Enhancing sustainability performance through absorptive capacity: the moderating role of environmental uncertainty

Ahmed Hussein Ali and Mahmoud Ramadan Barakat

International Journal of Procurement Management, 2024, vol. 19, issue 2, 171-195

Abstract: It is essential for all organisations to strategically plan for superior sustainability performance in order to develop a competitive edge and satisfy all stakeholders. Drawing on stakeholder theory and knowledge-based view, this research aims to provide organisations with a tool to enhance their sustainability performance using absorptive capacity (potential and realised) under environmental uncertainty. Data were collected using a questionnaire from organisations operating in Egypt, and the 1,198 valid responses were analysed using CB-SEM. Results indicated that both potential and realised absorptive capacity can significantly enhance organisational sustainable performance. In addition, environmental uncertainty can only moderate the relationship between potential absorptive capacity and sustainability performance. This proves that in order to satisfy stakeholders through enhancing sustainability, organisations need to acquire knowledge and develop their capabilities to efficiently and effectively use this knowledge through absorptive capacity.

Keywords: sustainability performance; absorptive capacity; environmental uncertainty; structural equation modelling. (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijpman:v:19:y:2024:i:2:p:171-195

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