Abstract:
capabilities, and their influence on sustainability performance within the Sri Lankan
manufacturing sector's Matara district found a perceived emphasis on both external
pressures and internal capabilities as drivers of sustainability. Analyzing data from
industry professionals revealed high mean scores for all three constructs, with a
predominantly male sample featuring mid-career professionals and moderate
educational diversity. Correlation analysis uncovered significant positive relationships
between institutional pressure and dynamic capabilities, dynamic capabilities and
sustainability performance, and sustainability performance with both environmental
and social performance, highlighting their interconnectedness. However, regression
analysis indicated that while dynamic capabilities significantly predicted environmental
and social sustainability performance, institutional pressure did not exert a statistically
significant influence. This suggests that despite perceived external pressures,
organizations' internal capabilities to adapt and innovate play a more critical role in
achieving sustainable outcomes. The study acknowledges limitations in the
measurement scales used for sustainability performance metrics and recommends
revisiting these for improved internal consistency. Future research could explore the
specific mechanisms through which dynamic capabilities translate into enhanced
sustainability performance, providing a more comprehensive understanding of how to
promote sustainable development in the manufacturing industry.
