THE RELATIONSHIP BETWEEN ORGANISATIONAL EFFICACY AND CORPORATE SUSTAINABILITY IN THE CONSTRUCTION INDUSTRY

Abstract

There is a growing focus on sustainability across all domains of businesses. However, there is limited evidence on the relationships between organisational efficacy and corporate sustainability. A central question for researchers and practitioners is whether organisational efficacy can build corporate sustainability in construction industry. To address this question, the present study seeks to empirically explore the relationship between organisational efficacy and corporate sustainability. By drawing upon recent thinking in the strategy and sustainability management literature, this paper argues on the impact of organisational efficacy on corporate sustainability. Using survey data from 62 housing development organizations, respondents included executives in charge of sustainability management, such as owners or sustainability development managers. Questionnaires (and an accompanying letter with survey details and contact information on the researchers) were sent through email by linking an online survey to the targeted respondents, and by applying structural equation modelling (SEM). Outcomes suggest that organisational efficacy enhances corporate sustainability. Respondents responded to 64 items that were adapted and adopted from previous researchers listed in the questionnaire. The study proposes that a corporate sustainability framework, which were developed and tested, are valid and reliable. The findings show that organisational efficacy and corporate sustainability are positively significant and all variables are formative constructs. The corporate sustainability framework may be used by organisations to assess and monitor the practices. A principal contribution of this study is empirically developed and has tested the corporate sustainability framework based on the elements of triple bottom line approach. As it stands, the investigation provides a foundation for further research, offering opportunities for updates, amendments and refinements.