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Empirical Evaluation of the Impact of Resilience and Sustainability on Firms’ Performance

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  • Elia Balugani

    (Department of Sciences and Methods for Engineering, University of Modena and Reggio Emilia, Via Amendola 2–Padiglione Morselli, Reggio Emilia, 42100 Modena, Italy)

  • Maria Angela Butturi

    (Department of Sciences and Methods for Engineering, University of Modena and Reggio Emilia, Via Amendola 2–Padiglione Morselli, Reggio Emilia, 42100 Modena, Italy)

  • Delroy Chevers

    (Mona School of Business and Management, The University of the West Indies, Mona 876, Jamaica)

  • David Parker

    (UQ Business School, The University of Queensland, Brisbane, QLD 4072, Australia)

  • Bianca Rimini

    (Department of Sciences and Methods for Engineering, University of Modena and Reggio Emilia, Via Amendola 2–Padiglione Morselli, Reggio Emilia, 42100 Modena, Italy)

Abstract

The concepts of resilience and sustainability appear multi-dimensional and correlated, depending on the context. Operational sustainability practices can enhance the resilience of a firm, and support its growth. This study aims at analyzing the impact of a sustainability strategy, measured by means of a sustainability maturity index (SMI), on the financial performance of a company. Since the SMI is strictly correlated to resilience capabilities, the performed analysis represents a first level integration of the sustainability and resilience indicators in a common framework. A data sample from 53 organizations was collected through structured interviews and analyzed to identify possible relationships between the SMI and the financial performance indexes. The analysis does not support commonly reported arguments: we show that profitability does not show a significant relationship with sustainable strategic intent. Interestingly, firm country of origin, size of the organization, and market focus, likewise, do not have a significant relationship with SMI. Arguably, multi-dimensional company performance, including both financial and non-financial measures, should be considered to assess the impact of sustainability practices. Moreover, further investigations are needed to capture firms’ nonfinancial indicators of performance that are related to sustainability and resilience, for building up a unified framework enabling trade-off analysis.

Suggested Citation

  • Elia Balugani & Maria Angela Butturi & Delroy Chevers & David Parker & Bianca Rimini, 2020. "Empirical Evaluation of the Impact of Resilience and Sustainability on Firms’ Performance," Sustainability, MDPI, vol. 12(5), pages 1-18, February.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:5:p:1742-:d:325171
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    References listed on IDEAS

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    Cited by:

    1. Antonio Miceli & Birgit Hagen & Maria Pia Riccardi & Francesco Sotti & Davide Settembre-Blundo, 2021. "Thriving, Not Just Surviving in Changing Times: How Sustainability, Agility and Digitalization Intertwine with Organizational Resilience," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    2. Jana Hornungová & Kateřina Petrová & František Milichovský, 2020. "Modeling Cause and Effect Relationships of Strategy Map Using Economic and Social Performance Factors in the Organizational Culture," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(3), pages 613-624.
    3. Gečienė Jolita, 2020. "The Resilience of Organizations in the Context of Regional Social Sustainability: Management Challenges under Uncertainty," Management of Organizations: Systematic Research, Sciendo, vol. 83(1), pages 37-55, June.
    4. Sooksan Kantabutra & Nuttasorn Ketprapakorn, 2021. "Toward an Organizational Theory of Resilience: An Interim Struggle," Sustainability, MDPI, vol. 13(23), pages 1-28, November.
    5. Hermundsdottir, Fanny & Haneberg, Dag Håkon & Aspelund, Arild, 2022. "Analyzing the impact of COVID-19 on environmental innovations in manufacturing firms," Technology in Society, Elsevier, vol. 68(C).

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