The double‐edged sword effect of organizational resilience on ESG performance

Abstract

Building on conservation of resources theory, we construct a dual‐pathway approach which aims to reveal the mixed effects of organizational resilience on environmental, social and corporate governance (ESG) performance. Specifically, this paper argues that organizational resilience will both stimulate innovation input, enhancing ESG performance (positive pathway) and promote strategic change, inhibiting ESG performance (negative pathway). Meanwhile, the indirect effect of organizational resilience on ESG performance via innovation input and strategic change is also moderated by industry concentration, and both indirect effects are stronger when industry concentration is low. Data of Chinese A‐share listed firms from 2010 to 2020 support the proposed theoretical framework. This study provides theoretical and managerial implications for organizational resilience research.

Walking on the gender tightrope: Unlocking ESG potential through CEOs' dynamic capabilities and strategic board composition

“…In the current business landscape, achieving high ESG performance has become increasingly imperative for corporations (Delgado-Ceballos et al, 2023;Jebe, 2019;Liang & Li, 2023). Due to the complexities of ESG, managers must address different demands from various stakeholder groups, realize the commercial potential of ESG investments, and cope with the increasing demands of ESG investing (Bazel-Shoham et al, 2023;De Masi et al, 2021;Issa, 2023;Taglialatela et al, 2023).…”

“…Environmental, social, and governance (ESG) performance has become a central concern for modern‐day businesses (Issa, 2023; Jebe, 2019; Santamaria et al, 2021). Growing concerns related to climate change and resource depletion ( environmental issues ), societal impacts and labor practices ( social issues ), and corporate misconduct and lack of diversity ( governance issues ) have amplified the expectations of investors, consumers, and other stakeholders for greater transparency and accountability from businesses (Delgado‐Ceballos et al, 2023; Liang & Li, 2023).…”

Striving for sustainable development: Green financial policy, institutional investors, and corporate ESG performance

“…Within the company, both organizational attributes and individual characteristics matter for ESG outcomes. Existing studies find that firm size (Bissoondoyal-Bheenick et al, 2023), ownership structure (Rees & Rodionova, 2015), corporate governance (Lagasio & Cucari, 2019;Zhang, Pan, et al, 2023), and organizational capabilities (Fang et al, 2023;Liang & Li, 2023;Yang & Han, 2023) have impacts on corporate ESG performance. In this regard, considerable literature focuses on the role of corporate governance in corporate sustainability (Aguilera et al, 2021;Campanella et al, 2021;Kavadis & Thomsen, 2023;Scherer & Voegtlin, 2020).…”

“…First, we add to the literature on determinants of corporate ESG performance by investigating the institutional effects of GFP. The literature suggests that why and why not companies act in ESG-compliant ways is influenced by diverse factors including individual attributes McBrayer, 2018;Zhang, Guo, & Nurdazym, 2023), organizational characteristics (Bissoondoyal-Bheenick et al, 2023;Liang & Li, 2023), and external environments (Al Amosh et al, 2023;Campbell, 2007;Vural-Yavas ¸, 2021). However, little attention has been paid to the impact of green financial systems on corporate ESG performance.…”

The Impact of General Manager’s Responsible Leadership and Executive Compensation Incentive on Enterprise ESG Performance

“…However, a positive impact of organizational resilience was not always in the literature. Liang found a double-edged sword effect of organizational resilience on ESG performance, which either stimulates innovation input and enhances ESG performance or promotes strategic change and inhibits ESG performance [27]. Current research focuses more on how organizational resilience can improve innovation and sustainable development, but few studies in the past have directly proven the direct mediating effect of organizational resilience on the performance of general manager responsible leadership and enterprise ESG.…”