Publication

When Does Corporate Sustainability Performance Pay off? The Impact of Country-Level Sustainability Performance

Xiao, C., Wang, Q., van der Vaart, T. & van Donk, D. P., Apr-2018, In : Ecological Economics. 146, p. 325-333 9 p.

Research output: Contribution to journalArticleAcademicpeer-review

APA

Xiao, C., Wang, Q., van der Vaart, T., & van Donk, D. P. (2018). When Does Corporate Sustainability Performance Pay off? The Impact of Country-Level Sustainability Performance. Ecological Economics, 146, 325-333. https://doi.org/10.1016/j.ecolecon.2017.11.025

Author

Xiao, Chengyong ; Wang, Qian ; van der Vaart, Taco ; van Donk, Dirk Pieter. / When Does Corporate Sustainability Performance Pay off? The Impact of Country-Level Sustainability Performance. In: Ecological Economics. 2018 ; Vol. 146. pp. 325-333.

Harvard

Xiao, C, Wang, Q, van der Vaart, T & van Donk, DP 2018, 'When Does Corporate Sustainability Performance Pay off? The Impact of Country-Level Sustainability Performance' Ecological Economics, vol. 146, pp. 325-333. https://doi.org/10.1016/j.ecolecon.2017.11.025

Standard

When Does Corporate Sustainability Performance Pay off? The Impact of Country-Level Sustainability Performance. / Xiao, Chengyong; Wang, Qian; van der Vaart, Taco; van Donk, Dirk Pieter.

In: Ecological Economics, Vol. 146, 04.2018, p. 325-333.

Research output: Contribution to journalArticleAcademicpeer-review

Vancouver

Xiao C, Wang Q, van der Vaart T, van Donk DP. When Does Corporate Sustainability Performance Pay off? The Impact of Country-Level Sustainability Performance. Ecological Economics. 2018 Apr;146:325-333. https://doi.org/10.1016/j.ecolecon.2017.11.025


BibTeX

@article{4a1c21c210734d2b99fdb7070868fe46,
title = "When Does Corporate Sustainability Performance Pay off? The Impact of Country-Level Sustainability Performance",
abstract = "has been considerable debate on and research efforts into the question as to if, and if so when, improving corporate sustainability performance is not only beneficial for social and environmental wellbeing but also for the financial wellbeing of a firm. So far, the literature has reported mixed results on the relationship between corporate sustainability and financial performance. Drawing on instrumental stakeholder theory, we develop a focal hypothesis arguing that the financial effect of corporate sustainability performance is negatively impacted by country-level sustainability performance because stakeholders will take a firm's sustainability improvement for granted in countries with good social and environmental performance. We test this focal hypothesis in a cross-country setting drawing on the 6th International Manufacturing Strategy Survey. The current study supplements these data with secondary data drawn from the Human Development Index and the Environmental Performance Index. The results support our hypothesis that firms in countries with higher levels of sustainability performance generally find it more difficult to capitalize on corporate sustainability performance than do their counterparts in countries with relatively low levels of sustainability performance. This outcome helps to explain the mixed findings in the literature. Moreover, our study suggests that sustainability management can be a source of competitive advantage for firms located in emerging and developing countries, where in general the level of sustainability performance is relatively",
keywords = "Corporate sustainability performance, Corporate financial performance, Country-level sustainability performance, Cross-country analysis, Instrumental stakeholder theory, SUPPLY CHAIN MANAGEMENT, HUMAN-DEVELOPMENT INDEX, SOCIAL-RESPONSIBILITY, FINANCIAL PERFORMANCE, BOTTOM-LINE, FIRM SIZE, CSR, OPERATIONS, REGRESSION, GREEN",
author = "Chengyong Xiao and Qian Wang and {van der Vaart}, Taco and {van Donk}, {Dirk Pieter}",
year = "2018",
month = "4",
doi = "10.1016/j.ecolecon.2017.11.025",
language = "English",
volume = "146",
pages = "325--333",
journal = "Ecological Economics",
issn = "0921-8009",
publisher = "ELSEVIER SCIENCE BV",

}

RIS

TY - JOUR

T1 - When Does Corporate Sustainability Performance Pay off? The Impact of Country-Level Sustainability Performance

AU - Xiao, Chengyong

AU - Wang, Qian

AU - van der Vaart, Taco

AU - van Donk, Dirk Pieter

PY - 2018/4

Y1 - 2018/4

N2 - has been considerable debate on and research efforts into the question as to if, and if so when, improving corporate sustainability performance is not only beneficial for social and environmental wellbeing but also for the financial wellbeing of a firm. So far, the literature has reported mixed results on the relationship between corporate sustainability and financial performance. Drawing on instrumental stakeholder theory, we develop a focal hypothesis arguing that the financial effect of corporate sustainability performance is negatively impacted by country-level sustainability performance because stakeholders will take a firm's sustainability improvement for granted in countries with good social and environmental performance. We test this focal hypothesis in a cross-country setting drawing on the 6th International Manufacturing Strategy Survey. The current study supplements these data with secondary data drawn from the Human Development Index and the Environmental Performance Index. The results support our hypothesis that firms in countries with higher levels of sustainability performance generally find it more difficult to capitalize on corporate sustainability performance than do their counterparts in countries with relatively low levels of sustainability performance. This outcome helps to explain the mixed findings in the literature. Moreover, our study suggests that sustainability management can be a source of competitive advantage for firms located in emerging and developing countries, where in general the level of sustainability performance is relatively

AB - has been considerable debate on and research efforts into the question as to if, and if so when, improving corporate sustainability performance is not only beneficial for social and environmental wellbeing but also for the financial wellbeing of a firm. So far, the literature has reported mixed results on the relationship between corporate sustainability and financial performance. Drawing on instrumental stakeholder theory, we develop a focal hypothesis arguing that the financial effect of corporate sustainability performance is negatively impacted by country-level sustainability performance because stakeholders will take a firm's sustainability improvement for granted in countries with good social and environmental performance. We test this focal hypothesis in a cross-country setting drawing on the 6th International Manufacturing Strategy Survey. The current study supplements these data with secondary data drawn from the Human Development Index and the Environmental Performance Index. The results support our hypothesis that firms in countries with higher levels of sustainability performance generally find it more difficult to capitalize on corporate sustainability performance than do their counterparts in countries with relatively low levels of sustainability performance. This outcome helps to explain the mixed findings in the literature. Moreover, our study suggests that sustainability management can be a source of competitive advantage for firms located in emerging and developing countries, where in general the level of sustainability performance is relatively

KW - Corporate sustainability performance

KW - Corporate financial performance

KW - Country-level sustainability performance

KW - Cross-country analysis

KW - Instrumental stakeholder theory

KW - SUPPLY CHAIN MANAGEMENT

KW - HUMAN-DEVELOPMENT INDEX

KW - SOCIAL-RESPONSIBILITY

KW - FINANCIAL PERFORMANCE

KW - BOTTOM-LINE

KW - FIRM SIZE

KW - CSR

KW - OPERATIONS

KW - REGRESSION

KW - GREEN

U2 - 10.1016/j.ecolecon.2017.11.025

DO - 10.1016/j.ecolecon.2017.11.025

M3 - Article

VL - 146

SP - 325

EP - 333

JO - Ecological Economics

JF - Ecological Economics

SN - 0921-8009

ER -

ID: 78923499