Organisational sustainability scale-measuring employees’ perception on sustainability of organisation

Abstract

Purpose The purpose of this paper is to conceptualise and develop a scale for measuring employees’ perception on the sustainability of service organisations. With several companies adopting sustainability initiatives, it is prudent to measure the sustainability performance of those companies. Given the multidisciplinary nature of the sustainability measures and its associated challenges, this paper attempts to develop a scale to measure employees’ perception of sustainability of an organisation. Design/methodology/approach A structured questionnaire was developed and 977 samples were collected based on snowball sampling method. For scale development, this study randomised 586 samples to conduct exploratory factor analysis (EFA) and used the remaining samples for validation using confirmatory factor analysis (CFA). Findings The existing literature on sustainability focusses on three dimensions, namely, economic, social and environmental sustainability measures. This paper explored the similarities of the three dimensions to serve as critical determinants for measuring employees’ perception of sustainability with the collected data from service industries. The EFA revealed that there were six factors for organisational sustainability with 26 questionnaire items. The six factors are as follows: environment management, employee-related sustainability, public related sustainability, financial sustainability, pollution control measures and governance sustainability. The identified factors were tested using CFA and the results are discussed. Research limitations/implications This paper will be beneficial for the academicians in sustainability and the policy-makers as it provides a scale to measure employees’ perception on the sustainability of an organisation. This paper adds value to the research by providing a six-factor measurement model for organizational sustainability of selected service industries. Practical implications The paper is highly beneficial to the organisations to measure employees’ perception on sustainability and ascertain their position in supporting the holistic development of environment and society, thereby improving the goodwill and reputation of the organisation. Originality/value This paper provides insights about measuring employees’ perception on organizational sustainability. A six-factor measurement model has been proposed for organisational sustainability.