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1 – 2 of 2Sebastiano Cupertino, Gianluca Vitale and Paolo Taticchi
This paper aims to investigate possible interdependencies affecting short-term profitability between internal and process business aspects which can play a critical role in…
Abstract
Purpose
This paper aims to investigate possible interdependencies affecting short-term profitability between internal and process business aspects which can play a critical role in sustainability operationalisation.
Design/methodology/approach
The authors adopted the panel data approach to perform a partial least square structural modelling equation analysis on a sample of 391 Organisation for Economic Co-operation and Development (OECD) non-financial-listed companies, considering a timeframe of five years.
Findings
Corporate sustainability is a result of interplays between managerial commitment, strategy, slack resources’ exploitation, innovation, the sustainable management of internal production and procurement processes that managers can catalyse to foster short-term firms’ profitability.
Research limitations/implications
The study is focused on internal process business determinants of sustainability, and the analysis is limited to a short-term timeframe and on non-financial OECD-listed companies.
Practical implications
Managers searching for trade-offs between financial and non-financial performances should enhance their commitment towards sustainability by defining appropriate strategies suitable to employ mainly slack resources derived from core business activities enabling innovation processes, which, in turn, are able to foster sustainability of internal production and procurement processes.
Originality/value
The execution of sustainability is a complex process that needs to be investigated using a holistic approach net of endogeneity biases to better appreciate those interrelationships within multiple drivers determining the firm sustainable growth.
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Gianluca Vitale, Sebastiano Cupertino and Paolo Taticchi
This paper aims to investigate the relationships between business slack resources and environmental performance and considers the possible effects that management commitment…
Abstract
Purpose
This paper aims to investigate the relationships between business slack resources and environmental performance and considers the possible effects that management commitment, corporate strategy to sustainability and innovation intensity can have on such interactions.
Design/methodology/approach
We performed partial least squares path modeling regressions on a sample of 697 non-financial listed companies worldwide, considering a time frame of 13 years.
Findings
Operational and financial slack resources are both detrimental to environmental performance in the short term. Nevertheless, financial slack resources are useful to boost innovation that enhances environmental performance. Environmental performance improvement seems to be more a matter of managerial commitment and strategic approach towards sustainability, rather than the availability of slack resources.
Research limitations/implications
Due to literature shortcomings on which effects slack resources can have on environmental performance, this paper sheds some light on the topic while also highlighting the role of management commitment, corporate sustainability strategy and innovation.
Practical implications
Managers should use financial slack resources in innovation activities to improve environmental performance. In doing so, they need to create retaining earnings to offset any costs using financial slack resources.
Originality/value
Adopting a holistic and net of endogeneity analytical perspective, this paper highlights some virtuous and critical interactions between the managerial commitment and strategic approach to sustainability, the availability of slack resources, innovation intensity and environmental performance to understand which aspects may foster or hinder the ecological transition of businesses.
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