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Examining the impact of stakeholders' pressures on sustainability practices

2025/01/21 by Guo Sun, Sun Guo, Inusah Sulemana +1 · 43 citations
Business, Management and Accounting · Environmental Science · #Business #Corporate Social Responsibility Reporting #Economics #Environmental Sustainability in Business #Environmental economics #Environmental resource management #Environmental science #Marketing #Sustainability #Sustainable Development and Environmental Policy

paper · doi:10.1108/md-06-2023-1008

published in Management Decision 63(11), 3967-3995 (Emerald Publishing Limited)

openalex publication_date 2025/01/21 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/30

Abstract

Purpose The study aims to investigate the influence of stakeholder pressure on sustainability practices via the mediating effect of green innovation (GI) from a developing economy in Sub-Saharan Africa (SSA). Design/methodology/approach The study used primary data from 567 respondents in manufacturing and mining firms in Ghana to conduct the Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis using Smart-PLS, Version 4.0. Data was gathered using survey questionnaire. A purposive sampling method was used to choose participants' companies. Findings The findings revealed that shareholder and government pressure significantly and positively influence sustainability practices, while pressure from the community has an insignificant beneficial impact on sustainability practices. Consumer pressure revealed an insignificant detrimental influence on sustainability practices. The study discovered that green innovation fully and substantially mediates the association between stakeholder pressure and sustainability practices. Research limitations/implications The study has limitations, including the exclusion of control variables and its focus on four different stakeholders, excluding other stakeholders that who also impact sustainability practices. Practical implications The study’s findings can assist Ghanaian companies in making strategic decisions to enhance corporate reputation, acknowledging the effect of stakeholder pressure on sustainability practices. Social implications The study outcome may enable companies to implement more inclusive sustainable development initiatives, benefiting their bottom line while contributing to the well-being of local communities and the environment. Originality/value The study’s originality stems from integrating green innovation in examining stakeholders' influence and sustainability practices of firms, a gap that remained unexplored. It highlights the essence of green innovation in shaping a company’s sustainability practices, highlighting the need for businesses to integrate technology and sustainability in their operations.

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