6533b873fe1ef96bd12d4e88
RESEARCH PRODUCT
Exploring the impact of sustainable value proposition on firm performance
Imran M. IlyasOleksiy Osiyevskyysubject
liiketoimintamallitProcess (engineering)Strategy and ManagementyritysstrategiatPropositionsustainable value propositionBusiness modelmarkkinointiviestintätutkimus- ja kehittämistoimintayritysvastuutyöntekijätSustainable practicesarvolupausIndustrial relationsadvertisingIndustrial organizationsustainable business modelSustainable ValueR&Dkestävä kehitysfirm performanceemployee relationsmainontaCorporate sustainabilitySustainabilityBusinessdescription
Considering the immense potential of sustainable business models in tackling the broader challenge of corporate sustainability, this paper integrates the literature streams on sustainability practices and organizational business models to analyze the performance implications of a firm's sustainable value proposition. Based on the analysis of a large panel dataset across different industries, consistent with the proposed theory, a sustainable value proposition has been found to have a positive impact on a firm's market-based financial performance (namely, Tobin's Q). Yet, this impact turns out to be highly context-dependent. In particular, the findings reveal that a firm's R&D capabilities improve the positive effect of a sustainable value proposition on a firm's financial performance. At the same time, the marketing communication capabilities and sustainable practices regarding employee relations reduce the sustainable value proposition's financial performance effect, arguably due to the costs associated with marketing and the loss in employee interest during the process of adopting the sustainable business model elements. peerReviewed
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2022-10-01 | European Management Journal |