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Title Orientation and absorptive capacity towards sustainability: a missing link between sustainability and performance
ID_Doc 74548
Authors Shah, N; Moawad, NF; Bhatti, MK; Abdelwahed, NAA; Soomro, BA
Title Orientation and absorptive capacity towards sustainability: a missing link between sustainability and performance
Year 2024
Published International Journal Of Productivity And Performance Management, 73, 5
DOI 10.1108/IJPPM-01-2022-0018
Abstract PurposeThis study investigates economic sustainability through orientation and absorptive capacity.Design/methodology/approachThe researchers developed a conceptual framework based on vigorous literature for this investigation. This study targeted managers from Pakistan's SME sector as respondents and employed cross-sectional data. In total, the authors based this study's findings on 192 valid cases.FindingsThe structural equation modeling (SEM) results highlight that innovation orientation (IO), customer orientation (CO), supplier orientation (SO), network orientation (NO) and absorptive capacity (AC) have significant effects on economic sustainability (ES). Moreover, this study's findings show that ES significantly predicts environmental sustainability (ENS). Finally, the results also demonstrate that ES and ENS positively and substantially affect financial performance (FP).Practical implicationsThis study's findings help SMEs continue sustainable business practices by avoiding adverse environmental effects and ongoing climate changes. This study's findings contribute also to the manufacture of eco-friendly environmental products to reduce the contamination of the environment. Financial institutions and policymakers would boost SME owners' capacity and the obtainability of financial resources to improve Pakistani SMEs' sustainable economic and environmental performance.Originality/valueThis study's findings help to enrich environmental and economic sustainability and, more significantly, for developing countries.
Author Keywords Financial performance; Environmental sustainability; Economic sustainability; Absorptive capacity; Orientation; SMEs
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Emerging Sources Citation Index (ESCI)
EID WOS:001018787900001
WoS Category Management
Research Area Business & Economics
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