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Nonlinear relationship between ESG factors and firm efficiency among unity software’s affiliates

Author

Listed:
  • Qian Long Kweh

    (Canadian University Dubai)

  • Irene Wei Kiong Ting

    (Universiti Malaysia Pahang Al-Sultan Abdullah)

  • Wen-Min Lu

    (Chinese Culture University)

  • Jawad Asif

    (University of Gujrat)

  • Hanh Thi My Le

    (Ton Duc Thang University)

Abstract

This study examines the relationship between environmental, social, and governance (ESG) factors and firm efficiency of Unity Software Inc.’s suppliers, customers, and partners from 2010 to 2021. We apply a network data envelopment analysis to measure firm efficiency across a three-stage production process. Second, we investigate how ESG factors are associated with firm efficiency using a generalized additive model (GAM). The GAM results reveal a nonlinear relationship between ESG factors and firm efficiency, although it does not follow a clear U- or inverted U-shaped pattern. Overall, this study contributes to stakeholder theory by using a unique dataset to demonstrate the link between ESG performance and firm efficiency and highlighting ESG strategies that may improve/degrade firm efficiency in converting resources into business outcomes.

Suggested Citation

  • Qian Long Kweh & Irene Wei Kiong Ting & Wen-Min Lu & Jawad Asif & Hanh Thi My Le, 2025. "Nonlinear relationship between ESG factors and firm efficiency among unity software’s affiliates," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(2), pages 481-515, June.
    • Handle: RePEc:spr:eurasi:v:15:y:2025:i:2:d:10.1007_s40821-025-00307-9
    DOI: 10.1007/s40821-025-00307-9
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    More about this item

    Keywords

    ESG; Firm efficiency; Data envelopment analysis; Generalized additive model;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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