Impact of sustainability practices on organizational performance: path analysis from natural resources-based view

Abstract Sustainability practices (SP) have recently emerged as a strategic priority for manufacturing firms, with their performance implications becoming a key research focus. However, the complex relationships between SP and firm performance, as well as among different performance dimensions, remain debated in the literature. Drawing upon the Natural Resource-Based View (NRBV), this study examines the effects of sustainable supply management (SSM) and sustainable process management (SPM) on environmental performance, social performance, operational performance, and economic performance, while examining the mediating roles of environmental and social performance. Using regression analysis of survey data from 235 Chinese manufacturing firms, the results demonstrate that both SSM and SPM significantly improve all four performance dimensions. Furthermore, environmental and social performance fully mediate the effects of SSM and SPM on economic and operational performance. This study contributes to the literature by advancing theoretical understanding of the SP-performance relationship, elucidating the complex interrelationships among performance dimensions, and offering practical guidance for manufacturers implementing sustainability practices to enhance performance.