Sustainability orientation, byproduct management and business performance: An empirical investigation

Abstract

Despite the emphasis of manufacturing firms on sustainability, integration of their orientation for long-term business performance is still challenging. This article examines how manufacturing firms devise strategies for sustainability by implementing sustainability practices like sustainable new product development and byproduct management to achieve environmental effectiveness and competitive business outcomes. A survey of 207 U.S. manufacturing firms is used for empirical testing and validation. The analysis of benchmark instruments indicates a high level of internal and external validity. The findings suggest that (1) sustainability orientation influences sustainable new product development and byproduct management; (2) Sustainable new product development and byproduct management jointly and directly impact environmental performance; (3) Environmental performance is crucial in determining business performance. The technological infrastructure of a firm reports a moderating effect between sustainable operations and performance outcomes. The longevity of a firm reports a moderating effect between environmental performance and business performance. To achieve broad social orientation goals, firms take a longer time horizon, take consistent steps to promote internal stakeholders’ wellbeing, and move forward with their purposeful reputation building in the larger ecosystem. This paper expands the sustainability literature by undertaking one of the first studies integrating sustainability orientation, sustainable new product development, byproduct management, and performance chain outcomes.