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The Curvilinear Impact of Environmental Sustainability Strategies on Cost and Profit Growth: The Moderating Influence of Operations, R&D, and Logistics Capabilities
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DOI：10.1111/jbl.70083.png)
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Abstract
En 中文
Research linking environmental sustainability efforts and firm performance provides equivocal evidence of negative, neutral, or positive effects. Drawing on myopic management theory, this research develops and tests a time-contingent, nonlinear account of how corporate environmental sustainability performance shapes cost growth and profit growth. This research conceptualizes environmental sustainability initiatives as requiring up-front process redesign and coordination investments that elevate short-run cost growth and compress profitability, but yield delayed benefits as implementation stabilizes and learning accumulates. This research further examines how three core functional capabilities relevant to logistics and supply chain execution—operations capability, R&D capability, and logistics capability—condition these curvilinear trajectories. Analyses of data from 498 U.S. public firms over 2012–2024 show an inverted U-shaped relationship between environmental sustainability performance and cost growth and a U-shaped relationship with profit growth, with both relationships evolving over time. Analyses indicate that core functional capabilities meaningfully condition these curvilinear relationships, shaping the magnitude and timing of sustainability-related cost escalation and profitability improvement. The findings position sustainability as a staged logistics and supply chain implementation challenge and indicate that investing in logistics execution effectiveness and innovation scaling helps firms manage transition frictions and translate sustainability initiatives into more stable long-horizon performance improvements.
Keywords:
environmental sustainability
financial performance
logistics capability
myopic management
operations capability
research-and-development (R&D) capability
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