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How Firms Combine Sustainability-Oriented Partnerships to Improve Environmental, Social, and Governance Performance: A Qualitative Comparative Analysis Study

Year: 2026

Type: article

Abstract: A partnership portfolio for sustainability (PPS) is the set of partnerships a firm uses to pursue sustainability goals. Although sustainability-oriented partnerships can improve environmental, social, and governance (ESG) performance, we know less about how a firm’s full partnership portfolio shapes these outcomes. Drawing on modern portfolio theory and alliance portfolio research, we examine how PPS configurations influence ESG performance. Using qualitative comparative analysis of 979 sustainability partnerships across 35 global fashion firms, we identify multiple pathways to high ESG performance. Firms achieve strong ESG outcomes through either large, issue-diverse portfolios or smaller, focused portfolios that combine geographical reach with interventions across multiple levels of change. Neither portfolio size nor partner diversity is universally beneficial; rather, ESG performance depends on configurational fit among portfolio characteristics. These findings challenge assumptions that more partnerships or greater diversity automatically improve ESG outcomes and advance a portfolio perspective of sustainability-oriented partnerships.

Source: Business & Society

DOI: 10.1177/00076503261468251

Authors: Tulin Dzhengiz, Jouni K. Juntunen, Samuli Patala, Andra Riandita

Institutions: Manchester Metropolitan University, University of Vaasa, Aalto University, University of Stavanger

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: $3,900

Funders: Copenhagen Business School, Aalto-Yliopisto, Coastal Response Research Center, University of New Hampshire, Strategic Research Council