Impact of Integrating Sustainability into Strategic Management on Financial and Sustainability Performance—Literature Review

The integration of sustainability into strategic management (SSM) has drawn increased academic interest, yet the literature is conceptually fragmented and lacks a cohesive framework that systematically describes the integration of SSM. This study seeks to fill this gap and uncover the essential strategic dimensions, driving forces, and influencing variables that shape the integration of SSM and planning. This study conducts a systematic literature review (SLR) of peer-reviewed articles indexed in the Web of Science and Scopus databases. Through the application of established search parameters and content analysis methodologies, 30 relevant studies are identified and examined. Under a management theory lens, this study synthesizes the literature using a systematic search method and thematic classification approach. The results show that the interaction between internal capabilities and external pressures leads to the formation of sustainable integration. Stakeholder participation, operational integration, governance and leadership commitment, strategy alignment, and sustainability performance evaluation are important factors. The findings also point to important enabling and limiting variables, including the lack of defined measures, regulatory uncertainties, and resource constraints. This study proposes a structured conceptual framework that connects organizational integration mechanisms, strategic drivers, and sustainable results based on these discoveries. This work contributes to the literature on sustainability-oriented strategic management by offering a theory-driven synthesis and highlighting important boundary conditions. It also provides practical implications for practitioners and researchers alike.