Driving Sustainability Through Market Orientation: A Study on Corporate Environmental Sustainability and Performance Outcomes in the Energy Sector

Abstract

ABSTRACT This study examines the moderating role of market orientation between corporate environmental sustainability (CES) and firm performance dimensions within the energy sector. It also explores the impact of CES on performance outcomes, grounding CES in dynamic capability theory and market orientation in stakeholder theory. A conceptual model, developed through a literature review, guided the research, which used an explanatory approach. Data from 382 participants were analysed with structural equation modelling in SPSS AMOS version 21. The results show that CES positively impacts financial, customer, learning and process performance, with market orientation, especially customer and competitor orientation, strengthening CES's influence, except on inter‐business process performance. The study recommends that managers and policymakers in the energy sector prioritise market orientation to maximise the benefits of CES on performance.