Firm Sustainability Performance Index Modeling

• Main Authors: Che Wan Jasimah Bt Wan Mohamed Radzi, Hashem Salarzadeh Jenatabadi, Maisarah Binti Hasbullah
• Format: Article
• Language: English
• Published: MDPI AG 2015-12-01
• Series: Sustainability
• Subjects: firm sustainability performance index modeling; classical structural equation modeling; Bayesian structural equation modeling
• Online Access: http://www.mdpi.com/2071-1050/7/12/15810

The main objective of this paper is to bring a model for firm sustainability performance index by applying both classical and Bayesian structural equation modeling (parametric and semi-parametric modeling). Both techniques are considered to the research data collected based on a survey directed to the China, Taiwan, and Malaysia food manufacturing industry. For estimating firm sustainability performance index we consider three main indicators include knowledge management, organizational learning, and business strategy. Based on the both Bayesian and classical methodology, we confirmed that knowledge management and business strategy have significant impact on firm sustainability performance index.