Environmental dynamism and sustainability: the mediating role of innovation, strategic flexibility and HR development

Abstract

Purpose: The purpose of this paper is to examine whether environmental dynamism can drive firms to adopt sustainability, taking into consideration the mediating role of the innovation process, strategic flexibility and human resource development in this relationship. Design/methodology/approach: The proposed framework is tested by confirmatory factor analysis and finally structural equation modeling (SEM) using the survey data from 513 Greek firms. Findings: The results show that environmental dynamism drives firms to sustainability, but the introduction of innovation process, strategic flexibility and human resource development fully mediate the effect of this relationship. Research limitations/implications: This study explores three organizational factors. In future research it would be very interesting to explore other topics that affect sustainability. Moreover, it might be useful for researchers to examine firms' digital capability and ambidextrous sustainability. Practical implications: This study offers clear implications for managers, proving that innovation process, strategic flexibility and human resource development are critical factors in achieving sustainability. Originality/value: This empirical study determines the contribution of environmental dynamism to sustainability taking into consideration the role of three critical organizational factors as mediators in this relationship.