A meta-regression analysis of environmental sustainability practices and firm performance

Abstract

The growing concern with environmental protection has transformed companies' environmental responsibility into a tactical strategy to increase their competitiveness. The influence of environmental sustainability practices on companies' performance is on the agenda, and it is not consensual. This study intends to analyse the impact of the adoption of sustainable practices on the performance of companies. The heterogeneous results of 96 studies (taken from the Web of Science) were synthesized using meta-regression analyses, from which data on 339 effects were collected. Unlike previous studies that consider performance a one-dimensional construct, this study takes an original approach to performance. Effects were analysed on five different performance measures: (i) the overall performance, (ii) the accounting-based, (iii) the market-based, (iv) the economic-based and (v) the operational-based firm performance. Indirect effects were also explored. Environmental sustainability practices positively influence the five performance measures, even if environmental preservation is not the only motivation for their implementation. The study reinforces the idea that it is profitable for companies to be green. The environmental pressures of stakeholders must be seen as opportunities and contribute to improving the multiple aspects of competitiveness. To accommodate environmental concerns, business ethics must be updated.