Over the past decades, sustainability and corporate sustainability have gained a lot of attention. Currently, the focus of attention has shifted to the integration of the Sustainable Development Goals (SDGs) into businesses operation. The extant literature points to the proposed frameworks as not fitting micro, small, and medium-sized enterprises (MSME) reality and, also, to a lack of empirical evidence in this field. With research at the intersection of business and SDGs still being scarce, the Economy for the Common Good (ECG) model allows operationalizing the SDGs employing its novel measurement theory. The present study is aimed at completing the statistical validation process of the ECG measurement theory using confirmatory factor analysis (CFA) on a sample of 206 European firms. Thus, after having performed an exploratory factor analysis (EFA), this study takes as a starting point the previously published knowledge and proceeds with the second step of the statistical validation process. The results of CFA confirm the conclusions of the EFA and allow to redefine the measurement scales included in the ECG framework to achieve a sufficient level of goodness of fit.
Extant literature has pointed to organizational hybridity to lever sustainable business transformation. Moreover, some authors hold that there is a possible trade-off between sustainability and performance. However, there is still little empirical evidence on the impact that such sustainability-driven hybridization systems have on performance. Thus, the present study’s main goal is to fill this gap by providing empirical evidence on the impact of the implementation of the Economy for the Common Good, as a sustainability-driven organizational system, on business performance. To do so, the authors relied on a sample of 206 businesses from five European countries. Then, the authors followed a quantitative research approach based on a hierarchical regression analysis that allowed them to test for linear, curvilinear, and moderating effects. The authors found a positive relationship between the implementation of a sustainability-driven hybridization system and firm performance. Besides, they identified some curvilinear effects pointing to the existence of a “too much of a good thing” effect, along with some moderating effects derived from organizational size.
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