Page 78 - CMA Journal (May-June 2025)

Articles Section

Research Gaps and Challenges may link Buoyancy to success, but strategic change as a
countermeasure is unstudied. Little is known about how
Buoyancy improves firm performance mostly through external contextual factors like home country
innovation input, showing that input allocation is crucial competitiveness and national SDG scores moderate SDG
to sustainability. The research also shows that strategy achievement. Comprehensive Buoyancy measures
change is input-intensive and might hinder SDG success cannot improve SDG achievement due to these issues.
if handled improperly. Moderating analyses show that Organizational Buoyancy has mainly been studied for its
home country competitiveness and national SDG scores function in helping organizations adjust to crises and
boost Buoyancy through innovation and mitigate preserve stability. Several studies have examined the
strategic change, supporting the role of external benefits of Buoyancy for business performance,
institutional contexts in sustainability outcomes. including environmental innovation and social
responsibility, but the trade-offs have gotten less
The SDGs need business support to combat climate attention. For instance, the costs and hazards of
change, poverty, inequality, and environmental Buoyancy-induced strategy adjustments are
degradation. To achieve these aims, companies innovate, understudied, especially in firm performance.
invest in sustainable practices, and integrate their Organizational Buoyancy has been widely researched in
strategy with social and environmental demands. The business flexibility and crisis management, but its effects
private sector dominates global economic activity, which on firm performance are unknown. Existing research
must help achieve the Sustainable Development Goals. concentrates on Buoyancy's benefits, such as innovation
Companies may support these goals by adopting and company stability, without addressing its drawbacks.
sustainable practices, innovating for input efficiency, and In the context of sustainable results, Buoyancy-induced
fostering social and economic inclusion.
strategy adjustments' costs and inefficiencies are
typically disregarded. Innovation input has been shown
Many firms struggle to align operational strategy with
SDG targets, particularly in uncertain and to relate to Buoyancy to good outcomes, but the multiple
input-constrained situations. Agile organizational paths of Buoyancy—one enhancing firm performance
Buoyancy may help firms overcome such challenges. through innovation and the other limiting it through
Buoyancy helps firms adapt to changes and recover from strategy change—have not been fully examined.
setbacks. The buoyancy–firm performance relationship is Despite their importance in influencing the
complex. Buoyancy may drive innovation and long-term Buoyancy–SDG link, contextual variables, including
value creation, but it can also cause costly strategy home country competitiveness and national SDG
changes that impede sustainability goals.
pledges, are underrepresented in the literature.
Climate change, inequality, and irresponsible Companies with intense industry concentration incur
consumption continue to plague SDG progress. Despite less external risk. If organizational Buoyancy struggles to
growing pressure to contribute, organizations may fail to motivate innovation and execute strategic change, it may
integrate SDG operations and strategy. Buoyancy helps have little or no influence on firm performance. Based on
companies withstand disruptions and accomplish COR theory, this research will examine how
sustainable goals. Nevertheless, Buoyancy is a organizational Buoyancy's internal processes (innovation
double-edged sword. It may enhance innovation and input and strategy change) and boundary factors
input optimization, but can misallocate inputs and (industry concentration) affect firm performance.
generate inefficiencies, particularly during strategic
changes. Thus, firm Buoyancy is expected to contribute Agile organizations enable strategic transformation.
to SDGs as agile firms often have the capabilities to deal However, strategic transformation is expensive. It may
with uncertainties. Buoyancy is expected to enhance firm raise business funding and input coordination expenses,
performance, which is an unexplored research area. hindering green investment, social responsibility,
Further, the studies do not provide the positive and internal control improvement, and firm performance.
negative effects of Buoyancy on firm performance,
innovation, and strategic change. The absence of About the Author: The author is a seasoned banker and credit/risk
comprehensive research on internal and external analyst with over 25 years of professional experience in the financial
modifiers that help firms achieve SDGs is a key driver of sector. He became an Associate Member of the Institute of Cost and
the current thesis. Management Accountants of Pakistan (ICMAP) in 2006 and of the
Institute of Bankers Pakistan (IBP) in 2007. He holds a Master of
Commerce (M.Com) degree from the University of the Punjab, with
Few studies have examined how Buoyancy amplifies or two Gold medals in 2000. He is also pursuing a PhD in Finance and
mitigates sustainable achievement. Innovation input teaches courses in Finance and Taxation.

76 ICMA’s Chartered Management Accountant, May-June 2025