DefinePK

Abstract

This study investigates how sustainable marketing strategy and sustainable investment strategy influence firm performance, considering the mediating roles of perceived corporate social responsibility (CSR) and sustainability-driven innovation, and the moderating role of digital transformation. The research aims to provide a comprehensive framework linking sustainability strategies to performance outcomes within firms operating in a developing economy context. A quantitative approach was employed, using a structured questionnaire administered to 345 mid- to senior-level managers in Pakistani firms. Validated scales from previous research were adapted for measurement. Data were analyzed using SmartPLS 4, applying Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed direct, indirect, and moderated relationships. The results indicate that both sustainable marketing and investment strategies have a significant positive impact on firm performance. these relationships are significantly mediated by perceived CSR and sustainability-driven innovation. furthermore, digital transformation positively moderates the effects of both mediators on performance, enhancing the strength of these indirect relationships. This study integrates sustainability, innovation, and digital transformation into a unified performance model, extending the Resource-Based View and Stakeholder Theory. It provides valuable insights for managers seeking to align sustainability initiatives with digital capabilities to enhance firm competitiveness and long-term value creation.