The effect of corporate sustainability performance on the relationship between corporate efficiency strategy and corporate financial performance
Past research has shown the importance of corporate sustainability performance to corporate financial performance. However, little is known about the mediating effect of corporate sustainability performance on the relationship between efficiency strategy and corporate financial performance. This...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English English |
| Published: |
2014
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| Subjects: | |
| Online Access: | https://etd.uum.edu.my/4352/1/s92225.pdf https://etd.uum.edu.my/4352/2/s92225_abstract.pdf https://etd.uum.edu.my/4352/ |
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| Summary: | Past research has shown the importance of corporate sustainability performance to
corporate financial performance. However, little is known about the mediating effect of
corporate sustainability performance on the relationship between efficiency strategy and
corporate financial performance. This study fills the gap by investigating the relationship
between efficiency strategy, sustainability performance and corporate financial performance of the service and the industry sectors in Jordan. Corporate efficiency strategy is measured through two dimensions, namely socio-efficiency and ecoefficiency. Corporate sustainability performance is also measured through two dimensions, namely corporate social performance and corporate environmental
performance, while the measurement of the corporate financial performance is based on
ROI (return on investment), ROA (return on asset), sales growth and profit growth. The
data were obtained by means of a mail survey sent directly to company managers involved in social and environmental performance. The questionnaires were sent to 232 service and industry companies listed on the Amman Stock Exchange in 2011, and 101 or 43.5 percent of them responded. The analysis used the linear and multiple regressions of analysis of the data. The study contributed to the sustainability literature by showing that
sustainability performance and efficiency strategy lead to greater financial performance.
Corporate sustainability performance was found to be partially mediating the relationship
between efficiency strategy and the financial performance model. The findings of this study, while contributing to the body of knowledge of the importance of sustainability performance, also assist the company managers in their sustainability efforts and in applying efficiency strategy to company operations. |
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