A Firm’s Market Performance: How Does Sustainability Practice Influence It?

Babu Md. Asaduzzaman, Ejaz Faisal (), Lina Fatiha Tajnin, Ejaz Sarmad, Islam Md Rohibul, Hassan Md. Khalid and Hossain Md Billal ()
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Babu Md. Asaduzzaman: Department of Marketing, Faculty of Business Studies, Hajee Mohammad Danesh Science and Technology University, Dinajpur-5200, Bangladesh
Ejaz Faisal: Department of Economics, UTAR, Kampar, 31900, Malaysia
Lina Fatiha Tajnin: Department of Marketing, Faculty of Business Studies, Hajee Mohammad Danesh Science and Technology University, Dinajpur-5200, Bangladesh
Ejaz Sarmad: Department of Management Sciences, University of Okara, Okara, Pakistan
Islam Md Rohibul: Department of Marketing, Faculty of Business Studies, Hajee Mohammad Danesh Science and Technology University, Dinajpur-5200, Bangladesh
Hassan Md. Khalid: Department of Business Administration, International Islami University of Science and Technology Bangladesh
Hossain Md Billal: Sustainability Competence Centre, Széchenyi Istvàn University, 9026, Győr, Hungary

Economics, 2025, vol. 13, issue 1, 267-287

Abstract: The study’s central theme is sustainability practice. It aims to measure the impact of sustainability practices on market performance. The study is quantitative, and data was obtained through a structured questionnaire using a five-point Likert scale. Different firms, such as manufacturing, non-manufacturing, and service support, run the survey by sharing the data (n=200). Data were analysed through Smart PLS version 4.1.0.0, employing a structural equation model (SEM) technique to measure the impact of exogenous variables. All three variables (Employee engagement in sustainability, corporate social responsibility, and environmental concern) positively and significantly impact sustainability practice. Thus, the study’s central finding is that sustainability practice positively influences the market performance of the firms, and the association is also significant. Companies that adopt sustainable practices can differentiate themselves in the market, potentially improving their competitiveness. Companies can exploit the notion that sustainability is a highly efficient technique for stimulating growth. Integrating sustainable principles can lead to long-lasting economic advantages. The novelty of this work is that it considers sustainability practices to determine the impact on market performance. Future work can be conducted on the specification of market performance, such as sales growth, return on investment (ROI), return on assets (ROA), and earnings per share (EPS).

Keywords: Employee Engagement; CSR; Environmental Concern; Sustainability Practice; Market Performance (search for similar items in EconPapers)
JEL-codes: L1 L25 M11 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:econom:v:13:y:2025:i:1:p:267-287:n:1019

DOI: 10.2478/eoik-2025-0020

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