Leader Attention to Information and Sustainability Performance

In contemporary business practice, sustainability has emerged as a focal point for understanding value creation. This study examines how leader attention influences sustainability performance. Specifically, it investigates two dimensions of leader attention: search intensity, which pertains to the depth and thoroughness of exploration, and search selection, which involves the criteria used to prioritize sustainability issues. This study employed a quantitative approach utilizing a survey methodology. Data collection of 30 SMEs was conducted through a postal survey, targeting the Malaysian service sector listed in the directory of the Federation of Malaysian Manufacturers (FMM). Data is analyzed using PLS-SEM to investigate perceptions regarding leader attention towards corporate sustainability performance. Employing the ABV theory, the findings indicate that search intensity positively impacts both corporate financial and non-financial performance, highlighting the importance of comprehensive information-gathering and analysis processes. However, the study does not find a significant relationship between search selection and financial performance, suggesting a limited impact of specific information search strategies. These results underscore the pivotal role of leader attention in shaping organizational sustainability performance. The study contributes to understanding how leader attention enhances sustainability and provides valuable insights for organizations. Despite its contributions, future research could explore mechanisms through which search intensity influences financial outcomes and consider moderating factors across industries and regions. In conclusion, this research emphasizes the importance of data-driven decision-making and comprehensive information search processes for corporate financial and non-financial performance in today's information-rich environment.