THE IMPACT OF SUSTAINABILITY ON FIRM PERFORMANCE AND THE ROLE OF INDUSTRY IN THIS RELATIONSHIP

The aim of this paper is to investigate the impact of sustainability on firm performance, along with the moderating role of industry in this relationship. While earlier work has examined the effect of sustainability on firm performance, whether the impact of firms’ sustainability efforts on firm performance differs depending on the industry has largely been ignored. This paper aims to fill this research gap by considering the relations between sustainability, firm performance and industry. The firm level data are obtained from Public Disclosure Platform. The hypotheses are tested using hierarchical ordinary least squares (OLS) regression. The findings show that sustainability has a positive impact on firm performance. However, industry does not moderate the relationship between sustainability and firm performance. This study aims to advance the prior research on sustainability by examining whether firms’ sustainability practices enhance their performance, and whether industry has an impact on this relationship in an emerging economy.