The role of sustainability control systems in translating CSR into performance in Iran. Issue 5 (16th November 2021)

• Record Type: Journal Article
• Authors: Asiaei, Kaveh; Bontis, Nick; Barani, Omid; Moghaddam, Majid; Sidhu, Jasvinder
• Is Part Of: Management decision. Volume 60:Issue 5(2022)
• Page Start: 1438
• Page End: 1468
• Publication Date: 2021-11-16
• Subjects: Corporate social responsibility -- Sustainability management control systems -- Organizational performance -- Natural resource orchestration -- Iran; Management -- Periodicals; 658.403
• DOI: 10.1108/MD-11-2020-1510
• Languages: English
• ISSNs: 0025-1747

Abstract

Abstract : Purpose: This study aims to explore the extent to which companies rely on sustainability management control systems (SMCS) to translate corporate social responsibility (CSR) into superior performance building upon the premise of the natural resource orchestration perspective. Design/methodology/approach: Data were collected based on a survey data set from 118 Chief Financial Officers of publicly listed companies in Iran. The theoretical model was tested using partial least squares structural equation modeling (PLS-SEM, SmartPLS 3.0) as a method that enjoys minimum demands concerning normality assumptions and sample size. Findings: The findings support the full mediation effect of SMCS on the relationship between CSR and organizational performance. This implies that CSR affects performance only through the mediating role of SMCS. Practical implications: The central premise in the proposed theoretical framework is that the utilization of proper management control mechanisms (i.e. SMCS) can help the organization to better synchronize, measure and manage – i.e. "orchestrate" – the social, environmental and economic impacts, and this, in turn, leads to improved organizational performance. Originality/value: To the best of the authors' knowledge, this is the first study of its kind, building on a unique synthesis of the agency cost perspective and resource orchestration theory, to introduce the "natural resource orchestration" approach for examining the intervening role of SMCS between CSR and organizational performance.