Corporate Sustainability and Firm Performance: The Role of Green Innovation Capabilities and Sustainability-Oriented Supplier–Buyer Relationship

Michelle Frempomaa Frempong, Yinping Mu, Stephen Sarfo Adu-Yeboah, Md Altab Hossin and Mavis Adu-Gyamfi
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Michelle Frempomaa Frempong: School of Management and Economics, Qingshuihe Campus, University of Electronic Science and Technology of China, Chengdu 611731, China
Yinping Mu: School of Management and Economics, Qingshuihe Campus, University of Electronic Science and Technology of China, Chengdu 611731, China
Stephen Sarfo Adu-Yeboah: School of Management, Hefei University of Technology, Hefei 230009, China
Md Altab Hossin: School of Management and Economics, Qingshuihe Campus, University of Electronic Science and Technology of China, Chengdu 611731, China
Mavis Adu-Gyamfi: School of Management and Economics, Qingshuihe Campus, University of Electronic Science and Technology of China, Chengdu 611731, China

Sustainability, 2021, vol. 13, issue 18, 1-20

Abstract: This study attempts to examine the impact of corporate sustainability on firm performance by examining the indirect effect of sustainability-oriented supplier partnership and green innovation capabilities of a firm. The data acquired to address the research question is collected from management personnel, officers, and experts in the Ghana manufacturing sector using a list provided by the Association of Ghana Industries. Data acquired are tested for convergent validity and construct reliability and further examine the measurement model. The structural model is examined using partial least square structural equation modeling techniques. The empirical study supports seven (7) out of eight (8) stated hypotheses. Findings indicate that a sustainability-oriented supplier partnership indirectly influences the effect of social sustainability practices on a firm’s performance. In the same view, the outcome revealed that a sustainability-oriented supplier partnership does not positively influence the relationship between environmental, economic sustainability, and firm performance. Green innovation capabilities indirectly influence the effect of social and economic sustainability on firm performance except for environmental sustainability and firm performance. The findings of the study contribute to the literature by providing insights into the indirect effect of supplier–partnership and green innovation capabilities on firm performance, especially in the manufacturing sector.

Keywords: corporate sustainability; firm performance; green innovation capabilities; sustainability-oriented supplier network; PLS-SEM (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:18:p:10414-:d:638471

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