ESG Strategies and Sustainable Performance in Multinational Enterprises

Abstract

This study examines the impact of ESG strategies on sustainable performance in multinational enterprises (MNEs), with a particular focus on the mediating role of internal market-oriented culture (IMOC) and the moderating effect of job crafting. To validate these key mechanisms, the study employs a stratified random sampling method to collect data from 614 employees across manufacturing, service, and technology-intensive industries. The data were analyzed using structural equation modeling (SEM) to test the hypothesized relationships. The empirical results demonstrate that ESG strategies significantly enhance sustainable organizational performance, with IMOC serving as a critical mediator linking ESG strategies to improved outcomes. Furthermore, job crafting strengthens the positive relationship between IMOC and sustainable performance, indicating that when employees proactively reshape their tasks and roles to align with ESG objectives, organizational sustainability is further enhanced. The influence of cultural context plays a crucial role in this process. The findings reveal that the effects of IMOC and job crafting are more pronounced in collectivist cultures (e.g., China and Japan), while in individualist cultures (e.g., the United States and Germany), performance improvements rely more heavily on individual incentives and feedback mechanisms. These insights provide practical guidance for MNE managers on how to tailor ESG strategies, IMOC, and job crafting approaches to specific regional and cultural settings. This study contributes to the literature by demonstrating how ESG strategies interact with internal cultural and behavioral mechanisms to drive sustainable performance in MNEs. It highlights the role of IMOC and job crafting as internal drivers that bridge ESG initiatives with tangible organizational outcomes. From a practical perspective, the findings offer actionable guidance for MNEs on how to design adaptive ESG strategies and employee engagement practices tailored to culturally diverse environments. These insights provide managers with a clear pathway to enhance employee-driven change and improve sustainable performance across global operations.

1. Introduction

In recent years, environmental, social, and governance (ESG) practices have become a cornerstone of corporate sustainability efforts, driven by urgent global challenges such as climate change, resource depletion, and growing socioeconomic inequalities. Beyond meeting regulatory obligations or fulfilling stakeholder expectations, multinational corporations (MNCs) increasingly embrace ESG initiatives as a strategic imperative to enhance resilience, secure a competitive advantage, and achieve sustainable development. Empirical studies consistently highlight the positive impact of ESG activities on corporate performance, illustrating their contributions to environmental stewardship [1,2], social equity [3,4], and governance efficiency [5]. Moreover, firms with robust ESG frameworks have demonstrated superior adaptability during crises, such as the 2008 financial crash and the COVID-19 pandemic, fostering stakeholder trust and maintaining operational continuity [6,7].

While the impact of ESG on external market performance has been extensively explored, limited attention has been paid to the role of internal organizational mechanisms in enhancing the effectiveness of ESG initiatives. Most existing research focuses on the relationship between ESG and financial performance or market outcomes, with relatively little emphasis on how internal culture, employee behavior, and internal processes influence the success of ESG strategies. This research gap is particularly significant for multinational corporations (MNCs), which operate in culturally diverse and geographically dispersed environments. These firms face unique challenges related to cultural diversity, employee expectations, and regulatory compliance, which add complexity to embedding ESG into their internal operations. Addressing how internal organizational mechanisms mediate and amplify the effects of ESG is essential for developing more effective sustainability strategies.

To bridge this research gap, the present study investigates how ESG strategies influence sustainable organizational performance through key internal mechanisms. Two critical internal mechanisms are identified as essential in this process. The first is internal market-oriented culture (IMOC), which reflects the degree to which organizational support, trust, and sustainability goals are aligned, fostering a cohesive internal environment. This study posits that IMOC serves as a mediating variable in the relationship between ESG strategies and sustainable organizational performance. The second mechanism is job crafting, which highlights the proactive efforts of employees to modify their roles, tasks, and interactions to align with organizational sustainability goals. This study proposes that job crafting moderates the relationship between IMOC and sustainable organizational performance, enabling employees to play an active role in reinforcing the impact of IMOC on performance. Together, these two mechanisms provide a comprehensive framework for understanding how internal organizational processes interact with ESG strategies to enhance organizational sustainability.

To test the proposed conceptual framework, this study employs a quantitative research approach using empirical data collected from multinational corporations operating in cross-cultural environments. The study applies structural equation modeling (SEM) to analyze the causal pathways linking ESG strategies, IMOC, job crafting, and sustainable organizational performance. The empirical findings reveal that ESG strategies significantly enhance sustainable organizational performance through the mediating role of IMOC. Moreover, the results demonstrate that job crafting strengthens the positive relationship between IMOC and sustainable organizational performance, illustrating how employee-driven changes amplify the positive impact of internal culture on sustainability outcomes. These findings provide fresh insights into the internal dynamics that drive ESG success and emphasize the role of employee-driven change as a key enabler of sustainable organizational performance.

This study makes several important contributions to both theory and practice. From a theoretical perspective, it extends the application of stakeholder theory and the resource-based view (RBV) by demonstrating how IMOC serves as a critical mediating variable linking ESG strategies to sustainable organizational performance. Unlike prior research that primarily focuses on the external market impact of ESG, this study shifts the focus inward, emphasizing the role of internal culture and employee-driven change in achieving ESG effectiveness. By conceptualizing IMOC as a key internal enabler, the study highlights the internal pathways through which ESG drives sustainability outcomes. Furthermore, the introduction of job crafting as a moderating variable offers new insights into how proactive employee behavior strengthens the link between IMOC and sustainable performance, thereby filling a crucial research gap. From a practical standpoint, the study provides actionable guidance for multinational corporations (MNCs). The findings demonstrate the importance of fostering a strong IMOC that promotes alignment between internal culture and sustainability goals. The results also highlight the value of encouraging employees to engage in job crafting, enabling them to proactively shape their roles and responsibilities in ways that support ESG objectives. This dual approach offers MNCs a scalable, employee-driven strategy to achieve sustainable growth in culturally diverse and geographically dispersed environments.

To guide readers through the research process, the remainder of this paper is structured as follows. Section 2 provides a comprehensive literature review and outlines the research hypotheses. Section 3 describes the methodology, including the research design, data collection methods, and data analysis approach. Section 4 presents the results of the empirical analysis, including tests of the proposed hypotheses. Finally, Section 5 discusses the key conclusions and management implications, highlights the theoretical and practical contributions, and offers insights into the limitations of the study and potential areas for future research.

2. Literature Review and Research Hypotheses

2.1. ESG Activities and Internal Market-Oriented Culture in Multinational Contexts

Research has increasingly shown that ESG activities exhibit significant variation across regions due to differences in cultural norms, regulatory frameworks, and economic conditions [8,9]. Hofstede’s cultural dimensions offer a valuable framework for understanding how cultural differences affect the implementation and effectiveness of ESG initiatives in multinational enterprises (MNCs). By incorporating this framework, MNC managers can design ESG strategies that are culturally sensitive, regionally relevant, and globally aligned. Recent studies on cross-cultural dynamics of ESG initiatives provide additional evidence of how cultural values influence employee engagement, organizational behavior, and sustainability outcomes [8]. This perspective is consistent with broader insights from the CSR and ESG literature, where regional, sectorial, and institutional differences are often cited as key determinants of how sustainability practices are conceptualized and operationalized [10]. For example, environmental initiatives in Scandinavian countries emphasize long-term sustainability goals, reflecting a strong future orientation, while in emerging markets, ESG efforts are often driven by compliance pressures and cost-saving objectives. Such regional differences underscore the need for contextualized ESG strategies that reflect the unique cultural and regulatory environment in which multinational corporations (MNCs) operate. These variations have profound implications for internal market-oriented culture (IMOC) within MNCs. The concept of IMOC has its roots in marketing theory, where employees are regarded as an internal market that requires proactive attention and care from management [11]. According to Lings [12], IMOC emphasizes the notion that managers must balance their attention between the internal market (employees) and the external market (customers). However, priority should be placed on the internal market, as employees play a pivotal role in delivering services to external customers. This view aligns with the service–profit chain model, which suggests that satisfied employees are more likely to provide superior service to customers. The internal organizational characteristics, such as leadership support, communication, and fairness, are ultimately transmitted to the external environment through the actions and behaviors of employees.

Drawing on Schein’s [13] concept of organizational culture, IMOC can be seen as a specific cultural paradigm within organizations that prioritizes the shared assumptions and norms related to employee well-being and development. Schein defines organizational culture as the pattern of shared basic assumptions that a group learns as it solves problems of external adaptation and internal integration. In this study, IMOC is viewed as a manifestation of this shared culture, with a particular focus on how employees, as “producers of services”, engage with internal customers (other employees) and external customers. This perspective highlights that the care and support provided to internal employees have a spillover effect on the way employees interact with external stakeholders. The role of IMOC becomes even more critical in the context of ESG initiatives. As MNCs engage in ESG activities such as environmental stewardship, social responsibility, and good governance, employees are required to align their daily activities with the organization’s sustainability goals. For example, governance activities may require employees to adhere to stricter compliance procedures, while environmental initiatives may call for employee-led efforts to reduce waste and improve energy efficiency. Without an effective internal support system, these expectations can create role ambiguity and resistance. An effective IMOC ensures that employees are not only well-informed but also feel supported in their roles, which fosters stronger alignment with ESG objectives. This alignment is particularly relevant in multinational contexts, where differences in local cultural norms can affect how employees perceive and engage with ESG-related responsibilities.

Barney [14] posits that organizational culture is a key source of sustainable competitive advantage, and IMOC serves as a mechanism through which this advantage can be realized. The ability of MNCs to adapt their internal culture to the local context and support employees in achieving ESG objectives provides a competitive edge. In high-context cultures (e.g., Japan, China), relationship-building and implicit communication are essential for establishing trust and fostering IMOC. By contrast, in low-context cultures (e.g., the United States, Germany), explicit policies and clear communication are more effective in encouraging IMOC. This differentiation underscores the importance of recognizing cultural dimensions such as uncertainty avoidance, power distance, and collectivism as essential factors in shaping the effectiveness of IMOC across diverse regional contexts. Recent studies have also highlighted that ESG initiatives and IMOC are mutually reinforcing [10]. For instance, governance initiatives that emphasize ethical practices and accountability contribute to the development of a stronger IMOC. In parallel, a robust IMOC facilitates the smooth implementation of ESG-related changes by promoting employee engagement, adaptability, and openness to new processes. As managers strive to embed sustainability into the organizational fabric, they must also recognize that IMOC is a key internal enabler for achieving sustainable organizational performance. Building on this theoretical perspective, this study proposes the following hypotheses regarding the relationships between ESG activities and IMOC in multinational contexts:

H_1-1. 

Environmental activities positively influence internal market-oriented culture (IMOC).

H_1-2. 

Social activities positively influence IMOC.

H_1-3. 

Governance activities positively influence IMOC.

2.2. ESG Activities and Organizational Performance in Global Operations

Various methods have been employed by researchers to measure organizational performance. Hubbard [15] points out that a wide range of measurement techniques are used depending on the research context. In the area of corporate sustainability, prior studies have used diverse indicators to evaluate organizational performance [16]. Similarly, Ibrahim et al. [17] examined the validity and reliability of sustainability performance measures, highlighting the importance of measurement accuracy when assessing performance. Given the multi-dimensional nature of organizational performance, researchers such as Tangen [18] have argued that combining various performance dimensions allows for a more holistic and comprehensive understanding of performance outcomes. This approach emphasizes the need for an integrated view of performance rather than relying on a single indicator.

In the field of ESG sustainability performance and reporting, researchers have also highlighted the role of non-financial performance measures [19,20]. These measures include a broad range of criteria, such as quality management, operational efficiency, reputational risk, labor practices, and human capital management. Unlike traditional financial metrics, these non-financial indicators are increasingly essential for evaluating sustainability performance, especially for multinational corporations (MNCs) that are required to disclose ESG-related performance metrics. As ESG reporting becomes more prominent, MNCs are expected to align their organizational performance indicators with global ESG reporting standards, ensuring that their sustainability disclosures remain transparent, consistent, and comparable. In the context of multinational corporations (MNCs), organizational performance is shaped by the diverse regulatory and cultural environments in which these firms operate. While ESG activities are often regarded as enablers of organizational performance, the actual outcomes of ESG implementation can differ significantly due to regional differences in stakeholder expectations, cultural norms, and regulatory requirements. These cross-cultural and cross-regional differences in ESG impact necessitate a more nuanced understanding of how ESG activities affect organizational performance across global operations. Organizational performance in multinational corporations (MNCs) is inherently influenced by the diverse regulatory and cultural environments in which they operate. ESG activities, while generally seen as performance enhancers, often yield varying outcomes depending on local stakeholder expectations and cultural values. For instance, environmental initiatives may yield higher operational efficiency in regions with strict environmental regulations (e.g., the EU), while social activities may have a greater impact in collectivist cultures where community engagement is highly valued [8]. Governance reforms also face challenges in regions with differing perceptions of transparency and accountability. For example, MNCs operating in high-corruption-index countries may experience limited performance gains from governance reforms unless local adaptations are made. The following hypotheses are proposed to capture these dynamics:

H_2-1. 

Environmental activities positively influence organizational performance.

H_2-2. 

Social activities positively influence organizational performance.

H_2-3. 

Governance activities positively influence organizational performance.

2.3. ESG Activities and Financial Performance Across Global Markets

Financial performance is a critical measure of organizational success, and, in most studies, it is assessed using a combination of three main approaches: market performance, firm-reported performance, and perceived performance. These approaches provide a comprehensive understanding of how ESG activities impact a company’s financial outcomes. While the financial performance of multinational corporations (MNCs) engaged in ESG activities is shaped by cultural and institutional frameworks within the markets in which they operate, the adoption of these three perspectives allows for a broader evaluation of financial performance across global markets.

The most prevalent approach for assessing financial performance is market performance, which relies on financial data obtained from financial markets. This approach is widely used due to the availability and accessibility of market information, enabling investors to effectively evaluate, monitor, and compare company performance in relation to its ESG behavior [21]. Key financial performance variables in this method include stock prices, dividends, and market-adjusted returns [22,23,24]. These metrics are used to assess how companies are perceived in the financial market and how ESG activities influence their valuation. A particularly relevant metric is Tobin’s Q, also known as the Q ratio, which is frequently used to determine whether ESG-related behavior impacts a company’s market value [25,26,27]. Tobin’s Q compares the market value of a firm to the replacement cost of its assets, and a higher Q ratio is often seen as an indicator of better financial performance. Given that financial markets reward companies that demonstrate strong ESG performance, MNCs operating in regions with strict ESG enforcement (such as the EU and Japan) often experience higher Tobin’s Q ratios, as these markets place a higher premium on sustainable practices. Conversely, in regions with weaker regulatory enforcement (e.g., parts of Southeast Asia), the financial market may place less emphasis on ESG factors, thereby reducing the impact of ESG activities on Tobin’s Q and other market-based indicators.

The second approach to assessing financial performance involves firm-reported performance metrics, which are calculated using information from corporate financial reports. This approach is particularly valuable as it allows companies to provide a direct view of their own financial health and profitability. Firm-reported performance metrics include indicators such as earnings per share (EPS), return on assets (ROA), return on equity (ROE), return on sales (ROS), and return on capital employed (ROCE) [27,28]. These metrics offer insights into a company’s ability to utilize its assets effectively to generate revenue, profits, and overall value creation. Many studies on ESG and financial performance combine market performance with firm-reported performance metrics to obtain a more comprehensive assessment. For example, Alareeni and Hamdan [26] explored how ESG initiatives influence operational and financial performance, while Buallay [29] analyzed how operational performance is linked to financial returns. Similarly, Ionescu et al. [30] and Tarmuji et al. [31] examined the effects of ESG activities on economic performance, and Alsayegh et al. [32] investigated the impact of ESG on enterprise efficiency. Research suggests that firms engaging in strong ESG governance practices often report higher ROA, ROE, and ROS, as good governance practices improve operational efficiency and reduce risk. This relationship is particularly important for MNCs operating in high-corruption-index countries, where governance reforms aimed at enhancing accountability and transparency can result in substantial financial gains. In such regions, MNCs that strengthen their compliance mechanisms often experience better ROA and ROE as they reduce operational inefficiencies caused by corruption and fraud.

The third approach is perceived performance, which assesses financial performance based on subjective factors such as corporate reputation, management capabilities, employee loyalty, and job performance [33]. While perceived performance is less commonly used in empirical studies due to its subjective nature, it is nonetheless critical for understanding how stakeholders perceive a company’s ESG efforts. This perspective highlights the role of stakeholder trust, brand reputation, and customer loyalty, which are essential for firms that engage in social responsibility initiatives. For example, studies have found that investors often exhibit more patience with companies that demonstrate strong ESG performance, meaning that they are less likely to sell their shares during periods of short-term financial underperformance. Companies with high perceived performance are often able to maintain higher market valuations and are seen as more resilient to economic shocks. Although this type of performance is more difficult to quantify, it plays an essential role in long-term financial success, especially in markets where stakeholder perception and brand equity are critical to competitiveness. However, the use of perceived performance measures is still limited in financial performance research, as most studies prioritize the use of market-based and firm-reported performance indicators [34,35].

Although ESG activities are generally perceived as beneficial for financial performance, some researchers have found that ESG activities do not always lead to immediate financial returns. For instance, Petitjean [36] argue that ESG impacts are often industry-specific. Kotsantonis et al. [37] suggest that the financial impact of ESG activities may be more pronounced in certain industries and with specific types of customers and employees. This implies that the positive impact of ESG is not universal, and its effects on financial performance may depend on industry characteristics, regional regulatory pressures, and cultural attitudes toward ESG. MNCs must recognize that cross-market differences in cultural, regulatory, and industry-specific factors influence the financial returns of ESG activities. In regions with high regulatory stringency (e.g., the EU), ESG investments may produce stronger financial returns, while in regions with lower regulatory pressures, financial outcomes may be less evident. Based on these theoretical and empirical insights, this study proposes the following hypotheses to capture the relationship between ESG activities and financial performance across global markets:

H_3-1. 

Environmental activities positively influence financial performance.

H_3-2. 

Social activities positively influence financial performance.

H_3-3. 

Governance activities positively influence financial performance.

2.4. Internal Market-Oriented Culture (IMOC) in Multinational and Culturally Diverse Organizations

In multinational corporations (MNCs), internal market-oriented culture (IMOC) plays a crucial role in bridging cultural differences and aligning employees toward shared organizational goals. IMOC, as a form of organizational culture, captures employees’ experiences, beliefs, and expectations regarding the extent to which managers genuinely care about them. It reflects the more tangible and visible aspects of organizational culture, particularly those related to observable, norm-based behaviors that shape employee attitudes and actions [38]. By emphasizing the treatment of employees as internal customers, IMOC fosters a work environment where employees feel valued and supported. However, the implementation of IMOC in culturally diverse settings requires careful adaptation to local norms and values to ensure relevance and effectiveness.

IMOC consists of three interrelated systems: internal-market intelligence generation, internal intelligence dissemination, and response to internal intelligence. The process begins with internal-market intelligence generation, which focuses on collecting information about employees’ needs, preferences, and expectations. This process requires managers to engage in active communication with employees and collaboration across departments, promoting a detailed and collective understanding of employee requirements. Once this information is collected, it is shared through the process of internal intelligence dissemination, where relevant stakeholders receive timely and accurate information regarding employee needs. This ensures alignment across departments and establishes a shared understanding of the organizational culture. The final stage, response to internal intelligence, involves managerial actions aimed at addressing employee needs. Managers use the insights gathered to implement new policies, offer training, and introduce other support mechanisms that meet employee expectations. The logical flow of information from intelligence generation to response enables managers to create an employee-centric environment that addresses both employee well-being and organizational goals.

Research has shown that employees’ perceptions of organizational culture are strongly related to their attitudes, behaviors, and performance [39,40]. O’Reilly and Chatman [41] argue that organizational culture is essentially about defining employee attitudes and behaviors, making IMOC a powerful mechanism for shaping employee engagement and productivity. When MNCs establish an IMOC framework, employees experience a sense of support and trust in their organization, which fosters higher levels of employee commitment, motivation, and satisfaction. By treating employees as internal customers, IMOC ensures that employees’ expectations and experiences are taken into account in organizational decision-making, thereby promoting a positive work environment that contributes to better employee performance and organizational success. In the context of multinational corporations (MNCs), the effectiveness of IMOC is contingent on cultural differences and local norms. For instance, in high-power-distance cultures (e.g., many Asian countries), employees may prefer hierarchical communication styles in which instructions flow from senior management down to employees. In such environments, IMOC implementation must consider hierarchical structures and the manager-driven approach to information flow, as employees are more likely to respect and follow decisions made by senior managers. Conversely, in low-power-distance cultures (e.g., Northern Europe), employees tend to prefer participative management approaches, where decision-making is more decentralized. In such settings, the successful implementation of IMOC requires managers to encourage open communication, participative decision-making, and employee voice. By incorporating employee feedback into key decisions, managers in low-power-distance contexts can create a collaborative working environment that promotes IMOC principles.

Another key cultural dimension that shapes the effectiveness of IMOC is the distinction between collectivist and individualist cultures. In collectivist cultures (e.g., Japan, China, South Korea), employees emphasize group harmony, shared goals, and team-based collaboration. Therefore, IMOC strategies in these environments should prioritize team-based rewards, group-level incentives, and collective recognition. The emphasis on collective efforts promotes a shared sense of purpose, making employees more likely to work together to achieve organizational objectives. In contrast, in individualist cultures (e.g., the United States, United Kingdom), employees prioritize personal achievements and individual performance. IMOC strategies in such contexts should focus on individualized support, personalized feedback, and performance-based incentives. Employees in individualist cultures tend to value personalized development opportunities, meaning that IMOC initiatives should aim to foster individual growth and recognition. The impact of IMOC extends beyond employee well-being and performance to influence organizational and financial performance. When MNCs create a supportive, employee-friendly, and inclusive working environment, employees are better positioned to develop their skills and abilities. Such environments foster employee satisfaction and engagement, leading to higher productivity, enhanced operational efficiency, and stronger financial outcomes. Employees in IMOC-driven organizations are more likely to remain loyal and committed, reducing turnover rates and enabling organizations to retain highly skilled and experienced talent. As a result, firms experience improvements in financial performance, as employee-driven efficiency translates into cost reductions, improved customer service, and enhanced market reputation. Research by Leekha and Sharma [42] supports this notion, suggesting that employees working in friendly and supportive organizational environments exhibit stronger loyalty, commitment, and motivation, which in turn leads to enhanced organizational performance.

The role of IMOC is particularly important in the context of ESG (environmental, social, and governance) activities. ESG initiatives aim to promote sustainability, social responsibility, and ethical governance. By embedding IMOC principles into their ESG strategies, MNCs can enhance the effectiveness of ESG activities. For instance, during environmental initiatives such as waste reduction or energy-saving campaigns, employees are more likely to participate actively when they feel that their organization values their contributions. Similarly, when MNCs engage in social initiatives such as promoting diversity, equity, and inclusion (DEI), IMOC fosters greater employee buy-in and cooperation. Employees who perceive a supportive organizational environment are more willing to support diversity and inclusion initiatives. Finally, governance initiatives aimed at strengthening accountability, ethical leadership, and transparency benefit from IMOC, as employees are more likely to adopt governance-related practices in an environment where open communication and mutual respect are present. In this sense, IMOC serves as a bridge that links ESG initiatives to improved organizational and financial outcomes. The impact of IMOC on organizational performance and financial performance is explored through the following hypotheses. First, it is hypothesized that IMOC positively influences financial performance, with cultural dimensions such as collectivism and individualism serving as moderators. In collectivist cultures, employees may feel more motivated to work toward collective goals, while in individualist cultures, employees are more likely to respond to individualized incentives. This relationship is articulated in the following hypothesis:

H₄. 

Internal market-oriented culture (IMOC) positively influences financial performance.

Next, IMOC is expected to have a positive influence on organizational performance, with power distance and uncertainty avoidance serving as moderating factors. In high-power-distance cultures, hierarchical communication and strong leadership support may strengthen IMOC’s influence on performance. Meanwhile, in uncertainty-avoiding cultures, IMOC can reduce employee anxiety and resistance to change, leading to better performance outcomes. This relationship is reflected in the following hypothesis:

H₅. 

IMOC positively influences organizational performance.

The mediating role of IMOC in the relationship between ESG activities and financial and organizational performance is explored through the following hypotheses. It is proposed that IMOC mediates the link between environmental, social, and governance (ESG) activities and financial performance, and that this mediation effect is stronger in contexts where cultural norms support employee inclusion, openness, and trust. Similarly, IMOC is hypothesized to mediate the relationship between ESG activities and organizational performance, especially in regions with strong cultural norms of power distance and collectivism. The following hypotheses are proposed to reflect this mechanism:

H_6-1 to H_6-3.

IMOC mediates the relationship between environmental, social, and governance (ESG) activities and financial performance.

H_7-1 to H_7-3.

IMOC mediates the relationship between ESG activities (environmental, social, and governance) and organizational performance.

2.5. Job Crafting in Multinational Contexts: Moderating ESG Activities’ Impact on Performance

Job crafting refers to the self-initiated changes employees make in their tasks, roles, or work relationships to better align with their personal strengths, interests, and organizational goals [41,43]. Since its introduction by Wrzesniewski and Dutton in 2001, job crafting has been conceptualized through three main dimensions: task crafting, which involves changing the nature or quantity of job tasks; relational crafting, which refers to altering how employees interact with colleagues or stakeholders; and cognitive crafting, which involves reshaping how employees perceive their jobs. By actively modifying these aspects, employees create better alignment between their job demands and their personal capacities, fostering improved engagement, motivation, and well-being.

Subsequent research has advanced the job crafting concept by incorporating elements from the job demands–resources (JD-R) model [44,45]. This model frames job crafting as an effort to increase job resources, increase challenging job demands, and reduce hindering job demands. For example, employees might seek out more challenging tasks, request additional feedback and support from supervisors (increasing resources), or streamline administrative processes to eliminate unnecessary work (reducing hindering demands). Zhang and Parker [46] built on this approach by introducing the idea of approach-oriented and avoidance-oriented job crafting, resulting in eight distinct types of job crafting behaviors, such as approach resource crafting and distancing cognitive crafting. Most early conceptualizations of job crafting focused on changing the content of tasks or relationships while neglecting the role of personal resources. Personal resources refer to individual attributes such as self-efficacy, resilience, and a sense of control [47]. These resources help employees achieve their work-related goals and enhance their ability to navigate complex work environments. Freund and Riediger [48] note that personal resources include interests, strengths, knowledge, growth potential, and skills, all of which play a significant role in job performance. Employees are more engaged when they can leverage their personal resources in the workplace. Kooij et al. [49] and Kuijpers et al. [50] further highlight that job crafting can be used to align personal resources with job demands, such as by engaging in projects aligned with their personal interests, restructuring tasks to play to their strengths, or creating opportunities to use untapped knowledge and skills. This alignment is especially important in multinational corporations (MNCs) where employees operate in culturally diverse and institutionally complex environments.

In the context of MNCs, job crafting takes on greater significance as employees face diverse expectations, cultural differences, and varying local ESG (environmental, social, and governance) priorities. As MNCs operate in different cultural and regulatory environments, the form and effectiveness of job crafting can vary considerably. For instance, in countries with high uncertainty avoidance (e.g., Japan and South Korea), employees may approach job crafting cautiously, focusing on reducing the ambiguity of ESG-related tasks and responsibilities. This may involve simplifying processes, increasing clarity in ESG reporting, or setting up concrete guidelines for sustainability-related roles. Conversely, in cultures characterized by low uncertainty avoidance (e.g., the United States and Singapore), employees are more likely to engage in proactive job crafting. They may seek new challenges related to sustainability and social responsibility, experiment with new approaches, and explore innovative solutions for achieving ESG objectives.

Cultural dimensions like individualism and collectivism also influence job crafting behavior. In individualist cultures (e.g., the United States, United Kingdom), employees may prioritize individual goal achievement and personal growth, which is reflected in their job crafting behavior. Here, employees are more inclined to personalize their roles and tailor job tasks to their strengths. For instance, employees might seek to play leadership roles in ESG initiatives, create individualized contributions to environmental campaigns, or request one-on-one development opportunities. In collectivist cultures (e.g., China, India, and Japan), employees are more focused on group harmony and collective goals, which leads to job crafting that prioritizes team-based work. In these contexts, relational crafting becomes more prominent as employees collaborate to support ESG goals. For example, employees may redefine relationships with colleagues to foster greater team collaboration on social ESG initiatives, such as projects focused on diversity, equity, and inclusion (DEI).

The nature of job crafting also depends on local ESG priorities and regulatory environments. For example, in regions with stringent environmental regulations (e.g., the European Union), employees are more likely to engage in task crafting behaviors related to sustainability. They might take the initiative to reduce waste, improve energy efficiency, or streamline workflows to align with green production goals. In governance-related job crafting, employees working in high-corruption-index countries often engage in activities that increase compliance, transparency, and accountability. These actions might include redefining perceptions of compliance roles, creating whistleblower mechanisms, or developing ethical guidelines to ensure alignment with local governance expectations. Given these cross-cultural differences, it is essential for MNCs to support job crafting as part of their global ESG strategy. By fostering job crafting, MNCs can encourage employees to tailor their tasks and roles in ways that enhance both individual and organizational contributions to ESG initiatives. This study proposes the following hypotheses to test the role of job crafting as a moderator in the relationship between ESG activities and organizational performance:

H_8-1 to H_8-3.

Job crafting moderates the relationship between ESG activities (environmental, social, and governance) and financial performance.

H_9-1 to H_9-3.

Job crafting moderates the relationship between ESG activities (environmental, social, and governance) and organizational performance.

To enhance readability and engagement, a conceptual diagram that illustrates the relationships between ESG strategies, IMOC, job crafting, and sustainable performance is shown in Figure 1.

Huang [51] provides a holistic review on ESG, emphasizing the development and application of the ESG concept and introducing the triple bottom line framework (economic, environmental, and social dimensions), illustrating its key role in business strategy. Huang emphasized that institutional pressure and stakeholder demands are important factors driving multinational corporations (MNCs) to adopt ESG strategies, especially when MNCs operate in different regions and must face challenges from regional regulatory pressures and cultural differences. This perspective is highly consistent with the core topic of this study, as this study focuses on the interactive relationship between ESG, IMOC, and job crafting and explores the moderating role of cultural and institutional context on ESG strategies. Linking this study to Huang’s review, it is clear how the concepts of IMOC and job crafting can complement the implementation of ESG strategies and provide companies with new insights into driving ESG effectiveness from an internal perspective.

Nyabakora and Mohabir [10] conducted a meta-analysis of the ESG-performance relationship across industries and regions, revealing the problem of performance heterogeneity in ESG activities. The study found that the impact of ESG activities on corporate performance is inconsistent and that specific performance depends on industry characteristics, corporate size, geographic location, and regional cultural and institutional environments. Of particular concern, the study notes that the moderating role of cultural, regulatory, and institutional factors is often overlooked in the relationship between ESG and performance. Through a quantitative analysis of cross-cultural influences, Nyabakora and Mohabir propose the moderating role of regional cultural dimensions (e.g., uncertainty avoidance, collectivism versus individualism, power distance) in the ESG–performance relationship. This coincides with the theoretical framework of this study, which considers job crafting and IMOC as core mediating and moderating mechanisms in the relationship between ESG and performance. For example, in cultures with high uncertainty avoidance (such as Japan and South Korea), employees may be more cautious in adjusting ESG-related tasks, while in individualistic cultures (such as the United States and the United Kingdom), employees may be more inclined to do so, as well as to optimize job shaping to achieve ESG goals.

3. Methodology

3.1. Research Design

This study employs a quantitative research design to investigate the relationships between environmental, social, and governance (ESG) activities; internal market-oriented culture (IMOC); job crafting; and performance outcomes within multinational organizational contexts. A cross-sectional survey method was used to collect data from employees and managers across a variety of industries and geographic regions, ensuring a diverse representation of organizational environments. The survey was designed using validated scales for all constructs and distributed via online platforms to maximize reach, convenience, and efficiency. This design enables the study to capture a comprehensive view of how ESG practices interact with internal cultural and behavioral dynamics to influence organizational and financial performance.

3.2. Sample and Data Collection

The target population for this study consisted of employees and managers working in medium to large multinational corporations (MNCs) that have actively implemented ESG initiatives. For this study, medium to large MNCs were defined as companies with over 500 employees and international operations spanning at least two countries, ensuring a diverse and representative organizational scope. To achieve a balanced representation across industries and regions, a stratified random sampling method was employed. The population was divided into strata based on industry sector and geographic region, ensuring proportionate participation from each subgroup. The industry classification included four key sectors: manufacturing, services, technology, and finance, which were selected based on their active engagement in ESG practices. Geographic representation was structured around four major regions: Taiwan, mainland China, Southeast Asia, and other regions. This approach ensured coverage of regions with distinct regulatory, cultural, and economic environments that are known to influence ESG adoption and internal organizational behavior.

To ensure that respondents had sufficient familiarity with the organization’s ESG practices and internal culture, we established an eligibility criterion requiring participants to have at least one year of tenure in their current organization. This criterion was intended to ensure that participants were able to provide informed responses based on their experience with ESG initiatives within their organization. The data collection process spanned a six-month period from February to August 2024. A total of 800 surveys were distributed using a combination of online survey platforms and company email invitations. To encourage participation, follow-up reminders were sent at three intervals during the data collection period. As a result, we received 650 completed responses, representing a response rate of 81%. After conducting a thorough data cleaning process, which included removing incomplete responses and those with inconsistent or outlier values, the final dataset comprised 614 valid responses. This final sample included employees from diverse job roles, tenure levels, and organizational positions, reflecting perspectives from both operational and managerial roles across multiple cultural and operational contexts. To further ensure data quality and reliability, we performed checks for response bias and conducted a non-response analysis to assess whether the characteristics of respondents differed significantly from non-respondents. No significant differences were found, confirming that the sample was representative of the broader population. These measures enhance the generalizability and robustness of the study’s findings.

3.3. Measurement Tools

To measure ESG activities, this study adapted a multi-dimensional scale informed by prior research, including studies by Hoepner et al. [1] and Friede et al. [52]. The scale assesses three key components: environmental, social, and governance. The environmental dimension captures efforts in resource efficiency, energy conservation, and pollution control, while the social dimension focuses on employee well-being, community engagement, and diversity initiatives. The governance dimension evaluates transparency, ethical standards, and board accountability. All responses were recorded on a five-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree).

Internal market-oriented culture (IMOC) was assessed using the framework developed by Lings and Greenley [11], which includes three components: internal intelligence generation, dissemination, and response. These dimensions reflect managerial efforts to gather, share, and act on information about employee needs and expectations. The scale was adapted for this study through a rigorous translation and back-translation process to ensure cultural relevance and reliability across diverse contexts. Job crafting was measured using the Job Crafting Scale (JCS) by Tims et al. [43], which evaluates task, relational, and cognitive crafting. Additional items were incorporated based on Kooij et al. [49] to capture employees’ ability to align their job roles with personal resources such as strengths, interests, and unused skills. This integration ensures that the scale reflects the nuanced behaviors employees exhibit in adapting their work to align with ESG goals. To measure financial performance, this study employed a scale adapted from Kaplan and Norton [53], focusing on profitability, revenue growth, and cost efficiency. Organizational performance was assessed using indicators from Martinez-Conesa et al. [16], evaluating dimensions such as employee satisfaction, productivity, and operational effectiveness. Both scales utilized a five-point Likert scale to capture participant perceptions of performance outcomes.

3.4. Data Analysis

The collected data were analyzed using SPSS Statistics 22 and AMOS 28 software. Descriptive statistics were first conducted to examine the demographic characteristics of the sample, including variables such as gender, age, education level, marital status, job roles, and work location. This initial step provided an overview of the sample structure and helped ensure data quality. Reliability and validity were assessed using Cronbach’s α for internal consistency and confirmatory factor analysis (CFA) for construct validity. All constructs demonstrated strong reliability, with Cronbach’s Alpha values exceeding the acceptable threshold of 0.7. CFA results confirme d that the measurement model exhibited strong structural integrity and alignment with the theoretical framework.

Structural equation modeling (SEM) was employed to test the direct and indirect relationships among the constructs, providing a robust statistical framework for hypothesis testing while accounting for measurement errors. Model fit was assessed using indices such as chi-square (χ²), root mean square error of approximation (RMSEA ≤ 0.08), comparative fit index (CFI ≥ 0.90), and normed fit index (NFI ≥ 0.90). After achieving satisfactory model fit, SEM was used to quantify the effects of ESG activities and IMOC on performance outcomes. The mediating and moderating roles of IMOC and job crafting were examined using the bootstrap method, with 5000 resamples to calculate the significance of indirect effects. This approach provided strong evidence for mediation and moderation effects, clarifying the relationships between the key constructs.

3.5. Sample Characteristics

To provide a comprehensive understanding of the sample composition, we present a detailed overview of the sample’s demographic and professional characteristics in

Table 1. Sample characteristics.

Variable	Category	Number (N = 614)	Percentage (%)
Gender	Male	268	43.6%
	Female	436	56.4%
Age	Under 30	72	11.7%
	31–40	146	23.8%
	41–50	244	39.7%
	Over 50	152	24.8%
Education	Diploma/Associate	170	27.2%
	Bachelor’s	250	40.7%
	Master’s or above	194	31.6%
Job Role	General Employee	216	35.2%
	Frontline Supervisor	136	22.1%
	Mid-to-Senior Manager	262	42.7%
Industry	Manufacturing	268	43.6%
	Services	226	36.8%
	Finance	120	19.6%
Geographic Region	Taiwan	200	32.6%
	Mainland China	177	28.8%
	Southeast Asia	172	28.0%
	Other Regions	65	10.6%

: sample characteristics. This table summarizes key variables such as gender, age, educational attainment, job position, and geographic distribution, which are critical for understanding the diverse perspectives captured in this study. The sample consisted of 614 valid responses, reflecting a broad and diverse participant base. Of the respondents, 56.4% were female and 43.6% were male, indicating a slightly higher proportion of female participants, which may reflect the growing presence of women in roles related to sustainability and ESG initiatives. Age distribution was relatively balanced, with 11.7% under the age of 30, 23.8% aged 31–40, 39.7% aged 41–50, and 24.8% over the age of 50, ensuring that the perspectives of early, mid, and late-career professionals were included.

With respect to educational attainment, the largest proportion of participants held a bachelor’s degree (40.7%), followed by those with a master’s degree or higher (31.6%) and those with a diploma or associate degree (27.7%). The variety in educational backgrounds ensures a diverse knowledge base in the participant pool, which strengthens the study’s ability to generalize findings across different skill levels. The participants also represented a diverse range of job positions, with 35.2% classified as general employees, 22.1% as frontline supervisors, and 42.7% as mid- to senior-level managers. This distribution reflects the perspectives of both operational employees and strategic decision-makers, allowing for a holistic understanding of how ESG practices are perceived across organizational levels.

Finally, in terms of geographic representation, 32.6% of respondents were from Taiwan, 28.8% from mainland China, 28.0% from Southeast Asia, and 10.6% from other regions. This regional distribution supports the study’s aim of examining cross-cultural influences on ESG practices and provides a diverse contextual perspective. The diversity of industry, geography, and job roles in this sample strengthens the external validity of the study’s findings. The following table (Table 1) presents a concise summary of the sample characteristics, offering a clear overview of the participant distribution.

3.6. Ethical Considerations

Ethical standards were rigorously maintained throughout the research process. Participants were fully informed of the study’s objectives and voluntarily provided consent prior to participation. Surveys were completed anonymously to safeguard privacy, and all data were securely stored for academic purposes only. Upon the study’s conclusion, the data were responsibly disposed of to prevent misuse, ensuring the integrity and ethical credibility of the research process.

4. Results

4.1. Factor Analysis

The results of the confirmatory factor analysis (CFA) indicate that the multidimensional structures of the four scales—ESG practices, internal market-oriented culture (IMOC), job crafting, and organizational performance—are well supported. All measurement items showed significant factor loadings, meeting the requirements of their respective theoretical constructs and demonstrating good convergent validity. Additionally, the model fit indices for all constructs reached satisfactory levels, indicating a high degree of consistency between the data and the hypothesized model structure. As shown in

Table 2. Results of confirmatory factor analysis (CFA).

Constructs	χ2	df	CFI	TLI	SRMR	RMSEA
ESG Practices	545.00	165	0.95	0.94	0.06	0.06
Internal Market-Oriented Culture (IMOC)	210.00	70	0.98	0.97	0.05	0.06
Job Crafting	165.00	50	0.97	0.96	0.06	0.06
Organizational Performance	168.00	60	0.96	0.95	0.05	0.06

Notes: χ² (chi-square): a measure of model fit, with smaller values indicating better fit relative to the degrees of freedom (df); df (degrees of freedom): the number of free parameters in the model; CFI (comparative fit index): values above 0.90 indicate good model fit; TLI (Tucker–Lewis index): values above 0.90 are indicative of acceptable fit; SRMR (standardized root mean square residual): values below 0.08 suggest a good fit; RMSEA (root mean square error of approximation): a value below 0.08 indicates good model fit.

, the comparative fit index (CFI) and Tucker–Lewis index (TLI) for all constructs exceeded 0.90, while the standardized root mean square residual (SRMR) and root mean square error of approximation (RMSEA) were below 0.08, signifying excellent model fit.

For the ESG practices scale, the chi-square value (χ²) was 545 with 165 degrees of freedom (p < 0.001), suggesting room for further model refinement. However, the fit indices, including a CFI of 0.93 and a TLI of 0.92, exceeded the 0.90 threshold, indicating a good overall fit. The residual fit indices, SRMR (0.06) and RMSEA (0.07), fell within the acceptable range of 0.06 to 0.08, further confirming the model’s adequacy. These results demonstrate that while the ESG practices scale performs well, minor adjustments could enhance its precision.

The internal market-oriented culture scale showed excellent model fit, with a chi-square value (χ²) of 210 and 70 degrees of freedom (p < 0.001). The CFI and TLI scores were 0.98 and 0.97, respectively, reflecting a high level of fit. Residual indices, including an SRMR of 0.05 and an RMSEA of 0.06, with a confidence interval between 0.05 and 0.07, indicated strong residual adequacy. While the model already demonstrates robustness, slight refinements could further optimize its structure. For the job crafting scale, the chi-square value (χ²) was 165 with 50 degrees of freedom (p < 0.001), suggesting that slight improvements could enhance its fit. Nonetheless, the fit indices, with a CFI of 0.97 and a TLI of 0.96, reflect excellent model performance. The residual indices, SRMR (0.05) and RMSEA (0.07), are within acceptable ranges, confirming that the scale has a solid structural foundation. These results validate the job crafting scale’s effectiveness for further analysis. The organizational performance scale exhibited strong model fit, with a chi-square value (χ²) of 168 and 60 degrees of freedom (p < 0.001). The fit indices were high, with a CFI of 0.96 and a TLI of 0.95. Residual indices, including an SRMR of 0.05 and an RMSEA of 0.06, with a confidence interval from 0.05 to 0.07, further supported the model’s adequacy. While the scale performs well overall, additional refinements could improve its precision and interpretability.

In summary, the CFA results confirmed that the scales for ESG practices, internal market-oriented culture, job crafting, and organizational performance are robust and meet all established standards for model fit. These findings provide both theoretical and empirical support for the subsequent regression and structural equation modeling analyses. However, minor adjustments to certain models could enhance their precision and explanatory power, contributing to more accurate and insightful results.

4.2. Internal Consistency

Table 3. Internal consistency and convergent validity results (N = 614).

Constructs	Items	Factor Loadings	CR	AVE	Cronbach’s α
Environmental Activities	EA1–EA6	0.78–0.89	0.93	0.59	0.92
Social Activities	SA1–SA6	0.85–0.90	0.94	0.62	0.94
Governance Activities	GA1–GA6	0.81–0.89	0.93	0.60	0.92
Internal Market-Oriented Culture	IMOC1–IMOC7	0.80–0.88	0.92	0.43	0.93
Job Crafting	JC1–JC4	0.81–0.88	0.88	0.54	0.86
Organizational Performance	OP1–OP4	0.69–0.79	0.79	0.42	0.89
Financial Performance	FP1–FP6	0.82–0.91	0.93	0.51	0.93

Notes: CR (composite reliability): Measures the internal consistency of the construct. Values above 0.70 are considered acceptable. AVE (average variance extracted): Represents the amount of variance captured by the construct relative to the variance due to measurement error. A value of 0.50 or higher indicates sufficient convergent validity. Cronbach’s α: Assesses the internal consistency reliability of the scale. Values above 0.70 are considered acceptable, while values above 0.90 indicate excellent reliability. Factor Loadings: Indicate the degree to which each item correlates with its underlying construct. Values should generally exceed 0.70 for good construct validity. Items (e.g., EA1–EA6): Refer to the specific observed indicators (survey items) used to measure each construct. For example, EA1–EA6 indicates six items used to measure environmental activities.

summarizes the internal consistency of the scales measured using Cronbach’s α. All constructs and their respective items achieved Cronbach’s α values above the commonly accepted threshold of 0.70, indicating good internal reliability. These results demonstrate that the scales are suitable for measuring their intended constructs, providing a solid basis for subsequent statistical analyses. The composite reliability (CR) values for all constructs exceeded the 0.70 threshold, further confirming the consistency of the measures. Most constructs also achieved average variance extracted (AVE) values above the recommended benchmark of 0.50, supporting the convergent validity of the scales. These findings underscore the robustness of the measurement model, ensuring that the data collected accurately reflect the theoretical constructs under investigation.

The internal consistency results confirm that the scales used in this study are reliable and valid for measuring ESG practices, internal market-oriented culture, job crafting, organizational performance, and financial performance. The high Cronbach’s α values indicate that the items within each scale are closely related and measure a common underlying construct. The CR and AVE values provide additional evidence of the constructs’ internal consistency and convergent validity. These findings ensure the robustness of the measurement model, enhancing the credibility and reliability of the subsequent regression analyses and structural equation modeling. They provide a strong foundation for examining the theoretical relationships proposed in the study.

4.3. Statistical Analysis of Demographic Effects

This study analyzed data from 614 respondents to evaluate their assessments of ESG practices, internal market-oriented culture (IMOC), job crafting, and organizational performance. The descriptive results included the demographic characteristics of the sample and the impact of demographic variables on the key constructs. Independent samples t-tests and one-way analysis of variance (ANOVA) were used to identify these effects.

Table 4. Demographic information of the data (N = 614).

Attribute	N (%)	ESG Practices (M, SD)	IMOC (M, SD)	Job Crafting (M, SD)	Organizational Performance (M, SD)	Financial Performance (M, SD)
Gender
Male Female	268 (43.6%) 346 (56.4%)	4.45 (0.68) 4.45 (0.61) t = −0.61	4.47 (0.68) 4.43 (0.61) t = 0.81	4.36 (0.69) 4.25 (0.67) t = 1.74	4.22 (0.70) 4.12 (0.73) t = 1.71	4.24 (0.78) 4.19 (0.70) t = 0.78
Age
<30 years 31–40 years 41–50 years >51 years	72 (11.7%) 156 (23.8%) 244 (39.7%) 152 (24.8%)	3.85 (1.30) 4.43 (0.53) 4.44 (0.61) 4.58 (0.54) F = 4.94 **	4.00 (1.33) 4.41 (0.67) 4.35 (0.64) 4.62 (0.51) F = 4.01 **	4.03 (0.73) 4.22 (0.68) 4.26 (0.58) 4.29 (0.68) F = 4.06 **	3.85 (0.85) 4.11 (0.73) 4.14 (0.66) 4.16 (0.72) F = 3.11 **	4.14 (0.91) 3.94 (0.83) 4.12 (0.72) 4.36 (0.65) F = 2.91 **
Marriage
Unmarried Married	122 (19.9%) 492 (80.1%)	4.29 (0.75) 4.49 (0.60) t = −3.19 **	4.21 (0.83) 4.50 (0.57) t = −3.50 **	4.03 (0.80) 4.35 (0.64) t = −4.66 **	3.99 (0.82) 4.21 (0.68) t = −3.12 **	4.08 (0.82) 4.24 (0.71) t = −2.12 *
Education
Diploma University Master	170 (27.7%) 250 (40.7%) 194 (31.6%)	4.57 (0.55) 4.52 (0.57) 4.46 (0.64) F = 2.01	4.30 (0.67) 4.46 (0.51) 4.47 (0.19) F = 4.45 **	4.12 (0.72) 4.14 (0.77) 4.13 (0.60) F = 3.12	4.11 (0.72) 4.14 (0.77) 4.22 (0.65) F = 0.88	4.22 (0.76) 4.27 (0.75) 4.32 (0.64) F = 1.78
Job Position
Employee Supervisor Manager	216 (35.2%) 136 (22.1%) 262 (42.7%)	4.39 (0.71) 4.46 (0.59) 4.49 (0.60) F = 1.51	4.36 (0.75) 4.42 (0.57) 4.52 (0.55) F = 3.96	4.08 (0.77) 4.36 (0.58) 4.43 (0.61) F = 18.1 **	3.94 (0.73) 4.18 (0.72) 4.35 (0.65) F = 21.03 **	4.16 (0.76) 4.25 (0.70) 4.23 (0.73) F = 0.73
Work Location
Taiwan China S.E. Asia Other	200 (32.6) 177 (28.8%) 172 (28.0%) 65 (10.6)	4.46 (0.68) 4.41 (0.59) 4.51 (0.65) 4.40 (0.64) F = 0.81	4.44 (0.66) 4.40 (0.62) 4.50 (0.61) 4.43 (0.68) F = 0.78	4.27 (0.71) 4.26 (0.70) 4.35 (0.62) 4.28 (0.72) F = 0.61	4.16 (0.72) 4.14 (0.74) 4.20 (0.70) 4.18 (0.68) F = 0.24	4.24 (0.73) 4.12 (0.74) 4.28 (0.72) 4.19 (0.78) F = 1.39

Notes: * p < 0.05; ** p < 0.01.

presents the means (M) and standard deviations (SD) of the main variables based on key demographic attributes such as gender, age, marital status, education level, job position, and work location. The analysis revealed significant differences in several constructs across different demographic groups. For gender, while slight differences were observed in the mean scores for ESG practices, IMOC, job crafting, and performance variables, these differences were not statistically significant. Male respondents tended to score slightly higher on most constructs compared to female respondents. For age, ANOVA results indicated significant differences across all constructs. Respondents aged 51 years and above reported higher mean scores for ESG practices (F = 4.94, p < 0.01), IMOC (F = 4.01, p < 0.01), job crafting (F = 4.06, p < 0.01), organizational performance (F = 3.11, p < 0.01), and financial performance (F = 2.91, p < 0.01). These findings suggest that older respondents perceive these constructs more favorably. For marital status, married respondents reported significantly higher scores across all constructs compared to unmarried respondents. The largest differences were observed in IMOC (t = −3.50, p < 0.01) and job crafting (t = −4.66, p < 0.01). For education level, ANOVA results revealed significant differences in IMOC (F = 4.45, p < 0.01), with respondents holding a university or master’s degree scoring higher than those with a diploma or associate degree. Other constructs showed no significant differences.

For job position, ANOVA results indicated significant differences in IMOC (F = 3.96, p < 0.01), job crafting (F = 18.1, p < 0.01), and organizational performance (F = 21.03, p < 0.01). Mid- to senior-level managers consistently scored higher than frontline supervisors and general employees. For work location, no significant differences were found across all constructs, suggesting that respondents’ assessments of ESG practices, IMOC, job crafting, and performance were consistent regardless of their geographical location.

The results show that demographic variables such as age, marital status, education level, and job position significantly influence respondents’ evaluations of ESG practices, IMOC, job crafting, and performance outcomes. Conversely, work location showed no significant impact on these constructs. These findings provide valuable insights for organizations to develop targeted strategies and interventions tailored to the needs and perspectives of different demographic groups.

4.4. Analysis Results of Correlations

Table 5. Descriptive statistics and correlation matrix (N = 614).

	Mean	SD	1	2	3	4	5	6	7
1. Environmental Activities	4.465	0.6703	1	0.741 **	0.700 **	0.695 **	0.547 **	0.435 **	0.553 **
2. Social Activities	4.469	0.6699		1	0.843 **	0.756 **	0.601 **	0.419 **	0.635 **
3. Governance Activities	4.432	0.684			1	0.805 **	0.617 **	0.467 **	0.674 **
4. Internal Market-Oriented Culture	4.497	0.6376				1	0.665 **	0.481 **	0.679 **
5. Job Crafting	4.290	0.6844					1	0.597 **	0.654 **
6. Organizational Performance	4.167	0.717						1	0.569 **
7. Financial Performance	4.211	0.7367							1

Notes: N = 614 represents the sample size used in the study. SD refers to standard deviation, indicating the variability of responses. ** p < 0.01. Correlation coefficients (e.g., 0.741) denote the strength and direction of the relationship between variables. Coefficients were statistically significant at p < 0.01.

presents the means, standard deviations, and correlation matrix for the variables included in this study. As hypothesized, all correlations between the variables are positive and statistically significant, supporting the expected relationships among ESG practices, internal market-oriented culture (IMOC), job crafting, and performance outcomes. Notably, direct relationships between variables show stronger correlations compared to indirect relationships, aligning with the theoretical framework of the study. For example, governance activities are more strongly correlated with IMOC (r = 0.805, p < 0.01) than with job crafting (r = 0.617, p < 0.01) or financial performance (r = 0.674, p < 0.01). To verify the absence of multicollinearity, we examined the variance inflation factor (VIF) scores. All VIF scores were below the commonly accepted threshold of 10, with the highest score being 4.77. This confirms that multicollinearity is not a concern in this study, ensuring the robustness of the regression analysis.

The correlation analysis supports the hypotheses of the study, indicating strong and statistically significant relationships among ESG practices, IMOC, job crafting, and performance outcomes. The results validate the proposed theoretical model, with higher correlations observed in direct relationships compared to indirect ones. The absence of multicollinearity further strengthens the reliability of these findings, ensuring the validity of subsequent regression and structural equation modeling analyses.

4.5. Analysis Results of Hierarchical Multiple Regression

This study utilized hierarchical multiple regression analysis to explore the relationships among ESG practices, internal market-oriented culture (IMOC), job crafting, organizational performance, and financial performance. Demographic variables, including gender, age, marital status, education, and occupation, were incorporated as control variables to ensure the robustness of the analysis. ESG practices were treated as the independent variable, organizational and financial performance were the dependent variables, IMOC acted as the mediating variable, and job crafting was used as the moderating variable. The regression results, summarized in

Table 6. Hierarchical multiple regression for ESG and organizational performance (N = 614).

	Internal Market-Oriented Culture			Organizational Performance
	M1	M2	M3	M4	M5	M6	M7	M8	M8-1
Control variables
Gender	−0.04	−0.01	−0.03	−0.09	−0.16	−0.07	−0.06	−0.03
Age	−0.01	0.02	−0.02	−0.01	0.03	0.00	0.01	−0.02
Marriage	−0.02	−0.02	0.03	0.06	0.03	0.08	0.08	0.03
Education	0.00	0.05	0.02	0.03	−0.04	0.05	0.04	0.02
Job position	0.12 **	0.16 **	0.52 **	0.14 *	−0.12	0.15	0.04	0.44 **
Work location	0.09	0.08	−0.06	−0.07	−0.04	−0.08	−0.12	−0.06
Independent variables
Environmental Activities	0.71 **			0.44 *
Social Activities		0.83 **			0.42 *
Governance Activities			0.59 **			0.46 *
Internal Market-Oriented Culture							0.48 *
Job Crafting								0.59 **
IMOC × JC									0.18 **
R2	0.49	0.69	0.68	0.19	0.18	0.47	0.24	0.36	0.40
Adj-R2	0.48	0.68	0.67	0.18	0.17	0.21	0.23	0.35
F	28.2 **	49.3 **	108.1 *	71.2 *	64.9 *	84.9 *	94.6 **	168.6 *
Change in R2	0.01	0.01	0.01	0.02	0.02	0.02	0.03	0.01	0.01 **

Notes. ** p < 0.01, * p < 0.05.

and

Table 7. Hierarchical multiple regression for ESG and financial performance (N = 614).

	Financial Performance
	M9	M10	M11	M12	M13	M13-1
Control variables
Gender	−0.05	−0.03	−0.03	−0.02	0.02
Age	−0.01	0.01	−0.01	0.01	−0.01
Marriage	0.01	0.01	0.03	0.02	−0.02
Education	−0.00	0.03	0.02	0.00	−0.01
Job position	0.00	0.07	0.23 **	0.22 **	0.34 **
Work location	0.04	0.03	0.03	−0.02	0.05
Independent variables
Environmental Activities	0.56 ***
Social Activities		0.63 ***
Governance Activities			0.67 ***
Internal Market-Oriented Culture				0.68 ***
Job Crafting					0.66 ***
EA × IMOC SA × IMOC GA × IMOC						0.04 0.11 0.11
R2	0.31	0.40	0.45	0.46	0.43	0.57 0.59 0.61
Adj-R2	0.30	0.40	0.45	0.46	0.43
F	22.53 ***	34.25 ***	42.03 ***	42.97 ***	37.78 ***
Change in R2	0.00 **	0.00 **	0.00 **	0.00 **	0.00 **	0.00 0.01 0.00

Notes. *** p < 0.001, ** p < 0.01.

, span Models 1 through 13. These models analyze the impact of ESG activities on organizational and financial performance, the role of IMOC as a mediator, and the influence of job crafting as a moderator, while accounting for demographic controls.

The analysis revealed that environmental activities significantly influenced organizational performance (b = 0.435, p < 0.001) and financial performance (b = 0.558, p < 0.001). Social activities also showed significant positive effects on organizational performance (b = 0.419, p < 0.001) and financial performance (b = 0.634, p < 0.001). Governance activities further exhibited strong positive impacts on organizational performance (b = 0.458, p < 0.001) and financial performance (b = 0.673, p < 0.001). These findings support Hypotheses 2-1, 2-2, and 2-3. IMOC demonstrated significant positive effects on both organizational performance (b = 0.484, p < 0.001) and financial performance (b = 0.677, p < 0.001), validating its mediating role and providing support for Hypotheses 4 and 5. Furthermore, job crafting showed substantial positive effects on organizational performance (b = 0.589, p < 0.001) and financial performance (b = 0.662, p < 0.001), highlighting its moderating influence. The coefficients for ESG activities on IMOC were also positive and significant. Environmental activities (b = 0.707, p < 0.001), social activities (b = 0.831, p < 0.001), and governance activities (b = 0.59, p < 0.001) all demonstrated strong effects on IMOC, supporting Hypotheses 1-1, 1-2, and 1-3. The hierarchical multiple regression analysis confirms the significant relationships among ESG practices, IMOC, job crafting, and performance outcomes. The results validate the mediating role of IMOC and the moderating role of job crafting, reinforcing the importance of these variables in amplifying the positive effects of ESG activities on organizational and financial performance. These findings offer valuable insights into how organizations can leverage IMOC and job crafting to optimize the impact of ESG initiatives and achieve sustainable success.

4.6. Analysis Results of Mediation Effects

Using the causal step approach proposed by Baron and Kenny [54] and the bootstrap method with 5000 samples [55], this study analyzed the mediating effects of internal market-oriented culture (IMOC) and the moderating effects of job crafting on the relationships among ESG practices, organizational performance, and financial performance. The bootstrap analysis generated 95% confidence intervals for total, direct, and indirect effects, with results summarized in

Table 8. Bootstrap significance test for mediating effects.

Path	Effect	B	Boot (SE)	Boot LLCI	Boot ULCI
EA → IMOC → OP	Total effect	0.466	0.055	0.357	0.574
	Direct effect	0.209	0.074	0.064	0.355
	Indirect effect	0.256	0.055	0.155	0.371
SA → IMOC → OP	Total effect	0.449	0.056	0.339	0.558
	Direct effect	0.139	0.082	−0.022	0.300
	Indirect effect	0.231	0.065	0.192	0.446
GA → IMOC → OP	Total effect	0.489	0.053	0.385	0.594
	Direct effect	0.238	0.088	0.065	0.411
	Indirect effect	0.251	0.069	0.126	0.400
EA → IMOC → FP	Total effect	0.608	0.052	0.505	0.711
	Direct effect	0.173	0.064	0.047	0.298
	Indirect effect	0.435	0.057	0.330	0.553
SA → IMOC → FP	Total effect	0.698	0.049	0.602	0.794
	Direct effect	0.313	0.068	0.178	0.447
	Indirect effect	0.386	0.061	0.270	0.506
GA → IMOC → FP	Total effect	0.725	0.046	0.636	0.815
	Direct effect	0.389	0.073	0.245	0.533
	Indirect effect	0.337	0.072	0.194	0.474

Notes.: M ediation analyses include all the control variables. LLCI: low limit confidence interval; ULCI: upper limit confidence interval. Bootstrap samples: 5000. Where EA = environmental activities, SA = social activities, GA = governance activities, IMOC = internal market-oriented culture, OP = organizational performance, FP = financial performance.

. The findings demonstrate that both the indirect and direct effects of internal market-oriented culture on ESG and both organizational performance and financial performance are significantly positive, which corroborates the conclusions drawn from the hierarchical multiple regression analysis.

This research aimed to explore the relationship between internal market-oriented culture (IMOC) and its impact on both organizational and financial performance, with a focus on the moderating effect of job crafting. To investigate these dynamics comprehensively, the Johnson–Neyman (JN) technique, a statistical approach introduced by Birindelli et al. [56], was employed. This method allowed for an in-depth analysis of the conditional effects of ESG (environmental, social, and governance) activities on performance outcomes across varying levels of job crafting. The JN plots, presented in Figure 2, Figure 3, Figure 4, Figure 5, Figure 6 and Figure 7, illustrate these conditional effects. The interaction coefficients (b = 0.118, 0.09, 0.148 for organizational performance and b = 0.171, 0.044, 0.114, 0.112 for financial performance, p < 0.01) highlight job crafting’s critical role as a moderator. These results demonstrate that job crafting amplifies the positive effects of ESG activities on both types of performance, validating Hypotheses 8-1, 8-2, 8-3, 9-1, 9-2, and 9-3.

4.7. Analysis of Job Crafting’s Moderating Effect

An analysis of Figure 2, Figure 3, Figure 4, Figure 5, Figure 6 and Figure 7 reveals that the slope for high job crafting is consistently steeper compared to low job crafting. This pattern indicates that job crafting has a significantly stronger positive impact on enhancing organizational and financial performance at higher levels. As job crafting increases, its influence in leveraging the benefits of environmental, social, and governance (ESG) activities also intensifies. Moreover, the findings demonstrate that organizations engaging in elevated levels of ESG activities experience an amplified moderating effect of job crafting. This synergy fosters stronger performance outcomes, highlighting the critical role job crafting plays in optimizing the effectiveness of ESG initiatives.

The results underscore a powerful synergistic relationship between ESG practices and job crafting. As ESG initiatives become more integrated into an organization’s culture, the benefits derived from proactive job crafting behaviors are significantly enhanced. This emphasizes the importance of incorporating job crafting into broader organizational strategies to maximize both organizational and financial performance outcomes. Job crafting emerges as a pivotal moderator, elevating the impact of ESG activities and driving superior performance. By fostering ESG practices and encouraging job crafting behaviors, organizations can establish a strategic advantage that ensures sustainable success and financial growth. Recognizing job crafting as a critical enabler allows firms to align employee initiatives with ESG goals, creating a cohesive approach that optimizes overall performance and delivers long-term value.

Figure 2. Conditional effect of environmental activity on financial performance by job crafting level.

Figure 2. Conditional effect of environmental activity on financial performance by job crafting level.

Figure 3. Conditional effect of social activity on financial performance by job crafting level.

Figure 3. Conditional effect of social activity on financial performance by job crafting level.

Figure 4. Conditional effect of governance activity on financial performance by job crafting level.

Figure 4. Conditional effect of governance activity on financial performance by job crafting level.

Figure 5. Conditional effect of environmental activity on organizational performance by job crafting level.

Figure 5. Conditional effect of environmental activity on organizational performance by job crafting level.

Figure 6. Conditional effect of social activity on organizational performance by job crafting level.

Figure 6. Conditional effect of social activity on organizational performance by job crafting level.

Figure 7. Conditional effect of governance activities on organizational performance by job crafting level.

Figure 7. Conditional effect of governance activities on organizational performance by job crafting level.

5. Conclusions and Management Implications

5.1. Conclusions

This study provides compelling evidence that environmental, social, and governance (ESG) initiatives significantly enhance both organizational and financial performance. The results confirm that internal market-oriented culture (IMOC) fully mediates the relationship between ESG practices and performance outcomes, while job crafting plays a critical moderating role by amplifying the relationship between IMOC and performance. The most significant finding is the strong and direct relationship between ESG activities and performance outcomes, emphasizing the strategic value of robust ESG strategies. These findings align with prior studies on ESG’s impact on firm performance [57,58] while providing a new perspective on the role of internal mechanisms.

The study also highlights the crucial role of IMOC as a strategic internal resource, echoing the principles of the resource-based view (RBV) [59]. By positioning IMOC as a key internal capability, this study provides empirical support for the idea that intangible resources drive sustained competitive advantage. In addition, our findings on job crafting extend prior work on employee proactivity [60] by illustrating how employee-driven role adjustments can strengthen the link between IMOC and sustainable performance. Together, these insights provide a comprehensive understanding of how ESG initiatives interact with internal organizational dynamics to drive sustainable and superior performance outcomes.

The hypothesis testing results, summarized in

Table 9. Hypothesis test summary.

Hypotheses	Result
H1-1: Environmental activities positively influence internal market-oriented culture (IMOC).	Accepted
H1-2: Social activities positively influence IMOC.	Accepted
H1-3: Governance activities positively influence IMOC.	Accepted
H2-1: Environmental activities positively influence organizational performance.	Accepted
H2-2: Social activities positively influence organizational performance.	Accepted
H2-3: Governance activities positively influence organizational performance.	Accepted
H3-1: Environmental activities positively affect financial performance.	Accepted
H3-2: Social activities positively affect financial performance.	Accepted
H3-3: Governance activities positively affect financial performance.	Accepted
H4: IMOC positively affects financial performance.	Accepted
H5: IMOC positively affects organizational performance.	Accepted
H6-1 to H6-3: IMOC mediates the relationship between ESG activities and financial performance.	Accepted
H7-1 to H7-3: IMOC mediates the relationship between ESG activities and organizational performance.	Accepted
H8-1 to H8-3: Job crafting moderates the relationship between ESG activities (environmental, social, and governance) and financial performance.	Accepted
H9-1 to H9-3: Job crafting moderates the relationship between ESG activities (environmental, social, and governance) and organizational performance.	Accepted

, confirm the significant roles of ESG domains—environmental, social, and governance—in driving both IMOC and performance metrics. The findings also demonstrate the mediating influence of IMOC across various ESG activities and performance outcomes, as well as the moderating effect of job crafting, which enhances the alignment of IMOC with organizational and financial success. These results contribute both theoretical and practical insights. For multinational organizations, the study underscores the necessity of embedding ESG strategies into internal cultural and behavioral frameworks to navigate the complexities of global operations. By leveraging IMOC and fostering proactive employee behaviors through job crafting, organizations can maximize the impact of ESG initiatives, achieving sustainable growth and enhanced performance. In conclusion, this research validates the interconnected relationships among ESG practices, IMOC, job crafting, and performance outcomes. The findings emphasize the critical importance of combining external ESG strategies with internal mechanisms to drive sustainable and superior organizational success.

5.2. Management Implications and Recommendations

The findings offer significant insights for multinational corporations (MNCs) seeking to strengthen their organizational and financial performance through ESG activities. One of the most notable contributions is the realization that ESG is not merely an external obligation but a driver of internal change. By embedding ESG into their operational frameworks, firms can foster a stronger internal market-oriented culture (IMOC), which aligns employees with sustainability goals and enhances performance. The study further demonstrates how job crafting enables employees to actively integrate ESG goals into their roles, promoting sustainability-oriented behaviors. Drawing from the work of Wrzesniewski and Dutton [41], we emphasize how task and relational crafting enable employees to incorporate energy-saving measures, waste reduction, and process innovation into daily routines. The combined effect of IMOC and job crafting creates an adaptive and empowered workforce that drives organizational change.

From a cross-cultural perspective, this study reveals that MNCs must navigate cultural differences when implementing ESG practices. For example, the influence of uncertainty avoidance and collectivism [60] affects how employees perceive ESG goals and engage in job crafting. We recommend that managers localize ESG strategies to suit regional cultural norms while maintaining global alignment with ESG objectives. Additionally, managers should play an active role in fostering a supportive environment for IMOC and job crafting. This includes promoting open communication, employee empowerment, and shared values that are consistent with sustainability goals. Leadership development programs should equip managers to balance global ESG priorities with local adaptation, ensuring that employees across regions can meaningfully engage with sustainability initiatives.

The research results show that ESG strategies not only affect external market performance but also promote internal employee participation and sustainable development performance through the mediating effect of IMOC and the moderating effect of job crafting. This insight provides managers with concrete practical recommendations to help them localize and regionally adapt their ESG strategies. IMOC and job crafting effects are more significant in collectivistic cultures (such as China and Southeast Asia), while in individualistic cultures (such as Taiwan and the United States), personalized incentives and recognition of self-performance are more effective in motivating employees to participate in ESG activities. Job crafting provides operational support for employees to participate in ESG strategies. The findings show that through job crafting, employees can proactively adjust their job roles and task content to support the achievement of ESG goals. Specifically, managers can encourage employees to proactively come up with innovative ESG-related ideas, such as reducing carbon emissions and improving energy efficiency. Through this kind of employee participatory action, companies can not only obtain employees’ innovative thinking and improvement suggestions, but also enhance employees’ recognition and sense of participation in ESG goals. Additionally, this study demonstrates that the effects of IMOC and job crafting vary across cultural differences. Therefore, incentives should be tailored to the characteristics of collectivistic and individualistic cultures. In collectivist cultures (such as China and Southeast Asia), managers should design team performance rewards, collective honors, and teamwork rewards to motivate team members to work together toward ESG goals. In individualistic cultures (such as Taiwan and the United States), managers should focus on individual performance bonuses, promotions, and personal honor awards to stimulate employees’ personal motivation and participation enthusiasm.

5.3. Limitations and Future Research

This study has several limitations that offer avenues for future research. First, the sample primarily comprises multinational organizations operating in specific regions, potentially limiting the generalizability of the findings to organizations in other geographical or cultural contexts. Cultural, economic, and regulatory variations may significantly shape the relationships among ESG activities, internal market-oriented culture (IMOC), job crafting, and performance outcomes. Future studies should broaden the scope to include organizations from diverse industries and regions to explore these contextual differences and their implications. Second, this study employs a cross-sectional design, which may not adequately capture the dynamic and evolving nature of ESG practices and their long-term impact on organizational and financial performance. A longitudinal approach would allow researchers to examine how the relationships between ESG activities and performance develop over time, offering a richer understanding of causal pathways and temporal effects. Third, the reliance on perceived performance measures, while valuable for understanding stakeholder perspectives, may introduce bias or inconsistencies compared to objective performance data. Future research could enhance the robustness of findings by integrating subjective assessments with objective metrics, such as financial statements, operational performance indicators, and third-party ESG ratings. Fourth, this study examines the moderating role of job crafting without distinguishing between its specific forms, such as task crafting, relational crafting, and cognitive crafting. These dimensions may contribute differently to the ESG-performance relationship. Future research could investigate these distinct forms of job crafting to uncover their unique impacts and better understand how they interact with ESG initiatives and IMOC. Lastly, this study focuses on internal organizational factors, such as IMOC and job crafting, without fully addressing external influences, including stakeholder pressures, market conditions, and regulatory environments. These external factors are critical in shaping ESG strategies and outcomes. Future research could adopt a multi-level framework that incorporates both internal and external variables, providing a more holistic view of how ESG practices influence organizational success. In conclusion, while this study provides valuable insights into the interplay between ESG activities, IMOC, and job crafting, addressing these limitations in future research can deepen our understanding of the mechanisms underlying ESG-related performance outcomes. Expanding the scope to diverse organizational and contextual settings and employing advanced methodologies will further enrich the literature on ESG practices and their implications for sustainable organizational development.