Sustainability and competitive advantage from a developing economy

Abstract

Purpose

The purpose of this study is to empirically examine the impact of sustainability as measured by the triple bottom line constructs on the competitive advantage of manufacturing firms in Ghana.

Design/methodology/approach

To understand the impact of sustainability on competitive advantage, a survey was conducted where managers were asked about their engagement in the sustainability issues and how it affects their competitive advantage. The study uses the structural equation modelling (SEM) and, in particular, the partial least square (PLS) approaches to SEM.

Findings

The results of this study indicate that economic and social have a positive impact on the corporate image but not the environment. In addition, corporate image and social have positive impact on corporate performance, whilst economic and environment seem not to have any impact on corporate performance.

Research limitations/implications

The study is limited to only manufacturing firms operating in the Ghanaian environment. It is important, therefore, for firms in Ghana to invest in social sustainability initiatives, as it will ultimately affect their bottom line performance. This study provides policy implications to Ghana and other developing countries to implement the necessary policies and provide incentives to improve environmental awareness.

Originality/value

There have been just a few studies that tried to find out the impact of sustainability constructs and performance and how corporate image mediates this relationship.

Citation

Kwarteng, A., Dadzie, S.A. and Famiyeh, S. (2016), "Sustainability and competitive advantage from a developing economy", Journal of Global Responsibility, Vol. 7 No. 1, pp. 110-125. https://doi.org/10.1108/JGR-02-2016-0003