Do Slack Resources Affect Sustainability Performance?

Abstract

This study reveals the role of slack resources in forming one element of company's competitive advantage, named sustainability performance. Adapting the resource-based perspective, this study documents that company's ability to achieve sustainability performance is affected by its free resource, or this study called slack resources. Sample selection is based on the criteria of SRI KEHATI Index and LQ 45, results in 107 firms. It is also found that state-owned enterprises (BUMN) pay more attention to the achievement of sustainability performance. This is enable by the multiple duties carry out by SOE to enhance community's wealth while gaining profits. Though it's questionable whether company's willingness truly rises from its concern to the environment , sustainability performance has been adopted to win the heart of the market .