Nonlinear relationship between ESG factors and firm efficiency among unity software’s affiliates

Qian Long Kweh (), Irene Wei Kiong Ting (), Wen-Min Lu (), Jawad Asif () and Hanh Thi My Le ()
Additional contact information
Qian Long Kweh: Canadian University Dubai
Irene Wei Kiong Ting: Universiti Malaysia Pahang Al-Sultan Abdullah
Wen-Min Lu: Chinese Culture University
Jawad Asif: University of Gujrat
Hanh Thi My Le: Ton Duc Thang University

Eurasian Business Review, 2025, vol. 15, issue 2, No 5, 515 pages

Abstract: Abstract This study examines the relationship between environmental, social, and governance (ESG) factors and firm efficiency of Unity Software Inc.’s suppliers, customers, and partners from 2010 to 2021. We apply a network data envelopment analysis to measure firm efficiency across a three-stage production process. Second, we investigate how ESG factors are associated with firm efficiency using a generalized additive model (GAM). The GAM results reveal a nonlinear relationship between ESG factors and firm efficiency, although it does not follow a clear U- or inverted U-shaped pattern. Overall, this study contributes to stakeholder theory by using a unique dataset to demonstrate the link between ESG performance and firm efficiency and highlighting ESG strategies that may improve/degrade firm efficiency in converting resources into business outcomes.

Keywords: ESG; Firm efficiency; Data envelopment analysis; Generalized additive model (search for similar items in EconPapers)
JEL-codes: L25 M14 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40821-025-00307-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eurasi:v:15:y:2025:i:2:d:10.1007_s40821-025-00307-9

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40821

DOI: 10.1007/s40821-025-00307-9

Access Statistics for this article

Eurasian Business Review is currently edited by Marco Vivarelli

More articles in Eurasian Business Review from Springer, Eurasia Business and Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().