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Enhancing sustainability performance through absorptive capacity: the moderating role of environmental uncertainty

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  • Ahmed Hussein Ali
  • Mahmoud Ramadan Barakat

Abstract

It is essential for all organisations to strategically plan for superior sustainability performance in order to develop a competitive edge and satisfy all stakeholders. Drawing on stakeholder theory and knowledge-based view, this research aims to provide organisations with a tool to enhance their sustainability performance using absorptive capacity (potential and realised) under environmental uncertainty. Data were collected using a questionnaire from organisations operating in Egypt, and the 1,198 valid responses were analysed using CB-SEM. Results indicated that both potential and realised absorptive capacity can significantly enhance organisational sustainable performance. In addition, environmental uncertainty can only moderate the relationship between potential absorptive capacity and sustainability performance. This proves that in order to satisfy stakeholders through enhancing sustainability, organisations need to acquire knowledge and develop their capabilities to efficiently and effectively use this knowledge through absorptive capacity.

Suggested Citation

  • Ahmed Hussein Ali & Mahmoud Ramadan Barakat, 2024. "Enhancing sustainability performance through absorptive capacity: the moderating role of environmental uncertainty," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 19(2), pages 171-195.
    • Handle: RePEc:ids:ijpman:v:19:y:2024:i:2:p:171-195
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