Achieving Sustainable Development Through Structural Tools: Institutional Configurations and Pathways

Sustainable development is a central objective for contemporary firms. It involves both long-term organizational resilience and improved environmental, social, and governance (ESG) performance. Structural tools that support long-term stability and strategic continuity play a critical role in achieving these goals. However, their adoption depends on the interaction between formal and informal institutional forces. Drawing on institutional theory, this study applies fuzzy-set qualitative comparative analysis (fsQCA) to data from Chinese listed firms. We examine how four institutional dimensions jointly shape structural tool adoption: governance structure, intergenerational heterogeneity, institutional and cultural context, and market-driven and mimetic forces. Structural tools facilitate governance consolidation and leadership succession, which are essential for sustainable development. Our findings show that no single institutional condition is sufficient to trigger adoption. Instead, multiple conditions must combine to enable firms to implement structural tools. The seven configurations identified reveal diverse governance paths across different institutional contexts, including complementary, substitutive, and conflicting relationships between formal and informal institutions. We also find clear causal asymmetry: the conditions that promote adoption differ fundamentally from those that inhibit it. Structural tools provide an institutional foundation for balancing short-term pressures with long-term sustainability commitments. Firms lacking these mechanisms face greater risks of leadership succession failure and long-term instability. Additional analyses using mean difference tests and fixed-effects models further confirm that structural tool adoption significantly enhances both sustainable development capacity and ESG performance. Overall, this study advances institutional theory. It shows how the interaction between formal and informal institutions shapes governance choices. It also explains how governance structures are linked to sustainable development outcomes.