A strategic framework for developing sustainable value propositions

Abstract

The discussion on firms’ sustainability performance has resulted in business organizations becoming more conscious of sustainability issues and implementing strategies to ensure sustainable value propositions. The purpose of this study is to explore strategies that firms could use to develop sustainable value propositions. Through an extensive literature review, the study proposed a conceptual framework and further developed hypotheses suggesting that the strategies such as stakeholder involvement, flexible decision-making, and social and environmental values could influence sustainable value propositions. The hypotheses were tested through quantitative research analysis using data collected from owners/managers in 143 SMEs in the coastal areas of Ghana. The data supported almost all the hypotheses, namely H1, H2, and H5-H8 with T-values and P-values of > 1.96 and < 0.05, respectively. This finding indicates that all three core antecedents of sustainable value propositions contributed 78 percent of variations in the model. However, contrary to expectations, the result also showed that shareholder orientation and employee orientation with T-values and P-values of ˂ 1.96 and ˃ 0.05, respectively, did not support sustainable value propositions resulting in rejecting H3 and H4. Despite this outcome, the study concludes that all three strategies are relevant and valuable to firms in developing sustainable value propositions. AcknowledgmentThis paper was supported by IGA/FaME/2021/004: SME Innovation Performance, Firm Sustainability performance and Influence of Pandemic on Entrepreneurial wellbeing.