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The effect of Sustainability Dynamic Capabilities on firm performance : Evidence from Dutch manufacturing SMEs.

Bennink, O. (2025) The effect of Sustainability Dynamic Capabilities on firm performance : Evidence from Dutch manufacturing SMEs.

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Abstract:The manufacturing sector is one of the most unsustainable sectors in the Netherlands. To meet the ambitious climate goals of the Dutch government, the manufacturing sectors must become more sustainable. Manufacturing SMEs are essential since they add much value to the economy. However, these SMEs struggle to become more sustainable. Prior research highlights the importance of integrating sustainability within the dynamic capabilities and states their potential to improve a firm’s competitive advantage. This research aims to include sustainability into the dynamic capabilities to see how it relates to firm performance. This research collected survey data from responses from manufacturing SMEs in the Netherlands in January and February 2025; the total sample size is (n=46). The partial least squares structural equation modeling (PLS-SEM) results indicate that the first-order constructs that measure sustainability dynamic capabilities, only external resource integration, positively and significantly correlate with firm performance. However, firm performance significantly affects market and financial performance. The results help managers to understand better that while the sustainability dynamic capabilities may not directly boost firm performance, integrating them can improve overall firm success.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/106350
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