Impact of technology management on corporate sustainability performance

Abstract

Purpose Corporate sustainability is an evolutionary strategic management concept that has now attained much attention both in literature and practice. In the present globalization and digital age, the competitive strengths of technology management (TM) and TQM practices are widely accepted but to what extent these strategies can interact and impact the sustainability performance is unknown. The purpose of this paper is to portray the significant role of TM and TQM in pursuing corporate sustainability performance (CSP) and to investigate their integrated relationship as a common framework. Design/methodology/approach This is a survey-based empirical research that has been carried out by means of development of a survey questionnaire and its distribution to multifaceted business organizations in a developing country. Random sampling technique was used for the data collection from companies registered with the Securities and Exchange Commission of Pakistan (SECP). Response from 209 companies was found useful for analysis in the study. After confirming the questionnaire items for reliability and validity (content, criterion-related and construct validity) correlation, regression, factor analysis, path analysis and mediation analysis were performed through SPSS and AMOS to assess the composition and causal association of factors. Findings Statistical results show that TQM does not only significantly impact CSP but also has an impact on each CSP dimension (economical, social and environmental sustainability performance), whereas TM has an insignificant direct effect on CSP and impacts economical sustainability dimension only. From nine hypotheses, two hypotheses are rejected suggesting that TM does not directly impact social and environmental sustainability. However, when mediation analysis was run by taking TQM as a mediator, the total effect of TM on CSP found significant suggesting that TQM significantly impacts the relationship. Research limitations/implications Paucity of response data can be a limitation for such empirical research. Due to practical limitations and risks in the data presentation of mixed cultural dimensions, the data was collected only from in country organizations. Moreover, respondents in the local country do not keenly participate in such surveys because of a gap between the industry and academia. Practical implications The study attempts to examine the practice and performance levels of CSP, TQM and TM among multi industries, thereby, extending a better understanding of the prevailing situation with regards to these concepts in a developing country. Though the results of the study confine local inferences but the findings can be generalized to other part of the world if further research is carried out with more data. Social implications The study outcomes draw the attention of the country’s executive leadership and the industrial boards toward the implementation of the most top-ranked agenda of sustainability performance in connection to quality and TM practices. One of the major findings reveals that local organizations are primarily more focused toward economical sustainability dimension, however, benefits of economical stability can be improvised to attain environmental and social sustainability performances with desired concentration on technology advancement and TQM culture and practice. Originality/value The study is unique in the prescribed scope which has been carried out in a developing country with focus on strategic concepts, and their interacted relationship, of CSP, TQM and TM in form of proposed research framework. This framework can be used or further investigated for validation, by practitioners and managers working to lead sustainability management in respective areas.