Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Analyzing the effect of sustainable social performance and sustainable management on the financial performance of municipal contractors with the mediating role of sustainability reputation

Document Type : Original Article

Author
Finance Manager of Tabriz District Seven Municipality, Tabriz Municipality, Iran.
Abstract
Contractors, as one of the main pillars of urban project implementation, play an important role in achieving urban development goals and improving the financial performance of urban organizations. In recent years, attention to sustainability in various social and managerial dimensions has been considered as one of the factors affecting the improvement of organizational performance and creating competitive advantage. In the meantime, sustainable reputation as one of the intangible organizational assets can play an important role in increasing stakeholder trust and improving the financial results of organizations. Accordingly, the main objective of this study is to analyze the effect of sustainable social performance and sustainable management on the financial performance of municipal contractors, considering the mediating role of sustainable reputation. This study is applied in terms of its purpose and descriptive-survey in terms of its implementation method. The statistical population of the study includes managers, experts, and employees related to projects and active contractors in Tabriz Municipality, who have been selected using an appropriate sampling method. The data collection tool is a standard and researcher-made questionnaire based on the research literature, whose validity has been confirmed through expert opinion and its reliability using Cronbach's alpha coefficient. Structural equation modeling and LISREL software have been used to analyze the data. The results of the study show that sustainable social performance and sustainable management have a positive and significant effect on sustainable reputation. Sustainable reputation also has a significant effect on the financial performance of contractors. In addition, sustainable social performance and sustainable management directly affect the financial performance of contractors in Tabriz Municipality. The results also indicate that sustainable reputation plays a significant mediating role in the relationship between sustainable social performance and sustainable management and the financial performance of contractors. According to the results of the study, paying attention to social responsibilities, developing sustainable management approaches, and strengthening organizational reputation can provide the basis for improving the financial performance of contractors active in urban projects. Therefore, it is suggested that urban managers and contractors provide the basis for increased efficiency and financial success in urban projects by strengthening social initiatives, improving sustainable management practices, and enhancing organizational credibility and reputation.
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