Does Sustainability Pay, and When? The Role of Sustainable Supply Chain Capabilities in Shaping ESG and Financial Performance across Developed and Emerging Economies

Creative Commons License

Naeem N., Çankaya S.

56th EBES CONFERENCE - ISTANBUL, İstanbul, Türkiye, 2 - 04 Haziran 2026, ss.55-56, (Özet Bildiri)

  • Yayın Türü: Bildiri / Özet Bildiri
  • Basıldığı Şehir: İstanbul
  • Basıldığı Ülke: Türkiye
  • Sayfa Sayıları: ss.55-56
  • İstanbul Ticaret Üniversitesi Adresli: Evet

Özet

The growing integration of Environmental, Social, and Governance (ESG) principles into corporate strategies has increased interest in understanding how sustainability initiatives contribute to both ESG outcomes and financial performance. While prior studies largely examine ESG as a disclosure- or governance-oriented construct, less attention has been devoted to the operational mechanisms through which sustainability creates value. Drawing upon the Resource-Based View and Dynamic Capabilities Theory, this study investigates whether sustainable supply chain capabilities enhance corporate ESG performance and financial performance and whether they strengthen the ability of ESG initiatives to generate financial benefits. Furthermore, the study examines whether these relationships differ across developed and emerging economies and among sectors with varying operational intensity. Data and Methodology: The study utilizes a large-scale international panel dataset obtained from Refinitiv Eikon, covering publicly listed companies from 36 countries and nine major economic sectors over the period 2012–2024. Sustainable supply chain capabilities are evaluated through corporate sustainability-related supply chain practices, while ESG performance is measured using overall ESG scores and their environmental, social, and governance dimensions. Financial performance is assessed through accounting-based and market-based indicators. Panel regression models are employed to examine the direct effects of sustainable supply chain capabilities on ESG and financial performance, as well as their moderating role in the ESG–financial performance relationship. Results: The findings indicate that sustainable supply chain capabilities are significant determinants of both ESG performance and selected dimensions of corporate financial performance. Sustainability-oriented supply chain practices positively influence profitability and earnings-related outcomes, whereas market-based responses appear comparatively weaker. The results further reveal that sustainable supply chain capabilities strengthen the positive relationship between ESG performance and financial performance. This moderating effect suggests that firms generate greater financial benefits from ESG initiatives when sustainability principles are embedded within operational and supply chain processes. The effects are particularly pronounced in emerging Asia-Pacific economies and operationally intensive industries. Conclusions: This study contributes to the sustainability and corporate performance literature by conceptualizing sustainable supply chain management as an operational capability that enhances the effectiveness of ESG strategies. The findings suggest that sustainability creates value not only through disclosure and governance mechanisms but also through operational capabilities embedded within supply chains. By identifying when and how ESG initiatives translate into financial benefits, the study provides important implications for managers, investors, and policymakers seeking to develop integrated sustainability strategies that support long-term corporate value creation.