Evaluation of Factors Affecting Sustainable Performance Using PLS-SEM Method and IPMA Chart: A Case Study in Vietnam

Abstract

In a dynamic world, understanding the indirect impacts of green strategies on a company’s sustainable performance through corporate social responsibility and green innovation is essential for the environmental management of the workplace. This paper proposes a conceptual SEM model for examining the mediating role of corporate social responsibility and green innovation on the relationship between green strategies and the sustainable performance of manufacturers. Importance-Performance Map Analysis (IPMA) represents the independent variables acting on the same dependent variable on the graph with one axis being performance, the other being importance. The findings indicated that corporate social responsibility and green innovation play significant mediating roles in the linkage between green strategy and sustainable performance, as well as positively influencing sustainable performance. In this study, we surveyed managers and directors of 432 publicly listed manufacturers in Vietnam; their responses were used to conduct hypotheses tests regarding the relationships among corporate social responsibility, green innovation, green strategies, and sustainable performance. The findings of this study revealed the importance of strategic thinking for finding a sustainable balance between economic, social, and environmental interests through which company leaders are motivated to perform actions that improve the long-term environmental performance of their businesses.