The relationship between Corporate Sustainability Practices and Financial Performance of Tourism Firms in Tanzania.
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Date
2020
Authors
Journal Title
Journal ISSN
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Publisher
University of Dar es salaam
Abstract
Business firms are increasingly confronted with the demand to address social environmental, and economic challenges facing societies. However, it is not clear whether such initiatives, in turn, enhance firm financial performance. This study examines the relationship between corporate sustainability practices and firm financial performance of tourism firms in Tanzania. The study adopted mixed methods approach, qualitative data was collected through a review of tourism firms websites and interviews of firm managers and analysed thematically. Quantitative data was collected through questionnaires filled by managers of 316 tourism firms and analysed using structural equation modeling (SEM) technique. The findings generally indicate that tourism firms emphasized corporate sustainability practices which have immediate benefits to the local communities’ welfare. Moreover, corporate sustainability practices were mostly implemented through philanthropic contributions made to local communities projects. The results also show that there is a direct positive relationship between corporate sustainability practices which have immediate benefits to the community and firm financial performance. However, corporate sustainability practices which have direct benefits to the community had an indirect relationship with firm financial performance mediated through firms’ strategic proactivity capability. The findings imply that investment in addressing social challenges is consistent with shareholders wealth maxization especially where such investments are undertaken proactively and strategically. Firms are therefore encouraged to engage or persist engaging in corporate sustainability proactively and strategically for a successful outcome. Furthermore, policymakers need to develop corporate sustainability national policy that may help to align the corporate sustainability investments with national sustainable development goals.
Description
Available in print form, East Africana collection, Dr. Wilbert Chagula Library, class mark (THS EAF G154.7.T34S968)
Keywords
Tourism, Social responsibility of business, Finance, Tanzania
Citation
Suluo, S.J,(2020), The relationship between Corporate Sustainability Practices and Financial Performance of Tourism Firms in Tanzania,Masters dissertation,University of Dar es Salaam, Dar es Salaam.