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

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

Open Access
|Dec 2024

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 exogenous 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).

DOI: https://doi.org/10.2478/eoik-2025-0020 | Journal eISSN: 2303-5013 | Journal ISSN: 2303-5005
Language: English
Page range: 267 - 287
Submitted on: Sep 26, 2024
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Accepted on: Feb 22, 2025
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Published on: Dec 25, 2024
Published by: Oikos Institut d.o.o.
In partnership with: Paradigm Publishing Services
Publication frequency: 3 issues per year

© 2024 Md. Asaduzzaman Babu, Faisal Ejaz, Fatiha Tajnin Lina, Sarmad Ejaz, Md Rohibul Islam, Md. Khalid Hassan, Md Billal Hossain, published by Oikos Institut d.o.o.
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.