Impact Assessment of Strategic Management on Sustainable Performance: A Study of Indian Banking Industry

P Kritee Rao and Akanksha Shukla

Business Strategy and the Environment, 2025, vol. 34, issue 4, 5059-5074

Abstract: Strategic Management (SM) and Sustainable Performance (SP) are essential for abiding performance of an industry. Today, management in service industry, especially banking entails espousing a sustainable strategy for enhanced performance. This requires comprehending its strategic management choices and the implementation for SP. There is dearth of research that studies the direct and indirect impact of SM on SP for developing countries, specifically in Indian banking purview. Thus, this paper critically examines the impact assessment of SM on SP and the mediation effect through Environmental Innovation Capability (EIC) on the relationship between SM and SP, for Indian Banking Industry. The study appraises linearity and normality measures through SPSS, reliability and validity assessments through PLS‐SEM and predictive relevancy through PLS‐Predict approach. Moreover, the hypothesis evaluation of the study concludes a positive relationship between SM and SP, SM and dimensions of SP, and EIC and SM and SP. The derived results will be insightful for researchers to comprehend the impact of SM on SP and for banking industry officials to determine sustained outcome and to develop a sustainable and strategic based management practices for SP.

Date: 2025
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