EFFECT OF SUSTAINABLE PRACTICES ON ORGNIZATIONAL PERFORMANCE: INNOVATIVE PERFORMANCE AS MEDIATOR

Abstract

Practitioners and researchers have been interested in corporate sustainability for the last decade. Organizational survival and competitive advantage depend on the successful adoption of sustainability practices. This research, which is based on institutional theory, seeks to improve understanding of the relationship between sustainable practices and organizational performance, both directly and indirectly through non-financial performance. A survey questionnaire was used to obtain data from the management staff of Pakistani telecommunication companies. Based on 211 participants' responses this study found that both sustainability practices (exploration and exploitation) have a positive and significant association with organizational economic success. The mediation analysis shows mediators (innovative performance) partially mediate the relationship between sustainability practices and organizational economic performance. This is the first study of its kind in Pakistan to validate sustainability practices on a massive scale.