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Rethinking financial performance and corporate sustainability: Perspectives on resources and strategies

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  • Lo, Fang-Yi
  • Liao, Pei-Chun

Abstract

This research investigates the reasons behind the success and sustainability of century-old businesses and further explores their related antecedents. Based on the theories of resources and strategy perspectives, we examine the impact of human resources, business strategies, and financial performance on corporations’ sustainability from a sample of 3,587 Japanese-listed corporations from the OSIRIS database and use logistic regression analysis for testing the hypotheses. The empirical findings support that resources and strategy factors affect the sustainability of century-old Japanese firms, whereas short-term financial performance does not. This study offers a guide for enhancing human resource management and the strategic choice of diversification, instead of short-term financial performance, in order to assist century-old businesses at being sustainable.

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  • Lo, Fang-Yi & Liao, Pei-Chun, 2021. "Rethinking financial performance and corporate sustainability: Perspectives on resources and strategies," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    • Handle: RePEc:eee:tefoso:v:162:y:2021:i:c:s0040162520311720
    DOI: 10.1016/j.techfore.2020.120346
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