Corporate Sustainability Practices and Organizational Economic Performance

Abstract

Since last decade corporate sustainability has been of great interest to practitioners and researchers, both. Successful implementation of sustainability practices is vital for organizational survival and competitive advantage. Based on institutional theory, this study aims at to enhance understanding regarding the relationship of sustainability practices and corporate performance directly and indirectly through non-financial performance. Data from managerial level employees of manufacturing and services providing organizations of Pakistan was collected through a survey questionnaire. Based on 346 participants’ responses we found that sustainability practices (exploration and exploitation) have significant relationship with financial and market performance. The multi-mediation analysis shows that all mediators partially mediate the relationship between sustainability practices and corporate performance. In the context of Pakistan, this study is the first of its kind to validate sustainability practices scale.