The effects of strategic choices and sustainability control systems in the emergence of organizational capabilities for sustainability

Abstract

PurposeThis study explores the relations among corporate sustainability strategies, the intense use of sustainability control systems (SCSs) to implement these strategies and the emergence of organizational capabilities for sustainability.Design/methodology/approachUsing survey data from a sample of 157 European firms across different industries, the authors explore differences between reactive and proactive sustainability strategies in their impact on the intense use of SCSs. The authors analyze the joint impact of a proactive sustainability strategy and an intense use of SCSs on the emergence of the organizational capabilities of sustainable market orientation, sustainable organizational learning and sustainable innovation. Furthermore, we explore the relevance of single levers of control for these capabilities.FindingsThe results show that a proactive sustainability strategy is associated with an intense use of SCSs and with the development of the three organizational capabilities. The authors provide evidence that the intensity of use of SCSs mediates the association between proactive sustainability strategy and the emergence of the three organizational capabilities. An interactive use of controls is constantly more important than a diagnostic use of controls in the emergence of the three capabilities.Originality/valueThe findings provide novel empirical evidence on the mechanisms through which corporate sustainability strategy is implemented in European organizations. The results contribute to an improved understanding of the organizational determinants underlying the development of organizational capabilities for sustainability.