From corporate planning to performance: how institutional forces propel sustainability in European firms

Daniela Cicchini, Rosa Lombardi, Stefano Marasca and Salvatore Principale

Social Responsibility Journal, 2025, vol. 22, issue 3, 529-550

Abstract: PurposeThis study aims to assess and identify the key factors driving companies to develop a strategic plan integrating non-financial objectives into corporate strategies.Design/methodology/approachThis study employed a quantitative methodology, conducting a logistic panel regression analysis. The sample consisted of 990 large European companies (2018–2022) based on their specific commitment. This study employed institutional theory as a theoretical framework to explore the external pressures driving companies to adopt similar approaches in response to their corporate environment.FindingsThe results show that the isomorphic forces impact the integration of non-financial goals into strategic planning. Normative pressures, as measured by Hofstede’s cultural dimensions (long-term orientation, uncertainty avoidance and individualism), have a positive impact on integrating non-financial goals into the strategic planning process. Additionally, the presence of an organization that has already published a strategic plan integrating non-financial objectives encourages mimetic pressures, positively influencing other companies in the same country. However, regulatory pressures negatively affect the integration of non-financial goals into strategic plans.Research limitations/implicationsThis study provides theoretical and practical implications. Theoretically, it contributes to the expansion of the literature on corporate strategic planning focusing on sustainability issues. Additionally, the study offers policymakers and managers valuable insights into the impact of institutional forces on the decision-making process.Originality/valueThe paper’s originality lies in addressing a research gap: while sustainability reporting is widely studied, there is a limited focus on the strategic planning of sustainability issues. The study contributes by offering insights into strategic planning for sustainability, enhancing understanding in this field.

Keywords: Corporate strategic planning; Sustainability strategic plan; Decision-making process; Institutional theory; European companies (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:srjpps:srj-12-2024-0860

DOI: 10.1108/SRJ-12-2024-0860

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