Impact of Corporate Sustainability on Organizational Performance: A Quantitative Evidence from MENA Region's Industrial Sector

Abstract

Corporate sustainability concept emerged globally over the last two decades with the increased awareness of sustainable development by organizations. Following that, many empirical studies have tackled the industrial sector, which constitutes a vital part of the economy in most countries, and is one of the leading sectors in adopting the three dimensions of corporate sustainability (social, environmental, and economic). This quantitative study aims at developing and testing a conceptual model for assessing the impact of corporate sustainability adoption on organizational performance of this vital sector. The proposed model was empirically tested through a sample of 140 senior employees of eight industrial companies in three MENA countries (Bahrain, Saudi Arabia and Egypt). Non-parametric tests were employed to test research hypotheses. Results revealed a positive relationship between organizational performance, and the adoption of corporate sustainability measures for both environmental and social dimensions.