1. Sustainability strategy as a moderator in the relationship between digital business strategy and financial performance.
- Author
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Ukko, Juhani, Nasiri, Mina, Saunila, Minna, and Rantala, Tero
- Subjects
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FINANCIAL performance , *BUSINESS planning , *SUSTAINABILITY , *SMALL business , *REGRESSION analysis - Abstract
This paper empirically examines the role of a sustainability strategy in the relation between a digital business strategy and financial performance. By classifying two capabilities (managerial capability and operational capability) that are needed to realize a digital business strategy, this study suggests that a sustainability strategy serves as a promoter in the relation between managerial capability and financial performance but inhibits the relation between operational capability and financial performance. Using a structured survey questionnaire, the data was collected from 280 small and medium-sized enterprises (SMEs), which operate in both the service and manufacturing industries in Finland. Four developed hypotheses were tested using the regression analysis to find the relationship between digital business strategy, sustainability strategy and financial performance. The findings suggest that a sustainability strategy serves as a promoter in the relation between managerial capability and financial performance but inhibits the relation between operational capability and financial performance. • The relations between a digital business strategy, a sustainability strategy and financial performance are studied. • Two capabilities (managerial capability and operational capability) are needed to realize a digital business strategy. • Sustainability strategy facilitates the relation between a digital business strategy and financial performance. • Sustainability strategy serves as a promoter in the relation between managerial capability and financial performance. • Sustainability strategy inhibits the relation between operational capability and financial performance. [ABSTRACT FROM AUTHOR]
- Published
- 2019
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