The relationship between culture, sustainable use of resources, and financial performanceEngelke, Deon H. (Avtor) Pearse, Noel J. (Avtor) Correa, Fabio M. (Avtor) Skae, Frederick O. (Avtor) national culturesustainabilityESGresource-Based theorynatural-Resource-Based theoryinstitutional theoryModelling a dataset of 5230 globally listed firms through two statistical approaches reflecting the primary principles of Natural-Resource-Based Theory and Institutional Theory, respectively, this study provides evidence that sustainability initiatives developed by firms are being rewarded in the form of improved Corporate Financial Performance (CFP). Culture has a significant influence on both firm sustainability performance, captured in ESG ratings, and CFP and also interacts with other variables, including industry sector and socio-economic development of a firm’s markets. This study is unique in hypothesising and statistically proving that sustainability is a mechanism that activates the potential of culture to produce CFP. Natural-Resource-Based Theory (NRBT) and Institutional Theory (DiMaggio & Powell, 1983) provide complementary explanations for the relationship between the culture of a firm and its CFP being mediated by sustainability, effectively determining firms’ approach to the use of their resources in a sustainable or unsustainable way. Certain relationships between culture, sustainability performance, and CFP, however, are better explained by Institutional Theory than NRBT.20242024-11-08 15:32:54Članek v reviji164750UDK: 502.131.1ISSN pri članku: 2335-4216DOI: 10.15458/2335-4216.1335COBISS_ID: 200327939sl