IDEAS home Printed from https://ideas.repec.org/a/spr/circec/v4y2024i4d10.1007_s43615-024-00405-2.html
   My bibliography  Save this article

Striving for Business Sustainability: Understanding the Interplay and Impact of Sustainable Finance, Environmental Social Governance Strategy, and Information Technology Integration on Sustainable Enterprise Performance

Author

Listed:
  • Samridhi Kapoor

    (Central University of Karnataka)

  • Manoj Govind Kharat

    (Sinhgad Institute of Business Management)

  • Shreyanshu Parhi

    (International Management Institute– Bhubaneswar)

  • Mukesh Govind Kharat

    (K J Somaiya Institute of Management)

  • Shatrudhan Pandey

    (Birla Institute of Technology)

Abstract

Sustainable financing, environmental social governance strategy and information technology integration can play a strategic role in the financial success of an organisation. In light of this, the present study attempts to investigate how sustainable finance, environmental social governance and information technology integration impacts sustainable enterprise performance. Further, it also examines how organisational commitment and support moderates the relationship between environmental social governance and sustainable enterprise performance and information technology integration and sustainable enterprise performance. The primary data collected from 290 manufacturing industry employees was analysed using structural equation modelling. The study results indicate that sustainable finance, environmental social governance strategy and information technology integration have a significant positive impact on sustainable enterprise performance. The results further ascertain that organisational commitment and support positively moderates the relationship between environmental social governance and sustainable enterprise performance and information technology integration and sustainable enterprise performance. The findings imply that in order to improve financial performance, the company should embrace robust environmental social governance policies and put in place an efficient information technology integration adoption and implementation plan.

Suggested Citation

  • Samridhi Kapoor & Manoj Govind Kharat & Shreyanshu Parhi & Mukesh Govind Kharat & Shatrudhan Pandey, 2024. "Striving for Business Sustainability: Understanding the Interplay and Impact of Sustainable Finance, Environmental Social Governance Strategy, and Information Technology Integration on Sustainable Ent," Circular Economy and Sustainability, Springer, vol. 4(4), pages 2749-2774, December.
    • Handle: RePEc:spr:circec:v:4:y:2024:i:4:d:10.1007_s43615-024-00405-2
    DOI: 10.1007/s43615-024-00405-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43615-024-00405-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43615-024-00405-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Qi Zhang & Lawrence Loh & Weiwei Wu, 2020. "How do Environmental, Social and Governance Initiatives Affect Innovative Performance for Corporate Sustainability?," Sustainability, MDPI, vol. 12(8), pages 1-18, April.
    2. Sweetin, Vernon H. & Knowles, Lynette L. & Summey, John H. & McQueen, Kand S., 2013. "Willingness-to-punish the corporate brand for corporate social irresponsibility," Journal of Business Research, Elsevier, vol. 66(10), pages 1822-1830.
    3. Louise Yi Lu & Greg Shailer & Yangxin Yu, 2017. "Corporate Social Responsibility Disclosure and the Value of Cash Holdings," European Accounting Review, Taylor & Francis Journals, vol. 26(4), pages 729-753, October.
    4. Chen, Lujie & Jia, Fu & Li, Taiyu & Zhang, Tianyu, 2021. "Supply chain leadership and firm performance: A meta-analysis," International Journal of Production Economics, Elsevier, vol. 235(C).
    5. Knudsen, Eirik Sjåholm & Lien, Lasse B. & Timmermans, Bram & Belik, Ivan & Pandey, Sujit, 2021. "Stability in turbulent times? The effect of digitalization on the sustainability of competitive advantage," Journal of Business Research, Elsevier, vol. 128(C), pages 360-369.
    6. Ibhagui, Oyakhilome W. & Olokoyo, Felicia O., 2018. "Leverage and firm performance: New evidence on the role of firm size," The North American Journal of Economics and Finance, Elsevier, vol. 45(C), pages 57-82.
    7. Felipe Arias Fogliano de Souza Cunha & Erick Meira & Renato J. Orsato, 2021. "Sustainable finance and investment: Review and research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3821-3838, December.
    8. Marco Migliorelli, 2021. "What Do We Mean by Sustainable Finance? Assessing Existing Frameworks and Policy Risks," Post-Print hal-03476960, HAL.
    9. Kristoffersen, Eivind & Mikalef, Patrick & Blomsma, Fenna & Li, Jingyue, 2021. "The effects of business analytics capability on circular economy implementation, resource orchestration capability, and firm performance," International Journal of Production Economics, Elsevier, vol. 239(C).
    10. Cuevas-Vargas, Héctor & Aguirre, Joao & Parga-Montoya, Neftalí, 2022. "Impact of ICT adoption on absorptive capacity and open innovation for greater firm performance. The mediating role of ACAP," Journal of Business Research, Elsevier, vol. 140(C), pages 11-24.
    11. Mohsin Shahzad & Ying Qu & Saif Ur Rehman & Abaid Ullah Zafar & Xiangan Ding & Jawad Abbas, 2020. "Impact of knowledge absorptive capacity on corporate sustainability with mediating role of CSR: analysis from the Asian context," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 63(2), pages 148-174, January.
    12. Tyas Yuli Rosiani & Dana Marsetiya Utama & Ameilia Yuniar Ummudiyah & Ikhlasul Amallynda, 2024. "Sustainable Manufacturing Assessment using Sustainable VSM and AHP involving Workload and Machine Efficiency: A Case Study in Indonesian Paving Block Production," Circular Economy and Sustainability, Springer, vol. 4(3), pages 2049-2071, September.
    13. Rupamanjari Sinha Ray & Sandeep Goel, 2023. "Impact of ESG score on financial performance of Indian firms: static and dynamic panel regression analyses," Applied Economics, Taylor & Francis Journals, vol. 55(15), pages 1742-1755, March.
    14. Deng, Xin & Kang, Jun-koo & Low, Buen Sin, 2013. "Corporate social responsibility and stakeholder value maximization: Evidence from mergers," Journal of Financial Economics, Elsevier, vol. 110(1), pages 87-109.
    15. Rameshwar Dubey & Angappa Gunasekaran & Stephen J. Childe & Samuel Fosso Wamba & David Roubaud & Cyril Foropon, 2021. "Empirical investigation of data analytics capability and organizational flexibility as complements to supply chain resilience," International Journal of Production Research, Taylor & Francis Journals, vol. 59(1), pages 110-128, January.
    16. DeStefano, Timothy & Kneller, Richard & Timmis, Jonathan, 2018. "Broadband infrastructure, ICT use and firm performance: Evidence for UK firms," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 110-139.
    17. Xingping Jia, 2020. "Corporate social responsibility activities and firm performance: The moderating role of strategic emphasis and industry competition," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 65-73, January.
    18. Byung-Jik Kim & Mohammad Nurunnabi & Tae-Hyun Kim & Se-Youn Jung, 2018. "The Influence of Corporate Social Responsibility on Organizational Commitment: The Sequential Mediating Effect of Meaningfulness of Work and Perceived Organizational Support," Sustainability, MDPI, vol. 10(7), pages 1-16, June.
    19. Turhan Erkmen & Ayşe Günsel & Erkut Altındağ, 2020. "The Role of Innovative Climate in the Relationship between Sustainable IT Capability and Firm Performance," Sustainability, MDPI, vol. 12(10), pages 1-26, May.
    20. Mikalef, Patrick & Islam, Najmul & Parida, Vinit & Singh, Harkamaljit & Altwaijry, Najwa, 2023. "Artificial intelligence (AI) competencies for organizational performance: A B2B marketing capabilities perspective," Journal of Business Research, Elsevier, vol. 164(C).
    21. Lee, Chi-Chuan & Lee, Chien-Chiang, 2022. "How does green finance affect green total factor productivity? Evidence from China," Energy Economics, Elsevier, vol. 107(C).
    22. Lian, Yonghui & Ye, Tao & Zhang, Yiyang & Zhang, Lin, 2023. "How does corporate ESG performance affect bond credit spreads: Empirical evidence from China," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 352-371.
    23. Lyon, Thomas & Lu, Yao & Shi, Xinzheng & Yin, Qie, 2013. "How do investors respond to Green Company Awards in China?," Ecological Economics, Elsevier, vol. 94(C), pages 1-8.
    24. Zhang, Dongyang & Lucey, Brian M., 2022. "Sustainable behaviors and firm performance: The role of financial constraints’ alleviation," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 220-233.
    25. Alex Edmans, 2023. "Applying Economics—Not Gut Feel—to ESG," Financial Analysts Journal, Taylor & Francis Journals, vol. 79(4), pages 16-29, October.
    26. Gebauer, Heiko & Fleisch, Elgar & Lamprecht, Claudio & Wortmann, Felix, 2020. "Growth paths for overcoming the digitalization paradox," Business Horizons, Elsevier, vol. 63(3), pages 313-323.
    27. He, Guanming & Li, April Zhichao, 2024. "Does media coverage of firms' environment, social, and governance (ESG) incidents affect analyst coverage and forecasts? A risk perspective," International Review of Financial Analysis, Elsevier, vol. 94(C).
    28. Bohyun Yoon & Jeong Hwan Lee & Ryan Byun, 2018. "Does ESG Performance Enhance Firm Value? Evidence from Korea," Sustainability, MDPI, vol. 10(10), pages 1-18, October.
    29. Hu, Xinwen & Hua, Renhai & Liu, Qingfu & Wang, Chuanjie, 2023. "The green fog: Environmental rating disagreement and corporate greenwashing," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    30. Gillan, Stuart L. & Koch, Andrew & Starks, Laura T., 2021. "Firms and social responsibility: A review of ESG and CSR research in corporate finance," Journal of Corporate Finance, Elsevier, vol. 66(C).
    31. Samwel Macharia Chege & Daoping Wang & Shaldon Leparan Suntu, 2020. "Impact of information technology innovation on firm performance in Kenya," Information Technology for Development, Taylor & Francis Journals, vol. 26(2), pages 316-345, April.
    32. Zhang, Yimeng & Ma, Xinyu & Pang, Jianing & Xing, Hailong & Wang, Jian, 2023. "The impact of digital transformation of manufacturing on corporate performance — The mediating effect of business model innovation and the moderating effect of innovation capability," Research in International Business and Finance, Elsevier, vol. 64(C).
    33. Guangyou Zhou & Lian Liu & Sumei Luo, 2022. "Sustainable development, ESG performance and company market value: Mediating effect of financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3371-3387, November.
    34. Kunming Li & Linxing Huang & Jinshan Zhang & Zhencheng Huang & Liting Fang, 2023. "Can ESG Performance Alleviate the Constraints of Green Financing for Chinese Enterprises: Empirical Evidence from China’s A-Share Manufacturing Companies," Sustainability, MDPI, vol. 15(14), pages 1-24, July.
    35. Zhang, Yanlei & García Lara, Juan Manuel & Tribó, Josep A., 2020. "Unpacking the black box of trade credit to socially responsible customers," Journal of Banking & Finance, Elsevier, vol. 119(C).
    36. Muhammad Khalid Anser & Zahid Yousaf & Muhammad Usman & Seemab Yousaf, 2020. "Towards Strategic Business Performance of the Hospitality Sector: Nexus of ICT, E-Marketing and Organizational Readiness," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    37. Zeyad Alkhazali & Ayman Abu-Rumman & Naser Khdour & Khaleel Al-Daoud, 2020. "Empowerment, HRM practices and organizational performance: a case study of Jordanian commercial banks," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 2991-3000, June.
    38. Ciftci, Ilhan & Tatoglu, Ekrem & Wood, Geoffrey & Demirbag, Mehmet & Zaim, Selim, 2019. "Corporate governance and firm performance in emerging markets: Evidence from Turkey," International Business Review, Elsevier, vol. 28(1), pages 90-103.
    39. Marco Migliorelli, 2021. "What Do We Mean by Sustainable Finance? Assessing Existing Frameworks and Policy Risks," Sustainability, MDPI, vol. 13(2), pages 1-17, January.
    40. Gu, Minhao & Yang, Lu & Huo, Baofeng, 2021. "The impact of information technology usage on supply chain resilience and performance: An ambidexterous view," International Journal of Production Economics, Elsevier, vol. 232(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fang, Mingyue & Nie, Huihua & Shen, Xinyi, 2023. "Can enterprise digitization improve ESG performance?," Economic Modelling, Elsevier, vol. 118(C).
    2. Veeravel, V & Murugesan, Vijaya Prabhagar & Narayanamurthy, Vijayakumar, 2024. "Does ESG disclosure really influence the firm performance? Evidence from India," The Quarterly Review of Economics and Finance, Elsevier, vol. 95(C), pages 193-202.
    3. Tiantian Meng & Dan Lu & Danni Yu & M. H. Yahya & Mohd Ashhari Zariyawati, 2024. "Is executive compensation aligned with the company’s ESG objectives? Evidence from Chinese listed companies based on the PSM-DID approach," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    4. Fu, Changluan & Yu, Chenyang & Guo, Mengting & Zhang, Lin, 2024. "ESG rating and financial risk of mining industry companies," Resources Policy, Elsevier, vol. 88(C).
    5. Heying Liu & Chan Lyu, 2022. "Can ESG Ratings Stimulate Corporate Green Innovation? Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-20, September.
    6. Zhang, Dongyang & Lucey, Brian M., 2022. "Sustainable behaviors and firm performance: The role of financial constraints’ alleviation," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 220-233.
    7. Shuxia Zhang & Xiangyang Yin & Liping Xu & Ziyu Li & Deyue Kong, 2022. "Effect of Environmental, Social, and Governance Performance on Corporate Financialization: Evidence from China," Sustainability, MDPI, vol. 14(17), pages 1-20, August.
    8. María Jesús Segovia‐Vargas & I. Marta Miranda‐García & Freddy Alejandro Oquendo‐Torres, 2023. "Sustainable finance: The role of savings and credit cooperatives in Ecuador," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 951-980, September.
    9. Qian, Simeng, 2024. "The effect of ESG on enterprise value under the dual carbon goals: From the perspectives of financing constraints and green innovation," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 318-331.
    10. Juan Jung & Gonzalo Gómez-Bengoechea, 2022. "A literature review on firm digitalization: drivers and impacts," Studies on the Spanish Economy eee2022-20, FEDEA.
    11. Karim, Mohammed Shamsul & Nahar, Sharmin & Demirbag, Mehmet, 2022. "Resource-Based Perspective on ICT Use and Firm Performance: A Meta-analysis Investigating the Moderating Role of Cross-Country ICT Development Status," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    12. Małgorzata Janicka & Artur Sajnóg, 2022. "The ESG Reporting of EU Public Companies—Does the Company’s Capitalisation Matter?," Sustainability, MDPI, vol. 14(7), pages 1-17, April.
    13. Kunming Li & Linxing Huang & Jinshan Zhang & Zhencheng Huang & Liting Fang, 2023. "Can ESG Performance Alleviate the Constraints of Green Financing for Chinese Enterprises: Empirical Evidence from China’s A-Share Manufacturing Companies," Sustainability, MDPI, vol. 15(14), pages 1-24, July.
    14. José Manuel Santos-Jaén & Ana León-Gómez & Daniel Ruiz-Palomo & Francisca García-Lopera & María del Carmen Valls Martínez, 2022. "Exploring Information and Communication Technologies as Driving Forces in Hotel SMEs Performance: Influence of Corporate Social Responsibility," Mathematics, MDPI, vol. 10(19), pages 1-15, October.
    15. Zhou, Mengling & Huang, Zizhen & Jiang, Kangqi, 2024. "Environmental, social, and governance performance and corporate debt maturity in China," International Review of Financial Analysis, Elsevier, vol. 95(PA).
    16. Meles, Antonio & Salerno, Dario & Sampagnaro, Gabriele & Verdoliva, Vincenzo & Zhang, Jianing, 2023. "The influence of green innovation on default risk: Evidence from Europe," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 692-710.
    17. Chung, Yessica C.Y. & Kunene, Noxolo & Chang, Hung-Hao, 2024. "Renewable energy certificates and firm value: Empirical evidence in Taiwan," Energy Policy, Elsevier, vol. 184(C).
    18. Angelidis, Timotheos & Michairinas, Athanasios & Sakkas, Athanasios, 2024. "World ESG performance and economic activity," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 93(C).
    19. Dodd, Olga & Frijns, Bart & Garel, Alexandre, 2022. "Cultural diversity among directors and corporate social responsibility," International Review of Financial Analysis, Elsevier, vol. 83(C).
    20. Da Gao & Xiaotian Zhou & Jing Wan, 2024. "Unlocking sustainability potential: The impact of green finance reform on corporate ESG performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4211-4226, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:circec:v:4:y:2024:i:4:d:10.1007_s43615-024-00405-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.