SUSTAINABLE STRATEGIES AND COMPETITIVE ADVANTAGE IN MULTINATIONAL CORPORATIONS: THE MEDIATING ROLES OF KNOWLEDGE SHARING AND EMPLOYEE COMMITMENT WITH THE MODERATING EFFECT OF ORGANIZATIONAL CULTURE

Abstract

This study investigates the role of sustainable strategies in shaping competitive advantage, with a particular focus on the mediating effects of knowledge sharing and employee commitment, and the moderating role of organizational culture. Drawing on the knowledge-based view and social exchange perspectives, a quantitative, cross-sectional design was employed, and data were collected from firms in Pakistan. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to test the hypothesized relationships. The results reveal that sustainable strategies have a positive but statistically insignificant direct effect on competitive advantage. However, when mediated through knowledge sharing and employee commitment, the effects become significant, indicating that these internal mechanisms are essential channels for translating sustainability initiatives into firm-level performance outcomes. In contrast, organizational culture does not moderate the relationships between sustainable strategies and competitive advantage, employee commitment, or knowledge sharing. These findings suggest that while sustainability orientation is crucial, its benefits are realized primarily through fostering knowledge exchange and employee dedication rather than relying on culture to strengthen the effects.