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The Moderating Role of Firm’s Level of Participation in a Cluster in the Relation between Absorptive Capacity and Sustainability Practices

ABSTRACT

Objective:

this study aimed to analyze the moderating role of the firm’s participation level in a cluster in the relation between absorptive capacity and economic, social, and environmental sustainability practices.

Methods:

data were collected through a survey applied to 417 small and medium-sized firms participating in clusters.

Results:

results indicate that the absorptive capacity influences positively and directly the adoption of economic, social, and environmental sustainability practices. Such relations are moderated by the firm’s level of participation in a cluster.

Conclusions:

we conclude that it is vital for the firm to seek external information and use it in line with the information and resources it already has to generate economic, social, and environmental sustainability practices. In addition, firms with a higher level of participation in a cluster are more likely to grow, establish partnerships, carry out innovation, and increase productivity.

Keywords:
sustainability practices; level of participation in a cluster; absorptive capacity; structural equation modeling; multi-group analysis

INTRODUCTION

Studies have focused on investigating sustainability issues in large companies, mainly in multinationals, requiring more research that addresses smaller firms (Sarango-Lalangui et al., 2018Sarango-Lalangui, P., Álvarez-García, J., & Río-Rama, M. (2018). Sustainable practices in small and medium-sized enterprises in Ecuador. Sustainability, 10(6), 2105. https://doi.org/10.3390/su10062105
https://doi.org/10.3390/su10062105...
). Small and medium-sized firms are increasingly showing interest in developing actions that show their commitment to issues related to sustainability (Sarango-Lalangui et al., 2018). The search for incorporating sustainability into business points to signs of transformation in the competitive scenario and firms are developing new ways of thinking about products, technologies, and processes (Nidumolu et al., 2009Nidumolu, R., Prahalad, C., & Rangaswami, M. (2009). Why sustainability is now the key driver of innovation. Harvard Business Review. https://hbr.org/2009/09/why-sustainability-is-now-the-key-driver-of-innovation
https://hbr.org/2009/09/why-sustainabili...
).

Studies carried out with small and medium-sized firms have highlighted essential issues related to sustainability, such as knowledge sharing, social capital (Meflinda et al., 2018Meflinda, A., Mahyarni, M., Indrayani, H., & Wulandri, H. (2018). The effect of social capital and knowledge sharing to the small medium enterprise’s performance and sustainability strategies. International Journal of Law and Management, 60(4), 988-997. https://doi.org/10.1108/IJLMA-03-2017-0073
https://doi.org/10.1108/IJLMA-03-2017-00...
), integration of knowledge (Hájek & Stejskal, 2018Hájek, P., & Stejskal, J. (2018). R&D cooperation and knowledge spillover effects for sustainable business innovation in the chemical industry. Sustainability, 10(4), 1064. https://doi.org/10.3390/su10041064
https://doi.org/10.3390/su10041064...
), obtaining information, resources, and performance (Li et al., 2017Li, E., Zhou, L., & Wu, A. (2017). The supply-side of environmental sustainability and export performance: The role of knowledge integration and international buyer involvement. International Business Review, 26(4), 724-735. https://doi.org/10.1016/j.ibusrev.2017.01.002
https://doi.org/10.1016/j.ibusrev.2017.0...
), and absorptive capacity (ACAP) (Aboelmaged & Hashem, 2019Aboelmaged, M., & Hashem, G. (2019). Absorptive capacity and green innovation adoption in SMEs: The mediating effects of sustainable organisational capabilities. Journal of Cleaner Production, 220, 853-863. https://doi.org/10.1016/j.jclepro.2019.02.150
https://doi.org/10.1016/j.jclepro.2019.0...
). ACAP is the firm’s ability to recognize the value of new external information, assimilate it and apply it for commercial purposes (Cohen & Levinthal, 1990Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128-152. https://doi.org/10.2307/2393553
https://doi.org/10.2307/2393553...
). The adoption of practices aimed at sustainability can be influenced by the absorptive capacity (Langenus & Dooms, 2018Langenus, M., & Dooms, M. (2018). Creating an industry-level business model for sustainability: The case of the European ports industry. Journal of Cleaner Production, 195, 949-962. https://doi.org/10.1016/j.jclepro.2018.05.150
https://doi.org/10.1016/j.jclepro.2018.0...
; Riikkinen et al., 2017Riikkinen, R., Kauppi, K., & Salmi, A. (2017). Learning sustainability? Absorptive capacities as drivers of sustainability in MNCs’ purchasing. International Business Review, 26(6), 1075-1087. https://doi.org/10.1016/j.ibusrev.2017.04.001
https://doi.org/10.1016/j.ibusrev.2017.0...
).

Small and medium-sized firms face greater challenges compared to large ones, mainly due to the scarcity of resources, capacity, knowledge, and experience (Heras et al., 2020Heras, H. A., Garcia, M. E., & Larrea, M. (2020). Organizactional ambidexterity in policy networks. Competitiveness Review, 30(2), 219-242. http://doi.org/10.1108/CR-02-2018-0013
http://doi.org/10.1108/CR-02-2018-0013...
; Lubatkin et al., 2006Lubatkin, M. H., Simsek, Z., Ling, Y., & Veiga, J. F. (2006). Ambidexterity and performance in small-to medium-sized firms: The pivotal role of top management team behavioral integration, Journal of Management, 32(5), 646-672. https://doi.org/10.1177/0149206306290712
https://doi.org/10.1177/0149206306290712...
; Voss & Voss, 2013Voss, G. B., & Voss, Z. G. (2013). Strategic ambidexterity in small and medium-sized enterprises: Implementing exploration and exploitation in product and market domains. Organization Science, 24(5), 1459-1477. https://doi.org/10.1287/orsc.1120.0790
https://doi.org/10.1287/orsc.1120.0790...
). Recognizing, assimilating, and applying new information is a determining factor for firms’ survival and permanence in a world that presents constant changes (Lane et al., 2006Lane, P. J., Koka, B. R., & Pathak, S. (2006). The reification of absorptive capacity: A critical review and rejuvenation of the construct. Academy of Management Review, 31(4), 833-863. https://doi.org/10.5465/amr.2006.22527456
https://doi.org/10.5465/amr.2006.2252745...
), becoming increasingly dynamic and turbulent (Teece et al., 1997Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
https://doi.org/10.1002/(SICI)1097-0266(...
).

This study seeks to respond to the call made by Annunziata et al. (2018Annunziata, E., Pucci, T., Frey, M, & Zanni, L. (2018). The role of organizational capabilities in attaining corporate sustainability practices and economic performance: Evidence from Italian wine industry. Journal of Cleaner Production, 171, 1300-1311. https://doi.org/10.1016/j.jclepro.2017.10.035
https://doi.org/10.1016/j.jclepro.2017.1...
) to analyze the role of firms’ specific capabilities in adopting sustainability-oriented practices. Amui et al. (2017Amui, L. B. L., Jabbour, C. J. C., Jabbour, A. B. L. S., & Kannan, D. (2017). Sustainability as a dynamic organizational capability: A systematic review and a future agenda toward a sustainable transition. Journal of Cleaner Production, 142, 308-322. https://doi.org/10.1016/j.jclepro.2016.07.103
https://doi.org/10.1016/j.jclepro.2016.0...
) and Salim et al. (2019Salim, N., Rahman, M. N., & Wahab, D. A. (2019). A systematic literature review of internal capabilities for enhancing eco-innovation performance of manufacturing firms. Journal of Cleaner Production, 209, 1445-1460. https://doi.org/10.1016/j.jclepro.2018.11.105
https://doi.org/10.1016/j.jclepro.2018.1...
) point out that studies are carried out to identify types of dynamic capacities, which in this study is the absorptive capacity (Wang & Ahmed, 2007Wang, C. L. & Ahmed, P. K. (2007). Dynamic capabilities: A review and research agenda. International Journal of Management Reviews, 9(1), 31-51. https://doi.org/10.1111/j.1468-2370.2007.00201.x
https://doi.org/10.1111/j.1468-2370.2007...
), capable of developing sustainability. In addition, Gelhard and Delft (2016Gelhard, C., & Delft, S. V. (2016). The role of organizational capacabilities in achieving superior sustainability performance. Journal of Business Research, 69(10), 4632-4642. https://doi.org/10.1016/j.jbusres.2016.03.053
https://doi.org/10.1016/j.jbusres.2016.0...
) argue that it is necessary to deepen the understanding of organizational capabilities and their relation with sustainability.

It is noteworthy that studies that address ACAP and sustainability tend to focus on individual firms and end up neglecting the geographic context, such as acting in clusters. Galdeano-Gómez et al. (2008Galdeano-Gómez, E., Céspedes-Lorente, J., & Martínez-del-Rio, J. (2008). Environmental performance and spillover effects on productivity: Evidence from horticultural firms. Journal of Environmental Management, 88(4), 1552-1561. http://doi.org/10.1016/j.jenvman.2007.07.028
http://doi.org/10.1016/j.jenvman.2007.07...
) argue that the moderating role of the environment in which firms operate needs to be analyzed with a moderating function. Business networks and industrial agglomeration are important moderators to consider (Galdeano-Gómez et al., 2008). Research such as that of Li et al. (2019Li, A., Han, S., & Shen, T. (2019) How can a firm innovate when embedded in a cluster? Evidence from the automobile industrial cluster in China. Sustainability, 11(7), 1837. https://doi.org/10.3390/su11071837
https://doi.org/10.3390/su11071837...
) used agglomerations of firms as a moderating variable between ACAP and performance.

Studies have focused on analyzing the role of clusters (Zeng et al., 2019Zeng, J. J., Liu, D. J., & Yi, H. T. (2019). Agglomeration, structural embeddedness, and enterprises’ innovaton performance: An empirical study of Wuhan biopharmaceutical industrial cluster network. Sustainability, 11(14), 3922. https://doi.org/10.3390/su11143922
https://doi.org/10.3390/su11143922...
), since the interactions established within the cluster (Larentis et al., 2013Larentis, F., Giovanella, R., & Cislaghi, T. (2013). Sustainability in clusters: Proposal of a conceptual model. Revista Ibero-Americana de Estratégia, 12(3), 212-241. https://doi.org/10.5585/ijsm.v12i3.1937
https://doi.org/10.5585/ijsm.v12i3.1937...
) can help firms identify, assimilate, transform, and use external information (Zhang et al., 2015Zhang, M., Zhao, X., Lyles, M. A., & Guo, H. (2015). Absorptive capacity and mass customization capability. International Journal of Operations & Production Management, 35(9), 1275-1294. https://doi.org/10.1108/IJOPM-03-2015-0120
https://doi.org/10.1108/IJOPM-03-2015-01...
) to generate sustainability practices (McLennan et al., 2016McLennan, C. J., Becken, S., & Watt, M. (2016). Learning through a cluster approach: Lessons from the implementation of six Australian tourism business sustainability programs. Journal of Cleaner Production, 111, 348-357. https://doi.org/10.1016/j.jclepro.2015.01.085
https://doi.org/10.1016/j.jclepro.2015.0...
). When developing activities within a cluster, firms form a network (Rocha & Sternberg, 2005Rocha, H. O., & Sternberg, R. (2005). Entrepreneurship: The role of clusters theoretical perspectives and empirical evidence from Germany. Small Business Economics, 24(3), 267-292. https://doi.org/10.1007/s11187-005-1993-9
https://doi.org/10.1007/s11187-005-1993-...
), each having a participation level (Gulati et al., 2000Gulati, R., Nohria, N., & Zaheer, A. (2000). Strategic networks. Strategic Management Journal, 21(3), 203-215. https://doi.org/10.1002/(SICI)1097-0266(200003)21:3<203::AID-SMJ102>3.0.CO;2-K
https://doi.org/10.1002/(SICI)1097-0266(...
; Lima et al., 2009Lima, V., Eiriz, V., & Barbosa, N. (2009). Recursos, posição e desempenho empresarial num “cluster”. Revista Portuguesa de Estudos Regionais, (21), 101-121. http://hdl.handle.net/10316.2/24635
http://hdl.handle.net/10316.2/24635...
).

It is necessary to investigate whether the firm’s greater involvement in the cluster generates any effect on the relation between ACAP and sustainability practices, contributing to the field theory’s advancement. Although it is understood that in the cluster environment there is a greater exchange of knowledge impacting the generation of sustainability practices (Friedman & Miles, 2001Friedman, A. L., & Miles, S. (2001). SMEs and the environment: Two case studies. Eco-Management and Auditing, 8(4), 200-209. https://doi.org/10.1002/ema.166
https://doi.org/10.1002/ema.166...
; Lis & Rozkwitalska, 2020Lis, A. M., & Rozkwitalska, M. (2020). Technological capability dynamics through cluster organizations. Baltic Journal of Management, 15(4), 587-606. https://doi.org/10.1108/BJM-02-2020-0046
https://doi.org/10.1108/BJM-02-2020-0046...
; Revell & Rutherfoord, 2003Revell, A., & Rutherfoord, R. (2003). UK environmental policy and the small firm: Broadening the focus. Business Strategy and the Environment, 12(1), 26-35. https://doi.org/10.1002/bse.347
https://doi.org/10.1002/bse.347...
; Segarra-Oña et al., 2016Segarra-Oña, M., Peiró-Signes, Á., & Mondéjar-Jiménez, J. (2016). Twisting the twist: How manufacturing & knowledge-intensive firms excel over manufacturing & operational and all service sectors in their eco-innovative orientation. Journal of Cleaner Production, 138, 19-27. https://doi.org/10.1016/j.jclepro.2016.01.010
https://doi.org/10.1016/j.jclepro.2016.0...
), it is still insufficient to deepen the role that clusters play as environments enable knowledge and knowledge generation of new practices by firms (Lis & Rozkwitalska, 2020). Thus, this study seeks to answer the following research question: What is the role of the firm’s participation level in a cluster in the relation between absorptive capacity and sustainability practices?

This study aims to analyze the moderating role of the firm’s participation level in a cluster in the relation between absorptive capacity and practices of economic, social, and environmental sustainability in small and medium-sized firms. Original data were collected through a survey, structured on a Likert-type scale of seven points to test the hypotheses. The sample consists of 417 small and medium-sized firms that are part of a cluster in Santa Catarina, Brazil. The results indicate that the absorptive capacity positively and directly influences the adoption of economic, social, and environmental sustainability practices. These relations are moderated by the firm’s level of participation in a cluster.

This study presents two main theoretical contributions: (a) broadens the understanding of the effect of ACAP on economic, social, and environmental sustainability practices in small and medium-sized firms, which participate in a cluster; (b) adds to the literature of the field an understanding of the moderating effect of the level of participation in the cluster on the relation between ACAP and sustainability practices. It also presents two managerial contributions: (a) it is necessary to constantly develop managers and employees so that they remain attentive to external information and knowledge to acquire, assimilate, transform, and use them in the generation of new practices, among them, those of sustainability; (b) by actively participating in a cluster, small and medium-sized firms now can establish partnerships, exchange knowledge, and access resources, which are not possible if the performance is isolated.

LITERATURE REVIEW AND HYPOTHESES

This section includes questions regarding the relation between absorptive capacity and sustainability practices, especially about the former’s effect on the latter. It also addresses the role of the firm’s participation level in a cluster as a moderating variable.

Absorptive capacity and sustainability practices

The increasingly dynamic, competitive, and rapidly changing environment (Teece et al., 1997Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
https://doi.org/10.1002/(SICI)1097-0266(...
) requires firms to learn to build new practices. When developing its absorptive capacity (Zahra & George, 2002Zahra, S. A., & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. The Academy of Management Review, 27(2), 185-203. https://doi.org/10.2307/4134351
https://doi.org/10.2307/4134351...
), the firm has more significant possibilities to acquire external information, assimilate it, transform it, and use it (Behnam et al., 2018Behnam, S., Cagliano, R., & Grijalvo, M. (2018). How should firms reconcile their open innovation capabilities for incorporating external actors in innovations aimed at sustainable development? Journal of Cleaner Production, 170, 950-965. https://doi.org/10.1016/j.jclepro.2017.09.168
https://doi.org/10.1016/j.jclepro.2017.0...
) by applying it in its processes. In addition to improving their operations, firms that use external knowledge can develop skills and practices (Zhang et al., 2015Zhang, M., Zhao, X., Lyles, M. A., & Guo, H. (2015). Absorptive capacity and mass customization capability. International Journal of Operations & Production Management, 35(9), 1275-1294. https://doi.org/10.1108/IJOPM-03-2015-0120
https://doi.org/10.1108/IJOPM-03-2015-01...
). Such improvement occurs because the knowledge base influences how the firm recognizes and uses new knowledge (Zahra & George, 2002).

Although the use of absorptive capacity to understand sustainability practices is relatively recent (Garay et al., 2017Garay, L., Font, X., & Pereira-Moliner, J. (2017). Understanding sustainability behaviour: The relationship between information acquisition, proactivity and performance. Tourism Management, 60, 418-429. https://doi.org/10.1016/j.tourman.2016.12.017
https://doi.org/10.1016/j.tourman.2016.1...
), studies indicate that ACAP facilitates the adoption of successful sustainability strategies (Liu et al., 2019Liu, L., Zhang, M., & Ye, W. (2019). The adoption of sustainable practices: A supplier’s perspective. Journal of Environmental Management, 232, 692-701. https://doi.org/10.1016/j.jenvman.2018.11.067
https://doi.org/10.1016/j.jenvman.2018.1...
) because firms need to combine information from various sources, usually external to them (Ferro et al., 2019Ferro, C., Padin, C., Høgevold, N., Svensson, G., & Varela, J. C. S. (2019). Validating and expanding a framework of a triple bottom line dominant logic for business sustainability through time and across contexts. Journal of Business & Industrial Marketing, 34(1), 95-116. https://doi.org/10.1108/JBIM-07-2017-0181
https://doi.org/10.1108/JBIM-07-2017-018...
). It is observed that the adoption of sustainability practices is affected, in some way, by access to external knowledge (Liu et al., 2019). In this sense, keeping in touch with engaging internet channels, magazines, and even newspapers dealing with sustainability can help acquire relevant information (Garay et al., 2017).

ACAP can assist firms in adopting sustainability practices (Dzhengiz & Niesten, 2020Dzhengiz, T., & Niesten, E. (2020). Competences for environmental sustainability: A systematic review on the impact of absorptive capacity and capabilities. Journal of Business Ethics, 162(4), 881-906. https://doi.org/10.1007/s10551-019-04360-z
https://doi.org/10.1007/s10551-019-04360...
), and new learning and practices aimed at sustainability can act as facilitators to generate competitive advantage and achieve better performance (Aboelmaged & Hashem, 2019Aboelmaged, M., & Hashem, G. (2019). Absorptive capacity and green innovation adoption in SMEs: The mediating effects of sustainable organisational capabilities. Journal of Cleaner Production, 220, 853-863. https://doi.org/10.1016/j.jclepro.2019.02.150
https://doi.org/10.1016/j.jclepro.2019.0...
). Thus, it is challenging to imitate ACAP and sustainability initiatives since they are related to complex processes and tacit knowledge. Therefore, the competitive advantage generated by such factors will be difficult to be copied by competitors (Garay et al., 2017Garay, L., Font, X., & Pereira-Moliner, J. (2017). Understanding sustainability behaviour: The relationship between information acquisition, proactivity and performance. Tourism Management, 60, 418-429. https://doi.org/10.1016/j.tourman.2016.12.017
https://doi.org/10.1016/j.tourman.2016.1...
).

Small and medium-sized firms can, based on ACAP, boost their sustainable innovation practices, needing to continually improve their technological and organizational capabilities (Brasil et al., 2016Brasil, M. de O., Abreu, M. C., Silva, J. Da, Filho, & Leocádio, A. L. (2016). Relationship between eco-innovations and the impact on business performance: An empirical survey research on the Brazilian textile industry. Revista de Administração, 51(3), 276-287. https://doi.org/10.1016/j.rausp.2016.06.003
https://doi.org/10.1016/j.rausp.2016.06....
; Widya-Hasuti et al., 2018Widya-Hasuti, A., Mardani, A., Streimikiene, D., Sharifara, A., & Cavallaro, F. (2018). The role of process innovation between firm-specific capabilities and sustainable innovation in SMEs: Empirical evidence from Indonesia. Sustainability, 10(7), 2244. https://doi.org/10.3390/su10072244
https://doi.org/10.3390/su10072244...
). Firms are challenged to consider economic, social, and environmental sustainability, also based on the success achieved in sustainable innovation, which, in turn, is significantly influenced by ACAP (Widya-Hasuti et al., 2018). In this sense, sustainability itself has been considered a form of innovation (Hjalager, 1997Hjalager, A.-M. (1997). Innovation patterns in sustainable tourism: An analytical typology. Tourism Management, 18(1), 35-41. https://doi.org/10.1016/S0261-5177(96)00096-9
https://doi.org/10.1016/S0261-5177(96)00...
), and using several external sources of information is relevant for firms to innovate (Chen et al., 2015Chen, Y.-S., Lin, Y.-H., Lin, C.-Y., & Chang, C.-W. (2015). Enhancing green absorptive capacity, green dynamic capacities and green service innovation to improve firm performance: An analysis of structural equation modeling (SEM). Sustainability, 7(11), 15674-15692. https://doi.org/10.3390/su71115674
https://doi.org/10.3390/su71115674...
).

Firms must develop and improve their ability to acquire, assimilate, transform, and use external knowledge (Zahra & George, 2002Zahra, S. A., & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. The Academy of Management Review, 27(2), 185-203. https://doi.org/10.2307/4134351
https://doi.org/10.2307/4134351...
), as this ability impacts the development of their operations and practices (Delmas et al., 2011Delmas, M., Hoffmann, V. H., & Kuss, M. (2011). Under the tip of the iceberg: Absorptive capacity, environmental strategy, and competitive advantage. Business & Society, 50(1), 116-154. https://doi.org/10.1177/0007650310394400
https://doi.org/10.1177/0007650310394400...
). Those with high ACAP, when adopting economic, social, and environmental sustainability practices, tend to attract advantages, such as cost reduction (Garay et al., 2017Garay, L., Font, X., & Pereira-Moliner, J. (2017). Understanding sustainability behaviour: The relationship between information acquisition, proactivity and performance. Tourism Management, 60, 418-429. https://doi.org/10.1016/j.tourman.2016.12.017
https://doi.org/10.1016/j.tourman.2016.1...
).

The economic, social, and environmental sustainability dimensions are still not fully considered, providing the possibility of deepening sustainability practices in these dimensions, based on knowledge, as one of the most critical resources for the firm (Segarra-Oña et al., 2016Segarra-Oña, M., Peiró-Signes, Á., & Mondéjar-Jiménez, J. (2016). Twisting the twist: How manufacturing & knowledge-intensive firms excel over manufacturing & operational and all service sectors in their eco-innovative orientation. Journal of Cleaner Production, 138, 19-27. https://doi.org/10.1016/j.jclepro.2016.01.010
https://doi.org/10.1016/j.jclepro.2016.0...
). The adoption of environmental (Delmas et al., 2011Delmas, M., Hoffmann, V. H., & Kuss, M. (2011). Under the tip of the iceberg: Absorptive capacity, environmental strategy, and competitive advantage. Business & Society, 50(1), 116-154. https://doi.org/10.1177/0007650310394400
https://doi.org/10.1177/0007650310394400...
) economic and social strategies (Pinkse et al., 2010Pinkse, J., Kuss, M. J., & Hoffmann, V. H. (2010). On the implementation of a ‘global’ environmental strategy: The role of absorptive capacity. International Business Review, 19(2), 160-177. https://doi.org/10.1016/j.ibusrev.2009.11.005
https://doi.org/10.1016/j.ibusrev.2009.1...
) will be facilitated the more the firm develops its ability to identify, assimilate, transform, and use specific environmental information (Riikkinen et al., 2017Riikkinen, R., Kauppi, K., & Salmi, A. (2017). Learning sustainability? Absorptive capacities as drivers of sustainability in MNCs’ purchasing. International Business Review, 26(6), 1075-1087. https://doi.org/10.1016/j.ibusrev.2017.04.001
https://doi.org/10.1016/j.ibusrev.2017.0...
). Firms that seek to develop eco-efficient operations have, in the absorptive capacity, assistance to identify that knowledge that is most important (Effiong & Singhal, 2014Effiong, J., & Singhal, N. (2014). Impact of green business model on sustainability management of Indian corporate organisations: A review of issues and opportunities for business growth. FIIB Business Review, 3(3), 7-19. https://doi.org/10.1177/2455265820140302
https://doi.org/10.1177/2455265820140302...
).

The development of new practices that pay attention to sustainability aspects is related to the generation of ideas and innovative ways of carrying out organizational tasks. Knowing what the internal needs are, and keeping an eye on the external environment (Dzhengiz & Niesten, 2020Dzhengiz, T., & Niesten, E. (2020). Competences for environmental sustainability: A systematic review on the impact of absorptive capacity and capabilities. Journal of Business Ethics, 162(4), 881-906. https://doi.org/10.1007/s10551-019-04360-z
https://doi.org/10.1007/s10551-019-04360...
) to identify important information, assimilating them to integrate with internal knowledge, allows the firm to generate sustainable operations (Albort-Morant, Leal-Rodríguez et al., 2018Albort-Morant, G., Leal-Rodríguez, A., & Marchi, V. (2018). Absorptive capacity and relationship learning mechanisms as complementary drivers of green innovation performance. Journal of Knowledge Management, 22(2), 432-452. https://doi.org/10.1108/JKM-07-2017-0310
https://doi.org/10.1108/JKM-07-2017-0310...
). The motivation of managers of small and medium-sized firms to adopt sustainability practices is linked to channels and information sources about sustainability, and the perceived usefulness of the information acquired (Garay et al., 2017Garay, L., Font, X., & Pereira-Moliner, J. (2017). Understanding sustainability behaviour: The relationship between information acquisition, proactivity and performance. Tourism Management, 60, 418-429. https://doi.org/10.1016/j.tourman.2016.12.017
https://doi.org/10.1016/j.tourman.2016.1...
).

TBL has become the most widely used theoretical understanding to explain sustainability in the business world (Milne & Gray, 2013Milne, M. J., & Gray, R. (2013). W(h)ither ecology? The triple bottom line, the global reporting initiative, and corporate sustainability reporting. Journal of Business Ethics, 118(1), 13-29. https://doi.org/10.1007/s10551-012-1543-8
https://doi.org/10.1007/s10551-012-1543-...
), and researchers are using the concept of ACAP to explain sustainability strategies in firms (Liu et al., 2019Liu, L., Zhang, M., & Ye, W. (2019). The adoption of sustainable practices: A supplier’s perspective. Journal of Environmental Management, 232, 692-701. https://doi.org/10.1016/j.jenvman.2018.11.067
https://doi.org/10.1016/j.jenvman.2018.1...
). What still needs to be tested is the effect of ACAP on economic, social, and environmental sustainability practices. It is still necessary to analyze and deepen sustainability practices (Garay et al., 2017Garay, L., Font, X., & Pereira-Moliner, J. (2017). Understanding sustainability behaviour: The relationship between information acquisition, proactivity and performance. Tourism Management, 60, 418-429. https://doi.org/10.1016/j.tourman.2016.12.017
https://doi.org/10.1016/j.tourman.2016.1...
) to explain the influence of absorptive capacity on its adoption (Dzhengiz & Niesten, 2020Dzhengiz, T., & Niesten, E. (2020). Competences for environmental sustainability: A systematic review on the impact of absorptive capacity and capabilities. Journal of Business Ethics, 162(4), 881-906. https://doi.org/10.1007/s10551-019-04360-z
https://doi.org/10.1007/s10551-019-04360...
).

Turning attention to economic sustainability practices, Garay et al. (2017Garay, L., Font, X., & Pereira-Moliner, J. (2017). Understanding sustainability behaviour: The relationship between information acquisition, proactivity and performance. Tourism Management, 60, 418-429. https://doi.org/10.1016/j.tourman.2016.12.017
https://doi.org/10.1016/j.tourman.2016.1...
) indicate that ACAP can be considered a predecessor, acting as a mechanism to explain practices aimed at economic sustainability. ACAP allows firms to reduce costs (Delmas et al., 2011Delmas, M., Hoffmann, V. H., & Kuss, M. (2011). Under the tip of the iceberg: Absorptive capacity, environmental strategy, and competitive advantage. Business & Society, 50(1), 116-154. https://doi.org/10.1177/0007650310394400
https://doi.org/10.1177/0007650310394400...
) and obtain better results than their competitors (Garay et al., 2017). Thus, the first research hypothesis was formulated:

H1: Absorptive capacity positively and directly influences economic sustainability practices.

Compared to environmental and economic sustainability practices, social sustainability has been little researched (Engert et al., 2016Engert, S., Rauter, R., & Baumgartner, R. J. (2016). Exploring the integration of corporate sustainability into strategic management: A literature review. Journal of Cleaner Production, 112, 2833-2850. https://doi.org/10.1016/j.jclepro.2015.08.031
https://doi.org/10.1016/j.jclepro.2015.0...
), perhaps because it is less tangible (Branco & Rodrigues, 2006Branco, M. C., & Rodrigues, L. L (2006). Corporate social responsibility and resource-based perspectives. Journal of Business Ethics, 69, 111-132. https://doi.org/10.1007/s10551-006-9071-z
https://doi.org/10.1007/s10551-006-9071-...
). It appears that ACAP can generate social sustainability practices (Riikkinen et al., 2017Riikkinen, R., Kauppi, K., & Salmi, A. (2017). Learning sustainability? Absorptive capacities as drivers of sustainability in MNCs’ purchasing. International Business Review, 26(6), 1075-1087. https://doi.org/10.1016/j.ibusrev.2017.04.001
https://doi.org/10.1016/j.ibusrev.2017.0...
). The absorptive capacity helps the firm turn its gaze and attention to issues involving society (Shahzad et al., 2020Shahzad, M., Qu, Y., Rehman, S. U., Zafar, A. U., Ding, X., & Abbas, J. (2020). Impact of knowledge absorptive capacity on corporate sustainability with mediating role of CSR: Analysis from the Asian context. Journal of Environmental Planning and Management, 63(2), 148-174. https://doi.org/10.1080/09640568.2019.1575799
https://doi.org/10.1080/09640568.2019.15...
), enabling the implementation of practices aimed at this audience (Ling, 2013Ling, Y.-H. (2013). The influence of intellectual capital on organizational performance: Knowledge management as moderator. Asia Pacific Journal of Management, 30(3), 937-964. https://doi.org/10.1007/s10490-011-9257-5
https://doi.org/10.1007/s10490-011-9257-...
). In knowledge-intensive organizations, managers understand the role of ACAP in influencing social sustainability actions (Crilly & Sloan, 2012Crilly, D., & Sloan, P. (2012) . Enterprise logic: Explaining corporate attention to stakeholders from the ‘inside-out’. Strategic Management Journal, 33(10), 1174-1193. https://doi.org/10.1002/smj.1964
https://doi.org/10.1002/smj.1964...
). Therefore, the second hypothesis is presented:

H2: Absorptive capacity positively and directly influences social sustainability practices.

Consumers’ increasing attention to environmental issues is leading firms to integrate environmental practices into their operations (Borland et al., 2016Borland, H., Ambrosini, V., Lindgreen, A., & Vanhamme, J. (2016). Building theory at the intersection of ecological sustainability and strategic management. Journal of Business Ethics, 135(2), 293-307. https://doi.org/10.1007/s10551-014-2471-6
https://doi.org/10.1007/s10551-014-2471-...
). Considering environmental practices as a matter of competitive advantage, firms are investing in the identification and development of capabilities focused on the area (Hesselbarth & Shaltegger, 2014Hesselbarth, C., & Schaltegger, S. (2014). Educating change agents for sustainability-Learnings from the first sustainability management master of business administration. Journal of Cleaner Production, 62, 24-36. https://doi.org/10.1016/j.jclepro.2013.03.042
https://doi.org/10.1016/j.jclepro.2013.0...
). There are indications that the absorptive capacity generates environmental sustainability (Dzhengiz & Niesten, 2020Dzhengiz, T., & Niesten, E. (2020). Competences for environmental sustainability: A systematic review on the impact of absorptive capacity and capabilities. Journal of Business Ethics, 162(4), 881-906. https://doi.org/10.1007/s10551-019-04360-z
https://doi.org/10.1007/s10551-019-04360...
). Firms that seek to develop sustainability practices focused on environmental issues can benefit from ACAP to identify the most important and useful knowledge (Delmas et al., 2011Delmas, M., Hoffmann, V. H., & Kuss, M. (2011). Under the tip of the iceberg: Absorptive capacity, environmental strategy, and competitive advantage. Business & Society, 50(1), 116-154. https://doi.org/10.1177/0007650310394400
https://doi.org/10.1177/0007650310394400...
; Effiong & Singhal, 2014Effiong, J., & Singhal, N. (2014). Impact of green business model on sustainability management of Indian corporate organisations: A review of issues and opportunities for business growth. FIIB Business Review, 3(3), 7-19. https://doi.org/10.1177/2455265820140302
https://doi.org/10.1177/2455265820140302...
; Riikkinen et al., 2017Riikkinen, R., Kauppi, K., & Salmi, A. (2017). Learning sustainability? Absorptive capacities as drivers of sustainability in MNCs’ purchasing. International Business Review, 26(6), 1075-1087. https://doi.org/10.1016/j.ibusrev.2017.04.001
https://doi.org/10.1016/j.ibusrev.2017.0...
). Thus, the third research hypothesis is:

H3: Absorptive capacity positively and directly influences environmental sustainability practices.

Level of firm participation in a cluster as moderator

Small and medium-sized firms face challenges in adopting sustainability practices (Bruijn & Lulofs, 2000Bruijn, T., & Lulofs, K. (2000). Driving small and medium-sized enterprises towards environmental management: Policy implementation in networks. In R. Hillary (Ed.), Small and medium-sized enterprises and the environment (pp. 263-275). Routledge.; Revell & Rutherfoord, 2003Revell, A., & Rutherfoord, R. (2003). UK environmental policy and the small firm: Broadening the focus. Business Strategy and the Environment, 12(1), 26-35. https://doi.org/10.1002/bse.347
https://doi.org/10.1002/bse.347...
), and partnerships with other firms in a cluster can help overcome these barriers (Hunt, 2000Hunt, J. (2000). Environment, information and networks: How does information reach small and medium-sized enterprises? In R. Hillary (Ed.), Small and medium-sized enterprises and the environment: Business imperatives (pp. 194-202). Routledge.; Revell & Rutherfoord, 2003). In addition, participation in some clusters is an incentive for organizational learning in small and medium-sized firms (Simpson et al., 2004Simpson, M., Taylor, N., & Barker, K. (2004). Environmental responsibility in SMEs: Does it deliver competitive advantage? Business Strategy and the Environment, 13(3), 156-171. https://doi.org/10.1002/bse.398
https://doi.org/10.1002/bse.398...
), for the search for knowledge (Segarra-Oña et al., 2016Segarra-Oña, M., Peiró-Signes, Á., & Mondéjar-Jiménez, J. (2016). Twisting the twist: How manufacturing & knowledge-intensive firms excel over manufacturing & operational and all service sectors in their eco-innovative orientation. Journal of Cleaner Production, 138, 19-27. https://doi.org/10.1016/j.jclepro.2016.01.010
https://doi.org/10.1016/j.jclepro.2016.0...
), and participation in programs aimed at sustainability (Friedman & Miles, 2001Friedman, A. L., & Miles, S. (2001). SMEs and the environment: Two case studies. Eco-Management and Auditing, 8(4), 200-209. https://doi.org/10.1002/ema.166
https://doi.org/10.1002/ema.166...
).

When looking for sustainability concepts, the firm may have doubts about how to adopt the practices, what their scope is, and the relation with the cost, since the profit will not come only because the firm is doing good (Eccles & Serafeim, 2013Eccles, R. G., & Serafeim, G. (2013). The performance frontier: Innovating for a sustainable strategy. Harvard Business Review, 91(5), 1-15. https://hbr.org/2013/05/the-performance-frontier-innovating-for-a-sustainable-strategy
https://hbr.org/2013/05/the-performance-...
). Knowing the sustainability practices that other firms adopt help develop sustainability strategically (Garlet et al., 2017Garlet, V., Bento, M. H., Madruga, L. R., Oliveira, M. O., & Bichueti, R. (2017). Estratégia e sustentabilidade: Caracterização dos estudos realizados de 2006 a 2015. Caderno de Administração, 25(2), 93-106. https://doi.org/10.4025/cadadm.v25i2.37859
https://doi.org/10.4025/cadadm.v25i2.378...
). Participating more actively in a cluster or a network can strengthen the relation between absorptive capacity and firms’ adoption of practices (Tsai, 2001Tsai, W. (2001). Knowledge transfer in intraorganizational networks: Effects of network position and absorptive capacity on business unit innovation and performance. Academy of Management Journal, 44(5), 996-1004. https://doi.org/10.5465/3069443
https://doi.org/10.5465/3069443...
). It is noteworthy that different levels of participation in the cluster generate different results regarding access to knowledge, resources, development of ACAP, and the adoption of technological practices (Grimstad & Burgess, 2014Grimstad, S., & Burgess, J. (2014). Environmental sustainability and competitive advantage in a wine tourism micro-cluster. Management Research Review, 37(6), 553-573. https://doi.org/10.1108/MRR-01-2013-0019
https://doi.org/10.1108/MRR-01-2013-0019...
; Lis & Rozkwitalska, 2020Lis, A. M., & Rozkwitalska, M. (2020). Technological capability dynamics through cluster organizations. Baltic Journal of Management, 15(4), 587-606. https://doi.org/10.1108/BJM-02-2020-0046
https://doi.org/10.1108/BJM-02-2020-0046...
).

A firm that participates in a cluster and has a high ACAP will seek new knowledge/information, allowing interconnections between firms (Chandrashekar & Hillemane, 2018Chandrashekar, D., & Hillemane, B. (2018). Absorptive capacity, cluster linkages, and innovation: An evidence from Bengaluru high-tech manufacturing cluster. Journal of Manufacturing Technology Management, 29(1), 121-148. https://doi.org/10.1108/JMTM-05-2017-0087
https://doi.org/10.1108/JMTM-05-2017-008...
). The authors indicate that participating in a cluster makes it possible to move resources and establish partnerships. When considering the global economy, it can be understood that elements such as knowledge, motivations, and relations established in a geographic space or region make it possible to generate sustainable competitive advantages.

Clustering allows firms to train workers and suppliers and reduce business costs - the firms participating in a cluster share worldviews, resources, and knowledge (Di-Serio, 2007Di-Serio, L. C. (2007). Clusters empresariais no Brasil - Casos selecionados. Editora Saraiva.). The interactions between the firms’ internal resources and the locality resources allow them to be heterogeneous, given the contextual aspects of the resources and capacities (Hervas-Oliver & Albors-Garrigos, 2009Hervas-Oliver, J.-L., & Albors-Garrigos, J. (2009). The role of the firm’s internal and relational capabilities in clusters: When distance and embeddedness are not enough to explain innovation. Journal of Economic Geography, 9(2), 263-283. https://doi.org/10.1093/jeg/lbn033
https://doi.org/10.1093/jeg/lbn033...
) - understanding that the firms that make up a cluster form a network (Berg et al., 2001Berg, V. D., Braun, E., & Winden, W. V. (2001). Growth clusters in European cities: An integral approach. Urban Studies, 38(1), 185-205. https://doi.org/10.1080/00420980124001
https://doi.org/10.1080/00420980124001...
). The level of participation in the cluster will reflect their strength of competition and cooperation. In addition, it will impact their learning and the establishment of their practices.

Sustainability practices appear to be different when the analysis is carried out in the cultural cluster that comprises more than one country than when it is carried out only at the level of the same country (Miska et al., 2018Miska, C., Szőcs, I., & Schiffinger, M. (2018). Culture’s effects on corporate sustainability practices: A multi-domain and multi-level view. Journal of World Business, 53(2), 263-279. https://doi.org/10.1016/j.jwb.2017.12.001
https://doi.org/10.1016/j.jwb.2017.12.00...
). Thus, the relations established in the clusters seem to have greater importance than being located in a given country. In clusters, firms, because a collaboration network links them, explore new business opportunities, seeking to increase their economic performance, minimize environmental impacts, and create benefits for the local community (Bellantuono et al., 2017Bellantuono, N., Carbonara, N., & Pontrandolfo, P. (2017). The organization of eco-industrial parks and their sustainable practices. Journal of Cleaner Production, 161, 362-375. https://doi.org/10.1016/j.jclepro.2017.05.082
https://doi.org/10.1016/j.jclepro.2017.0...
). The cluster is inserted in the place where its performance encompasses economic, social, and environmental issues, with challenges for managers to develop practices focused on these three issues (Larentis et al., 2013Larentis, F., Giovanella, R., & Cislaghi, T. (2013). Sustainability in clusters: Proposal of a conceptual model. Revista Ibero-Americana de Estratégia, 12(3), 212-241. https://doi.org/10.5585/ijsm.v12i3.1937
https://doi.org/10.5585/ijsm.v12i3.1937...
).

Economic, social, and environmental practices in the cluster context have been little investigated in the literature, reinforcing the need to measure how much the cluster environment contributes to the firm’s learning in generating sustainability (Garay et al., 2017Garay, L., Font, X., & Pereira-Moliner, J. (2017). Understanding sustainability behaviour: The relationship between information acquisition, proactivity and performance. Tourism Management, 60, 418-429. https://doi.org/10.1016/j.tourman.2016.12.017
https://doi.org/10.1016/j.tourman.2016.1...
; McLennan et al., 2016McLennan, C. J., Becken, S., & Watt, M. (2016). Learning through a cluster approach: Lessons from the implementation of six Australian tourism business sustainability programs. Journal of Cleaner Production, 111, 348-357. https://doi.org/10.1016/j.jclepro.2015.01.085
https://doi.org/10.1016/j.jclepro.2015.0...
). A firm’s participation in the cluster is based on the business carried out, the strategies outlined, and the relations maintained with other firms in the cluster (Wilkinson & Young, 2002Wilkinson, I., & Young, L. (2002). On cooperating: Frms, relations and networks. Journal of Business Research, 55(2), 123-132. https://doi.org/10.1016/S0148-2963(00)00147-8
https://doi.org/10.1016/S0148-2963(00)00...
).

Firms that participate in a cluster can share experiences, processes, learning, and practices (Eisingerich et al., 2010Eisingerich, A. B., Bell, S. J., & Tracey, P. (2010). How can clusters sustain performance? The role of network strength, network openness, and environmental uncertainty. Research Policy, 39(2), 239-253. https://doi.org/10.1016/j.respol.2009.12.007
https://doi.org/10.1016/j.respol.2009.12...
) since clusters are like repositories of knowledge that can originate from external sources (McLennan et al., 2016McLennan, C. J., Becken, S., & Watt, M. (2016). Learning through a cluster approach: Lessons from the implementation of six Australian tourism business sustainability programs. Journal of Cleaner Production, 111, 348-357. https://doi.org/10.1016/j.jclepro.2015.01.085
https://doi.org/10.1016/j.jclepro.2015.0...
). The network of firms established within the cluster enables sharing ideas, technologies, and knowledge, based on the interaction established between the participants (Eisingerich et al., 2010), facilitating the learning process (Young, 2010Young, R. F. (2010). The greening of Chicago: Environmental leaders and organisational learning in the transition toward a sustainable metropolitan region. Journal of Environmental Planning and Management, 53(8), 1051-1068. https://doi.org/10.1080/09640568.2010.508948
https://doi.org/10.1080/09640568.2010.50...
).

Firms, small and medium-sized ones, are interested in participating in a cluster, as they see a greater possibility of obtaining an advantage, such as economies of scale (Gardiner & Scott, 2014Gardiner, S., & Scott, N. (2014). Successful tourism clusters: Passion in paradise. Annals of Tourism Research, 46, 171-173. https://doi.org/10.1016/j.annals.2014.01.004
https://doi.org/10.1016/j.annals.2014.01...
). Participating in a cluster can lead small and medium-sized firms to access external knowledge and information (Granek & Hassanali, 2006Granek, F., & Hassanali, M. (2006). The Toronto region sustainability program: Insights on the adoption of pollution prevention practices by small to medium-sized manufacturers in the Greater Toronto Area (GTA). Journal of Cleaner Production, 14(6-7), 572-579. https://doi.org/10.1016/j.jclepro.2005.07.008
https://doi.org/10.1016/j.jclepro.2005.0...
). Clustering can be a more straightforward path to achieving sustainability (McLennan et al., 2016McLennan, C. J., Becken, S., & Watt, M. (2016). Learning through a cluster approach: Lessons from the implementation of six Australian tourism business sustainability programs. Journal of Cleaner Production, 111, 348-357. https://doi.org/10.1016/j.jclepro.2015.01.085
https://doi.org/10.1016/j.jclepro.2015.0...
) and having a greater possibility of developing sustainability practices.

In general, putting economic, social, and environmental sustainability into practice is still a challenge for firms. However, the cluster environment, which makes it possible to learn from other firms, can facilitate sustainability practices. There is a possibility to learn from the experiences and relations established through partnerships (Giuliani & Bell, 2005Giuliani, E., & Bell, M. (2005). The micro-determinants of meso-level learning and innovation: Evidence from a Chilean wine cluster. Research Policy, 34(1), 47-68. https://doi.org/10.1016/j.respol.2004.10.008
https://doi.org/10.1016/j.respol.2004.10...
). The environment where the firm is installed, and the relations established can enhance the learning processes to generate sustainability practices. Therefore, the H4 hypothesis arises:

H4: The level of firm participation in a cluster moderates the relation between ACAP and sustainability practices. Higher levels of participation in the cluster will have a more significant effect of ACAP on economic, social, and environmental sustainability practices than lower levels of participation.

METHOD

Procedures, data, and sample

The primary data were collected between January and March 2020, in small and medium-sized firms participating in any of the 11 clusters in the state of Santa Catarina, Brazil (Begnini & Carvalho, 2021Begnini, S., & Carvalho, C. E. (2021). Identificação de clusters industriais: Um estudo quantitativo no estado de Santa Catarina. Interações, 22(2) 489-512. https://doi.org/10.20435/inter.v22i2.3206
https://doi.org/10.20435/inter.v22i2.320...
). The clusters are spread across the territory of the state of Santa Catarina and refer to the following economic activities and municipalities: textile products (Blumenau - 1 and Brusque - 2); wood products (Caçador); food products (Chapecó); electrical machines, appliances, and materials (Jaraguá do Sul); metallurgy and manufacture of machinery and equipment (Joinville); manufacturing of transport equipment, except motor vehicles (Navegantes); leather, travel items, and footwear (São João Batista); computer equipment, electronic and optical products (São José); and non-metallic, mobile mineral products (Criciúma).

Data were collected using a questionnaire with Likert-type scales with a seven-point scale. The elaboration of the research instrument questions sought to meet the criteria established by Fink (2003Fink, A. (2003). How to ask survey questions (2 ed.). SAGE Publications.) considering that after each analysis the indicated improvements were made. After being prepared, the questions were sent for analysis by students in the area. Subsequently, the instrument was sent to specialists in the area and, afterward, presented and discussed in the research group and at the ANPAD Annual Meeting (EnANPAD).

The next step was to apply the questionnaire to six entrepreneurs followed by an informal conversation. The survey instrument was then inserted into the Survey Monkey platform and a pre-test was carried out with 41 responses from managers of firms participating in the Chapecó food cluster. With these data in hand, some statistical tests were carried out and, given the results, the data collection was carried out. The questions that make up the questionnaire are presented in Annex 1.

Eleven questionnaires were built, one for each cluster, and the link of each questionnaire was forwarded to the managers of the firms. The firms’ contacts came from two sources: (a) from a database formed by the researcher; and (b) from a firm specialized in databases that, based on the National Classification of Economic Activities (Classificação Nacional de Atividades Econômicas - CNAE), extracts the contacts of firms from each of the eleven municipalities, according to the main activity of each cluster. Contact was made with 5,718 small and medium-sized firms participating in any of the indicated clusters. In total, 456 responses were received, of which 417 proved to be valid and formed the sample.

Preparation and adequacy of data for analysis

Altogether, 456 firms sent the answered instrument. When analyzing missing data, five responses were excluded because they were incomplete. Univariate outliers were sought through data standardization and identification of cases with scores greater than 3 (Field, 2011Field, A. (2011). Descobrindo a estatística usando o SPSS (2 ed.). Artmed.; Hair et al., 2009Hair, J., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2009). Análise multivariadas de dados (6 ed.). Bookman.) and multivariate outliers by calculating the Mahalanobis distance divided by degrees of freedom, considering those with a value greater than 3.5 (Field, 2011; Hair et al., 2009), 16 observations being excluded. The reliability test was performed using Cronbach’s alpha (AC) and inter-item and item-total correlations.

In these cases, the AC was always greater than 0.7, and no variable was excluded (Field, 2011Field, A. (2011). Descobrindo a estatística usando o SPSS (2 ed.). Artmed.; Hair et al., 2005Hair, J., Babin, B., Money, A., & Samouel, P. (2005). Fundamentos de métodos de pesquisa em administração. Bookman.). Observations were found to be independent (Hair, Black et al., 2014). It was observed that the variables are linear because the covariance values were different from zero (Cooper & Schindler, 2016Cooper, D., & Schindler, P. (2016). Métodos de pesquisa em administração (12 ed.). Bookman.; Hair, Black et al., 2014). As for normality, it was noted that the values of asymmetry and kurtosis did not exceed 2 and 7, respectively (Finney & DiStefano, 2013Finney, S., & DiStefano, C. (2013). Non-normal and categorical data in structural equation modeling. In G. Hancock & R. Mueller (Eds.), Structural equation modeling: A second course (2 ed., pp. 439-492). Information Age Publishing.). Although it is possible to notice that there is multicollinearity in some variables, the values of the variance inflation factor (VIF) remained below 10, which is acceptable (Field, 2011; Hair et al., 2009; Kline, 2015Kline, R. B. (2015). Principles and practices of structural equation modeling. (4 ed.). The Guilford Press.). Eighteen observations were also excluded because large firms answered them. In the end, the sample was composed of 417 firms.

Constructs

There are three endogenous constructs: economic sustainability practices, social sustainability practices, and environmental sustainability practices. It refers to the adoption of sustainability practices by small and medium-sized firms that participate in a cluster. The statements used to measure each of the three constructs were prepared based on the field’s literature. The constructs identified as reflective were measured by five statements each. Sustainability practices have been used as endogenous constructs in some studies (Fairfield et al., 2011Fairfield, K. D., Harmon, J., & Behson, S. J. (2011). Influences on the organizational implementation of sustainability: An integrative model. Organisation Management Journal, 8(1), 4-20. https://doi.org/10.1057/omj.2011.3
https://doi.org/10.1057/omj.2011.3...
; Padilha et al., 2020Padilha, L. S., Piekas, A. A. S., Kuzma, E. L., Begnini, S., & Carvalho, C. E. (2020). The impact of the environmental dimensions and the relationship between absorptive capacity and sustainability practices. International Journal of Development Research, 10(9), 39990-39996. https://doi.org/10.37118/ijdr.19853.09.2020
https://doi.org/10.37118/ijdr.19853.09.2...
; Riikkinen et al., 2017Riikkinen, R., Kauppi, K., & Salmi, A. (2017). Learning sustainability? Absorptive capacities as drivers of sustainability in MNCs’ purchasing. International Business Review, 26(6), 1075-1087. https://doi.org/10.1016/j.ibusrev.2017.04.001
https://doi.org/10.1016/j.ibusrev.2017.0...
).

Absorptive capacity was the exogenous reflexive construct. It used the ACAP formed by four dimensions (Zahra & George, 2002Zahra, S. A., & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. The Academy of Management Review, 27(2), 185-203. https://doi.org/10.2307/4134351
https://doi.org/10.2307/4134351...
), the construct being measured by an assertion by dimension. ACAP has been used as an exogenous construct in some studies (Aboelmaged & Hashem, 2019Aboelmaged, M., & Hashem, G. (2019). Absorptive capacity and green innovation adoption in SMEs: The mediating effects of sustainable organisational capabilities. Journal of Cleaner Production, 220, 853-863. https://doi.org/10.1016/j.jclepro.2019.02.150
https://doi.org/10.1016/j.jclepro.2019.0...
; Albort-Morant, Leal-Rodríguez et al., 2018Albort-Morant, G., Leal-Rodríguez, A., & Marchi, V. (2018). Absorptive capacity and relationship learning mechanisms as complementary drivers of green innovation performance. Journal of Knowledge Management, 22(2), 432-452. https://doi.org/10.1108/JKM-07-2017-0310
https://doi.org/10.1108/JKM-07-2017-0310...
; Riikkinen et al., 2017Riikkinen, R., Kauppi, K., & Salmi, A. (2017). Learning sustainability? Absorptive capacities as drivers of sustainability in MNCs’ purchasing. International Business Review, 26(6), 1075-1087. https://doi.org/10.1016/j.ibusrev.2017.04.001
https://doi.org/10.1016/j.ibusrev.2017.0...
).

The level of firm’s participation in a cluster was the reflective moderator construct. The four statements used to measure it were elaborated based on the existing literature. Moderation was carried out through multi-group analysis. First, a new variable was formed with the observations’ averages and then the average of the new variable. Of the total, 205 firms remained with values above the average. They were classified with a high level of participation in the cluster. Two hundred and twelve firms remained with the value below the average, classified with a low level of participation in the cluster. Cluster participation was used as a moderating variable (Frazão, 2018Frazão, I. P. (2018). Capacidade dinâmica das alianças no cluster dos recursos minerais [Doctoral dissertation]. Instituto Universitário de Lisboa, Portugal. https://repositorio.iscte-iul.pt/bitstream/10071/18899/4/phd_ines_paulo_frazao.pdf
https://repositorio.iscte-iul.pt/bitstre...
).

Control variables

As control variables, firm size and age were used. These are variables widely used as controls (Zou et al., 2018Zou, T., Ertug, G., & George, G. (2018). The capacity to innovate: A meta-analysis of absorptive capacity. Innovation, 20(2), 87-121. https://doi.org/10.1080/14479338.2018.1428105
https://doi.org/10.1080/14479338.2018.14...
). The control variables, size, and age were tested to identify whether they influenced endogenous constructs. It is possible to affirm, with 95% confidence, that neither the age group nor the firms’ size influences the adoption of economic, social, and environmental sustainability practices.

RESULTS

Direct relations

The collected data were tabulated in Microsoft Excel spreadsheets and treated with SPSS and AMOS software. Of the 417 firms that made up the sample, 32.85% were between 10 and 19 years old, 27.09 between 20 and 29 years old, 20.62% over 30 years old, and 19.44% up to nine years old. Most of the answers originated from the clusters in the municipalities of Chapecó, Joinville, and Blumenau with 98 (food products), 93 (metallurgy and manufacture of machines and equipment), and 93 (textile products) answers respectively. Subsequently, São José (43 - computer equipment, electronic and optical products), Brusque (24 - textile), Jaraguá do Sul (20 - electrical machinery, equipment, and materials), Criciúma (16 - non-metallic mineral products), Caçador (12 - wood products), São Bento do Sul (10 - furniture), São João Batista (7 - leather, travel items, and footwear), and Navegantes (1 - transport equipment, except motor vehicles).

After addressing issues related to missing data, outliers, reliability, independence of observations, linearity, normality, and absence of multicollinearity, the next step was to organize the analysis model employing SEM, using AMOS (Awang, 2012Awang, Z. A. (2012). Handbook on structural equation modeling using AMOS. Kelantan University Technology MARA Press). Usually, the initial model needs to be changed to arrive at an acceptable and reliable adjustment (Hair, Black et al., 2014Hair, J., Hult, T., Ringle, C., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM) (2 ed.). SAGE Publications). To assess the model, the use of X² associated with degrees of freedom, the CFI, and the RMSEA (Hair et al., 2005) is sufficient. In addition to these, it was decided to include the GFI. Table 1 shows the values for the initial and final models, after the necessary adjustments, and the reference values.

Table 1
Adjustment index, initial and final model values, and reference value

In comparison with the initial model, the end has undergone some changes:

  • (a) The variable PSECO3 was excluded;

  • (b) The PSAMB1 variable was excluded;

  • (c) Covariance between the error terms of PSSOC1 and PSSOC2 was introduced;

  • (d) Covariance between the error terms of PSSOC2 e PSSOC3 was inserted.

The exclusions occurred because the factorial loads presented were below 0.50 and 0.60. Covariance was included because when analyzing the research instrument’s assertions, it was noticed that they maintain a relation with each other. For convergent validity, calculations were performed for extracted average variance (AVE), whose values must be greater than 0.50, of composite reliability (CC), which must be greater than 0.70. AVE and CC’s values were not calculated for the cluster’s constructive level (NPC). They were used as moderator multi-groups and did not participate in the model (Awang, 2012Awang, Z. A. (2012). Handbook on structural equation modeling using AMOS. Kelantan University Technology MARA Press; Hair et al., 2009Hair, J., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2009). Análise multivariadas de dados (6 ed.). Bookman.). Cronbach’s alpha (AC) was also calculated, whose values must be greater than 0.70. These are expressed in Table 2.

As for the discriminant validity, the correlation loads between the constructs were used. Diagonally, the correlation loads were replaced by the values of the AVE root. Such values need to be greater than the correlation values between the constructs (Malhotra, 2019Malhotra, N. (2019). Marketing research: An applied orientation (7 ed.). Pearson.). Table 3 shows the results.

Table 2
Convergent validity

Table 3
Discriminant validity

It can be seen that the model presented adjustment, reliability, and validity. It was observed that all the factor loads between the construct and the latent variables were more significant than 0.60, meeting the expectations (Hair, Hult et al., 2014Hair, J., Hult, T., Ringle, C., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM) (2 ed.). SAGE Publications; Kline, 2015Kline, R. B. (2015). Principles and practices of structural equation modeling. (4 ed.). The Guilford Press.; Malhotra, 2019Malhotra, N. (2019). Marketing research: An applied orientation (7 ed.). Pearson.). Table 4 shows the hypothesis test, where the relations between the exogenous construct and the endogenous constructs were tested.

Table 4
Hypothesis test

Such results support the hypotheses H1, H2, and H3, indicating that absorptive capacity generates economic, social, and environmental sustainability practices. Figure 1 shows the path coefficients’ values and the factor loads between the observed variables and the constructs.

Figure 1
Complete path diagram, with standardized estimates.

It appears ACAP explains about 30% of the data variance in PSECO, 24% of the variance in PSAMB, and 39% of the variance in PSSOC. The greater the effect size, the greater the degree to which the phenomenon under study is manifested (Hair, Black et al., 2014Hair, J., Hult, T., Ringle, C., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM) (2 ed.). SAGE Publications). Following the parameters of Cohen (1998Cohen, J. (1998). Statistical power analysis for the behavioral sciences (2 ed.). Lawrence Erlbaum Associates.) considering the r², the effect size was large (0.30) in the ACAP-PSECO ratio, medium (0.24) in the ACAP-PSAMB ratio, and large (0.39) in the ACAP ratio - PSSOC

Moderating effect

Moderation is an effect that occurs when there is the inclusion of a third variable that influences the relation between the endogenous and exogenous constructs (Awang, 2012Awang, Z. A. (2012). Handbook on structural equation modeling using AMOS. Kelantan University Technology MARA Press; Hair et al., 2005Hair, J., Babin, B., Money, A., & Samouel, P. (2005). Fundamentos de métodos de pesquisa em administração. Bookman.). The moderating effect can be verified by a metric or categorical variable, which divides the sample into two or more subgroups (Hair, Black et al., 2014; Vieira, 2009Vieira, V. A. (2009). Moderator, mediator, moderator-mediator and indirect effects in structural equation modeling: An application in the expectation model. Revista de Administração - RAUSP, 44(1), 17-33.). In this case, the objective is to verify how the structural model fits into different groups (Vieira, 2009). Before considering the moderating variable, the exogenous construct’s effect must exist and be significant on the endogenous (Awang, 2012). It is then necessary to test whether the exogenous construct’s effect on the endogenous changes according to the condition of the moderator (Hair, Black et al., 2014).

After forming a new variable, which is the average of the four variables of participation in the cluster ((CL1CRESC + CL2PARCE + CL3INOVA + CL4 PR OD) / 4), its average was established, which was 4.57. Below the average, the level 1 (low) group was constituted with 212 observations, and above the average, the level 2 (high) group was formed with 205 firms.

The free structural model was estimated with the level 1 group, which presented an X² of 276.574, with 114 degrees of freedom. The restricted model had an X² of 302.997, with 117 degrees of freedom. The low level of participation showed an X² variation of 26.423 and a variation of degrees of freedom of 3; Using the chi-square distribution formula with ‘n’ degrees of freedom, the significance of the difference between group level 1 and ‘n’ [level 2] was calculated, which was p-value 0.000. As a result, the presented p-value < 0.005 shows that the models are different and moderation occurs (Hair, Black et al., 2014Hair, J., Hult, T., Ringle, C., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM) (2 ed.). SAGE Publications).

Afterward, the free and restricted structural model for the level 2 (high) group was estimated. The X² variation was 22.050, and the degrees of freedom were 3. While in the free model, the value of X² was 274.740, with 114 degrees of freedom, in the restricted model, it was 296.790, with 117 degrees of freedom. When calculating the significance of the difference between the models, the value was p-value 0.000. With a p-value < 0.005, it can be said that there is a significant difference between the models, and moderation occurs (Hair, Black et al., 2014Hair, J., Hult, T., Ringle, C., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM) (2 ed.). SAGE Publications), as shown in Table 5.

Table 5
Free and restricted model for low level and high level of moderation

The adjustment indexes, in this case, X²/df, CFI, GFI, and RMSEA, were compared between the free model and the restricted model. If the restricted model has adjustments as reasonable as those of the free model, then moderation cannot be sustained (Hair et al., 2009Hair, J., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2009). Análise multivariadas de dados (6 ed.). Bookman.). If the free model presents better adjustments than the restricted model, then moderation is sustained (Awang, 2021; Hair et al., 2009).

For group 1 - low level of participation -, the free model presented the results 2.426 (X²/df), 0.869 (GFI), 0.912 (CFI), and 0.082 (RMSEA). The restricted model had 2.590 for X²/df, 0.855 for GFI, 0.899 for CFI, and 0.087 for RMSEA. For the high level of participation, the free model’s adjustment indexes were 2.410 for X²/df, 0.857 for GFI, 0.920 for CFI, and 0.083 for RMSEA. Moreover, the restricted model presented 2.537 for X²/df, 0.846 for GFI, 0.911 for CFI, and 0.087 for RMSEA.

It is noticed that both at the low and at the high level, the restricted model presented adjustment results not as good as the free model, supporting the existence of moderation (Hair et al., 2009Hair, J., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2009). Análise multivariadas de dados (6 ed.). Bookman.). As the results indicate moderation, we started to explore how the effect varies between groups, analyzing the β values in each relation. The values are shown in Table 6.

Table 6
Values of β coefficients of multi-group analysis

It was decided to present both the standardized beta and the non-standardized beta (Vieira, 2009Vieira, V. A. (2009). Moderator, mediator, moderator-mediator and indirect effects in structural equation modeling: An application in the expectation model. Revista de Administração - RAUSP, 44(1), 17-33.), and that the analysis would be on the non-standardized (Kline, 2015Kline, R. B. (2015). Principles and practices of structural equation modeling. (4 ed.). The Guilford Press.). In the relation between ACAP and PSECO, the path coefficient was 0.62 for high level and 0.46 for low level. In the relation between ACAP and PSAMB, the high level showed a beta of 0.57 and the low level a beta of 0.38. In the third relation between ACAP and PSSOC, the beta for the low level was 0.49, and for the high level it was 0.73. The high level of participation in the cluster allows ACAP to significantly affect economic, social, and environmental sustainability practices, supporting H4, as shown in Table 7.

Table 7
Result of hypothesis H4

DISCUSSION

The results indicate that small and medium-sized firms participating in a cluster adopt economic, social, and environmental sustainability practices. This discovery points out the lack of clarity on how to best implement sustainability practices. However, a challenge for firms (Maletič et al., 2018Maletič, M., Maletič, D., & Gomišček, B. (2018). The role of contingency factors on the relationship between sustainability practices and organizational performance. Journal of Cleaner Production, 171, 423-433. https://doi.org/10.1016/j.jclepro.2017.09.172
https://doi.org/10.1016/j.jclepro.2017.0...
), especially for small and medium-sized ones, is being overcome. When adopting sustainability practices, these firms become more valued in the market (Lourenço et al., 2014Lourenço, I. C., Callen, J. L., Branco, M. C., & Curto, J. D. (2014). The value relevance of reputation for sustainability leadership. Journal of Business Ethics, 119(1), 17-28. https://doi.org/10.1007/s10551-012-1617-7
https://doi.org/10.1007/s10551-012-1617-...
) and see opportunities to achieve competitive advantage (Babu et al., 2018Babu, D. E., Kaur, A., & Rajendran, C. (2018). Sustainability practices in tourism supply chain: Importance performance analysis. Benchmarking, 25(4), 1148-1170. https://doi.org/10.1108/BIJ-06-2016-0084
https://doi.org/10.1108/BIJ-06-2016-0084...
; Gurtu et al., 2017Gurtu, A., Searcy, C., & Jaber, M. Y. (2017). Sustainable supply chains. In M. Khan, M. Hussain, & M. Ajmal (Ed.), Green supply chain management for sustainable business practice (pp. 1-26). IGI Global. https://doi.org/10.4018/978-1-5225-0635-5.ch001
https://doi.org/10.4018/978-1-5225-0635-...
). In addition, the impact of sustainability practices on these firms’ performance is positive (Govindan et al., 2020Govindan, K., Rajeev, A., Padhi, S. S., & Pati, R. K. (2020). Supply chain sustainability and performance of firms: A meta-analysis of the literature. Transportation Research Part E: Logistics and Transportation Review, 137, 101923. https://doi.org/10.1016/j.tre.2020.101923
https://doi.org/10.1016/j.tre.2020.10192...
), making it possible to achieve superior performance (Singh et al., 2019Singh, S. K., Pradhan, R. K., Panigrahy, N. P., & Jena, L. K. (2019). Self-efficacy and workplace well-being: Moderating role of sustainability practices. Benchmarking, 26(6), 1692-1708. https://doi.org/10.1108/BIJ-07-2018-0219
https://doi.org/10.1108/BIJ-07-2018-0219...
).

It was also found that the average adoption of economic sustainability practices was higher than the average of environmental and social practices and that the difference in the mean was statistically significant. This discovery is directly related to the fact that firms need to obtain financial results to remain active in the market, prioritizing economic practices (Høgevold et al., 2015Høgevold, N. M., Svensson, G., Klopper, H. B., Wagner, B., Valera, J. C. S., Padin, C., Ferro, C., & Petzer, D. (2015). A triple bottom line construct and reasons for implementing sustainable business practices in companies and their business networks. Corporate Governance, 15(4), 427-443. https://doi.org/10.1108/CG-11-2014-0134
https://doi.org/10.1108/CG-11-2014-0134...
). This fact indicates that, when developing economic sustainability practices, the firm can efficiently use its resources (Miska et al., 2018Miska, C., Szőcs, I., & Schiffinger, M. (2018). Culture’s effects on corporate sustainability practices: A multi-domain and multi-level view. Journal of World Business, 53(2), 263-279. https://doi.org/10.1016/j.jwb.2017.12.001
https://doi.org/10.1016/j.jwb.2017.12.00...
), guaranteeing a positive result and becoming more competitive (Elkington, 2012Elkington, J. (2012). Sustentabilidade: Canibais com garfo e faca. M. Books.). It is also necessary to consider that there is no single way to adopt sustainability practices (Maletič et al., 2018Maletič, M., Maletič, D., & Gomišček, B. (2018). The role of contingency factors on the relationship between sustainability practices and organizational performance. Journal of Cleaner Production, 171, 423-433. https://doi.org/10.1016/j.jclepro.2017.09.172
https://doi.org/10.1016/j.jclepro.2017.0...
) and that the implementation requires time to make the necessary changes (Liu et al., 2019Liu, L., Zhang, M., & Ye, W. (2019). The adoption of sustainable practices: A supplier’s perspective. Journal of Environmental Management, 232, 692-701. https://doi.org/10.1016/j.jenvman.2018.11.067
https://doi.org/10.1016/j.jenvman.2018.1...
), in addition to the manager’s attention to coordinate the processes (Zhu et al., 2012Zhu, Q., Sarkis, J., & Lai, K. (2012). Examining the effects of green supply chain management practices and their mediations on performance improvements. International Journal of Production Research, 50(5), 1377-1394. https://doi.org/10.1080/00207543.2011.571937
https://doi.org/10.1080/00207543.2011.57...
).

The support of the first three hypotheses confirmed that absorptive capacity generates economic, social, and environmental sustainability practices. The literature also indicates the research results that have also identified ACAP as a generator of sustainability practices (Aboelmaged & Hashem, 2019Aboelmaged, M., & Hashem, G. (2019). Absorptive capacity and green innovation adoption in SMEs: The mediating effects of sustainable organisational capabilities. Journal of Cleaner Production, 220, 853-863. https://doi.org/10.1016/j.jclepro.2019.02.150
https://doi.org/10.1016/j.jclepro.2019.0...
; Padilha et al., 2020Padilha, L. S., Piekas, A. A. S., Kuzma, E. L., Begnini, S., & Carvalho, C. E. (2020). The impact of the environmental dimensions and the relationship between absorptive capacity and sustainability practices. International Journal of Development Research, 10(9), 39990-39996. https://doi.org/10.37118/ijdr.19853.09.2020
https://doi.org/10.37118/ijdr.19853.09.2...
). It is understood that through routines and processes, the firm can analyze, interpret, and understand the recognized external information, combining it with the already existing internal knowledge, which can trigger the adoption of new practices (Zhang et al., 2015Zhang, M., Zhao, X., Lyles, M. A., & Guo, H. (2015). Absorptive capacity and mass customization capability. International Journal of Operations & Production Management, 35(9), 1275-1294. https://doi.org/10.1108/IJOPM-03-2015-0120
https://doi.org/10.1108/IJOPM-03-2015-01...
). The integration of external, complex, and interdisciplinary knowledge impacts the adoption of practices (Dzhengiz & Niesten, 2020Dzhengiz, T., & Niesten, E. (2020). Competences for environmental sustainability: A systematic review on the impact of absorptive capacity and capabilities. Journal of Business Ethics, 162(4), 881-906. https://doi.org/10.1007/s10551-019-04360-z
https://doi.org/10.1007/s10551-019-04360...
; Liu et al., 2019Liu, L., Zhang, M., & Ye, W. (2019). The adoption of sustainable practices: A supplier’s perspective. Journal of Environmental Management, 232, 692-701. https://doi.org/10.1016/j.jenvman.2018.11.067
https://doi.org/10.1016/j.jenvman.2018.1...
).

Having access to external knowledge enables firms to learn, leading to the establishment of necessary changes to adopt new practices aimed at sustainability (Albort-Morant, Henseler et al., 2018Albort-Morant, G., Leal-Rodríguez, A., & Marchi, V. (2018). Absorptive capacity and relationship learning mechanisms as complementary drivers of green innovation performance. Journal of Knowledge Management, 22(2), 432-452. https://doi.org/10.1108/JKM-07-2017-0310
https://doi.org/10.1108/JKM-07-2017-0310...
). Firms need to develop internal capacities to recognize and absorb new knowledge to facilitate new practices (Hashim et al., 2015Hashim, R., Bock, A. J., & Cooper, S. (2015). The relationship between absorptive capacity and green inovation. World Academy of Science, Engineering and Technology, Open Science Index 100, International Journal of Industrial and Manufacturing Engineering, 9(4), 1065-1072. https://doi.org/10.5281/zenodo.1099940
https://doi.org/10.5281/zenodo.1099940...
). Capacity development by the firm makes it possible to change routines and activities to achieve actions aimed at sustainability (Dzhengiz & Niesten, 2020Dzhengiz, T., & Niesten, E. (2020). Competences for environmental sustainability: A systematic review on the impact of absorptive capacity and capabilities. Journal of Business Ethics, 162(4), 881-906. https://doi.org/10.1007/s10551-019-04360-z
https://doi.org/10.1007/s10551-019-04360...
).

According to the capacity to absorb, assimilate and transform external information into internal knowledge (Padilha et al., 2020Padilha, L. S., Piekas, A. A. S., Kuzma, E. L., Begnini, S., & Carvalho, C. E. (2020). The impact of the environmental dimensions and the relationship between absorptive capacity and sustainability practices. International Journal of Development Research, 10(9), 39990-39996. https://doi.org/10.37118/ijdr.19853.09.2020
https://doi.org/10.37118/ijdr.19853.09.2...
), the dimension ‘transformation’ of ACAP requires the company to unlearn existing unsustainable practices and build and adopt other methods that are sustainable (Dzhengiz & Niesten, 2020Dzhengiz, T., & Niesten, E. (2020). Competences for environmental sustainability: A systematic review on the impact of absorptive capacity and capabilities. Journal of Business Ethics, 162(4), 881-906. https://doi.org/10.1007/s10551-019-04360-z
https://doi.org/10.1007/s10551-019-04360...
). ACAP influences the development of firm practices that participate in a cluster toward sustainability, as such actions return in some benefit (Aboelmaged & Hashem, 2019Aboelmaged, M., & Hashem, G. (2019). Absorptive capacity and green innovation adoption in SMEs: The mediating effects of sustainable organisational capabilities. Journal of Cleaner Production, 220, 853-863. https://doi.org/10.1016/j.jclepro.2019.02.150
https://doi.org/10.1016/j.jclepro.2019.0...
). Contributing to these arguments is the fact that a firm, by developing its ACAP, improves its mode of operation and the adoption of sustainability practices (Riikkinen et al., 2017Riikkinen, R., Kauppi, K., & Salmi, A. (2017). Learning sustainability? Absorptive capacities as drivers of sustainability in MNCs’ purchasing. International Business Review, 26(6), 1075-1087. https://doi.org/10.1016/j.ibusrev.2017.04.001
https://doi.org/10.1016/j.ibusrev.2017.0...
). Evidence has shown that sustainability is considered a form of innovation that encourages competitiveness, based on the acquisition of environmental information and knowledge creation (Delmas et al., 2011Delmas, M., Hoffmann, V. H., & Kuss, M. (2011). Under the tip of the iceberg: Absorptive capacity, environmental strategy, and competitive advantage. Business & Society, 50(1), 116-154. https://doi.org/10.1177/0007650310394400
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; Garay et al., 2017Garay, L., Font, X., & Pereira-Moliner, J. (2017). Understanding sustainability behaviour: The relationship between information acquisition, proactivity and performance. Tourism Management, 60, 418-429. https://doi.org/10.1016/j.tourman.2016.12.017
https://doi.org/10.1016/j.tourman.2016.1...
).

Firms that participate in a cluster have actions aimed at adopting sustainability practices based on ACAP. It is argued that adopting real and sustainable practices is a decisive factor for the firm’s permanence in the market and an essential competitive advantage generator. When treating sustainability issues as an objective of the present, pioneers will develop skills that rivals will have difficulties matching (Nidumolu et al., 2009Nidumolu, R., Prahalad, C., & Rangaswami, M. (2009). Why sustainability is now the key driver of innovation. Harvard Business Review. https://hbr.org/2009/09/why-sustainability-is-now-the-key-driver-of-innovation
https://hbr.org/2009/09/why-sustainabili...
).

ACAP generates sustainability practices, and, based on this process, improvements can be seen (Padilha et al., 2020Padilha, L. S., Piekas, A. A. S., Kuzma, E. L., Begnini, S., & Carvalho, C. E. (2020). The impact of the environmental dimensions and the relationship between absorptive capacity and sustainability practices. International Journal of Development Research, 10(9), 39990-39996. https://doi.org/10.37118/ijdr.19853.09.2020
https://doi.org/10.37118/ijdr.19853.09.2...
). In the economic dimension, practices make it possible to improve performance as innovations, especially eco-innovations, are incorporated into the production process, triggering positive results such as, for example, cost reduction (Brasil et al., 2016Brasil, M. de O., Abreu, M. C., Silva, J. Da, Filho, & Leocádio, A. L. (2016). Relationship between eco-innovations and the impact on business performance: An empirical survey research on the Brazilian textile industry. Revista de Administração, 51(3), 276-287. https://doi.org/10.1016/j.rausp.2016.06.003
https://doi.org/10.1016/j.rausp.2016.06....
; Delmas et al., 2011Delmas, M., Hoffmann, V. H., & Kuss, M. (2011). Under the tip of the iceberg: Absorptive capacity, environmental strategy, and competitive advantage. Business & Society, 50(1), 116-154. https://doi.org/10.1177/0007650310394400
https://doi.org/10.1177/0007650310394400...
; Garay et al., 2017Garay, L., Font, X., & Pereira-Moliner, J. (2017). Understanding sustainability behaviour: The relationship between information acquisition, proactivity and performance. Tourism Management, 60, 418-429. https://doi.org/10.1016/j.tourman.2016.12.017
https://doi.org/10.1016/j.tourman.2016.1...
). In the social dimension, the practices adopted result in a better image of the firm before consumers and in improvements in relations with suppliers, employees, and other stakeholders (Horbach et al., 2012Horbach, J., Rammer, C., & Rennings, K. (2012). Determinants of eco-innovations by type of environmental impact - The role of regulatory push/pull, technology push and market pull. Ecological Economics, 78, 112-122. https://doi.org/10.1016/j.ecolecon.2012.04.005
https://doi.org/10.1016/j.ecolecon.2012....
; Klassen & Whybark, 1999Klassen, R. D., & Whybark, D. C. (1999). The impact of environmental technologies on manufacturing performance. Academy of Management Journal, 42(6), 599-615. https://doi.org/10.2307/256982
https://doi.org/10.2307/256982...
). In the environmental dimension, firms’ practices can reduce water and electricity consumption, increase the separation and recycling of waste, and encourage customers and suppliers to be environmentally friendly (Font et al., 2016Font, X., Garay, L., & Jones, S. (2016). Sustainability motivations and practices in small tourism enterprises in European protected areas. Journal of Cleaner Production, 137, 1439-1448. https://doi.org/10.1016/j.jclepro.2014.01.071
https://doi.org/10.1016/j.jclepro.2014.0...
).

The fourth hypothesis’ support indicates that the higher level of participation in the cluster increases the effect of ACAP on the practices of economic, social, and environmental sustainability concerning the lower level of participation. The empirical findings of this study are in line with the theoretical predictions presented that the firms participating in a cluster show different levels of growth (Porter, 1998Porter, M. E. (1998). Clusters and the new economics of competition. Harvard Business Review, 76(6), 77-90. https://hbr.org/1998/11/clusters-and-the-new-economics-of-competition
https://hbr.org/1998/11/clusters-and-the...
; Villar & Walter, 2017Villar, E. G., & Walter, S. A. (2017). The influence of the clusterization process in the growth of small entrerprises: A case study in the “cachaça” industry of Santa Catarina. REGEPE, 6(1), 75-100. https://doi.org/10.14211/regepe.v6i1.419
https://doi.org/10.14211/regepe.v6i1.419...
), partnerships (Albuquerque, 2016Albuquerque, D. S. (2016, February). Os clusters e o desenvolvimento das regiões: Cluster na cestaria em Gonçalo - uma realidade ou utopia? Proceedings of XXVI Jornadas Luso-Espanholas de Gestão Científica, Idanha-a-Nova, Portugal.; Porter, 1998), innovations (Albuquerque, 2016; Porter, 1998), and productivity (Di-Serio, 2007Di-Serio, L. C. (2007). Clusters empresariais no Brasil - Casos selecionados. Editora Saraiva.). Because it participates in a cluster, geographic proximity to other firms allows access to knowledge and resources, impacting the firm’s performance (Porter, 1990). However, participation levels tend to be different, even if the cluster firms’ participants share knowledge and worldviews (Di-Serio, 2007).

The establishment of partnerships between the firms in the cluster enables the exchange of knowledge to reduce the uncertainties present in the market, promoting increased social interaction (Albuquerque, 2016Albuquerque, D. S. (2016, February). Os clusters e o desenvolvimento das regiões: Cluster na cestaria em Gonçalo - uma realidade ou utopia? Proceedings of XXVI Jornadas Luso-Espanholas de Gestão Científica, Idanha-a-Nova, Portugal.; Cortés et al., 2020Cortés, E. C., Lajara, B. M., García, E. S., Larrosa, P. S., Manresa, E., Fernández, L. R., & Pareja, E. P. (2020). A literature review on the effect of industrial clusters and the absorptive capacity on innovation. World Academy of Science, Engineering and Technology - International Journal of Industrial and Manufacturing Engineering, 14(7), 489 - 498. http://waset.org/Publication/10011302
http://waset.org/Publication/10011302...
; Gray, 2006Gray, C. (2006). Absorptive capacity, knowledge management and innovation in entrepreneurial small firms. International Journal of Entrepreneurial Behavior & Research, 12(6), 345-360. https://doi.org/10.1108/13552550610710144
https://doi.org/10.1108/1355255061071014...
). For the firm to access that information relevant to its business, at the right time, aiming to adopt economic, social, and environmental sustainability practices, the establishment of partnerships with other firms is essential (Hunt, 2000Hunt, J. (2000). Environment, information and networks: How does information reach small and medium-sized enterprises? In R. Hillary (Ed.), Small and medium-sized enterprises and the environment: Business imperatives (pp. 194-202). Routledge.), especially for generating confidence (Porter, 1998Porter, M. E. (1998). Clusters and the new economics of competition. Harvard Business Review, 76(6), 77-90. https://hbr.org/1998/11/clusters-and-the-new-economics-of-competition
https://hbr.org/1998/11/clusters-and-the...
). In the cluster, the firm can still operate in a network with other firms, access new knowledge, improve economic performance, minimize environmental impacts, and create benefits to society, making it possible to explore new business opportunities (Bellantuono et al., 2017Bellantuono, N., Carbonara, N., & Pontrandolfo, P. (2017). The organization of eco-industrial parks and their sustainable practices. Journal of Cleaner Production, 161, 362-375. https://doi.org/10.1016/j.jclepro.2017.05.082
https://doi.org/10.1016/j.jclepro.2017.0...
). In this sense, the higher the firm’s participation level in the cluster, the greater the possibility of accessing external information and developing knowledge (Giuliani et al., 2019Giuliani, E., Balland, P.-A., & Matta, A. (2019). Straining but not thriving: Understanding network dynamics in underperforming industrial clusters. Journal of Economic Geography, 19(1), 147-172. https://doi.org/10.1093/jeg/lbx046
https://doi.org/10.1093/jeg/lbx046...
).

In this aspect, it is important to highlight that a process of organizational mimicry can occur (Abernethy & Chua, 1996Abernethy, M. A., & Chua, W. F. (1996). A field study of control system “redesign”: The impact of institucional process on strategic choice. Contemporary Accounting Research, 13(2), 569-606. https://doi.org/10.1111/j.1911-3846.1996.tb00515.x
https://doi.org/10.1111/j.1911-3846.1996...
). That is, the adoption of sustainability practices may be anchored in the movement of observation and imitation of characteristics of other firms considered successful. However, firms adopt imitation processes when they have insufficient absorptive capacity, making it difficult to form their core competitiveness (Li et al., 2019Li, A., Han, S., & Shen, T. (2019) How can a firm innovate when embedded in a cluster? Evidence from the automobile industrial cluster in China. Sustainability, 11(7), 1837. https://doi.org/10.3390/su11071837
https://doi.org/10.3390/su11071837...
). In this study, firms present ACAP developed, if not fully, at intermediate levels.

The literature also indicates that different levels of participation in the cluster represent different possibilities to access relevant knowledge to generate new practices (Tsai, 2001Tsai, W. (2001). Knowledge transfer in intraorganizational networks: Effects of network position and absorptive capacity on business unit innovation and performance. Academy of Management Journal, 44(5), 996-1004. https://doi.org/10.5465/3069443
https://doi.org/10.5465/3069443...
). The knowledge transfer process between the cluster firms allows the best practices to be disseminated quickly (Hervas-Oliver et al., 2012Hervas-Oliver, J.-L., Albors-Garrigos, J., De-Miguel, B., & Hidalgo, A. (2012). The role of a firm’s absorptive capacity and the technology transfer process in clusters: How effective are technology centres in low-tech clusters? Entrepreneurship and Regional Development, 24(7-8), 523-559. https://doi.org/10.1080/08985626.2012.710256
https://doi.org/10.1080/08985626.2012.71...
). Interactions within the cluster, for example, make it possible to both access and transmit knowledge that, shared among the members of the cluster, generate learning (Lis & Rozkwitalska, 2020Lis, A. M., & Rozkwitalska, M. (2020). Technological capability dynamics through cluster organizations. Baltic Journal of Management, 15(4), 587-606. https://doi.org/10.1108/BJM-02-2020-0046
https://doi.org/10.1108/BJM-02-2020-0046...
), affecting the adoption of sustainability practices (Garay et al., 2017Garay, L., Font, X., & Pereira-Moliner, J. (2017). Understanding sustainability behaviour: The relationship between information acquisition, proactivity and performance. Tourism Management, 60, 418-429. https://doi.org/10.1016/j.tourman.2016.12.017
https://doi.org/10.1016/j.tourman.2016.1...
).

Another issue is that the growth levels of each company are different, even if they are all participating in a cluster (Villar & Walter, 2017Villar, E. G., & Walter, S. A. (2017). The influence of the clusterization process in the growth of small entrerprises: A case study in the “cachaça” industry of Santa Catarina. REGEPE, 6(1), 75-100. https://doi.org/10.14211/regepe.v6i1.419
https://doi.org/10.14211/regepe.v6i1.419...
). The characteristics of each firm can act promoting or limiting its growth (Penrose, 1959Penrose, E. (1959). The theory of the growth of the firm (Vol. 1). Oxford University Press.). The cluster firms’ level of growth directly impacts the cluster’s success or failure (Villar & Walter, 2017). It is worthwhile to pay attention to the fact that the firm’s growth requires attention to sustainability (Vaz & Nijkamp, 2009Vaz, T. de N., & Nijkamp, P. (2009). Knowledge and innovation: The strings between global and local dimensions of sustainable growth. Entrepreneurship & Regional Development, 21(4), 441-455. https://doi.org/10.1080/08985620903020094
https://doi.org/10.1080/0898562090302009...
) to adopt sustainability practices (Hashim et al., 2015Hashim, R., Bock, A. J., & Cooper, S. (2015). The relationship between absorptive capacity and green inovation. World Academy of Science, Engineering and Technology, Open Science Index 100, International Journal of Industrial and Manufacturing Engineering, 9(4), 1065-1072. https://doi.org/10.5281/zenodo.1099940
https://doi.org/10.5281/zenodo.1099940...
).

To grow, the firm needs, in some way, to increase productivity, and the increase in productivity cannot be a sign of lack of control, mainly environmental and social (Vaz & Nijkamp, 2009Vaz, T. de N., & Nijkamp, P. (2009). Knowledge and innovation: The strings between global and local dimensions of sustainable growth. Entrepreneurship & Regional Development, 21(4), 441-455. https://doi.org/10.1080/08985620903020094
https://doi.org/10.1080/0898562090302009...
). A cluster is more or less productive to the extent that the firms that participate in it are more or less productive. They are not expected to reach the same levels of productivity. Productivity is related to the use of technology and the generation of innovation (Porter, 1998Porter, M. E. (1998). Clusters and the new economics of competition. Harvard Business Review, 76(6), 77-90. https://hbr.org/1998/11/clusters-and-the-new-economics-of-competition
https://hbr.org/1998/11/clusters-and-the...
).

Participating in a cluster allows each firm, at different levels, to increase its capacity for innovation, thus creating differentials for the cluster itself (Albuquerque, 2016Albuquerque, D. S. (2016, February). Os clusters e o desenvolvimento das regiões: Cluster na cestaria em Gonçalo - uma realidade ou utopia? Proceedings of XXVI Jornadas Luso-Espanholas de Gestão Científica, Idanha-a-Nova, Portugal.). Clusters are considered to facilitate the transfer of knowledge and technologies that assist in adopting innovative practices aimed at sustainability (Aboelmaged & Hashem, 2019Aboelmaged, M., & Hashem, G. (2019). Absorptive capacity and green innovation adoption in SMEs: The mediating effects of sustainable organisational capabilities. Journal of Cleaner Production, 220, 853-863. https://doi.org/10.1016/j.jclepro.2019.02.150
https://doi.org/10.1016/j.jclepro.2019.0...
). Although external knowledge can be obtained internationally (Patel et al., 2018Patel, P., Criaco, G., & Naldi, L. (2018). Geographic diversification and the survival of born-globals. Journal of Management, 44(5), 2008-2036. https://doi.org./10.1177/0149206316635251
https://doi.org./10.1177/014920631663525...
), it is the local environment that offers useful and unique knowledge and that becomes difficult for other firms to access (Solano et al., 2020Solano, G., Larrañeta, B., & Aguilar, R. (2020). Absorptive capacity balance and new venture performance: Cultivating knowledge from regional clusters. Technology Analysis & Strategics Management, 32(11) 1264-1276. https://doi.org/10.1080/09537325.2020.1760236
https://doi.org/10.1080/09537325.2020.17...
).

The local cluster constitutes a valuable and unique source of knowledge (Porter, 1998Porter, M. E. (1998). Clusters and the new economics of competition. Harvard Business Review, 76(6), 77-90. https://hbr.org/1998/11/clusters-and-the-new-economics-of-competition
https://hbr.org/1998/11/clusters-and-the...
), capable of promoting the absorptive capacity and achieving higher market positions (Plumer & Acs, 2014Plumer, L. A., & Acs, Z. J. (2014). Localizes competition in the knowledge spillover theory of entrepreneurship. Journal of Business Venturing, 29(1), 121-136. https://doi.org/10.1016/j.jbusvent.2012.10.003
https://doi.org/10.1016/j.jbusvent.2012....
). As it is known that clusters vary in knowledge bases and sharing intensity, the development of ACAP of firms in each cluster will also not be uniform (Solano et al., 2020Solano, G., Larrañeta, B., & Aguilar, R. (2020). Absorptive capacity balance and new venture performance: Cultivating knowledge from regional clusters. Technology Analysis & Strategics Management, 32(11) 1264-1276. https://doi.org/10.1080/09537325.2020.1760236
https://doi.org/10.1080/09537325.2020.17...
). Even so, the cluster is a possibility for the firm to access innovations or obtain information to develop them to meet its needs (Albuquerque, 2016Albuquerque, D. S. (2016, February). Os clusters e o desenvolvimento das regiões: Cluster na cestaria em Gonçalo - uma realidade ou utopia? Proceedings of XXVI Jornadas Luso-Espanholas de Gestão Científica, Idanha-a-Nova, Portugal.; Porter, 1998). The adoption of innovations and sustainable practices is related to the firm’s ability to acquire external information, assimilate it, transform it, and use it (Aboelmaged & Hashem, 2019Aboelmaged, M., & Hashem, G. (2019). Absorptive capacity and green innovation adoption in SMEs: The mediating effects of sustainable organisational capabilities. Journal of Cleaner Production, 220, 853-863. https://doi.org/10.1016/j.jclepro.2019.02.150
https://doi.org/10.1016/j.jclepro.2019.0...
).

Firms that have a higher level of participation in the cluster have the possibility of greater access to resources, more remarkable capacity development, as well as an increase in the quality of products and services (Lis & Rozkwitalska, 2020Lis, A. M., & Rozkwitalska, M. (2020). Technological capability dynamics through cluster organizations. Baltic Journal of Management, 15(4), 587-606. https://doi.org/10.1108/BJM-02-2020-0046
https://doi.org/10.1108/BJM-02-2020-0046...
). Participating in the cluster makes it possible to identify customer needs more quickly, greater flexibility in decisions, and agility in adopting actions aimed at sustainability (Larentis et al., 2013Larentis, F., Giovanella, R., & Cislaghi, T. (2013). Sustainability in clusters: Proposal of a conceptual model. Revista Ibero-Americana de Estratégia, 12(3), 212-241. https://doi.org/10.5585/ijsm.v12i3.1937
https://doi.org/10.5585/ijsm.v12i3.1937...
). More helpful knowledge sharing allows for generating more sustainability practices (Riikkinen et al., 2017Riikkinen, R., Kauppi, K., & Salmi, A. (2017). Learning sustainability? Absorptive capacities as drivers of sustainability in MNCs’ purchasing. International Business Review, 26(6), 1075-1087. https://doi.org/10.1016/j.ibusrev.2017.04.001
https://doi.org/10.1016/j.ibusrev.2017.0...
). In this same sense, greater participation in the cluster allows greater connection with the participants, generating benefits and advantages for members (Pinkse et al., 2018Pinkse, J., Vernay, A.-L., & D’Ippolito, B. (2018). An organisational perspective on the cluster paradox: Exploring how members of a cluster manage the tension between continuity and renewal. Research Policy, 47(3), 674-685. https://doi.org/10.1016/j.respol.2018.02.002
https://doi.org/10.1016/j.respol.2018.02...
).

Making the adoption of sustainability practices a reality is still a challenge for firms, even for those that operate in clusters, those form partnerships and establish networks, and even more difficult for those firms that carry out some actions in isolation (Larentis et al., 2013Larentis, F., Giovanella, R., & Cislaghi, T. (2013). Sustainability in clusters: Proposal of a conceptual model. Revista Ibero-Americana de Estratégia, 12(3), 212-241. https://doi.org/10.5585/ijsm.v12i3.1937
https://doi.org/10.5585/ijsm.v12i3.1937...
). Most participants in a cluster can acquire, assimilate, transform, and use external knowledge to generate sustainability practices compared to firms with a lower participation level.

CONCLUSION

This study aimed to analyze the role of the firm’s participation level in a cluster in the relation between absorptive capacity and practices of economic, social, and environmental sustainability in small and medium-sized firms. We sought to respond to research calls to deepen the relation between organizational capabilities and sustainability (Annunziata et al., 2018Annunziata, E., Pucci, T., Frey, M, & Zanni, L. (2018). The role of organizational capabilities in attaining corporate sustainability practices and economic performance: Evidence from Italian wine industry. Journal of Cleaner Production, 171, 1300-1311. https://doi.org/10.1016/j.jclepro.2017.10.035
https://doi.org/10.1016/j.jclepro.2017.1...
; Gelhard & Delft, 2016Gelhard, C., & Delft, S. V. (2016). The role of organizational capacabilities in achieving superior sustainability performance. Journal of Business Research, 69(10), 4632-4642. https://doi.org/10.1016/j.jbusres.2016.03.053
https://doi.org/10.1016/j.jbusres.2016.0...
; Langenus & Dooms, 2018Langenus, M., & Dooms, M. (2018). Creating an industry-level business model for sustainability: The case of the European ports industry. Journal of Cleaner Production, 195, 949-962. https://doi.org/10.1016/j.jclepro.2018.05.150
https://doi.org/10.1016/j.jclepro.2018.0...
; Riikkinen et al., 2017Riikkinen, R., Kauppi, K., & Salmi, A. (2017). Learning sustainability? Absorptive capacities as drivers of sustainability in MNCs’ purchasing. International Business Review, 26(6), 1075-1087. https://doi.org/10.1016/j.ibusrev.2017.04.001
https://doi.org/10.1016/j.ibusrev.2017.0...
; Salim et al., 2019Salim, N., Rahman, M. N., & Wahab, D. A. (2019). A systematic literature review of internal capabilities for enhancing eco-innovation performance of manufacturing firms. Journal of Cleaner Production, 209, 1445-1460. https://doi.org/10.1016/j.jclepro.2018.11.105
https://doi.org/10.1016/j.jclepro.2018.1...
), as well as to the need to study the moderating function of the context and the agglomerations where firms are located (Galdeano-Gómez et al., 2008Galdeano-Gómez, E., Céspedes-Lorente, J., & Martínez-del-Rio, J. (2008). Environmental performance and spillover effects on productivity: Evidence from horticultural firms. Journal of Environmental Management, 88(4), 1552-1561. http://doi.org/10.1016/j.jenvman.2007.07.028
http://doi.org/10.1016/j.jenvman.2007.07...
).

It is understood that in small and medium-sized firms participating in a cluster, the absorptive capacity influences the adoption of sustainability practices in a heterogeneous way since the size of the effect generated differs in each of the dimensions. Therefore, in a certain period, the focus may be on economic practices, and in another period on environmental or social practices. This reality leads the firm to seek external information and use it according to the moment experienced and its resources. Such results contribute to the literature as they approach the calls made by Salim et al. (2019Salim, N., Rahman, M. N., & Wahab, D. A. (2019). A systematic literature review of internal capabilities for enhancing eco-innovation performance of manufacturing firms. Journal of Cleaner Production, 209, 1445-1460. https://doi.org/10.1016/j.jclepro.2018.11.105
https://doi.org/10.1016/j.jclepro.2018.1...
), Annunziata et al. (2018Annunziata, E., Pucci, T., Frey, M, & Zanni, L. (2018). The role of organizational capabilities in attaining corporate sustainability practices and economic performance: Evidence from Italian wine industry. Journal of Cleaner Production, 171, 1300-1311. https://doi.org/10.1016/j.jclepro.2017.10.035
https://doi.org/10.1016/j.jclepro.2017.1...
), Amui et al. (2017Amui, L. B. L., Jabbour, C. J. C., Jabbour, A. B. L. S., & Kannan, D. (2017). Sustainability as a dynamic organizational capability: A systematic review and a future agenda toward a sustainable transition. Journal of Cleaner Production, 142, 308-322. https://doi.org/10.1016/j.jclepro.2016.07.103
https://doi.org/10.1016/j.jclepro.2016.0...
), and Gelhard and Delft (2016Gelhard, C., & Delft, S. V. (2016). The role of organizational capacabilities in achieving superior sustainability performance. Journal of Business Research, 69(10), 4632-4642. https://doi.org/10.1016/j.jbusres.2016.03.053
https://doi.org/10.1016/j.jbusres.2016.0...
). It was found that the adoption of sustainability practices is influenced by the firm’s ability to acquire, assimilate, transform, and use external information and that this relation is enhanced as the firm’s level of participation in the cluster increases. This result contributes to Galdeano-Gómez et al.’s (2008Galdeano-Gómez, E., Céspedes-Lorente, J., & Martínez-del-Rio, J. (2008). Environmental performance and spillover effects on productivity: Evidence from horticultural firms. Journal of Environmental Management, 88(4), 1552-1561. http://doi.org/10.1016/j.jenvman.2007.07.028
http://doi.org/10.1016/j.jenvman.2007.07...
) study of the moderating role of the geographic context, such as cluster participation.

Therefore, it is suggested that it is necessary for small and medium-sized firms participating in a cluster to develop their absorptive capacity, considering that knowledge is a resource with essential characteristics for the adoption of sustainability practices.

Firms need to devise strategies to achieve competitive advantages, and the adoption of sustainability practices is a possibility to achieve a performance superior to that of their competitors. The results indicated that absorptive capacity generates practices of economic, social, and environmental sustainability. It also reinforces the importance of firms to acquire external information, assimilate it, transform it, and use it. That way, they will be more prepared to operate in a dynamic and competitive market.

It is concluded that participation in the cluster allows the firm to achieve advantages since both the high level and the low level of participation moderate the relation between absorptive capacity and practices of economic, social, and environmental sustainability. However, the high level had a more significant effect than the low level, indicating that the firms that most participate in the cluster have greater strength in the effect of ACAP as a generator of sustainability practices. In this sense, firms must return efforts to increase their relation with other firms within the cluster, either by intensifying specific commercial transactions or by establishing long-term relation with other actors in the cluster.

When adopting sustainability practices, doubts may arise. When this occurs, it is suggested that managers seek to identify and acquire important external information to develop the firm’s activities. One suggestion is to establish partnerships with other firms, universities, and research centers. Based on their routines and processes, it is indicated that firms analyze, process, interpret, and understand the information acquired. In possession of the acquired knowledge externally, one can decide what could/should be changed in their routines and processes. The next step is to leverage the skills or create others, to facilitate the adoption of new practices - in this case, sustainability practices.

Some aspects can be considered as limitations in this study. One of them refers to the number of cases collected per cluster. In the case of many cases per cluster, the results can be compared to deepen the relations between the constructs. Another limitation related to the previous one is that in some clusters, the number of respondents was small, with the possibility of bias, since the analysis was performed based on all respondents.

Another limitation to be highlighted refers to the issue of technological intensity. On this subject, the study made small approximations. Technological intensity is related to the development of a place or nation. High technological intensity is related to the generation of new jobs in sophisticated and high technology services. This relation also drives salaries in the sectors. However, in some regions, especially in some countries, this stage is not reached and is restricted to middle income, which may be linked to low technology and complexity.

Future studies may expand the collection to have a closer number of respondents per cluster and make it possible to compare the results between the clusters, such as, for sample, the food sector, compared to the metallurgy and furniture sector. Future studies may also address the technological intensity in the clusters and seek explanations for their relation with the generation of jobs and income, to understand the reality of the place under study. One can also study the relation between technological intensity and knowledge flows within the clusters.

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  • JEL Code:

    Q56, L14, D80, 030.
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    This content was evaluated using the double-blind peer review process. The disclosure of the reviewers' information on the first page is made only after concluding the evaluation process, and with the voluntary consent of the respective reviewers.

Annex 1 - Research instrument used for data collection

Table A1
Sustainability practices construct

Table A2
Absorptive capacity construct

Table A3
Level of participation in the cluster construct

Edited by

Editor-in-Chief:

Ivan Lapuente Garrido (Universidade do Vale do Rio dos Sinos, Brazil).

Associate Editor:

Yeda Swirski de Souza (Universidade do Vale do Rio dos Sinos, Brazil).

Edited by

Editorial assistants:

Kler Godoy and Simone Rafael (ANPAD, Maringá, Brazil).

Publication Dates

  • Publication in this collection
    19 Aug 2022
  • Date of issue
    2022

History

  • Received
    21 Mar 2021
  • Accepted
    15 June 2022
  • Published
    11 July 2022
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