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Effect of Stakeholders-Oriented Behavior on the Performance of Sustainable Business

Author

Listed:
  • Carlos Ferro-Soto

    (Department of Business Organization and Marketing, University of Vigo, Campus Vigo, 36310 Vigo–Pontevedra, Spain)

  • Luz Amparo Macías-Quintana

    (Superintendence of Companies (Colombian Government), El Dorado Av. # 51-58 Bogotá, Colombia)

  • Paula Vázquez-Rodríguez

    (Department of Business Organization and Marketing, University of Santiago de Compostela, Campus Lugo, 27002 Lugo, Spain)

Abstract

This study focuses on stakeholder-oriented behavior, throughout organizational culture and organizational behavior, and its effects on the performance of sustainable organizations managed according to Corporative Social Responsibility (CSR) criteria. The investigation demonstrates that the sustainability efforts of a wide range of stakeholders exert various effects on business performance. This investigation tests two integrated conceptual models: (a) Stakeholder Orientation Model estimates the relationships among organizational culture components and their effects on stakeholder-oriented organizational behavior. That is, it estimates the influence of values on norms and artifacts, and their effects on stakeholder-oriented organizational behavior; (b) Performance model estimates the association between stakeholder-oriented organizational behavior and financial and market performance, reputation, and commitment. Using Structural Equation Modelling, both models were estimated from primary data collected from large- and medium-sized multi-sector Colombian companies involved in business sustainability practices. The findings reveal that values are antecedents of norms, but neither values nor norms are predictors of artifacts. Furthermore, norms and artifacts exert direct effects on stakeholder-oriented organizational behavior. In turn, stakeholder-oriented organizational behaviors are predictors of both market performance and commitment. Nevertheless, stakeholder-oriented organizational behaviors are not direct antecedents of both financial performance and reputation.

Suggested Citation

  • Carlos Ferro-Soto & Luz Amparo Macías-Quintana & Paula Vázquez-Rodríguez, 2018. "Effect of Stakeholders-Oriented Behavior on the Performance of Sustainable Business," Sustainability, MDPI, vol. 10(12), pages 1-27, December.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4724-:d:189812
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