Abstract
The study was carried out to investigate the empirical effect of a strategic management system on sustainable development by using a balanced scorecard (BSC), as a theoretical lens, and organizational performance, as an intervening variable. The study incorporated a positivism research paradigm in order to address the objective nature of research. As the current study has an empirical and impartial nature, a quantitative method was considered the best method for achieving the research objectives of the study. The study used questionnaires as a data collection instrument. In total, three hundred questionnaires were disturbed among Chinese power companies based in Pakistan. A stratified-random sampling approach was adopted to reach relevant respondents. Partial least squares-structural equation modeling was used for statistical analysis. BSC indicated a positive influence on sustainable development. Additionally, organizational performance depicted partial mediation between the strategic management system and sustainable development. The study underpins the theoretical foundation of a resource-based view (RBV) and a balanced scorecard view of the strategic management system. The findings suggest that non-financial measures have better consequences for employees’ performance, making them ecologically responsive, unlike the financial performance measures used previously. The study suggests taking measures related to wastage and usage of inimitable resources that focus on in-addition rather traditional measures, which can allow sustainable development.
Highlights
The main goal of every organization is aligned with maximization of profit
The purpose of this research is to investigate the empirical link of strategic management to sustainable development through organizational performance
The study examines the relationship between the strategic management system and sustainable development by using perceived organizational performance as an intervening variable
Summary
The main goal of every organization is aligned with maximization of profit. This has labeled organizations as profit-making machines. This situation is the main reason for organizations to work more on their strategic management system to maximization their profitability along with long-lasting success. The stiff competition in today’s dynamic environment is forcing the corporate world to strive for highly effective strategic systems that can enable organizations to work independently [1,2]. The competition invisibly invites organizations to work on a sustainable, inimitable, and rapidly adaptable strategic management system to enhance organizational performance effectively and efficiently. Contributing to the environment as a factor of sustainable development is becoming a focus of the current era as it is defined as an organization’s strategic outcome to make it stand-alone among competition [5,6]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
