Assessing the impact of sustainability practices on organizational performance in dairy industry: An empirical case study from a developing country

The dairy industry is considered one of the most needed industries in almost every country; this is due to the continuous daily demand of its different products. Nevertheless, this industry consumes large amount of water, energy and material resources, and generates large quantities of liquid and solid wastes. In the sequel, under the pressure of fulfilling the 17 sustainable development goals (17 SDGs), it is important to address the sustainability of this sector in the world and particularly in developing countries. This study aims at assessing the impact of environmental, economic and social sustainability practices on the organizational performance of dairy industry in Palestine. To this end, a quantitative-research approach, based on a questionnaire for data collection, was adopted. Data has been collected from a convenient sample of 15 dairy factories working in West Bank in Palestine during a three-month period from March to May, 2023. Inferential statistical analyses were conducted as well. The results revealed that there is a difference between the median values of environmental and economic practices. In addition, the results showed that there is a medium relationship between sustainability practices and organizational performance. However, the economic practices proved to have the strongest impact then social practices; while, there is no impact of environmental practices on organizational performance. Furthermore, the results showed that this industry consumes larger amount of water as well as it generates large amounts of wastewater that mainly discharged to the drainage system without treatment for recycling or reuse. Several sound recommendations are given at the end of this paper. It worth mentioning that there are no previous studies conducted on the dairy industry sector in Palestine about sustainability assessment.