Does financial resource slack drive sustainability expenditure in developing economy small and medium-sized enterprises?

Nathaniel Boso, Albert Danso, Constantinos Leonidou, Moshfique Uddin, Ogechi Adeola and Magnus Hultman

Journal of Business Research, 2017, vol. 80, issue C, 247-256

Abstract: While firms continue to commit slack financial resources to sustainability causes, knowledge is lacking on how financial resource slack drives sustainability expenditure under varying conditions of market pressure and political connectedness in a developing-economy market. Using primary data from exporting small and medium sized enterprises in Nigeria, this study shows that increases in financial resource slack are associated with decreases in sustainability expenditure. Additionally, results indicate that the negative effect of financial resource slack on sustainability expenditure becomes positive when levels of market pressure are higher. However, the negative effect relationship is strengthened (i.e. becomes more negative) when levels of political connectedness are greater. We discuss theoretical and managerial implications of these findings.

Keywords: Financial resource slack; Sustainability expenditure; Market pressure; Political connectedness; Developing economy (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (28)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:80:y:2017:i:c:p:247-256

DOI: 10.1016/j.jbusres.2017.06.016

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