Sustainable value creation and organizational performance in industrial manufacturing companies

Abstract

Purpose This study aims to analyze the influence of sustainable value creation (composed of social, economic and environmental dimensions) on organizational performance in Colombian industrial manufacturing companies. Design/methodology/approach This study had a sample of 1,572 companies belonging to the Colombian manufacturing industrial sector. These companies were consulted by the survey of technological development and innovation in the manufacturing industry EDIT IX. For this study’s purpose, a model was developed from a variance-based structural equation modeling or partial least squares. Findings The results indicated that the associated mechanisms of the social, economic and environmental dimensions contribute in a significant, positive and large way to the creation of sustainable value for the companies studied. The findings show the importance of the social, economic and environmental dimensions in the creation of sustainable value and in turn, their influence on organizational performance. Social implications The findings obtained provide industrial companies and society with resources to understand that economic development can respond to business logic different from those imposed by current neoliberal models. Originality/value This study provides an understanding of the value capture mechanisms of small- and medium-sized companies considering the environmental needs of the territory and the community where the business activities take place while generating economic profitability for the other stakeholders.

Orientation and absorptive capacity towards sustainability: a missing link between sustainability and performance

“…Managing environmental assets benefits the manufacturing company's fiscal and societal success (Torrent-Sellens et al, 2023). The corresponding social, economic, and environmental mechanisms significantly, favourably and greatly add to the development of sustainable value and success for businesses (Acosta-Prado et al, 2023). The statistical analysis of the study of Salmanzadeh-Meydani et al (2023) demonstrates a direct relationship between ES and ENP.…”

“…, 2023). The corresponding social, economic, and environmental mechanisms significantly, favourably and greatly add to the development of sustainable value and success for businesses (Acosta-Prado et al. , 2023).…”

Adopting sustainability business models for value creation and delivery: an empirical investigation of manufacturing firms

“…By employing energy-efficient technologies, refining operational processes and encouraging responsible consumption, companies can markedly reduce operational costs, boosting their profitability (Acosta-Prado et al, 2022;Fu et al, 2022). Furthermore, through waste minimization and material reuse, organizations lessen their reliance on potentially costly or price-volatile raw materials (Danso et al, 2020).…”

“…Enforcing sustainability standards across the supply chain safeguards organizations from potential financial burdens like environmental fines, product recalls or reputation loss due to supplier non-compliance (Govindan et al, 2020). Moreover, equipping suppliers with sustainability knowledge can spark cost-efficient innovations, culminating in mutual cost benefits for themselves and their partners (Acosta-Prado et al, 2022;Fu et al, 2022). Collaborative efforts between companies and their suppliers can lead to the co-creation of optimized production methods, minimized resource use and risk reduction, all contributing to substantial economic gains (Wong et al, 2020;Melander and Pazirandeh, 2019).…”

Can industrial manufacturing be sustainable?

“…The work of Acosta-Prado et al (2022) has indicated that sustainable business practices, leading to sustainable value creation, has a significant and positive influence on organizational performance. Columbian industrial manufacturing firms have evidenced a sustained improvement in terms of organizational performance when adopting practices that look to promote social and environmental value creation alongside firm profit.…”