The impact of the environmental dimensions and the relationship between absorptive capacity and sustainability practices
International Journal of Development Research
The impact of the environmental dimensions and the relationship between absorptive capacity and sustainability practices
Received 02nd June 2020; Received in revised form 16th July 2020; Accepted 28th August 2020; Published online 23rd September 2020
Copyright © 2020, Luccas Santin Padilha et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study measures the extent to which the Absorptive Capacity (AC) exerts influence on the adoption of sustainability practices of the firm, and whether the AC measures the relationship between the dimensions of the environment and sustainability practices. We collect quantitative data from a survey type survey, with a seven point likert scale. The questionnaire was applied electronically, and was structured based on the constructs and variables observed for environmental dimensions, CA and sustainability practices. The data were analyzed by modeling structural equations with the help of Smart PLS2.0 software. The empirical contribution of the research is that CA acts as a mediator in the relationship between munificence and dynamism in relation to the adoption of sustainability practices by the commerce and services sector. It reinforces that CA of the firm favors the adoption of sustainability practices.