Environmental, Social, and Governance Practices as a Mediating Mechanism between Technology Organization Environment Factors and Sustainable Business Growth in Pharmaceutical Industry

Purpose - The study aims to examine the factors influencing the implementation of Environmental, Social, and Governance (ESG) practices and their impact on sustainable business growth (SBG). The factors analysed in this study are grounded in the Technology Organization Environment (TOE) framework, which includes ICT infrastructure, firm size, and competitive pressure as key dimensions influencing ESG implementation. In addition, this research incorporates ESG practices as a mediating construct to examine their indirect effects on the relationship between these factors and sustainable business growth. Design/methodology/approach - A quantitative research approach was adopted, and data were collected from 205 respondents through a self-administered questionnaire. The questionnaires were distributed using a convenience sampling technique via email and social media platforms, including a Google Forms online survey. The data were analysed using SPSS and SmartPLS software. Findings - The findings indicate that firm size and competitive pressure have a positive and significant influence on ESG practices, which in turn significantly enhance SBG. However, ICT infrastructure does not exhibit a significant effect on ESG practices or SBG. The results further confirm that ESG practices play a crucial mediating role in linking organizational and environmental factors to SBG. Practical implications - The study offers several practical implications for the pharmaceutical industry, business owners, and policymakers by enhancing understanding of how ESG practices can be effectively implemented to promote sustainable business growth. The findings provide contextual insights into the role of ESG practices in supporting long term growth and aligning business strategies with stakeholder expectations, particularly in emerging economies such as Malaysia. Originality/Value - This study extends existing literature by applying the Technology Organization Environment framework to examine ESG practices and their mediating role in sustainable business growth within the pharmaceutical industry. The findings provide valuable guidance for improving key determinant factors related to ESG implementation and sustainability-oriented business performance.