Effect of corporate environmental sustainability on dimensions of firm performance - Towards sustainable development: Evidence from India

Context: Relatively little research exists on a practical level of sustainable strategies, and organizations must concentrate and appreciate the gravity of the issue. Academicians have started to create awareness among the organizations. However, a consistent and exhaustive association of corporate sustainability with the firm's performance still requires more investigation. Objectives: Thus, the key aim of this paper is to unravel the impact of environmental sustainability on multiple dimensions of a firm's performance. Sustainability taken for the study is the environmental dimension of corporate sustainability. Method: /Analysis: This study considered financial performance, customer performance, internal business process performance, and learning & growth performance as four dimensions of a firm's performance. We used well-established scales for the concepts used in the paper, and all are validated in Indian demography using confirmatory factor analysis in AMOS. We collected 200 cross-sectional respondents sample from the senior executives of Indian business organizations. We then analyzed the association of environmental sustainability on the firm's performance using structural equation modeling in AMOS. Findings: We found support for our hypotheses. We observed that environmental sustainability has a positive and significant influence on the four vital functional performance of firms. Novelty: The novelty of this research is to bridges the knowledge gap of establishing a relationship of sustainability with the firm performance considering all key functional dimensions. We also tested the theoretical propositions of stakeholder theory, signaling theory, RBV, and institutional perspective. (C) 2020 Elsevier Ltd. All rights reserved.