Organizational culture and sustainability practices as drivers of shared value creation: evidence from Ethiopian private-sector firms

Purpose This paper aims to explore the role played by organizational culture in the establishment of shared value creation in emerging-economy firms through sustainability practices. Design/methodology/approach The study relies on the resource-based view, the Denison organizational culture model, and shared value creation theory to create a mediation model where sustainability practices are organizational capabilities that connect cultural characteristics to socio-economic value creation. The study surveyed 295 employees in Ethiopian firms in the private sector, and the analysis of the data was done using partial least squares structural equation modelling (PLS-SEM). Findings The results indicate that involvement, consistency, adaptability and mission positively influence sustainability practices. In turn, sustainability practices have a positive impact on shared value creation and, to some extent, mediate the correlation between organizational culture and shared value creation. Practical implications The findings imply that managers are supposed to contribute to desirable cultural characteristics with a view to reinforcing sustainability practices that generate organizational and social value. Originality/value The research provides insights into Ethiopian firms operating in the private sector and sheds light on the mediating role of sustainability practices in linking organizational culture to shared value creation.