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Corporate Sustainability and Firm Performance: The Role of Green Innovation Capabilities and Sustainability-Oriented Supplier–Buyer Relationship

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  • Michelle Frempomaa Frempong

    (School of Management and Economics, Qingshuihe Campus, University of Electronic Science and Technology of China, Chengdu 611731, China
    Centre for West African Studies, Qingshuihe Campus, University of Electronic Science and Technology of China, Chengdu 611731, China)

  • Yinping Mu

    (School of Management and Economics, Qingshuihe Campus, University of Electronic Science and Technology of China, Chengdu 611731, China
    Centre for West African Studies, Qingshuihe Campus, University of Electronic Science and Technology of China, Chengdu 611731, China)

  • Stephen Sarfo Adu-Yeboah

    (School of Management, Hefei University of Technology, Hefei 230009, China)

  • Md Altab Hossin

    (School of Management and Economics, Qingshuihe Campus, University of Electronic Science and Technology of China, Chengdu 611731, China
    Centre for West African Studies, Qingshuihe Campus, University of Electronic Science and Technology of China, Chengdu 611731, China)

  • Mavis Adu-Gyamfi

    (School of Management and Economics, Qingshuihe Campus, University of Electronic Science and Technology of China, Chengdu 611731, China
    Centre for West African Studies, Qingshuihe Campus, University of Electronic Science and Technology of China, Chengdu 611731, China)

Abstract

This study attempts to examine the impact of corporate sustainability on firm performance by examining the indirect effect of sustainability-oriented supplier partnership and green innovation capabilities of a firm. The data acquired to address the research question is collected from management personnel, officers, and experts in the Ghana manufacturing sector using a list provided by the Association of Ghana Industries. Data acquired are tested for convergent validity and construct reliability and further examine the measurement model. The structural model is examined using partial least square structural equation modeling techniques. The empirical study supports seven (7) out of eight (8) stated hypotheses. Findings indicate that a sustainability-oriented supplier partnership indirectly influences the effect of social sustainability practices on a firm’s performance. In the same view, the outcome revealed that a sustainability-oriented supplier partnership does not positively influence the relationship between environmental, economic sustainability, and firm performance. Green innovation capabilities indirectly influence the effect of social and economic sustainability on firm performance except for environmental sustainability and firm performance. The findings of the study contribute to the literature by providing insights into the indirect effect of supplier–partnership and green innovation capabilities on firm performance, especially in the manufacturing sector.

Suggested Citation

  • Michelle Frempomaa Frempong & Yinping Mu & Stephen Sarfo Adu-Yeboah & Md Altab Hossin & Mavis Adu-Gyamfi, 2021. "Corporate Sustainability and Firm Performance: The Role of Green Innovation Capabilities and Sustainability-Oriented Supplier–Buyer Relationship," Sustainability, MDPI, vol. 13(18), pages 1-20, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:18:p:10414-:d:638471
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    References listed on IDEAS

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    Cited by:

    1. Li, Lingjia & Shan, Shuo & Dai, Jing & Che, Wen & Shou, Yongyi, 2022. "The impact of green supply chain management on green innovation: A meta-analysis from the inter-organizational learning perspective," International Journal of Production Economics, Elsevier, vol. 250(C).
    2. Hui Fang & Qixin Huo & Kaouakib Hatim, 2023. "Can Digital Services Trade Liberalization Improve the Quality of Green Innovation of Enterprises? Evidence from China," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    3. Xiaozhen Wang & Mark Yang & Kihyun Park & Ki-Hyun Um & Mingu Kang, 2022. "Social Sustainability of a Firm: Orientation, Practices, and Performances," IJERPH, MDPI, vol. 19(20), pages 1-12, October.
    4. Xingwei Li & Jiachi Dai & Jinrong He & Jingru Li & Yicheng Huang & Xiang Liu & Qiong Shen, 2022. "Mechanism of Enterprise Green Innovation Behavior Considering Coevolution Theory," IJERPH, MDPI, vol. 19(16), pages 1-19, August.
    5. Min Zhang & Yu Su & Peng Zhu, 2022. "Will Green Innovation Bring about the Financial Spillover Effect? Evidence from China’s High-Carbon Listed Companies," Sustainability, MDPI, vol. 15(1), pages 1-20, December.

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