The paper opens the black box of sustainability to explore how the environmental and social dimensions independently influence firm performance. We argue that a firm’s environmental performance has greater impact in its product prices and consumer ratings than social performance does. This effect is moderated by the firm’s efforts to increase consumer participation in the process of achieving its sustainability goals. The empirical context of the paper is the hotel industry in Costa Rica, a well-known eco-tourism destination. The study provides insights for managers’ decisions regarding their sustainability investments and how these influence the firms’ competitiveness. The findings inform the debate on the link between sustainability practices and firm performance.

Strategic Management Society
Incae Business School

Prado, A, & Buchert, A. (2014). Opening up the Black Box: An Exploratory Analysis of Sustainability Dimensions and their Effects on Firm Performance. Presented at the Strategic Management Society.