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Interdependencies between financial and non-financial performances: a holistic and short-term analytical perspective

Cupertino, S; Vitale, G; Taticchi, P; (2022) Interdependencies between financial and non-financial performances: a holistic and short-term analytical perspective. International Journal of Productivity and Performance Management 10.1108/IJPPM-02-2022-0075. (In press). Green open access

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Abstract

Purpose: This paper aims to investigate possible interdependencies affecting short-term profitability between internal and process business aspects which can play a critical role in sustainability operationalisation. Design/methodology/approach: The authors adopted the panel data approach to perform a partial least square structural modelling equation analysis on a sample of 391 Organisation for Economic Co-operation and Development (OECD) non-financial-listed companies, considering a timeframe of five years. Findings: Corporate sustainability is a result of interplays between managerial commitment, strategy, slack resources’ exploitation, innovation, the sustainable management of internal production and procurement processes that managers can catalyse to foster short-term firms’ profitability. Research limitations/implications: The study is focused on internal process business determinants of sustainability, and the analysis is limited to a short-term timeframe and on non-financial OECD-listed companies. Practical implications: Managers searching for trade-offs between financial and non-financial performances should enhance their commitment towards sustainability by defining appropriate strategies suitable to employ mainly slack resources derived from core business activities enabling innovation processes, which, in turn, are able to foster sustainability of internal production and procurement processes. Originality/value: The execution of sustainability is a complex process that needs to be investigated using a holistic approach net of endogeneity biases to better appreciate those interrelationships within multiple drivers determining the firm sustainable growth.

Type: Article
Title: Interdependencies between financial and non-financial performances: a holistic and short-term analytical perspective
Open access status: An open access version is available from UCL Discovery
DOI: 10.1108/IJPPM-02-2022-0075
Publisher version: https://doi.org/10.1108/IJPPM-02-2022-0075
Language: English
Additional information: © Sebastiano Cupertino, Gianluca Vitale and Paolo Taticchi. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and noncommercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
Keywords: Internal and process sustainability drivers, Partial least square structural modelling equations, OECD non-Financial companies, Non-financial and financial performance interdependencies
UCL classification: UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > UCL School of Management
UCL > Provost and Vice Provost Offices > UCL BEAMS
UCL
URI: https://discovery.ucl.ac.uk/id/eprint/10152644
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