The Association between Sustainability Performance Management Goals and Organisational Performance

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Author(s)
Gadenne, David
Sands, John
Mia, Lokman
Year published
2012
Metadata
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Purpose: This paper identifies the sustainability performance management goals that Australian Companies use and their association with organisational performance. Design/methodology/approach: This study involved a questionnaire survey administered to Senior Level Managers of medium to large Australian companies. To identify their main sustainability performance management goals, a principal component factor analysis was conducted to reduce a total of 35 items related to sustainability performance management goals to 7 key sustainability performance management goal factors - environmental, new product innovation, ...
View more >Purpose: This paper identifies the sustainability performance management goals that Australian Companies use and their association with organisational performance. Design/methodology/approach: This study involved a questionnaire survey administered to Senior Level Managers of medium to large Australian companies. To identify their main sustainability performance management goals, a principal component factor analysis was conducted to reduce a total of 35 items related to sustainability performance management goals to 7 key sustainability performance management goal factors - environmental, new product innovation, customer acquisition and retention, information systems capability, employee welfare and community engagement, operational profitability, and organisational profitability. To determine which of these sustainability performance management goal factors were significantly associated with organisational performance, each of these factors was regressed against five single-item dependent variables of Customer Satisfaction Performance, Employee Satisfaction Performance, Sales from New Products Performance, Profit from Operations Performance and Environmental Budget Allocation Performance. Findings/Results: Results reveal that environmental, new product innovation, customer acquisition and retention, and information systems capability goals were positively associated with new product sales. Environmental, information systems capability, and employee welfare and community engagement goals were found to be positively associated with environmental budget allocations. Also, customer acquisition and retention, employee welfare and community engagement, and organisational profitability goals were found to positively influence customer satisfaction. Finally, information systems capability and employee welfare and community engagement goals were found to be positively associated with employee satisfaction.
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View more >Purpose: This paper identifies the sustainability performance management goals that Australian Companies use and their association with organisational performance. Design/methodology/approach: This study involved a questionnaire survey administered to Senior Level Managers of medium to large Australian companies. To identify their main sustainability performance management goals, a principal component factor analysis was conducted to reduce a total of 35 items related to sustainability performance management goals to 7 key sustainability performance management goal factors - environmental, new product innovation, customer acquisition and retention, information systems capability, employee welfare and community engagement, operational profitability, and organisational profitability. To determine which of these sustainability performance management goal factors were significantly associated with organisational performance, each of these factors was regressed against five single-item dependent variables of Customer Satisfaction Performance, Employee Satisfaction Performance, Sales from New Products Performance, Profit from Operations Performance and Environmental Budget Allocation Performance. Findings/Results: Results reveal that environmental, new product innovation, customer acquisition and retention, and information systems capability goals were positively associated with new product sales. Environmental, information systems capability, and employee welfare and community engagement goals were found to be positively associated with environmental budget allocations. Also, customer acquisition and retention, employee welfare and community engagement, and organisational profitability goals were found to positively influence customer satisfaction. Finally, information systems capability and employee welfare and community engagement goals were found to be positively associated with employee satisfaction.
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Journal Title
e-Journal of Social & Behavioural Research in Business
Volume
3
Issue
2
Publisher URI
Copyright Statement
© 2012 Australian Business Education Research Association. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Subject
Sustainability Accounting and Reporting
Business and Management
Cognitive Sciences