Market drivers of sustainability and sustainability learning capabilities: The moderating role of sustainability control systems

This study examines (i) the impact of market drivers of sustainability on the adoption of sustainability learning capabilities and (ii) the moderating role of sustainability control systems (SCS) on the relationship between market drivers of sustainability and sustainability learning capabilities. Drawing on the levers of control framework, stakeholder theory and organisational learning literature, survey data were collected from 175 large scale local and multinational companies operating in Sri Lanka. Findings reveal that market drivers of sustainability have a significant positive impact on sustainability learning capabilities. Whereas the interactive use of SCS shows a positive moderating impact, the diagnostic use of SCS shows a negative impact. The study enhances our understanding of (i) the influence of market drivers of sustainability on the adoption of sustainability learning capabilities and (ii) the use of SCS in enabling sustainability learning capabilities. The study reveals novel insights for managers responding to changing market drivers of sustainability, on how to (re)align different uses of SCS to enable sustainability learning capabilities.     

Environmental Innovation Strategy and Organizational Performance: Enabling and Controlling Uses of Management Control Systems

This study examines the extent to which enabling and controlling uses of management control systems (MCS) moderate the relationship between environmental innovation strategy and organizational performance. Partial least squares structural equation modeling is used to analyze survey data collected from top managers in 175 manufacturing and services sectors representing multinational and local organizations operating in Sri Lanka. We find that while the enabling use of MCS positively moderates the relationship between environmental innovation strategy and organizational performance, in contrast, the controlling use of MCS negatively moderates the relationship. We compare the results for the manufacturing and services sectors. As predicted, we find a significant positive moderating impact of the enabling use of MCS in both manufacturing and services sectors. However, contrary to our expectations, we find no significant moderating impact for both sectors for the controlling use of MCS. We conclude that environmental innovation strategy per se does not lead to performance improvements; however, the extent to which organizations use enabling and controlling MCS determines the relationship. We provide theoretical insights and practical implications concerning the importance of strategic alignment between managerial controls, environmental innovation strategy, and organizational performance.     

Sustainability core values and sustainability risk management: Moderating effects of top management commitment and stakeholder pressure

This study examines the moderating effects of top management commitment and stakeholder pressure on the relationship between sustainability core values and sustainability risk management (SRM). We collected survey data from senior management in both local and multinational organisations in Sri Lanka. Data were analysed via partial least squares structural equation modelling. We find that the extent to which organisations integrate sustainability into core values has a significant positive impact on SRM. As predicted, top management commitment to sustainability positively moderates the relationship. However, contrary to our expectation, stakeholder pressure for sustainability shows a negative effect on the relationship. We add novel insights into the strategic conformity of internal and external sustainability drivers on SRM.