Implementation of sustainable business practices for long-term value creation: Challenges and advancement

<b>Purpose:</b> The aim is to evaluate level of challenges encountered by firms in implementing sustainable business practices, their dimensions, and how those challenges can be combated for long-term value creation.<br /> <b>Motivation:</b> The pursuit of sustainable development goals (SDGs) has recently changed how businesses are conducted and shifted organizational focus from wealth maximization to value maximization. Now, definition of a successful business is linked to its ability to create long-term value. This pursuit has been reported to yield a different result level over years, which could be due to some challenges that may not be found in annual reports.<br /> <b>Methodology:</b> As a case study, this study focuses on four leading oil and gas firms in Nigeria, with 20 respondents drawn from each company, making a sample of 80 respondents. Descriptive statistics were used to analyze the primary data gathered, which were further subjected to empirical testing using the Z-test technique.<br /> <b>Findings:</b> Evidence revealed significant and low challenges in implementing sustainable business practices for long-term value creation. Results from this study also show three basic challenges in implementing sustainable business practices in West Africa: instability challenges, which are mostly external, structural challenges, which are mostly internal, and governance challenges, which are perceived as both internal and external.<br /> <b>Research implications:</b> Several avenues have been suggested for future studies as a follow-up on this study, including conducting a study to identify extent to which each of challenges identified in this research affects sustainability pursuit and long-term value creation within or outside oil and gas industry and across countries.<br /> <b>Practical implications:</b> Outcome of this study serves to develop sustainable business practices, policies, and strategies by enhancing an understanding of challenges in implementation and offering advancement options.<br /> <b>Social implications:</b> The conceptualization provided in this study informs government and international policymakers on the appropriateness of existing governance models for the attainment of sustainable development, the firm-level limitations and areas to focus policy emphasis that would help firms achieve long-term value creation for sustainable development.<br /> <b>Originality/value:</b> This study is one of the first contemporary studies to evaluate the firm-level challenges to sustainable development and long-term value creation in sub-Saharan Africa. In its uniqueness, this study addresses the challenges identified by offering suggestions for advancement. Also, the focus on oil and gas firms presents a “worst-case scenario” of the implementation challenges of sustainable business practices.