Corporate Sustainability and Firm Performance: The Role of Green Innovation Capabilities and Sustainability-Oriented Supplier–Buyer Relationship

Abstract

This study attempts to examine the impact of corporate sustainability on firm performance by examining the indirect effect of sustainability-oriented supplier partnership and green innovation capabilities of a firm. The data acquired to address the research question is collected from management personnel, officers, and experts in the Ghana manufacturing sector using a list provided by the Association of Ghana Industries. Data acquired are tested for convergent validity and construct reliability and further examine the measurement model. The structural model is examined using partial least square structural equation modeling techniques. The empirical study supports seven (7) out of eight (8) stated hypotheses. Findings indicate that a sustainability-oriented supplier partnership indirectly influences the effect of social sustainability practices on a firm’s performance. In the same view, the outcome revealed that a sustainability-oriented supplier partnership does not positively influence the relationship between environmental, economic sustainability, and firm performance. Green innovation capabilities indirectly influence the effect of social and economic sustainability on firm performance except for environmental sustainability and firm performance. The findings of the study contribute to the literature by providing insights into the indirect effect of supplier–partnership and green innovation capabilities on firm performance, especially in the manufacturing sector.