The structural equation model in the assessment of determinants of sustainable development of manufacturing enterprises in Poland

Purpose: The main aim of this paper is to assess the dependence between the pillars of sustainable development of manufacturing enterprises, financial security, and macroeconomic condition in Poland in the period from 2010 to 2019. Design/methodology/approach: This paper is both theoretical and empirical. The theoretical part discusses selected theoretical issues related to sustainable development and its determinants. The empirical part discusses the results of the research. A structural equation modeling (SEM) is used to assess the impact of internal and external determinants on the sustainable development of manufacturing enterprises. Findings: The research results confirm that there are relationships between the pillars of sustainable development as well as internal and external conditions. Research limitations/implications: The research is based on quantitative data, which is quite a significant limitation. This is due to the fact of analysis at the sectoral level and the lack of access to qualitative data. Practical implications: The distinction which internal or external determinants have an impact on the sustainable development of enterprises allows for taking appropriate actions at the national level or the level of enterprise management. Social implications: The ecological development of the company means reducing emissions of harmful substances into the environment and thus improving the conditions and quality of life of society. Originality/value The study is a new approach to the analyzed issues. It allows drawing conclusions regarding the level of sustainable development and its determinants.