Sustainability partnership as a moderator in the relationship between business sustainability and firm competitiveness

Abstract

This paper empirically examines the relationship between business sustainability and firm competitiveness and the role of sustainability partnerships in the relationship between business sustainability and firm competitiveness. By classifying two dimensions (environmental sustainability and social sustainability) that are needed to realize business sustainability, this study suggests that a sustainability partnership serves as a moderator in the relation between business sustainability and firm competitiveness. Three developed hypotheses were tested using regression analysis to find the relationship between business sustainability, sustainability partnership, and firm competitiveness. Using a structured survey questionnaire, the data were collected from 135 firms that operate in construction industries in Finland. The findings suggest that investing in environmental sustainability will directly improve firm competitiveness, but investing in social sustainability will not. In addition, sustainability partnerships serve as a promoter in the relationship between social sustainability and firm competitiveness but inhibit the relationship between environmental sustainability and firm competitiveness.