Abstract
AbstractThis study examines (i) the impact of market drivers of sustainability on the adoption of sustainability learning capabilities and (ii) the moderating role of sustainability control systems (SCS) on the relationship between market drivers of sustainability and sustainability learning capabilities. Drawing on the levers of control framework, stakeholder theory and organisational learning literature, survey data were collected from 175 large scale local and multinational companies operating in Sri Lanka. Findings reveal that market drivers of sustainability have a significant positive impact on sustainability learning capabilities. Whereas the interactive use of SCS shows a positive moderating impact, the diagnostic use of SCS shows a negative impact. The study enhances our understanding of (i) the influence of market drivers of sustainability on the adoption of sustainability learning capabilities and (ii) the use of SCS in enabling sustainability learning capabilities. The study reveals novel insights for managers responding to changing market drivers of sustainability, on how to (re)align different uses of SCS to enable sustainability learning capabilities.
Highlights
A recent survey shows that 66% of global consumers are willing to pay more for sustainable goods (Nielsen Global Corporate Sustainability Report, 2015)
The findings provide insights into the adoption of sustainability learning capabilities in the current changing business environment, where organisations are facing increased demand for sustainable products and services from powerful market drivers, and consumers are willing to pay more for sustainable products (Nielsen Global Corporate Sustainability Report, 2015)
This study makes an original and substantial contribution to sustainability, organisational learning and sustainability control systems (SCS) literature and managerial branch of stakeholder theory by responding to the call for research to examine the empirical link between market drivers of sustainability and organisations' learning towards sustainability (Amui et al, 2017; Schrettle et al, 2014) and whether management control systems (MCS) promote or hinder organisational learning (Batac & Carassus, 2009)
Summary
A recent survey shows that 66% of global consumers are willing to pay more for sustainable goods (Nielsen Global Corporate Sustainability Report, 2015). This highlights the importance of sustainable business practices in the current changing global business environment. Prior studies suggest that proactive organisations are more likely to be well equipped with learning capabilities in their strategic responses to market drivers of sustainability (Epstein & Roy, 1997; Feng et al, 2014; Kloot, 1997; Siebenhüner & Arnold, 2007).
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