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Dynamic sustainability capabilities and corporate sustainability performance: The mediating effect of resource management capabilities

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  • Hua Shang
  • Renfei Chen
  • Zhongwen Li

Abstract

Corporate sustainable development has become an important topic for academic discussion. Sustainability is a managerial trend playing an important role in contemporary organizational strategy management. There has been little study about the ability of companies to make sustainability more dynamic and to integrate sustainability within overarching strategies, transforming sustainability into a business asset. This study examines ways to translate dynamic sustainability capabilities into corporate sustainability performance from a natural resource‐based view. The study investigates the mediating effect of resource management capabilities to connect dynamic sustainability capabilities and corporate sustainability performance. Survey data were collected from 163 corporations in China. Data were analyzed using partial least squares structural equation modeling. The results demonstrate that (a) dynamic sustainability capabilities are composed of monitoring, seizing, and reconstructing capabilities; (b) dynamic capabilities with respect to sustainability have a significant positive effect on each dimension of corporate sustainability performance; (c) resource management capabilities were found to only partially mediate the relationship between dynamic sustainability capabilities and corporate environmental and social performance; (d) economic performance exhibits no mediation. This study enriches the theory of dynamic corporate capabilities and sustainable development and provides effective management advice for companies facing sustainable development issues.

Suggested Citation

  • Hua Shang & Renfei Chen & Zhongwen Li, 2020. "Dynamic sustainability capabilities and corporate sustainability performance: The mediating effect of resource management capabilities," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 595-612, July.
    • Handle: RePEc:wly:sustdv:v:28:y:2020:i:4:p:595-612
    DOI: 10.1002/sd.2011
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    2. George Lăzăroiu & Luminița Ionescu & Mihai Andronie & Irina Dijmărescu, 2020. "Sustainability Management and Performance in the Urban Corporate Economy: A Systematic Literature Review," Sustainability, MDPI, vol. 12(18), pages 1-13, September.
    3. Daniel Friedrich, 2021. "Benefits from sustainable development using bioplastics: A comparison between the food and fashion industries," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 915-929, September.
    4. Syed Inaam Ullah Shah, Nadia Gilani, Syed Abdul Waheed, 2021. "The Role of Ethical Climate and Workplace Spirituality in Enhancing Employee Involvement in Sustainability Activities: Evidence from the Perspectives of Faculty of Public Sector Universities," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 8(1), pages 71-83, March.
    5. Kouassi Marius Honoré Aké & Olivier Boiral, 2023. "Sustainable development and stakeholder engagement in the agri‐food sector: Exploring the nexus between biodiversity conservation and information technology," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 334-348, February.
    6. Juhani Ukko & Minna Saunila & Mina Nasiri & Tero Rantala, 2022. "The importance of sustainability engagement in small businesses supplier collaboration," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 1-9, February.
    7. Mohammad Bilal Shaukat & Khawaja Fawad Latif & Aymen Sajjad & Gabriel Eweje, 2022. "Revisiting the relationship between sustainable project management and project success: The moderating role of stakeholder engagement and team building," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 58-75, February.

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