THE ROLE OF MICRO-FOUNDATIONS FOR SUSTAINABLE PRACTICES: TOP MANAGEMENT TANGIBLE COMPETENCIES, RELATIONSHIP-BASED BUSINESS NETWORKS AND ENVIRONMENTAL SUSTAINABILITY

There is a literature gap in terms of investigating the links between top management tangible competencies (TMTCs), relationship-based business networks (RBNs) and environmental sustainability. This study examines these links... [ view full abstract ]

There is a literature gap in terms of investigating the links between top management tangible competencies (TMTCs), relationship-based business networks (RBNs) and environmental sustainability. This study examines these links based on data collected from 175 top management representatives (CEOs and managing directors) working in food import and export firms headquartered in the UK and New Zealand. Our results from structural equation modelling indicate that TMTCs are the key determinants for building RBNs, mediating the correlation between TMTCs and environmental sustainability. Directly, the competencies also play a vital role towards environmental practices. The interaction effects further depict that relationship-oriented firms perform better compared to those which focus less on such networks. Consequently, our findings provide a deeper understanding of the micro-foundations of environmental sustainability based on TMTCs rooted in the resource-based view and RBNs entrenched in the social network theory.