Individual and organizational identity economics: the case of sustainability

Abstract

PurposeThe purpose of this article is to introduce identity economics in the individual and organizational level, and highlight its impact on organizational performance, especially when dealing with foundational issues such as sustainability.Design/methodology/approachIdentity, sustainability, and the role of personal values in organizational performance are well researched topics that have been typically addressed on different literature streams. The article draws from this diverse literature to introduce identity effects in individual and organizational levels, and further explore how such elements link to the rising popularity of the sustainability discourse and how they can affect operations in an organization.FindingsThe article highlights the importance of identity effects on organizational operations and performance, especially when dealing with foundational issues such as sustainability perceptions.Originality/valueThe article builds upon the recent developments in the field of identity economics to introduce identity in the sustainability discourse and explore how (mis)alignment between identity values on sustainability and organizational culture can affect organizational operations and individual performance.