The present study aims to examine the relationship between proactive sustainability and organizational performance, as well as the mediating role of organizational culture in strengthening this relationship. The research problem was formulated as the following main question (Is there an indirect relationship between proactive sustainability and organizational performance, mediated by organizational culture?) To answer this question, the researchers designed a hypothesis framework to clarify the relationship between the variables; based on this framework, a set of research hypotheses was formulated. The research sample was drawn from Maysan State University and its affiliated colleges, comprising 215 employees. The questionnaire was distributed to them, and 214 valid questionnaires suitable for statistical analysis were recovered, representing a response rate of 99 per cent The researchers utilised a range of off-the-shelf statistical software programmes, namely SPSS, AMOS and Excel, and relied on a set of statistical methods, including confirmatory factor analysis, Cronbach’s alpha, the normal distribution of data, and simple linear regression analysis. The research reached a number of conclusions, the most important of which was the existence of an indirect relationship between the variable ‘proactive sustainability’ and the enhancement of organizational performance, mediated by the variable ‘organizational culture’. The researchers also put forward a set of recommendations for the University of Maysan, the most important of which is the adoption of a clear strategy and policy for proactive sustainability in order to enhance the performance of the university and its affiliated faculties, as well as to foster a culture of open communication and empower staff to make decisions and take responsibility.
Modern organizations are witnessing a shift towards adopting proactive sustainability strategies to address environmental, social and economic challenges, and universities are considered vital institutions in promoting sustainability through scientific research and community awareness. Furthermore, organizational culture may act as a mediating factor in achieving alignment between proactive strategies and organizational performance.
Theoretical Framework
First: The Concept of Proactive Sustainability
Organizations' response to sustainability issues in general is increasing due to internal and external factors related to sustainability, such as regulatory pressures and a growing sense of social and ethical responsibility amongst senior management, therefore organizations have a growing incentive to proactively integrate sustainability issues into their strategy rather than merely complying with regulatory requirements [1]. It is stated [2] that a proactive sustainability strategy improves organisations’ sustainability performance through the efficient use of resources, increased cost advantage, reduced waste and emissions, enhanced social reputation, improved customer preferences, and the generation of new innovative capabilities.
With growing awareness of ethical responsibility and the rapid depletion and scarcity of raw materials, amidst issues such as climate change and marketing for future generations, organizations have begun to adopt clear strategies to address social and environmental challenges [3]. Eweje [4] emphasized that organizations' motivations for sustainability have shifted from merely managing reputation or meeting environmental obligations to making efforts to create value in both the short and long term; this value is created through responsible strategies that include the efficient use of resources and investment in sustainable products. According to [5] proactive sustainability is organizations' endeavor to meet the diverse expectations of stakeholders on the one hand, and on the other, to derive benefits from responsible practices that create shared value for the organization, the environment and society through the adoption of proactive strategies without environmental pressures.
The researcher considers that a proactive sustainability strategy is one of the strategies adopted by organizations to achieve standing, reputation and acceptance amongst stakeholders, as well as to seek a sustainable competitive advantage that cannot be replicated or imitated.
Secondly: The Concept of Organizational Performance
Improving organizational performance is a goal pursued by all organizations; organizational performance is defined as a comparison of the organization's performance against its established goals and objectives. In the past, performance measurement focused primarily on financial metrics such as revenue, profit, net operating income, return on assets, return on equity and return on sales. However, whilst these metrics are useful, they cannot provide competitive advantages in a highly competitive environment [6]. Al Khajeh [7] emphasized that organizational performance is a complex and multidimensional phenomenon in the business world, as it refers to an organization's actual results or outputs, which can be measured against the objectives to be achieved. According to [8], organizational performance encompasses three main areas:
These areas are interrelated and contribute to the assessment of the organization's overall performance.
Financial indicators reflect the economic objectives of multinational companies from a financial perspective, whilst market-based financial indicators reflect the investor’s perspective and focus on risk; these indicators point to a narrow concept of business performance, whereas operational performance is considered the broader concept [9]. Akpa et al. [10] note that operational indicators focus on the key factors that drive financial performance, whilst efficiency measures encompass reputation, survival and the achievement of objectives relative to competitors. Operational and organizational effectiveness and financial performance are interrelated, as it is assumed that improving organizational effectiveness leads to better financial performance in the medium to long term, since performance improvement is at the heart of strategic management. In summary, an organization's performance encompasses financial, operational and organizational indicators aimed at achieving a balance between the actual objectives achieved and the planned strategies.
Thirdly: The concept of organizational culture
Researchers in organizational theory have pointed out that there is a relationship between culture, organizational performance and the behavior of individuals within organizations, as culture is considered a key factor in organizational success [11]. Elsbach [12] wrote that organizational culture has become a growing concern for leaders of global organizations, as fostering the right culture naturally leads to improved customer service, the building of a strong brand, and increased levels of enthusiasm amongst staff and customers. Pathiranage [13] explains that organizational culture refers to the norms that members of an organization experience and describe as their working environment; and these norms determine how members behave in their organizational roles and adapt to achieve results within the organization; organizational culture also reflects the way in which members of the organization interact with one another and with other stakeholders. Tan [14] emphasized that organizations with a competitive advantage based on their organizational culture can enjoy sustainable profitability, whereas organizations lacking this advantage are unable to change their culture in order to gain such an advantage. Conversely, [15] wrote that valuable and rare cultural traits give an organisation a short-term advantage, but these traits also invite imitation. Cultural traits that can be imitated become commonplace in the long term and lose the ability to sustain high profitability.
Organizational culture is a complex and important concept; it can be difficult to understand, utilize thoughtfully and capitalize on. It operates on three levels: manifestations (including observable symbols and mission and vision statements), adopted beliefs and values, and underlying basic assumptions. All of this helps us to understand how culture is shaped within an organization and how it influences performance and interactions. In contrast, [10] defined it as the shared philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes and norms that bind a community together. The main dimensions of organizational culture include assumptions, attitudes, ethical behavior, beliefs, knowledge, leadership, management, meanings, mission and vision, standards, organizational capabilities, perspective, rules, strategy, symbols and values.
The researcher considers organizational culture to be one of the most important organizational factors, which has a direct impact on the performance of employees on the one hand, and on the other hand helps to integrate new members into the organization.
Firstly/ The Significance of the Study
The significance of this study lies in highlighting the role of proactive sustainability in improving the performance of Iraqi public academic institutions, particularly in light of recent trends towards the private sector and private universities, which are creating a highly competitive environment between the public and private academic sectors, as well as exploring the impact of organizational culture as a mediating factor in this context.
Secondly/ Research Problem
The present study poses the main question: Does proactive sustainability contribute to enhancing the performance of Maysan University and its faculties through the mediating role of organizational culture?
In addition, there is a research gap represented by the scarcity of studies linking proactive sustainability and organizational performance in the Iraqi academic environment, and a lack of focus on organizational culture as a mediating factor in this context.
Thirdly/ Objectives of the Study
Fourth/ Research Hypotheses
Fifth/ Hypothesis Framework of the Study
In light of the study’s objectives and hypotheses, the hypothesis framework to be tested later in the empirical phase of the study is illustrated in Figure (1).
Figure 1: Fifth/ Hypothesis Framework of the Study
Sixth/ Research Methodology
The present study is a descriptive-analytical study that employs a quantitative approach to data analysis. The study population consists of lecturers and administrative staff at the University of Maysan and its affiliated faculties; the sample was selected at random and comprised 215 working individuals. The data collection tools comprised an electronic questionnaire designed according to a five-point Likert scale, as well as semi-structured interviews with a selected sample (10–15 lecturers). A range of statistical analyses was carried out using SPSS and AMOS software, namely:
Seventh/ Challenges of the Study
Eighth/ Timetable for the Study
|
Phase |
Time Period |
|
Literature Review |
1.5 Months |
|
Questionnaire Design |
3 Weeks |
|
Data Collection |
2 Months |
|
Statistical Analysis |
1.5 Months |
|
Report Writing |
2 Months |
Practical Aspects
First: Tests of the Research Scale (questionnaire)
Testing the Normality of the Data: The Kolmogorov-Smirnov and Shapiro-Wilk tests whether the data collected follow a normal distribution or not, with the aim of determining the statistical methods to be used in hypothesis testing; parametric methods are used if the data follow a normal distribution, and non-parametric methods if they do not. The data is assessed based on the significance level (Sig); if the value is greater than 0.05, the data follows a normal distribution, whereas if the value is less than 0.05, it means the data does not follow a normal distribution.
Tables (1-3) show that the Sig values for the variables ‘proactive sustainability’, ‘organizational culture’ and ‘organizational performance’ are all greater than 0.05, meaning that the data follow a normal distribution. This justifies the researcher’s use of parametric statistical methods. Similarly, Figures (2-4) illustrate the normal distribution of the variables.
Table 1: The Normal Distribution of the Proactive Sustainability Variable
|
No. |
Kolmogorov-Smirnova |
Shapiro-Wilk |
||||
|
Statistic |
Df |
Sig. |
Statistic |
Df |
Sig. |
|
|
PSS |
0.090 |
99 |
0.049 |
0.983 |
99 |
0.228 |
Table 2: The Normal Distribution of the Organizational Culture Variable
|
No. |
Kolmogorov-Smirnova |
Shapiro-Wilk |
||||
|
Statistic |
Df |
Sig. |
Statistic |
Df |
Sig. |
|
|
OC |
0.099 |
99 |
0.018 |
0.979 |
99 |
0.123 |
Table 3: The Normal Distribution of the Organisation’s Performance Variable
|
No. |
Kolmogorov-Smirnova |
Shapiro-Wilk |
||||
|
Statistic |
Df |
Sig. |
Statistic |
Df |
Sig. |
|
|
NORMAL_FP |
0.155 |
99 |
0.078 |
0.954 |
99 |
0.092 |
Figure 2: The Normal Distribution Curve for the Proactive Sustainability Variable
Figure 3: The Normal Distribution Curve for the Organizational Culture Variable
Figure 4: The Normal Distribution Curve for the Organisation’s Performance Variable
Confirmatory Factor Analysis
The researcher conducts a test to ensure that the data collected from the questionnaire corresponds to the hypothetical measurement model. This is done using fit indices, as shown in Table 4, based on these indices, the measurement model is either accepted or rejected. The researcher also verifies the extent to which the measurement model represents the study variables (proactive sustainability, organizational culture, organizational performance) to the dimensions specified in the scales, and the statistical validity of its items. This is done through the aforementioned indices and the standardized regression weights that link the latent variables to each item of the scale, where reliability coefficients exceeding 0.40 indicate the reliability of the item.
The goodness-of-fit value shown in Figure 5 indicates the validity of the structural framework of the Proactive Sustainability Scale, which is measured across three sub-dimensions, namely (environmental strategy: 4 items; economic strategy: 3 items; social strategy: 4 items). It should be noted that item (SS1) was omitted because its regression coefficient did not exceed the cut-off value of 0.40; furthermore, two of the adjustment indices recommended by the Amos programme were utilised. Furthermore, the values shown in Table 5 confirm that these items measure the three dimensions of the proactive sustainability variable, as indicated by the critical ratio (C.R.), since all their values are significant and exceed the standard value of 1.96, indicating that the data collected from the questionnaire are consistent with the measurement model used. The goodness-of-fit values shown in Figure (6) indicate the validity of the structural framework of the organizational culture scale, which is measured across four sub-dimensions: organizational values (5 items), organizational beliefs (5 items), organizational norms (5 items) and rituals (5 items). Furthermore, the values shown in Table (6) confirm that these items measure the four dimensions of the organizational culture variable, as indicated by the critical ratio (C.R.) values. All values are significant and exceed the standard threshold of 2.56, indicating that the data collected from the questionnaire are consistent with the measurement model used.
The adequate model fit value shown in Figure (7) indicates the validity of the structural model for the organizational performance variable scale, which is measured on a single dimension comprising six items. It should be noted that items FP6, FP7, FP8 and FP9 were omitted because their regression coefficients did not exceed the cut-off value of 0.40; furthermore, three of the adjustment indicators recommended by the Amos programmer were utilized. Furthermore, the values shown in Table 7 confirm that these items measure the one-dimensional organizational performance variable in terms of the critical ratio (C.R.), as all their values are statistically significant and exceed the standard value of 1.96, indicating that the data collected from the questionnaire are consistent with the measurement model used.
Table 4: Model Fit Indices for the Scale
|
No. |
Indicator Type |
Value Range and Acceptance Rule |
|
1 |
(CIMN/df) |
Less than (0.05) is good, less than (0.02) is a fit, higher than (0.05) is rejected |
|
2 |
(GFI) The Goodness-of-Fit Index |
Value range is between (0 - 1) and the acceptance rule is more than (0.90) |
|
3 |
(NFI) The Normed Fit Index |
Value range is between (0 - 1), the acceptance rule is more than (0.90), more than (0.95) is a fit |
|
4 |
(CFI) The Comparative Fit Index |
Value range is between (0 - 1), the acceptance rule is more than (0.90), more than (0.95) is a fit |
|
5 |
(RFI) The Relative Fit Index |
Value range is between (0 - 1), the acceptance rule is more than (0.90), more than (0.95) is a fit |
|
6 |
(IFI) The Incremental Fit Index |
Value range is between (0 - 1), the acceptance rule is more than (0.90), more than (0.95) is a fit |
|
7 |
(TLI) The Tucker-Lewis Index |
Value range is between (0 - 1), the acceptance rule is more than (0.90), more than (0.95) is a fit |
|
8 |
(RMSEA) The Root Mean Square Error of Approximation |
Less than (0.05) is a fit, values between (0.05 - 0.08) are good, values between (0.08 - 0.10) are moderate, values higher than (0.10) are rejected |
Source: Applying And Interpreting Statistics: A Comprehensive Guide [16].
Table 5: Standardized Estimates for the Proactive Sustainability Variable
|
PATH |
Estimate |
S.E. |
C.R. |
P |
Label |
||
|
ENS4 |
<--- |
F1 |
1.000 |
- |
- |
- |
|
|
ENS3 |
<--- |
F1 |
1.297 |
0.073 |
17.764 |
*** |
- |
|
ENS2 |
<--- |
F1 |
1.283 |
0.088 |
14.513 |
*** |
- |
|
ENS1 |
<--- |
F1 |
1.233 |
0.084 |
14.606 |
*** |
- |
|
ECS3 |
<--- |
F2 |
1.000 |
- |
- |
- |
- |
|
ECS2 |
<--- |
F2 |
0.966 |
0.053 |
18.329 |
*** |
- |
|
ECS1 |
<--- |
F2 |
0.984 |
0.052 |
19.073 |
*** |
- |
|
SS5 |
<--- |
F3 |
1.000 |
- |
- |
- |
- |
|
SS4 |
<--- |
F3 |
1.502 |
0.371 |
4.053 |
*** |
- |
|
SS3 |
<--- |
F3 |
0.929 |
0.217 |
4.283 |
*** |
- |
|
SS2 |
<--- |
F3 |
0.791 |
0.166 |
4.750 |
*** |
- |
Table 6: Standardised Estimates for the Organizational Culture Variable
|
PATH |
Estimate |
S.E. |
C.R. |
P |
Label |
||
|
OV5 |
<--- |
F1 |
1.000 |
- |
- |
- |
- |
|
OV4 |
<--- |
F1 |
0.864 |
0.047 |
18.418 |
*** |
- |
|
OV3 |
<--- |
F1 |
0.930 |
0.060 |
15.409 |
*** |
- |
|
OV2 |
<--- |
F1 |
0.853 |
0.056 |
15.108 |
*** |
- |
|
OV1 |
<--- |
F1 |
0.921 |
0.046 |
20.191 |
*** |
- |
|
OB5 |
<--- |
F2 |
1.000 |
- |
- |
- |
- |
|
OB4 |
<--- |
F2 |
1.048 |
0.069 |
15.190 |
*** |
- |
|
OB3 |
<--- |
F2 |
0.945 |
0.079 |
11.966 |
*** |
- |
|
OB2 |
<--- |
F2 |
1.416 |
0.096 |
14.801 |
*** |
- |
|
OB1 |
<--- |
F2 |
1.313 |
0.074 |
17.830 |
*** |
- |
|
ON5 |
<--- |
F3 |
1.000 |
- |
- |
- |
- |
|
ON4 |
<--- |
F3 |
1.084 |
0.053 |
20.524 |
*** |
- |
|
ON3 |
<--- |
F3 |
0.995 |
0.059 |
16.813 |
*** |
- |
|
ON2 |
<--- |
F3 |
1.148 |
0.072 |
15.907 |
*** |
- |
|
ON1 |
<--- |
F3 |
1.299 |
0.065 |
20.089 |
*** |
- |
|
RI5 |
<--- |
F4 |
1.000 |
- |
- |
- |
- |
|
RI4 |
<--- |
F4 |
0.796 |
0.053 |
14.975 |
*** |
- |
|
RI3 |
<--- |
F4 |
0.785 |
0.041 |
18.907 |
*** |
- |
|
RI2 |
<--- |
F4 |
1.081 |
0.062 |
17.567 |
*** |
- |
|
RI1 |
<--- |
F4 |
1.507 |
0.072 |
20.845 |
*** |
- |
Table 7: Standardised Estimates for the Organizational Performance Variable
|
PATH |
Estimate |
S.E. |
C.R. |
P |
Label |
||
|
FP10 |
<--- |
F1 |
1.000 |
- |
- |
- |
- |
|
FP5 |
<--- |
F1 |
1.545 |
0.162 |
9.537 |
*** |
- |
|
FP4 |
<--- |
F1 |
2.480 |
0.219 |
11.318 |
*** |
- |
|
FP3 |
<--- |
F1 |
1.114 |
0.144 |
7.759 |
*** |
- |
|
FP2 |
<--- |
F1 |
1.700 |
0.195 |
8.715 |
*** |
- |
|
FP1 |
<--- |
F1 |
1.901 |
0.202 |
9.412 |
*** |
- |
Figure 5: Confirmatory Factor Analysis of the Proactive Sustainability Variable
Figure 6: Confirmatory factor Analysis of the Organizational Culture Variable
Figure 7: Confirmatory Factor Analysis of the Organizational Performance Variable
Reliability of The Research Scale
Table 8 shows the Cronbach’s alpha values for the three research variables. It is clear that all values exceeded 0.70, which are statistically acceptable values, meaning that the research scale used has acceptable reliability.
Table 8: Cronbach’s Alpha test for the Research Scale
|
Reliability Statistics |
||
|
Variable |
Cronbach's Alpha |
N of Items |
|
PSS |
0.824 |
11 |
|
OC |
0.752 |
20 |
|
PF |
0.767 |
6 |
Second: Testing the Research Hypotheses
Testing the Correlation Hypotheses
Table 9 indicates the existence of a positive and statistically significant correlation between the research variables, with the Pearson correlation coefficient between the proactive sustainability variable and the organizational culture variable being (**8750.) and between the proactive sustainability variable and organizational performance (**0.888), and between organizational culture and organizational performance (**0.963). These values illustrate the strength of the direct relationship between the variables, as the presence of one inevitably leads to the presence of the other. This conclusion is supported by the statistical significance of the correlation achieved at a 1 per cent significance level, which implies a high degree of confidence in the results, with a confidence level of 99 per cent. Table 9 clearly presents the details of these relationships, thereby validating the first main hypothesis, which states (there is a statistically significant correlation between proactive sustainability and organizational culture), and the second main hypothesis, which states (there is a statistically significant correlation between proactive sustainability and organizational performance). The third main hypothesis, which states (that there is a statistically significant correlation between organizational culture and organizational performance), was tested using the responses from the research sample at Misan University and its affiliated faculties.
Table 9: Simple Pearson’s Correlation Coefficient
|
|
PSS |
OC |
FP |
|
|
PSS |
Pearson Correlation |
1 |
0.875** |
0.888** |
|
Sig. (1-tailed) |
- |
0.000 |
0.000 |
|
|
N |
215 |
215 |
215 |
|
|
OC |
Pearson Correlation |
0.875** |
1 |
0.963** |
|
Sig. (1-tailed) |
0.000 |
- |
0.000 |
|
|
N |
215 |
215 |
215 |
|
|
FP |
Pearson Correlation |
0.888** |
0.963** |
1 |
|
Sig. (1-tailed) |
0.000 |
0.000 |
- |
|
|
N |
215 |
215 |
215 |
|
|
Correlation is significant at the 0.01 level (1-tailed).
|
||||
Testing the impact hypotheses
The study examines two types of impact hypotheses. The first type consists of the direct impact hypotheses namely, hypotheses four, five and six and these will be tested using the simple regression coefficient provided by the AMOS V.25 software package, The second type, Hypothesis 7, involves indirect effects through the mediating role of another variable in the relationship between the independent and dependent variables. Multiple regression analysis, as provided by the AMOS V.25 software package, will be used as follows:
Testing Hypothesis 4, which states (there is a statistically significant relationship between proactive sustainability and organizational culture). Figure 8 illustrates the test of this hypothesis, showing that the standardized effect size of the proactive sustainability variable on organizational culture was 63, which is a significant value at a significance level of (2.56), given the critical ratio (C.R.) of 7.992. This effect means that the proactive sustainability variable explains 63 per cent of the variation in the organizational culture variable; Furthermore, the coefficient of determination (R²) was 0.39, representing the variation in the organizational culture variable explained by the proactive sustainability variable; the remaining 0.41 is attributable to other factors not included in the hypothesis design of the present study.
Testing the fifth hypothesis, which states that (there is a statistically significant relationship between proactive sustainability and organizational performance). Figure 9 illustrates the testing of this hypothesis, showing that the standardised effect size of the proactive sustainability variable on organizational performance was 0.89, which is statistically significant at a significance level of 2.56, given the critical ratio (C.R.) of 19.078. This effect can be interpreted as meaning that the proactive sustainability variable explains 9 per cent of the variation in the organizational performance variable. Furthermore, the coefficient of determination (R²) was 0.79, representing the variation in organizational performance explained by the proactive sustainability variable; the remaining 0.31 is attributable to other factors not included in the hypothesis design of the present study.
Testing the sixth hypothesis, which states that ‘there is a statistically significant relationship between organizational culture and organizational performance’. Figure 10 illustrates the test of this hypothesis; it is evident that the standardised effect size of the organizational culture variable on organizational performance was (0.65), which is a significant value at a significance level of (2.56), given the critical ratio (C.R.) of 8.441. This effect indicates that the organizational culture variable accounts for 65 per cent of the variation in the organizational performance variable, Furthermore, the coefficient of determination, R², was 0.42, representing the variation in organizational performance explained by the organizational culture variable; the remaining 0.68 is attributable to other factors not included in the hypothesis design of the present study.
Testing the seventh hypothesis, which states that (there is a statistically significant indirect relationship between proactive sustainability and organizational performance, mediated by organizational culture). Figure 11 illustrates the testing of this hypothesis; it shows that the overall effect of the organizational culture variable on organizational performance, mediated by the organizational culture variable, was (0.96), which is a significant value at a significance level of (2.56) based on the critical ratio (C.R.) shown in Table (13). This effect can be interpreted as meaning that the variables ‘proactive sustainability’ and ‘organizational culture’ account for 96 per cent of the variation in organizational performance; Furthermore, the coefficient of determination (R²) was 93 per cent, representing the variation in organizational performance explained by these two variables together; the remaining 7 per cent is attributable to other factors not included in the present study.
Table 10: Regression paths and Weights for Testing the Effect of Proactive Sustainability on Organizational Culture
|
PATH |
Estimate |
S.E. |
C.R. |
P |
Label |
||
|
OC2 |
<--- |
PSS1 |
0.338 |
0.042 |
7.992 |
*** |
- |
Table 11: Regression Paths and Weights for Testing the effect of Proactive Sustainability on Organizational Performance
|
PATH |
Estimate |
S.E. |
C.R. |
P |
Label |
||
|
FPP |
<--- |
PSS1 |
0.474 |
0.025 |
19.078 |
*** |
- |
Table 12: Regression Paths and Weights for Testing the Impact of Organizational Culture on Organizational Performance
|
PATH |
Estimate |
S.E. |
C.R. |
P |
Label |
||
|
FPP |
<--- |
OC2 |
0.645 |
0.076 |
8.441 |
*** |
- |
Table 13: Regression paths and Weights for Testing the Indirect Effect
|
PATH |
Estimate |
S.E. |
C.R. |
P |
||
|
OC |
<--- |
PSS |
0.471 |
0.026 |
17.927 |
*** |
|
FP |
<--- |
OC |
0.957 |
0.027 |
35.238 |
*** |
Figure 8: Proactive Sustainability Test in Organizational Culture
Figure 9: Proactive Sustainability Test on Organizational performance
Figure 10: Testing the Organizational Culture Strategy’s Impact on Organizational Performance
Figure 11: Testing the direct Moderating Effect
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