Sustainable development—Direct and indirect effects between economic, social, and environmental dimensions in business practices

Abstract

This study investigates the direct and indirect effects between economic, social and environmental dimensions of triple bottom line (TBL), based on a questionnaire survey and cross‐industrial sample in Sweden. The analyses apply partial least squares structural equation models. The study tests the direct and indirect effects between economic, social, and environmental dimensions of TBL and offers additional validity and reliability to establish the measurement and structural properties between the dimensions of TBL. The study extends earlier findings by explicitly discussing how the three TBL goals relate to each other and shows how the dynamic capability view can be a fruitful lens to investigate business sustainability. Some differences in sustainability business practices caused by differences in national cultures are identified. Sustainability reporting in a strong uncertainty avoidance (UA) country happens in accordance with regulations and laws. Conversely, for weak UA cultures, reporting and compliance with regulations are ways to build trust with stakeholders. That is, reporting is more transparent and widespread in weak UA countries. The study also provides a foundation to guide companies' actions of business sustainability. The model shows companies how to establish the order of actions undertaken across economic, social, and environmental dimensions. In addition, it clarifies that the economic dimension exerts an effect on the social and environmental dimensions. The model also grasps long‐term economic performance by including competitiveness and brand value, while earlier research mainly has focused on more short‐term measurements as return on assets.

Opening the black box of big data sustainable value creation: the mediating role of supply chain management capabilities and circular economy practices

“…The relationship between big data analytics capabilities and sustainable performance A 'three-pillar' concept of sustainable performance (SP) dominates the literature as described by the triple bottom line performance dimensions: economic, environmental and social (Purvis et al, 2019). Economic performance refers to the maximization of the firm's economic value, as reflected in its profit or financial results (Andersson et al, 2022). Environmental performance recognizes positive environmental achievements from the firm's operations, while minimizing negative impacts in terms of intakes and outflows (Nutsugah et al, 2021).…”

Sustainable development considerations in supply chains: Firms' relationships with stakeholders in their business sustainability practices—A triangular comparison

“…“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (World Commission on Environment and Development, 1987, p. 41; Springett, 2003). Sustainable development on a business level has its origin in the triple‐bottom‐line strategy, where firms seek to balance social, environmental, and economic dimensions in the management of organizations (Andersson et al, 2022; Elkington, 1997; Ozbekler & Ozturkoglu, 2020; Park, 2018; Rajesh & Rajendran, 2020). Inspired of and in line with previous works, we define business sustainability as the firm's efforts to go beyond only focusing on profitability, but to also manage its environmental, social, and broader economic impact on the marketplace and society as a whole (Svensson et al, 2018).…”

Is foreign direct investment caring for sustainability? A look in African sub-Saharan countries

“…The social and environmental pillars are also positively associated (Svensson et al, 2018;Andersson et al, 2022). Regarding the economic and social pillars, several studies find a positive association (Svensson et al, 2018;Andersson et al, 2022;Van Beurden and Gössling, 2008). Regarding FDI, we see a weak, positive and significant correlation with the environmental pillar (r = 0.230, p < 0.01) and a moderate, positive and significant correlation with the economic pillar (r = 0.348, p < 0.01).…”

“…Considering the interactions that can be expected to exist between the three pillars, and based on previous papers (Svensson and Wagner, 2015;Andersson et al, 2022;Costanza et al, 2016), we state our first three hypotheses: H1. There is a positive relationship between the economic and environmental pillars in sub-Saharan countries.…”

“…However, while few studies find weak support for the positive influence of social and environmental pillars on financial performance (Gao and Bansal, 2013), several studies find a positive association between economic and social pillars (Svensson et al , 2018; Andersson et al , 2022; Van Beurden and Gössling, 2008). Based on the dynamic capability view, Andersson et al (2022) and Svensson and Wagner (2015) predict and find that the economic pillar positively influences the social pillar and the social and environmental are also positively associated (Svensson et al , 2018; Andersson et al , 2022). Svensson and Wagner (2015) and Andersson et al (2022) also show that the environmental pillar depends on the social pillar.…”