Can organizational size moderate the relationship between sustainable-driven financial management and business competitiveness?

Abstract

AbstractExtant literature has pointed to a positive relationship between sustainable-driven management and business competitiveness and organizational size as a moderating factor in such a relationship. In this vein, the Economy for the Common Good is a sustainability framework based on stakeholders’ management that allows embedding sustainable behavior into business strategy and counts with a version adapted to organizations working at a smaller scale like entrepreneurial ventures and SMEs. Hence, the present study aims to assess the impact of sustainable financial management implemented using the Economy for the Common Good framework on business competitiveness and the possible moderating effects of organizational size on this relationship. To do so, the authors apply hierarchical regression analysis to data gathered from 206 European enterprises that implemented sustainable-driven financial management using the Economy for the Common Good framework. Results confirmed the positive impact of sustainable financial management on business competitiveness. However, organizational age and size resulted in nonsignificant variables. Thus, we conclude that sustainable financial management using the Economy for the Common Good framework is a suitable tool for implementation in entrepreneurial ventures and SMEs.