Towards Sustainable Business Practices: Exploring the Interplay of Long-Term Orientation, Entrepreneurial Orientation and Corporate Environmental Performance

Abstract

This thesis investigates the relationship between entrepreneurship and sustainability. The study explores the types of entrepreneurial activity that can effectively reconcile conflicting priorities inherent in business sustainability. It proposes long-term orientation (LTO) to promote corporate environmental performance (CEP). Based on stakeholder theory, the study examines the influence of entrepreneurial orientation (EO) and long-term orientation (LTO) on the ESG scores of S&P 500 companies. Employing panel data analysis using random effects model the findings indicate that EO alone does not exhibit a significant relationship with ESG scores. Surprisingly, LTO revealed a negative relationship with ESG scores. However, the interaction of EO and LTO positively affects ESG scores, highlighting their complementary nature. The results stress the need for firms to consider other factors, such as LTO, to promote long-term sustainability goals and drive sustainable business practices. This research expands the theoretical understanding of the relationship between entrepreneurship and sustainability and provides insights for managerial decision-making to enhance corporate environmental performance.