Evaluating Strategic Choices in the Context of Organizational Sustainability

Abstract

Organizational sustainability is viewed as an important factor in handling a competitive environment. This research paper aims at studying the impact of strategic factors, such as cost leadership, market differentiation, innovation, market diversification, strategic alliances, and adaptive governance, on organizational sustainability Using a mixed methods research approach, the study considers the efficiency of quantitative data obtained through surveys from 312 managers across different sectors, alongside qualitative data gathered from case studies conducted on 18 companies, in regard to economic, environmental, and social sustainability dimensions. SEM and thematic content analysis were used to test six hypotheses based on the theoretical frameworks of dynamic capabilities theory and natural resource-based view of the firm. From the results obtained, it is clear that the factors of innovation investment (beta = 0.87, p < 0.001) and differentiation (beta = 0.81, p < 0.001) have the highest impact on sustainable performance, whereas market diversification has only partially aligned with sustainability (beta = 0.63, p < 0.05The analysis of longitudinal trends also indicates that firms with pro-active strategic orientations demonstrate significantly superior performance in sustainability than those having reactive orientations, over an eight-year period (2016-2023). This study presents a strategic sustainability evaluation framework that is scientifically validated. This framework will find application not only for practitioners but also for policymakers. The results will contribute to sustainable enterprise ecosystems through board governance, ESG reporting, and national policy-making processes.