Communication Firm Sustainability Performance Index Modeling Che Wan Jasimah Bt Wan Mohamed Radzi † , Hashem Salarzadeh Jenatabadi * ,† and Maisarah Binti Hasbullah † Received: 30 September 2015; Accepted: 30 November 2015; Published: 4 December 2015 Academic Editor: Giuseppe Ioppolo Department of Science and Technology Studies, Faculty of Science, University of Malaya, Jalan Universiti, Kuala Lumpur 50603, Malaysia; jasimah@um.edu.my (C.W.J.W.M.R.); maisara@um.edu.my (M.B.H.) * Correspondence: jenatabadi@um.edu.my; Tel.: +603-7967-4151; Fax: +603-7967-4396 † These authors contributed equally to this work. Abstract: The main objective of this paper is to bring a model for firm sustainability performance index by applying both classical and Bayesian structural equation modeling (parametric and semi-parametric modeling). Both techniques are considered to the research data collected based on a survey directed to the China, Taiwan, and Malaysia food manufacturing industry. For estimating firm sustainability performance index we consider three main indicators include knowledge management, organizational learning, and business strategy. Based on the both Bayesian and classical methodology, we confirmed that knowledge management and business strategy have significant impact on firm sustainability performance index. Keywords: firm sustainability performance index modeling; classical structural equation modeling; Bayesian structural equation modeling 1. Introduction Schaltegger and Gualandris [1] believed that firm sustainability performance is a multi-dimensional concept which is not directly measurable and requires a set of indicators to be assessed. Literature on sustainability management studies have been highlighted that knowledge management [2–4], business strategy [5,6], and organizational learning [7,8] are considered as vital indicators of firm sustainability performance improvement. Some researchers confirm that knowledge management and its output, organizational knowledge, are antecedents of organizational learning [9,10] and company business strategy [11,12]. Reviewing the previous studies, many scholars conducted research to recognize the linkage among knowledge management, organizational learning, and firm sustainability performance [13–16]. However, research that studies the interconnection among those three concepts with business strategy, simultaneously, is still rare. We found few studies discussing the practical relationship among knowledge management, business strategy, organizational learning, and firm sustainability performance index [17]. Figure 1 shows some literature of the linkages between any two variables, the relationship among three main indicators (knowledge management, learning, and performance), and the whole picture about our research model. Sustainability 2015, 7, 16196–16212; doi:10.3390/su71215810 www.mdpi.com/journal/sustainability