findings

The results showed that innovation performance exerts a mediation effect in the relation between sustainability practices and financial and market performance. The main conclusion is that a greater engagement in sustainability practices leads to an increased innovation performance, which in turn leads to financial and market performance.

Originality/value

This paper is one of the first attempts to empirically validate sustainability exploitation and sustainability exploration practices. Besides, the analysis of the direct and indirect effects of sustainability exploration and sustainability exploitation practices on financial and market performance has not been yet addressed to a great extent.

Keywords

Acknowledgements

The authors would like to acknowledge the following individuals who contributed in many invaluable ways to the realization of the international survey: Beata Starzyńska, Poznan University of Technology; Carmen Jaca, Tecnun, University of Navarra; Jovan Filipović, University of Belgrade; Michael Brusch, Anhalt University of Applied Sciences; and Wieslaw Urban, Bialystok Technical University.

Citation

Maletic, M., Maletic, D., Dahlgaard, J., Dahlgaard-Park, S.M. and Gomišcek, B. (2015), "Do corporate sustainability practices enhance organizational economic performance?", International Journal of Quality and Service Sciences, Vol. 7 No. 2/3, pp. 184-200. https://doi.org/10.1108/IJQSS-02-2015-0025

Publisher

:

Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited