Work

Nonlinear relationship between ESG factors and firm efficiency among unity software’s affiliates

Year: 2025

Type: article

Abstract: This study examines the relationship between environmental, social, and governance (ESG) factors and firm efficiency of Unity Software Inc.’s suppliers, customers, and partners from 2010 to 2021. We apply a network data envelopment analysis to measure firm efficiency across a three-stage production process. Second, we investigate how ESG factors are associated with firm efficiency using a generalized additive model (GAM). The GAM results reveal a nonlinear relationship between ESG factors and firm efficiency, although it does not follow a clear U- or inverted U-shaped pattern. Overall, this study contributes to stakeholder theory by using a unique dataset to demonstrate the link between ESG performance and firm efficiency and highlighting ESG strategies that may improve/degrade firm efficiency in converting resources into business outcomes.

Source: Eurasian economic review :

DOI: 10.1007/s40821-025-00307-9

Authors: Qian Long Kweh, Irene Wei Kiong Ting, Wen-Min Lu, Jawad Asif, Hanh Thi My Le

Institutions: Canadian University of Dubai, Universiti Malaysia Pahang Al-Sultan Abdullah, Chinese Culture University, University of Gujrat, Ton Duc Thang University

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,390

Funder: Universiti Malaysia Pahang