Skip to main content
SpringerLink
Log in

The sharing through corporate sustainability for improving corporate performance in state-owned firms

  • Research Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

This research aims to investigate the appropriate ownership structure via mediating role of corporate sustainability on corporate performance in state-owned companies of Pakistan by examining the role of organizational governance, agency problems, and current issue of CEO ownership. Most effective theories within the context of the developing country of Pakistan are taken into account and study explores the following issue. First, ownership structure is more effective and could provide major findings in corporate, innovative, and environmental performance. Second, corporate, innovative, and environmental performance is receiving high attention due to the critical business environment in Pakistan. There are many factors that stimulate the significance of the corporate, innovative, and environmental performance. In this phase, the role of CEO and responsibilities towards the company and its performance is analyzed. This study has conducted the theoretical survey in both foreign and home countries. Further, this step is hallmark in providing some countermeasures recommendation for the betterment of state-owned companies of Pakistan. Third is whether the CEOs and shareholders could enhance the corporate, innovative, and environmental performance. Empirical evidence data is collected via structured questionnaire from SO companies operating in the emerging market of Pakistan. In addition, empirical research in this study includes descriptive statistics tests, co-relation test, and analyses generated hypotheses through Analysis of a Moment Structure (AMOS) using structural equation modeling. Our research findings recommend CEOs and top managers to utilize their financial resources in an efficient way to achieve the advantage.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8
Fig. 9

Similar content being viewed by others

Data availability

Data used in the analysis are available upon reasonable request from the corresponding author.

References

  • Abousamak A, Shahwan TM (2018) Governance mechanisms and earnings management practices: evidence from Egypt. International Journal of Corporate Governance 9(3):316–346

    Google Scholar 

  • Agyemang OS, Ansong A (2017) Corporate social responsibility and firm performance of Ghanaian SMEs: mediating role of access to capital and firm reputation. Journal of Global Responsibility

  • Alipour M (2013) An investigation of the association between ownership structure and corporate performance: empirical evidence from Tehran Stock Exchange (TSE). Manag Res Rev

  • Bååth N, Janssen L (2022) Are Swedish CEOs worth their pay?

  • Baden-Fuller C, Haefliger S (2013) Business models and technological innovation. Long Range Plan 46(6):419–426

    Google Scholar 

  • Baixauli-Soler JS, Sanchez-Marin G (2015) Executive compensation and corporate governance in Spanish listed firms: a principal–principal perspective. RMS 9(1):115–140

    Google Scholar 

  • Bank W (2005) Poland: Report on the Observance of Standards and Codes (ROSC), Corporate Governance Country Assessment. World Bank, Washington, D.C.

    Google Scholar 

  • Baumgartner RJ (2014) Managing corporate sustainability and CSR: a conceptual framework combining values, strategies and instruments contributing to sustainable development. Corp Soc Responsib Environ Manag 21(5):258–271

    Google Scholar 

  • Beck T, Demirguc-Kunt A (2006) Small and medium-size enterprises: access to finance as a growth constraint. J Bank Finance 30(11):2931–2943

    Google Scholar 

  • Bhattacharjee S (2022) Interrelationship between corporate governance, human resource management practices and firm performance in textile industry of Bangladesh: a study on the companies listed in Dhaka stock exchange. © University of Dhaka

  • Blibech N, Berraies S (2018) The impact of CEO’duality and board’s size and independence on firms’ innovation and financial performance. Journal of Business Management and Economics 9(1):22–29

    Google Scholar 

  • Chenwi ND (2021) Faculty of social and department of economics management sciences. University of Buea, Buea

    Google Scholar 

  • Cohen WM, Levinthal DA (1989) Innovation and learning: the two faces of R & D. Econ J 99(397):569–596

    Google Scholar 

  • Cronbach LJ (1951) Coefficient alpha and the internal structure of tests. Psychometrika 16(3):297–334

    Google Scholar 

  • Dyck A, Zingales L (2004) Private benefits of control: an international comparison. J Financ 59(2):537–600

    Google Scholar 

  • Eneh SI, Awara NF (2016) Strategic human resource management practices and organizational growth: a theoretical perspective. Glob J Soc Sci 15(1):27–37

    Google Scholar 

  • Fernández Z, Nieto MJ (2006) Impact of ownership on the international involvement of SMEs. J Int Bus Stud 37(3):340–351

    Google Scholar 

  • Fornell C, Larcker DF (1981) Evaluating structural equation models with unobservable variables and measurement error. J Mark Res 18(1):39–50

    Google Scholar 

  • Gauld R (2007) Principal-agent theory and organisational change: lessons from New Zealand health information management. Policy Studies 28(1):17–34

    Google Scholar 

  • Gök O, Peker S (2017) Understanding the links among innovation performance, market performance and financial performance. RMS 11(3):605–631

    Google Scholar 

  • Guštin Habuš A, Prašnikar J (2021) Concentrated ownership and firm’s performance: a bibliometric analysis of the literature. Econ Bus Rev 23(3):2

    Google Scholar 

  • Hair JF, Ringle CM, Sarstedt M (2011) PLS-SEM: indeed a silver bullet. Journal of Marketing Theory and Practice 19(2):139–152

    Google Scholar 

  • Ho S, Hutchinson M (2010) Internal audit department characteristics/activities and audit fees: some evidence from Hong Kong firms. J Int Account Audit Tax 19(2):121–136

    Google Scholar 

  • Hong P, Jagani S, Kim J, Youn SH (2019) Managing sustainability orientation: an empirical investigation of manufacturing firms. Int J Prod Econ 211:71–81

    Google Scholar 

  • Hu LT, Bentler PM (1999) Cutoff criteria for fit indexes in covariance structure analysis: conventional criteria versus new alternatives. Struct Equ Modeling 6(1):1–55

    Google Scholar 

  • Huang W, Boateng A, Newman A (2016) Capital structure of Chinese listed SMEs: an agency theory perspective. Small Bus Econ 47(2):535–550

    Google Scholar 

  • Joksimović M, Alseddig A (2017) The internal audit as function to the corporate governance. Megatrend Revija 14(2):109–125

    Google Scholar 

  • Kapopoulos P, Lazaretou S (2007) Corporate ownership structure and firm performance: evidence from Greek firms. Corporate Governance: an International Review 15(2):144–158

    Google Scholar 

  • Karaca SS, Eksi IH (2012) The relationship between ownership structure and firm performance: an empirical analysis over Istanbul Stock Exchange (ISE) listed companies. Int Bus Res 5(1):172

    Google Scholar 

  • Kazan E (2016) The impact of CEO compensation on firm performance in Scandinavia. University of Twente, Enschede

    Google Scholar 

  • Khan U, An ZY, Imran A (2020a) A blockchain ethereum technology-enabled digital content: development of trading and sharing economy data. IEEE Access 8:217045–217056

    Google Scholar 

  • Khan U, Zhang Y, Salik M (2020b) The financial performance of Korean manufacturing SMEs: influence of human resources management. The Journal of Asian Finance, Economics and Business 7(8):599–611

    Google Scholar 

  • Khan U, Zhang Y, Salik M (2020c) The impact of information technology on organizational performance: the mediating effect of organizational learning. The Journal of Asian Finance, Economics and Business 7(11):987–998

    Google Scholar 

  • Khandwalla PN (2004) Competencies for senior manager roles. Vikalpa 29(4):11–24

    Google Scholar 

  • Kinias I (2022) The performance of family firms during crisis periods: the case of Greece. European Journal of Family Business

  • Kurpayanidi K (2020) Analysis of industrial enterprise management systems: essence, methodology and problems. J Crit Rev

  • Lee K, Oh FD (2022) Mandatory disclosure, investment, and private benefits of control. Econ Lett 216:110568

    Google Scholar 

  • Makini SO, Awino Z, Ogollah K, Machuki V, Magutu P (2021) Board structure and performance of companies listed at the Nairobi securities exchange: the influence of external environment. DBA Africa Management Review 11(1):97–114

    Google Scholar 

  • Makki MM, Lodhi SA (2009) Impact of intellectual capital on return on investment in Pakistani corporate sector. Aust J Basic Appl Sci 3(3):2995–3007

    Google Scholar 

  • Manner MH (2010) The impact of CEO characteristics on corporate social performance. J Bus Ethics 93(1):53–72

    Google Scholar 

  • Martínez MDCV, Román RS, Mart PA (2022) Should risk-averse investors target the portfolios of socially responsible companies? Oeconomia Copernicana 13(2):439–474

    Google Scholar 

  • Matsumura EM, Shin JY (2005) Corporate governance reform and CEO compensation: intended and unintended consequences. J Bus Ethics 62(2):101–113

    Google Scholar 

  • McGuire J, Dow S, Argheyd K (2003) CEO incentives and corporate social performance. J Bus Ethics 45(4):341–359

    Google Scholar 

  • Mitchell WC, Simmons RT (1994) Beyond politics: markets, welfare, and the failure of bureaucracy. Routledge, Abingdon

    Google Scholar 

  • Mueller Dennis C (1989) Public Choice II Cambridge. Cambridge University Press, Cambridge

    Google Scholar 

  • Nemlioglu I, Mallick SK (2017) Do managerial practices matter in innovation and firm performance relations? New evidence from the UK. Eur Financ Manag 23(5):1016–1061

    Google Scholar 

  • Nidumolu R, Prahalad CK, Rangaswami MR (2009) Why sustainability is now the key driver of innovation. Harv Bus Rev 87(9):56–64

    Google Scholar 

  • Njoroge M, Anderson W, Mbura O (2019) Innovation strategy and economic sustainability in the hospitality industry. The Bottom Line

  • Nunnally JC (1994) Psychometric theory 3E: Tata McGraw-hill education

  • Ortiz-Villajos JM, Sotoca S (2018) Innovation and business survival: a long-term approach. Res Policy 47(8):1418–1436

    Google Scholar 

  • Pantelić S (2016) Contribution to Contract Theory Bankarstvo 45(4):168–177

    Google Scholar 

  • Perelygina M, Kucukusta D, Law R (2022) Digital business model configurations in the travel industry. Tour Manage 88:104408

    Google Scholar 

  • Roach CM (2016) An application of principal agent theory to contractual hiring arrangements within public sector organizations. Theoretical Economics Letters 6(01):28

    Google Scholar 

  • Roehrich JK, Lewis MA, George G (2014) Are public–private partnerships a healthy option? A systematic literature review. Soc Sci Med 113:110–119

    Google Scholar 

  • Romero Caffo LR (2020) Relación entre gobierno corporativo y responsabilidad social empresarial: evidencia en empresas mineras

  • Salvioni DM, Gennari F, Bosetti L (2016) Sustainability and convergence: the future of corporate governance systems? Sustainability 8(11):1203

    Google Scholar 

  • Shahbaz M, Raghutla C, Song M, Zameer H, Jiao Z (2020) Public-private partnerships investment in energy as new determinant of CO2 emissions: the role of technological innovations in China. Energy Economics 86:104664

    Google Scholar 

  • Shijaku E, King DR (2022) Manager decisions across acquisition phases: the role of inimical resources Advances in Mergers and Acquisitions (Vol. 21, pp. 17–30): Emerald Publishing Limited

  • Tajeddini K, Mueller SL (2012) Corporate entrepreneurship in Switzerland: evidence from a case study of Swiss watch manufacturers. International Entrepreneurship and Management Journal 8(3):355–372

    Google Scholar 

  • Trambacos F, Albanez T, de Carvalho LNG (2021) A proposal of a conceptual framework for corporate governance research. Contabilidade Gestão e Governança 24(3):312–330

    Google Scholar 

  • Tsalis TA, Malamateniou KE, Koulouriotis D, Nikolaou IE (2020) New challenges for corporate sustainability reporting: United Nations’ 2030 Agenda for sustainable development and the sustainable development goals. Corp Soc Responsib Environ Manag 27(4):1617–1629

    Google Scholar 

  • Vallaster C (2017) Managing a company crisis through strategic corporate social responsibility: A practice-based analysis. Corp Soc Responsib Environ Manag 24(6):509–523

    Google Scholar 

  • Villalonga B, Amit R (2006) How do family ownership, control and management affect firm value? J Financ Econ 80(2):385–417

    Google Scholar 

  • Vollero A, Yin J, Siano A (2022) Convergence or divergence? A comparative analysis of CSR communication by leading firms in Asia, Europe, and North America. Public Relations Review 48(1):102142

    Google Scholar 

  • Walker RM, Chen J, Aravind D (2015) Management innovation and firm performance: an integration of research findings. Eur Manag J 33(5):407–422

    Google Scholar 

  • Wang Y, Mao X, Zameer H (2022) Designing benefit distribution driven innovation strategy for local enterprises under the global value chain system. Manag Decis Econ 43(6):2358–2373

    Google Scholar 

  • Wu H, Li S, Ying SX, Chen X (2018) Politically connected CEOs, firm performance, and CEO pay. J Bus Res 91:169–180

    Google Scholar 

  • Xiaoyan T, Yujing H (2014) Study of effects of equity incentive in gem listed company. International Business and Management 9(2):80–85

    Google Scholar 

  • Yasmeen H, Wang Y, Zameer H, Solangi YA (2019) Does oil price volatility influence real sector growth? Empirical evidence from Pakistan. Energy Rep 5:688–703

    Google Scholar 

  • Yasmeen H, Wang Y, Zameer H, Solangi YA (2020) Decomposing factors affecting CO2 emissions in Pakistan: insights from LMDI decomposition approach. Environ Sci Pollut Res 27(3):3113–3123

    CAS  Google Scholar 

  • Yatim P (2012) Boardroom pay, performance and corporate governance in Malaysia. The Business & Management Review 2(2):37–51

    Google Scholar 

  • Zameer H, Wang Y (2018) Energy production system optimization: evidence from Pakistan. Renew Sustain Energy Rev 82:886–893

    Google Scholar 

  • Zameer H, Yasmeen H, Wang R, Tao J, Malik MN (2020) An empirical investigation of the coordinated development of natural resources, financial development and ecological efficiency in China. Resour Policy 65:101580

    Google Scholar 

  • Zameer H, Wang Y, Saeed MR (2021a) Net-zero emission targets and the role of managerial environmental awareness, customer pressure, and regulatory control toward environmental performance. Bus Strateg Environ 30(8):4223–4236

    Google Scholar 

  • Zameer H, Wang Y, Vasbieva DG, Abbas Q (2021b) Exploring a pathway to carbon neutrality via reinforcing environmental performance through green process innovation, environmental orientation and green competitive advantage. J Environ Manage 296:113383

    Google Scholar 

  • Zameer H, Yasmeen H (2022) Green innovation and environmental awareness driven green purchase intentions. Marketing Intelligence & Planning(ahead-of-print)

  • Zhang Y, Khan U, Lee S, Salik M (2019) The influence of management innovation and technological innovation on organization performance. A Mediating Role of Sustainability Sustainability 11(2):495

    Google Scholar 

  • Zhou G, Zhang L, Zhang L (2019) Corporate social responsibility, the atmospheric environment, and technological innovation investment. Sustainability 11(2):481

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. China Center for Special Economic Zone Research Center Shenzhen University, Shenzhen, China

    Umair Khan

  2. China Institute of Quality and Economic Development, Shenzhen University, Shenzhen, China

    Weili Liu

Authors
  1. Umair Khan
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Weili Liu
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

Umair Khan contributed to the study conception and design. Material preparation, data collection, and analysis were performed. Supervision under the Professor Weili Liu conceived of the presented idea.

Corresponding author

Correspondence to Umair Khan.

Ethics declarations

Ethical approval

Not applicable.

Consent to participate

Not applicable.

Consent for publication

Not applicable.

Competing interests

The authors declare no competing interests.

Additional information

Responsible Editor: Arshian Sharif

Publisher's note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Khan, U., Liu, W. The sharing through corporate sustainability for improving corporate performance in state-owned firms. Environ Sci Pollut Res 30, 44187–44205 (2023). https://doi.org/10.1007/s11356-023-25349-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-023-25349-2

Keywords

Search

Navigation