2025, Vol. 6, Issue 2, Part A
The impact of ESG performance on operational performance: The moderating role of a national cultural dimension
Author(s): Minh Hieu Le, Phung Phi Tran, Quynh Tran and Minh Tri Nguyen
Abstract: This study examines the impact of Environmental, Social, and Governance (ESG) performance on corporate operational efficiency, with a specific focus on the moderating role of Uncertainty Avoidance (UAI)-a key national cultural dimension. Using panel data from 79 multinational semiconductor firms during the 2018-2022 period, technical efficiency was measured through Data Envelopment Analysis, followed by Ordinary Least Squares regression incorporating an interaction term between ESG and UAI. The results indicate that ESG has a positive influence on firm performance. However, this effect is significantly weakened in high-UAI cultural environments, where rigid structures and aversion to ambiguity may limit the strategic flexibility needed for effective ESG integration. Conversely, low-UAI cultures that are more open to change and innovation enhance the value of ESG initiatives. These findings underscore the contextual nature of ESG effectiveness, suggesting that cultural sensitivity is essential when designing sustainability strategies. The study contributes to both the ESG and cross-cultural management literature, offering theoretical and practical implications for firms operating across diverse institutional settings.
DOI: 10.22271/27084515.2025.v6.i2a.617
Pages: 60-65 | Views: 687 | Downloads: 140
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How to cite this article:
Minh Hieu Le, Phung Phi Tran, Quynh Tran, Minh Tri Nguyen. The impact of ESG performance on operational performance: The moderating role of a national cultural dimension. Asian J Manage Commerce 2025;6(2):60-65. DOI: 10.22271/27084515.2025.v6.i2a.617
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