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A Firm’s Market Performance: How Does Sustainability Practice Influence It?

Author

Listed:
  • Babu Md. Asaduzzaman

    (Department of Marketing, Faculty of Business Studies, Hajee Mohammad Danesh Science and Technology University, Dinajpur-5200, Bangladesh)

  • Ejaz Faisal

    (Department of Economics, UTAR, Kampar, 31900, Malaysia)

  • Lina Fatiha Tajnin

    (Department of Marketing, Faculty of Business Studies, Hajee Mohammad Danesh Science and Technology University, Dinajpur-5200, Bangladesh)

  • Ejaz Sarmad

    (Department of Management Sciences, University of Okara, Okara, Pakistan)

  • Islam Md Rohibul

    (Department of Marketing, Faculty of Business Studies, Hajee Mohammad Danesh Science and Technology University, Dinajpur-5200, Bangladesh)

  • Hassan Md. Khalid

    (Department of Business Administration, International Islami University of Science and Technology Bangladesh)

  • Hossain Md Billal

    (Sustainability Competence Centre, Széchenyi Istvàn University, 9026, Győr, Hungary)

Abstract

The study’s central theme is sustainability practice. It aims to measure the impact of sustainability practices on market performance. The study is quantitative, and data was obtained through a structured questionnaire using a five-point Likert scale. Different firms, such as manufacturing, non-manufacturing, and service support, run the survey by sharing the data (n=200). Data were analysed through Smart PLS version 4.1.0.0, employing a structural equation model (SEM) technique to measure the impact of exogenous variables. All three variables (Employee engagement in sustainability, corporate social responsibility, and environmental concern) positively and significantly impact sustainability practice. Thus, the study’s central finding is that sustainability practice positively influences the market performance of the firms, and the association is also significant. Companies that adopt sustainable practices can differentiate themselves in the market, potentially improving their competitiveness. Companies can exploit the notion that sustainability is a highly efficient technique for stimulating growth. Integrating sustainable principles can lead to long-lasting economic advantages. The novelty of this work is that it considers sustainability practices to determine the impact on market performance. Future work can be conducted on the specification of market performance, such as sales growth, return on investment (ROI), return on assets (ROA), and earnings per share (EPS).

Suggested Citation

  • Babu Md. Asaduzzaman & Ejaz Faisal & Lina Fatiha Tajnin & Ejaz Sarmad & Islam Md Rohibul & Hassan Md. Khalid & Hossain Md Billal, 2025. "A Firm’s Market Performance: How Does Sustainability Practice Influence It?," Economics, Sciendo, vol. 13(1), pages 267-287.
    • Handle: RePEc:vrs:econom:v:13:y:2025:i:1:p:267-287:n:1019
    DOI: 10.2478/eoik-2025-0020
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    More about this item

    Keywords

    Employee Engagement; CSR; Environmental Concern; Sustainability Practice; Market Performance;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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