A Firm’s Market Performance: How Does Sustainability Practice Influence It?

Abstract

The study’s central theme is sustainability practice. It aims to measure the impact of sustainability practices on market performance. The study is quantitative, and data was obtained through a structured questionnaire using a five-point Likert scale. Different firms, such as manufacturing, non-manufacturing, and service support, run the survey by sharing the data (n=200). Data were analysed through Smart PLS version 4.1.0.0, employing a structural equation model (SEM) technique to measure the impact of endogenous variables. All three variables (Employee engagement in sustainability, corporate social responsibility, and environmental concern) positively and significantly impact sustainability practice. Thus, the study’s central finding is that sustainability practice positively influences the market performance of the firms, and the association is also significant. Companies that adopt sustainable practices can differentiate themselves in the market, potentially improving their competitiveness. Companies can exploit the notion that sustainability is a highly efficient technique for stimulating growth. Integrating sustainable principles can lead to long-lasting economic advantages. The novelty of this work is that it considers sustainability practices to determine the impact on market performance. Future work can be conducted on the specification of market performance, such as sales growth, return on investment (ROI), return on assets (ROA), and earnings per share (EPS).