How Does Corporate Sustainability Increase Financial Performance for Small- and Medium-Sized Fashion Companies: Roles of Organizational Values and Business Model Innovation

Su Jin Yang and Seyoon Jang
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Su Jin Yang: Department of Consumer Science & Living Culture Industry, Sungshin Women’s University, Seoul 01133, Korea
Seyoon Jang: Department of Textiles, Merchandising and Fashion Design, Seoul National University, Seoul 08826, Korea

Sustainability, 2020, vol. 12, issue 24, 1-21

Abstract: The objective of this study was to examine how corporate sustainability can raise the level of corporate financial performance of small- and medium-sized enterprises (SMEs) in the fashion industry by considering the roles of organizational values and business model innovation in forming corporate sustainability. It is meaningful to explore the role of corporate sustainability in SMEs as well as fashion companies considering the recent growth of SMEs in the fashion industry. Practitioners ( N = 218) working for SMEs located in South Korea participated in an online survey. Exploratory factor analysis resulted in three organizational values of SMEs: flexibility value, rational value, and hierarchical value. While flexibility has contributed to forming business model innovation and sustainability, having a rational value has impacted business model innovation and financial performance. A hierarchical value affected only corporate sustainability. However, business model innovation did not show any significant impact on corporate sustainability or financial performance. Finally, corporate sustainability positively influenced financial performance only for SMEs that had experience practicing at least three sustainable activities. These results have implications for how SMEs manage sustainability to enhance financial performance.

Keywords: organizational values; corporate sustainability; business model innovation; financial performance; sustainable activity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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