Demystifying the Effects of Organizational Sensemaking and Green Dynamic Capabilities on Sustainability Performance

Denisa Bogdana Abrudan; Masood Nawaz Kalyar; Dana Codruta Daianu

doi:10.5755/j01.ee.35.3.34473

Authors

Denisa Bogdana Abrudan West University of Timisoara, Romania
Masood Nawaz Kalyar Governmnet College University Faisalabad, Pakistan
Dana Codruta Daianu Aurel Vlaicu University of Arad, Romania

DOI:

https://doi.org/10.5755/j01.ee.35.3.34473

Keywords:

Sustainability, Organizational Sensemaking, Environmental Performance, Social Performance, Dynamic Capabilities, Agribusiness

Abstract

The present study aims to investigate how organizational sensemaking contributes towards sustainability performance (i.e., environmental performance and social performance) by proposing green dynamic capabilities as underlying mechanisms. It uses time-lagged design and the data were collected in two waves, from 232 agribusiness organizations in Romania using an online survey. PLS-SEM was employed in WarpPLS 8.0 software to analyze the data and test the hypothesized relationships. Results showed that organizational sensemaking positively influences both dimensions of sustainability performance. Moreover, the results also supported the mediating role of green dynamic capabilities. Findings imply that organizations that are proficient in sensing and interpreting external events, cues, and changes can successfully strengthen internal business processes (by developing green dynamic capabilities) to address environmental concerns, which in turn helps these organizations to achieve enhanced sustainability performance. The novelty of this study is the development of a dynamic-capabilities-based integrated framework for sustainability performance.

Author Biographies

Denisa Bogdana Abrudan, West University of Timisoara, Romania

Denisa Abrudan, PhD, is an Associate Professor at the Department of Management, Faculty of Economics and Business Administration, West University of Timișoara (Romania). She completed her studies at the West University of Timișoara with a PhD in Management, a Master's in Diagnostic Analysis and Business Evaluation, and a BA in Management. In addition, she graduated from the Post-Doctoral School at the Romanian Academy in Bucharest with a thesis about Innovation in Education. Her main research and teaching activities are developed within the management area, focusing on HRM, performance management, and leadership.

Masood Nawaz Kalyar, Governmnet College University Faisalabad, Pakistan

Masood Nawaz Kalyar, PhD, is serving as Assistant Professor of Management at Lyallpur Business School, Government College University Faisalabad, Pakistan. Kalyar received his Ph.D. in Management Sciences from Inönü University, Turkey. Dr. Kalyar's current research investigates how life inside organizations can influence people and organizations and their productivity and performance. Initially focusing on leadership and creativity, his research expanded to encompass the areas of leadership, organizational behaviour, decision science, and strategic management. His recent research appears in journals such as Business Process Management Journal, Technology Analysis & Strategic Management, Personnel Review, Baltic Journal of Management, Services Industries Journal, Systems Research and Behavioral Science, Corporate Social Responsibility and Environmental Management, Sustainability, Accounting, and Management Policy Journal, and International Journal of Contemporary Hospitality Management.

Dana Codruta Daianu, Aurel Vlaicu University of Arad, Romania

Dana Codruta Daianu, PhD, is an Associate Professor at the "Aurel Vlaicu" University of Arad, Romania, Faculty of Economic Sciences, Department of Economics. She completed her studies at the West University of Timișoara, a PhD in Economics, a Master in Management of Competitiveness", and a BA in International Economic Transactions. In addition, she graduated from the Post-Doctoral School at the Romanian Academy in Bucharest with a thesis about Poles of competitiveness - theory and practice. Her primary research and teaching activities are developed within the framework of innovation and knowledge economy, poles of competitiveness, sustainable development, and entrepreneurship.