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Market drivers of sustainability and sustainability learning capabilities: The moderating role of sustainability control systems

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  • Chaminda Wijethilake
  • Bedanand Upadhaya

Abstract

This study examines (i) the impact of market drivers of sustainability on the adoption of sustainability learning capabilities and (ii) the moderating role of sustainability control systems (SCS) on the relationship between market drivers of sustainability and sustainability learning capabilities. Drawing on the levers of control framework, stakeholder theory and organisational learning literature, survey data were collected from 175 large scale local and multinational companies operating in Sri Lanka. Findings reveal that market drivers of sustainability have a significant positive impact on sustainability learning capabilities. Whereas the interactive use of SCS shows a positive moderating impact, the diagnostic use of SCS shows a negative impact. The study enhances our understanding of (i) the influence of market drivers of sustainability on the adoption of sustainability learning capabilities and (ii) the use of SCS in enabling sustainability learning capabilities. The study reveals novel insights for managers responding to changing market drivers of sustainability, on how to (re)align different uses of SCS to enable sustainability learning capabilities.

Suggested Citation

  • Chaminda Wijethilake & Bedanand Upadhaya, 2020. "Market drivers of sustainability and sustainability learning capabilities: The moderating role of sustainability control systems," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2297-2309, September.
    • Handle: RePEc:bla:bstrat:v:29:y:2020:i:6:p:2297-2309
    DOI: 10.1002/bse.2503
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    Cited by:

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    2. Dasuni Nirmani Pandithasekara & Erabaddage Ayoma Gayathri Sumanasiri & Áron Perényi, 2023. "Exploring the Impact of Sustainability Control Systems on Employees’ Green Creativity: The Mediating Role of Psychological Empowerment and Sustainability Learning Capabilities," Sustainability, MDPI, vol. 15(6), pages 1-20, March.
    3. Xiaode Ji & Yanzhao Su & Yue Zhang & Hui Wang, 2023. "Making Our Firm More Sustainable: The Role of CEO Vision Communication of Sustainability on Sustainability Performance," SAGE Open, , vol. 13(4), pages 21582440231, November.
    4. Nelson Oliveira Stefanelli & Charbel José Chiappetta Jabbour & Lara Bartocci Liboni Amui & Jorge Henrique Caldeira de Oliveira & Hengky Latan & Pascal Paillé & Martin Hingley, 2021. "Unleashing proactive low‐carbon strategies through behavioral factors in biodiversity‐intensive sustainable supply chains: Mixed methodology," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2535-2555, July.
    5. Jing Lu & Dongning Yu & Fereshteh Mahmoudian & Jamal A. Nazari & Irene M. Herremans, 2021. "Board interlocks and greenhouse gas emissions," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 92-108, January.
    6. Desalegn A. Gugissa & Paul T.M. Ingenbleek & Hans C.M. van Trijp & Mebrahtu L. Teklehaimanot & Workneh K. Tessema, 2021. "When natural resources run out, market knowledge steps in: Lessons on natural resource deployment from a longitudinal study in a resource‐scarce region of Ethiopia," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1598-1609, May.
    7. Suresh Kumar Jakhar & Arijit Bhattacharya & Himanshu Rathore & Sachin Kumar Mangla, 2020. "Stakeholder pressure for sustainability: Can ‘innovative capabilities’ explain the idiosyncratic response in the manufacturing firms?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2635-2653, September.
    8. Verena Hermelingmeier & Timo von Wirth, 2021. "The nexus of business sustainability and organizational learning: A systematic literature review to identify key learning principles for business transformation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1839-1851, May.
    9. Xiaobo Wang & Zhishan An & Caixia Zhang, 2023. "Identifying Crucial Attributes of Sustainable Operation for Scientific Instrument Platforms With a Fuzzy Synthetic Cause-Effect Model," SAGE Open, , vol. 13(3), pages 21582440231, August.
    10. Murni Zarina Mohamed Razali & Rossilah Jamil, 2023. "Sustainability Learning in Organizations: Integrated Model of Learning Approaches and Contextual Factors," SAGE Open, , vol. 13(1), pages 21582440231, February.

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