[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/blg/journl/v13y2018i3p26-44.html
   My bibliography  Save this article

Business Sustainable Competitiveness – A Synergistic, Long-Run Approach Of A Company’S Resources And Results

Author

Listed:
  • HERCIU Mihaela

    (Lucian Blaga University of Sibiu, Romania)

  • OGREAN Claudia

    (Lucian Blaga University of Sibiu, Romania)

Abstract
Business sustainable competitiveness is a very complex concept. This complexity generates a variety of possibilities to define, to measure and to test it. The purpose of the paper is to develop the concept of businessness (for business sustainable competitiveness) by leveraging productivity, profitability, effectiveness and sustainability, at firm level. The interrelations between them, in terms of revenues per employee, return on assets, total assets turnover and Dow Jones Sustainability Index, were integrated into models/functions in order to develop, test and apply businessness. The article is about proposing functions (by using multiple discriminant analysis) in order to measure business sustainable competitiveness (businessness). The hypotheses and functions were tested using a sample of 500 companies (2000 observations) from Global Fortune 500. The results showed that there are direct and positive interrelations between the following items: number of employees, revenues, net income and total assets, but with different degree of correlations between groups. Therefore, it is very important to consider industry/group when conducting an analysis on business sustainable competitiveness.

Suggested Citation

  • HERCIU Mihaela & OGREAN Claudia, 2018. "Business Sustainable Competitiveness – A Synergistic, Long-Run Approach Of A Company’S Resources And Results," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 13(3), pages 26-44, December.
    • Handle: RePEc:blg:journl:v:13:y:2018:i:3:p:26-44
    as

    Download full text from publisher

    File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/13303herciu&ogrean.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lin, Yini & Wu, Lei-Yu, 2014. "Exploring the role of dynamic capabilities in firm performance under the resource-based view framework," Journal of Business Research, Elsevier, vol. 67(3), pages 407-413.
    2. Linnenluecke, Martina K. & Griffiths, Andrew, 2010. "Corporate sustainability and organizational culture," Journal of World Business, Elsevier, vol. 45(4), pages 357-366, October.
    3. Michael E. Porter, 1992. "Capital Choices: Changing The Way America Invests In Industry," Journal of Applied Corporate Finance, Morgan Stanley, vol. 5(2), pages 4-16, June.
    4. Gary S. Hansen & Birger Wernerfelt, 1989. "Determinants of firm performance: The relative importance of economic and organizational factors," Strategic Management Journal, Wiley Blackwell, vol. 10(5), pages 399-411, September.
    5. Henri Servaes & Ane Tamayo, 2013. "The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness," Management Science, INFORMS, vol. 59(5), pages 1045-1061, May.
    6. Ferrell, Allen & Liang, Hao & Renneboog, Luc, 2016. "Socially responsible firms," Journal of Financial Economics, Elsevier, vol. 122(3), pages 585-606.
    7. Pfeffer, Jeffrey, 2010. "Building Sustainable Organizations: The Human Factor," Research Papers 2017r, Stanford University, Graduate School of Business.
    8. Wagner, Marcus, 2010. "The role of corporate sustainability performance for economic performance: A firm-level analysis of moderation effects," Ecological Economics, Elsevier, vol. 69(7), pages 1553-1560, May.
    9. Steven Klepper, 2011. "Nano-economics, spinoffs, and the wealth of regions," Small Business Economics, Springer, vol. 37(2), pages 141-154, September.
    10. Kolk, Ans, 2016. "The social responsibility of international business: From ethics and the environment to CSR and sustainable development," Journal of World Business, Elsevier, vol. 51(1), pages 23-34.
    11. Gelhard, Carsten & von Delft, Stephan, 2016. "The role of organizational capabilities in achieving superior sustainability performance," Journal of Business Research, Elsevier, vol. 69(10), pages 4632-4642.
    12. Cory Searcy, 2012. "Corporate Sustainability Performance Measurement Systems: A Review and Research Agenda," Journal of Business Ethics, Springer, vol. 107(3), pages 239-253, May.
    13. Baker, Malcolm & Xuan, Yuhai, 2016. "Under new management: Equity issues and the attribution of past returns," Journal of Financial Economics, Elsevier, vol. 121(1), pages 66-78.
    14. Verwaal, Ernst, 2017. "Global outsourcing, explorative innovation and firm financial performance: A knowledge-exchange based perspective," Journal of World Business, Elsevier, vol. 52(1), pages 17-27.
    15. Peter J Buckley, 1990. "Problems and Developments in the Core Theory of International Business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 21(4), pages 657-665, December.
    16. ANITA M. McGAHAN & MICHAEL E. PORTER, 1997. "How Much Does Industry Matter, Really?," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 15-30, July.
    17. Harrison, Jeffrey S. & Wicks, Andrew C., 2013. "Stakeholder Theory, Value, and Firm Performance," Business Ethics Quarterly, Cambridge University Press, vol. 23(1), pages 97-124, January.
    18. Lee, Eun Mi & Park, Seong-Yeon & Lee, Hyun Jung, 2013. "Employee perception of CSR activities: Its antecedents and consequences," Journal of Business Research, Elsevier, vol. 66(10), pages 1716-1724.
    19. Cheng Ling Tan & Suhaiza Hanim Mohd. Zailani & Sieow Chin Tan & Mohd Rizaimy Shaharudin, 2016. "The impact of green supply chain management practices on firm competitiveness," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 11(4), pages 539-558.
    20. Francesco Perrini & Antonio Tencati, 2006. "Sustainability and stakeholder management: the need for new corporate performance evaluation and reporting systems," Business Strategy and the Environment, Wiley Blackwell, vol. 15(5), pages 296-308, September.
    21. Mathew, Jossy & Ogbonna, Emmanuel & Harris, Lloyd C., 2012. "Culture, employee work outcomes and performance: An empirical analysis of Indian software firms," Journal of World Business, Elsevier, vol. 47(2), pages 194-203.
    22. Ans Kolk, 2008. "Sustainability, accountability and corporate governance: exploring multinationals' reporting practices," Business Strategy and the Environment, Wiley Blackwell, vol. 17(1), pages 1-15, January.
    23. Michael L. Barnett & Robert M. Salomon, 2012. "Does it pay to be really good? addressing the shape of the relationship between social and financial performance," Strategic Management Journal, Wiley Blackwell, vol. 33(11), pages 1304-1320, November.
    24. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    25. Hamdia Mudor, 2011. "Conceptual framework on the relationship between human resource management practices, job satisfaction, and turnover," Journal of Economics and Behavioral Studies, AMH International, vol. 2(2), pages 41-49.
    26. Ourania Notta & Aspasia Vlachvei, 2018. "Competitiveness Index," Springer Proceedings in Business and Economics, in: Nicholas Tsounis & Aspasia Vlachvei (ed.), Advances in Panel Data Analysis in Applied Economic Research, chapter 0, pages 693-705, Springer.
    27. Edward I. Altman, 1968. "The Prediction Of Corporate Bankruptcy: A Discriminant Analysis," Journal of Finance, American Finance Association, vol. 23(1), pages 193-194, March.
    28. Giovanna Michelon & Giacomo Boesso & Kamalesh Kumar, 2013. "Examining the Link between Strategic Corporate Social Responsibility and Company Performance: An Analysis of the Best Corporate Citizens," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(2), pages 81-94, March.
    29. Thomas Dyllick & Kai Hockerts, 2002. "Beyond the business case for corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 11(2), pages 130-141, March.
    30. Ashish Arora & Michelle Gittelman & Sarah Kaplan & John Lynch & Will Mitchell & Nicolaj Siggelkow & Serguey Braguinsky & David A. Hounshell, 2016. "History and nanoeconomics in strategy and industry evolution research: Lessons from the Meiji-Era Japanese cotton spinning industry," Strategic Management Journal, Wiley Blackwell, vol. 37(1), pages 45-65, January.
    31. Rupert J. Baumgartner, 2009. "Organizational culture and leadership: Preconditions for the development of a sustainable corporation," Sustainable Development, John Wiley & Sons, Ltd., vol. 17(2), pages 102-113.
    32. Kolk, Ans & van Tulder, Rob, 2010. "International business, corporate social responsibility and sustainable development," International Business Review, Elsevier, vol. 19(2), pages 119-125, April.
    33. Shann Turnbull, 1994. "Competitiveness and Corporate Governance," Corporate Governance: An International Review, Wiley Blackwell, vol. 2(2), pages 80-86, April.
    34. William Young & Fiona Tilley, 2006. "Can businesses move beyond efficiency? The shift toward effectiveness and equity in the corporate sustainability debate," Business Strategy and the Environment, Wiley Blackwell, vol. 15(6), pages 402-415, November.
    35. Jiang, Xu & Bao, Yongchuan & Xie, Yan & Gao, Shanxing, 2016. "Partner trustworthiness, knowledge flow in strategic alliances, and firm competitiveness: A contingency perspective," Journal of Business Research, Elsevier, vol. 69(2), pages 804-814.
    36. Paul Shrivastava, 1995. "Environmental technologies and competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 183-200.
    37. Cerin, Pontus & Dobers, Peter, 2001. "What does the performance of the Dow Jones Sustainability Group Index tell us?," Sustainable Investment and Corporate Governance Working Papers 2001/1, Sustainable Investment Research Platform.
    38. Wei‐ping Wu, 2008. "Dimensions of Social Capital and Firm Competitiveness Improvement: The Mediating Role of Information Sharing," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 122-146, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Małgorzata Okręglicka & Prabhat Mittal & Valentinas Navickas, 2023. "Exploring the Mechanisms Linking Perceived Organizational Support, Autonomy, Risk Taking, Competitive Aggressiveness and Corporate Sustainability: The Mediating Role of Innovativeness," Sustainability, MDPI, vol. 15(7), pages 1-23, March.
    2. Carmen Elena Anton & Alexandra Zamfirache & Ruxandra-Gabriela Albu & Titus Suciu & Sergiu Mihai Sofian & Oana-Andreea Ghiță-Pîrnuță, 2024. "Sustainable Entrepreneurship: Romanian Entrepreneurs’ Funding Sources in the Present-Day Context of Sustainability," Sustainability, MDPI, vol. 16(2), pages 1-29, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francesco Perrini & Angeloantonio Russo & Antonio Tencati & Clodia Vurro, 2011. "Deconstructing the Relationship Between Corporate Social and Financial Performance," Journal of Business Ethics, Springer, vol. 102(1), pages 59-76, March.
    2. Pornanong Budsaratragoon & Boonlert Jitmaneeroj, 2021. "Corporate Sustainability and Stock Value in Asian–Pacific Emerging Markets: Synergies or Tradeoffs among ESG Factors?," Sustainability, MDPI, vol. 13(11), pages 1-25, June.
    3. Tzouvanas, Panagiotis & Kizys, Renatas & Chatziantoniou, Ioannis & Sagitova, Roza, 2020. "Environmental and financial performance in the European manufacturing sector: An analysis of extreme tail dependency," The British Accounting Review, Elsevier, vol. 52(6).
    4. Florian Habermann & Felix Bernhard Fischer, 2023. "Corporate Social Performance and the Likelihood of Bankruptcy: Evidence from a Period of Economic Upswing," Journal of Business Ethics, Springer, vol. 182(1), pages 243-259, January.
    5. Iftekhar Hasan & Hui Li & Haizhi Wang & Yun Zhu, 2021. "Do Affiliated Bankers on Board Enhance Corporate Social Responsibility? US Evidence," Sustainability, MDPI, vol. 13(6), pages 1-27, March.
    6. Maria Giovanna Confetto & Maddalena Della Volpe & Claudia Covucci, 2018. "Dual marketers and sustainability communication. Empirical evidence from corporate websites," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2018(3), pages 41-68.
    7. Maria Vincenza Ciasullo & Raffaella Montera & Nicola Cucari & Francesco Polese, 2020. "How an international ambidexterity strategy can address the paradox perspective on corporate sustainability: Evidence from Chinese emerging market multinationals," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 2110-2129, July.
    8. Ruy de Castro Sobrosa Neto & Carlos Rogério Montenegro de Lima & Daniel Goulart Bazil & Manoela de Oliveira Veras & José Baltazar Salgueirinho Osório de Andrade Guerra, 2020. "Sustainable development and corporate financial performance: A study based on the Brazilian Corporate Sustainability Index (ISE)," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 960-977, July.
    9. Fiaz Ahmad Sulehri & Saba Sharif, 2022. "The Impact of Firm Sustainability on Firm Growth: Evidence from USA," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 1-15, August.
    10. Riccardo Torelli & Federica Balluchi & Katia Furlotti, 2020. "The materiality assessment and stakeholder engagement: A content analysis of sustainability reports," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 470-484, March.
    11. Hsueh, Che-Fu, 2014. "Improving corporate social responsibility in a supply chain through a new revenue sharing contract," International Journal of Production Economics, Elsevier, vol. 151(C), pages 214-222.
    12. Fabien Martinez, 2014. "Corporate strategy and the environment: towards a four-dimensional compatibility model for fostering green management decisions," Post-Print hal-02887618, HAL.
    13. Moliterni, Fabio, 2018. "Do Global Financial Markets Capitalise Sustainability? Evidence of a Quick Reversal," SAS: Society and Sustainability 274853, Fondazione Eni Enrico Mattei (FEEM).
    14. Yanfang Zhang & Mushang Lee, 2019. "A Hybrid Model for Addressing the Relationship between Financial Performance and Sustainable Development," Sustainability, MDPI, vol. 11(10), pages 1-15, May.
    15. Timothy J. Quigley & Adam J. Wowak & Craig Crossland, 2020. "Board Predictive Accuracy in Executive Selection Decisions: How Do Initial Board Perceptions of CEO Quality Correspond with Subsequent CEO Career Performance?," Organization Science, INFORMS, vol. 31(3), pages 720-741, May.
    16. Anike Sult & Janice Wobst & Rainer Lueg, 2024. "The role of training in implementing corporate sustainability: A systematic literature review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 1-30, January.
    17. Simone Pizzi & Fabio Caputo & Andrea Venturelli, 2020. "Does it pay to be an honest entrepreneur? Addressing the relationship between sustainable development and bankruptcy risk," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1478-1486, May.
    18. Jeremy Galbreath, 2018. "Do Boards of Directors Influence Corporate Sustainable Development? An Attention‐Based Analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 27(6), pages 742-756, September.
    19. Anselm Schneider, 2015. "Reflexivity in Sustainability Accounting and Management: Transcending the Economic Focus of Corporate Sustainability," Journal of Business Ethics, Springer, vol. 127(3), pages 525-536, March.
    20. Mert Gürlek & Muharrem Tuna, 2018. "Reinforcing competitive advantage through green organizational culture and green innovation," The Service Industries Journal, Taylor & Francis Journals, vol. 38(7-8), pages 467-491, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:blg:journl:v:13:y:2018:i:3:p:26-44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mihaela Herciu (email available below). General contact details of provider: https://edirc.repec.org/data/feulbro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.