The impact of employees' perceptions about top management engagement on sustainability development efforts and firm performance

Abstract

Because sustainability management plays a vital role in firm performance, it is critical to understand the underlying mechanisms that drive better firm performance with sustainability adoption. Thus, drawing upon responsible leadership theory and the dynamic resource‐based view, this study examines how the level of sustainability adoption influences firm performance, both environmental and financial, emphasizing the role of top management beliefs and participation in sustainability adoption. With responses from 310 employees working in manufacturing, healthcare, and retail industries, the SEM analysis results support that (i) perceived top management's strong beliefs lead to a higher level of sustainability adoption by organizations; (ii) perceived top management's active participation positively moderates the relationship between perceived top management beliefs and the level of sustainability adoption; (iii) the higher level of sustainability adoption results in better environmental and financial performance; and (iv) environmental performance positively and partially mediates the relationship between the level of sustainability adoption and financial firm performance. Finally, we offer guidance to managers who would like to leverage top management attributes to achieve environmental and financial performance via environmental sustainability practices.

Does the Environmental Management System Predict TBL Performance of Manufacturers? The Role of Green HRM Practices and OCBE as Serial Mediators

“…That is, socially conscious and environmentally responsible top management usually undertakes strategic-level decisions in response to the demands and expectations of internal and external stakeholders such as the media, the general public, and overall society [54]. Afterwards, once the decision is made to integrate EMS into the organizational practices, the top management must articulate this among middle and line managers in order to ensure the trickle-down effect of green policies from top to bottom.…”

Promoting Sustainable Workplace Routines: The Identity and Practice Interdependence Model

“…The prior integration of all three elements of practice into company initiatives appears to be an important signal to employees of the sincerity and authenticity of organizational initiatives and leadership. This perception is central to employee engagement, as pointed out by Islam et al [25] and Gopalakrishna-Remani et al [29]. It can contribute to the trust in the organization that is essential to foster the engagement of employees with more sustainable routines, as also indicated by May et al [24].…”

“…Where these identity factors are shown to be at satisfactory levels, then implementation of initiatives that directly impact employees should be smoother, because the desire for satisfactory levels of continuity and distinctiveness will become salient. This approach can be seen as providing a deeper and more actionable understanding of the conclusions by Islam et al [25] and Gopalakrishna-Remani et al [29] that employee perceptions of organizational sincerity and trust in organizational genuineness around ERB are crucial to successful implementation.…”

“…Internal motivations are considered to be more authentic, whereas those created by pressure from government or regulations, or triggered by public relations concerns, are less so. Gopalakrishna-Remani et al [29] showed that employees' perceptions of organizational leaders strongly believing in sustainability goals and practices impact their adoption.…”