Abstract

With the increasing number of firms adopting different sustainability practices, the theoretical and practical understanding of sustainability has been changing in depth and scope. This transition has fundamentally changed the way firms make sustainability trade-offs. The extant literature on trade-offs tends to focus on established firms that predominantly indulge in market-oriented decisions where economic priorities drive the deployment of scarce resources to “other” sustainability dimensions. In contrast to a market-oriented understanding, emerging studies on highly committed firms have demonstrated the importance of nonmarket-based factors that bolster the social, environmental, and political standings of firms. Such studies have cast doubts on our current understanding of the trade-off between different dimensions of sustainability. Aiming to inform the sustainability trade-off literature, we carried out a mixed-method study to explicate the rationale and dynamics of trade-offs between sustainability practices.

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