558 KB0 KB200920262024Correa, Fabio M.Engelke, Deon H.Pearse, Noel J.Skae, Frederick O.letnik:26številka:iss. 2, article 1str. 61-80DOI:10.15458/2335-4216.1335COBISSID_HOST:200327939ISSN:2335-4216URN:URN:NBN:SI:doc-NRQA6NTDenEkonomska fakultetaEconomic and business reviewenterprisesfinancepodjetjesustainable developmenttrajnostni razvojThe relationship between culture, sustainable use of resources, and financial performance| an institutional and natural-resource-based perspective|Modelling a dataset of 5230 globally listed firms through two statistical approaches reflecting the primary principles of Natural-Resource-Based Theory and Institutional Theory, respectively, this study provides evidence that sustainability initiatives developed by firms are being rewarded in the form of improved Corporate Financial Performance (CFP). Culture has a significant influence on both firm sustainability performance, captured in ESG ratings, and CFP and also interacts with other variables, including industry sector and socio-economic development of a firm’s markets. This study is unique in hypothesising and statistically proving that sustainability is a mechanism that activates the potential of culture to produce CFP. Natural-Resource-Based Theory (NRBT) and Institutional Theory (DiMaggio & Powell, 1983) provide complementary explanations for the relationship between the culture of a firm and its CFP being mediated by sustainability, effectively determining firms’ approach to the use of their resources in a sustainable or unsustainable way. Certain relationships between culture, sustainability performance, and CFP, however, are better explained by Institutional Theory than NRBTTEXTznanstveno časopisjejournalsSlovenian National E-content AggregatorNational and University Library of SloveniaUniverza v Ljubljani, Ekonomska fakulteta