Sustainability Management Control Systems and Sustainable Financial Performance: An Integrated Framework for Sustainability Management Practices

Abstract

This study examines the influence of sustainability management control systems (SMCS) on sustainable economic performance in the petrochemical industry of Saudi Arabia by integrating the roles of eco-innovation, digital adaptability, and operational performance. Using a quantitative research design, data were collected from 291 employees of petrochemical companies through a structured questionnaire and analyzed using Structural Equation Modelling (SEM) with Smart-PLS. The findings reveal that SMCS significantly enhances eco-innovation and digital adaptability, which subsequently improves operational performance and sustainable economic performance. The study further demonstrates that digital adaptability positively influences both operational performance and sustainable economic performance, while operational performance has a strong effect on sustainable economic performance. Mediation analysis confirms that digital adaptability mediates the relationship between eco-innovation and operational performance, whereas operational performance mediates the relationship between digital adaptability and sustainable economic performance. The study contributes to sustainability management literature by offering an integrated framework that highlights the importance of sustainability-oriented managerial practices and digital transformation in achieving long-term economic sustainability in industrial sectors.