Do Special Economic Zone firm dynamics matter for social and environmental sustainability performance: evidence from an African emerging economy

Purpose This study examines how Special Economic Zone (SEZ) firms influence social and environmental sustainability in Ghana. Design/methodology/approach The study employs treatment and logit regression models with 328 firms across four periods/rounds of data to examine the contribution/effect of SEZ dynamics on sustainability business performance. Findings Findings reveal that SEZ firms engage in more sustainability practices than non-SEZ firms, with both firm groups prioritizing social sustainability over environmental sustainability efforts. SEZ registration and enclave operations significantly enhance sustainability, particularly among SEZ firms operating within and outside SEZ enclaves. Conversely, non-SEZ firms outside SEZ enclaves demonstrate a negative effect on sustainability, particularly environmental sustainability performance. Practical implications These findings suggest that SEZ policies can serve as effective mechanisms for promoting corporate sustainability. Policymakers should streamline SEZ registration processes, reduce enclave barriers and offer incentives to encourage firm SEZ-enclave participation, fostering broader sustainability adoption across firms and industries. Originality/value The study presents for the first time the effect of the Ghanaian operationalization of SEZ policy and how it affects social and environmental sustainability.