A Quantitative Analysis of Stakeholder Integration, Environmental Sustainability Concerns, Level of Competition and Organization Performance

This study addresses a developing research concern about the relationship of organization performance (OP) with stakeholder integration (SI) (stakeholder interaction (SInt), behaviours of adaptation (BA)), environmental sustainability concerns (ESC) (knowledge, practice and commitment to environmental sustainability (CES)) and the level of competition (competition intensity). SI refers to the extent of SInt and adaptive behaviour that shapes the decision-making processes of any firm. ESC are reflected in organizations’ knowledge, practices and commitment to sustainability, while competitive intensity (CI) captures the external market pressure faced by firms. The study is based on a primary survey of 242 executive-level personnel and leaders of multinational corporations (MNCs) and business firms in India. Using confirmatory factor analysis (CFA) and structural equation modelling (SEM), we have tried to establish the relationship between SI, ESC, level of competition, and OP. The growth of a firm is aided by its stakeholders, who make tactical choices. Ecological sustainability concerns and a firm’s competition level are other indicators linked with performance; thus, the present study measures the mentioned constructs through a causal relationship with SEM. Indicating that businesses’ efforts towards environmental sustainability practices and commitment contribute to an organization’s solid performance, and that SInt and competition intensity give businesses in developing countries like India a competitive edge. We find a positive and significant association between SInt, environmental sustainability practices, CES, and CI, whereas a non-significant relationship emerges between behaviours of adaptation and knowledge of environmental sustainability (KES).