This study analyzes how service-learning contributes to the level of commitment to environmental sustainability in higher education institutions (HEIs), as perceived by their students. The empirical analysis has been conducted by using the PLS-SEM modelling, on a sample of 366 undergraduate students of business from Croatia and Bosnia & Herzegovina. The obtained results support the hypothesized influence of the service-learning development level on the sustainability commitment in higher education. We also consider the indirect effects within the model. They show that service-learning mediates the relationships between students’ idealism and sustainability commitment, as well as between students’ social trust and sustainability commitment. Implications of obtained empirical results for theory and higher education practice are discussed. The potential for generalizing results for other sustainability interventions is assessed.

Abstract This study analyses the relationship of environmental sustainability and the corporate social responsibility (CSR) of business schools by using the partial least squares structural equation modelling (PLS-SEM) empirical approach on a sample of 338 students from South East Europe. In support of the extant theory of responsible management education, emphasizing the transdisciplinary relationship between the Ethics, CSR, and Sustainability (ERS) domains, we found a direct relationship between environmental sustainability and CSR of business schools. However, we empirically verified a path of indirect effects at the institutional level, starting with the idealism of individual students, leading to the CSR institutional involvement of a business school, mediated by its environmental involvement. Provided that the idealistic individuals might be driving the functioning of the individual responsible management education and its domains, we propose the existence of a potential halo effect ('ERS halo effect'), which has already been described and verified in the corporate sector. We believe that its dynamics, based on the biased assessment of a single business school ERS domain, with its outcomes reflected in the other domains, should be further explored in different institutional and cultural environments.

Many research studies suggest that the increasing competitiveness of the global economy emphasizes the importance of identifying the drives of sustainable competitive advantage in the intangible domain. This research aims to, according to resource-based theory of the enterprise, model corporate reputation as an invisible resource of the enterprises that enables the creation of the various advantages such as customer satisfaction and gaining loyal customers that further leads to creating competitive advantage and superior business performance. The research aim is to determine the significance and intensity of the simultaneous relationships between corporate reputation, presented as a construct composed of two elements: competence and likeability, and customer satisfaction and customer loyalty. It seeks to determine the significance of the mediator customer satisfaction in the relationship between corporate reputation and customer loyalty. Research data are collected by a survey questionnaire fulfilled by 116 respondents to participate in the research on enterprises from the telecommunication sector of transition economy Republic of Srpska, Bosnia and Herzegovina. To test the proposed research model partial least squares structural equation modelling (PLS-SEM) is applied. Prior to application of the PLS-SEM certain preliminary data and sample analysis are performed. The presence of outliers and requirements of the sample size for PLS-SEM evaluation are examined. To determine whether final sample size is appropriate to conduct PLS-SEM analysis both rule of thumb and results of the analysis made by G*Power software were used. Construct likeability has nearly two times stronger direct effect on customer satisfaction compared to other element of corporate reputation called competence. Only one element of corporate reputation called likeability has significant direct effect on final target endogenous construct customer loyalty. Customer satisfaction has strong significant direct effect on customer loyalty. Beside direct effects of the latent constructs corporate reputation and customer satisfaction on customer loyalty, mediation analysis is performed to test the significance of the mediator called customer satisfaction. Research results indicate the importance of the mediator customer satisfaction in the relationship between corporate reputation and customer loyalty. According to them, both elements of corporate reputation have significant indirect effect on customer loyalty. Likewise, research results enable ranking of the exogenous factors that create and improve corporate reputation. Directing the management attention towards improving certain exogenous factors ensures the development of certain corporate reputation elements – competence and likeability, and provides efficient and effective corporate reputation management. It is revealed that corporate social responsibility, promoting products’ and services’ quality and better business performances improve competence element of corporate reputation, while corporate social responsibility and investments into raising the attractiveness of the enterprise positively influence sympathy and likeability of the enterprises from a stakeholder perspective.