Sustainable development strategies in enterprise management: Innovation and responsibility

Abstract

This study seeks to determine the relationship between corporate social responsibility, innovation, environmental management, the regulatory environment, and digital infrastructure on sustainable enterprise performance globally from 2005–2023. Pesaran's cross-sectional dependence test indicated an issue of cross-sectional dependency among the series, so the second-generation unit root test of the cross-sectional augmented IPS (CIPS) presented by Pesaran was applied. The unit root test showed that few variables are stationary at level, while most are stationary at first difference, I(0)/I(1). The Westerlund cointegration test was applied, and the results confirmed a long-run relationship among the variables. A mixed order of integration and the existence of cointegration are recommended for the use of cross-sectional autoregressive distributed lag (CS-ARDL). The CS-ARDL results show that corporate social responsibility, innovation, the regulatory environment, and digital infrastructure have a significantly positive relationship with sustainable enterprise performance. In contrast, management of the environment has a significantly negative relationship with sustainable enterprise performance globally. It is recommended that the policy on why organizations should employ sustainable practices states that it is necessary to encourage creativity, invest in better digital infrastructure, and implement more comprehensive legal regulations globally. Policymakers from lower-income and middle-class economies must invest in infrastructure development.