Pressure or premium: What works best where?, Antecedents and outcomes of sustainability

Abstract

In this study, we empirically test the antecedents and consequences of sustainable manufacturing practices across emerging as well as developed countries such as India, China and OECD. We use data from the sixth edition of International Manufacturing Strategy Survey (IMSS) and partial least squares structural equation modelling (PLS-SEM) to test our conjectures. Our findings suggest that while customer willingness to pay has a significant impact on sustainable manufacturing practices everywhere, stakeholder pressure is able to influence their adoption in OECD and India, but not in China. We also find that firms that are high on sustainable manufacturing practices not only reap sustainability benefits, but also derive cost reduction and quality improvement in many contexts. However, this relationship between sustainability efforts and operational performance is mediated through sustainability performance.