Sustainability and Competitive Advantage: An Empirical Study of Value Creation

Competition Forum, Vol. 9, No. 1, 2011

17 Pages Posted: 9 Apr 2012

See all articles by Neeraj Gupta

Neeraj Gupta

Elon University

Christina C. Benson

Elon University, Martha and Spencer Love School of Business

Date Written: November 30, 2011

Abstract

This paper seeks to fill a gap in existing literature by testing whether sustainable companies are able to compete effectively in terms of financial performance and attractiveness to investors. Our sample consists of firms appearing in the Innovest 'Global 100' rankings released annually at the World Economic Forum in Davos, Switzerland. Our empirical results indicate that sustainable companies do not significantly underperform the stock market as a whole, and are viewed as highly competitive within their industries. We provide a theoretical basis for these results by linking classic corporate strategy and competitive advantage theories to the performance of sustainable enterprises.

Keywords: sustainability, competitive advantage, strategy, empirical study, sustainable investing, Global 100, World Economic Forum, Davos, Blue Ocean Strategy

JEL Classification: A13, G10, G14, G15, K32, L10

Suggested Citation

Gupta, Neeraj and Benson, Christina C., Sustainability and Competitive Advantage: An Empirical Study of Value Creation (November 30, 2011). Competition Forum, Vol. 9, No. 1, 2011, Available at SSRN: https://ssrn.com/abstract=2037493

Neeraj Gupta

Elon University ( email )

Elon, NC 27244
United States

Christina C. Benson (Contact Author)

Elon University, Martha and Spencer Love School of Business ( email )

2075 CampusBox
Elon, NC 27244
United States
336.278.5907 (Phone)
800.705.7982 (Fax)

HOME PAGE: http://www.elon.edu/directories/profile/?user=cbenson

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