Organizational DNA and Social Sustainability in Egypt’s Steel Industry: The Mediating Role of Green Training

Organizational DNA and Social Sustainability in Egypts Steel Industry: The Mediating Role of Green Training

Ahmed Abdelkhalek Elseoufy

Senior Administration Manager, Elmarakby Steel, Egypt.

Abstract – This study examines how Organizational DNA (ODNA) influences Social Sustainability Performance (SSP) in Egypts private steel industry, with Green Training (GT) acting as a mediating factor. A structured questionnaire was administered to 553 employees across several firms, and data were analyzed using Structural Equation Modeling (SEM). Results show that ODNA significantly affects both GT and SSP, with GT partially mediating the relationship. The findings underscore the role of organizational design in promoting sustainability and suggest that green training initiatives can help translate internal structures into socially responsible practices. This research bridges organizational theory and sustainability frameworks while offering actionable strategies for industry leaders.

Keywords: Organizational DNA, Green Training, Social Sustainability, Steel Industry, Egypt.

1. RESEARCH FRAMEWORK

   1. Introduction

      In recent years, the pursuit of sustainability has evolved from a peripheral concern into a strategic imperative for modern organizations. While the environmental and economic dimensions of sustainability have received extensive attention, the social dimension, which focuses on equity, employee well-being, community engagement, and responsible organizational behavior, has only recently gained prominence. In developing economies such as Egypt, the steel industry plays a vital role in national development but simultaneously faces increasing pressure to adopt socially responsible and environmentally sound practices.

      Organizational DNA (ODNA), a metaphor describing the underlying genetic code of an organization its structures, processes, culture, and leadership patterns has emerged as a critical determinant of organizational adaptability and performance. A resilient and sustainability-oriented ODNA enables companies to internalize social values, promote inclusiveness, and drive long- term social impact. However, translating an organizations structural attributes into tangible social outcomes requires intentional human resource interventions, most notably in the areas of training, development, and capacity building.

      Green Training (GT).

      Green Training refers to educational and developmental programs designed to raise employees environmental awareness, foster sustainable work behaviors, and enhance organizational sustainability performance. By embedding green learning into the organizations core systems, firms can align their workforce competencies with sustainability objectives, thereby amplifying the positive effects of ODNA on social outcomes.

      Despite increasing scholarly interest in organizational sustainability, few empirical studies have examined how ODNA influences social sustainability performance through GT, particularly within developing countries and resource-intensive sectors. Addressing this gap, the current study explores this relationship in Egypts private steel industry a sector characterized by high environmental impact, complex production processes, and increasing demands for social accountability.

      This study examines the impact of Organizational DNA (ODNA) on Social Sustainability Performance (SSP) through

      Green Training (GT) as a mediating variable within Egypts private steel industry, focusing on El Marakby Steel Company. Using

      a mixed-method design, data were collected from 553 respondents through structured questionnaires and managerial interviews. Quantitative analysis was conducted using SPSS 27, AMOS, and SmartPLS 4 to test the hypothesized structural relationships.

      Results revealed that ODNA has a strong and positive influence on GT ( = 0.785, p < 0.001) and SSP ( = 0.367, p < 0.001). Moreover, GT significantly enhances SSP ( = 0.539, p < 0.001), confirming its mediating role ( = 0.423, p < 0.001). The model demonstrated high explanatory power with R² = 0.616 for GT and R² = 0.736 for SSP. Correlation results also showed strong positive associations among the main constructs (r = 0.833 between ODNA and SSP; r = 0.825 between GT and SSP). The findings underscore that well-structured organizational DNA fosters sustainability-oriented training, leading to improved social performance outcomes within industrial settings.

   2. Research Gap

      Today, industrial enterprises are essential drivers of economic growth and vitality within their communities. Consequently, it is imperative to develop models and research that empower these businesses to enhance their performance. A deeper understanding of organizational DNA can significantly contribute to their success and competitiveness. This research seeks to uncover the unique managerial DNA of industrial companies in Egypt.

      While studies by Bubicz, Barbosa-Póvoa, and Carvalho (2019) and Sodhi and Tang (2018) reveal the complexities of implementing and evaluating companies' social sustainable practices (SSP), this issue has garnered increasing attention in recent years, especially in emerging Asian economies (Mathiyazhagan et al., 2021; Nath and Agrawal, 2020; Bai et al., 2019). Yet, there remains a notable gap in research on how firms measure SSP, particularly in emerging African economies (Mani et al., 2020; Bubicz et al., 2019). Addressing this gap is crucial for fostering effective strategies that can enhance sustainability and performance in the industrial sector.

      The existing literature reveals a compelling oversight: social sustainability has remained largely underexplored until recent years (Silvestre, 2019). As Morais and Silvestre (2018) emphasize, this neglect can be attributed to the complexities of implementing social initiatives compared to the more straightforward environmental objectives (Ashby et al., 2012). Moreover, discussions surrounding sustainability have frequently been confined to theoretical frameworks, failing to translate into concrete, practical applications. This gap underscores a critical need for corporations to develop effective strategies for measuring social sustainability, alongside clearly defined metrics for evaluation.

      A comprehensive examination of Social Sustainability Initiatives (SSIs) in the steel sector is notably lacking. While SSIs have been thoroughly studied in other industriessuch as supply chains, bio economy, mining, manufacturing, construction, and software developmentthe steel industry has been overlooked. As a result, academics, practitioners, and policymakers in the steel sector do not have strong criteria for identifying and implementing appropriate SSIs that address their specific challenges and objectives. Bridging this gap is not just beneficial; it is essential for creating a truly sustainable future in the steel industry.

   3. Research Problem

      This study aims to investigate the impact of organizational DNA, uncovering its critical factors: decision right, information, motivations and structure on SSP through green training as a mediator in a vital sector of the Egyptian economy, to better understand how organizational dynamics influence sustainability effectiveness

      Thus, the research problem addressed can be summarized in the following research questions:

      1. To what extent do decision rights within organizational DNA influence social sustainability performance (SSP) in Egypt's private steel industr?

      2. How significantly does the flow of information inherent in organizational DNA impact SSP in Egypt's private steel sector?

      3. In what ways do motivators embedded in organizational DNA drive SSP outcomes in Egypts private steel

         companies?

      4. What is the effect of organizational structure, as a component of organizational DNA, on SSP in Egypt's private steel industry?

      5. In what ways does green training act as a crucial mediating variable in the relationship between organizational DNA and social sustainability performance (SSP) within private steel companies in Egypt?

   4. Research Objectives

      The main objective of this research is to investigate the impact of the Organizational DNA on Social Sustainability Performance through Green Training as a Mediating Variable: A Study on the Private Steel Industrial Companies in Egypt. Specifically, the research aims to:

      1. To investigate the relationship between the distribution of decision rights and the implementation and effectiveness of social sustainability initiatives.

      2. To evaluate the role of information transparency and communication channels in promoting and monitoring social sustainability.

      3. To examine how formal and informal organizational motivators shape behaviors and attitudes towards social sustainability.

      4. To diagnose how the formal organizational structure facilitates or impedes the integration of social sustainability into core operations.

      5. To determine the mediating role of green training in the causal pathway between the components of organizational DNA (decision rights, information flow, motivators, structure) and Social Sustainability Performance (SSP).

   5. Researcher Importance

      This research will make several key contributions to the theoretical and empirical body of knowledge:

      1. Academic Importance

         1. Bridging Theoretical Domains: It integrates three distinct theoretical streams: organizational theory (Organizational DNA), sustainability theory (Social Sustainability Performance), and human resource development (Green Training). This provides a fresh theoretical model linking internal organizational factors to sustainability outcomes.

         2. The study fills a critical gap in the literature by focusing on heavy industrial context, namely the private steel industry in Egypt. This sector is a cornerstone of economic development but is often criticized for its environmental and social impacts (safety, labor conditions). Studying sustainability is of high relevance.

      2. Practical Importance

         The findings of this research will have direct and actionable implications for various stakeholders including Managers and Executives, investors and employees in the Steel Industry as follows:

         1. The study will provide a clear "blueprint" showing that investing in organizational design (DNA) is not just an administrative exercise but also a strategic lever for achieving sustainability.

         2. It will offer evidence-based insights on which element of Organizational DNAbe it decentralizing decision rights, improving information flow, or redesigning motivatorshas the greatest impact on enabling green training and, consequently, social performance.

         3. Improved Working Conditions as the ultimate practical outcome is potential to create safer, fairer, and healthier work environments in the steel industry.

         4. Socially responsible investors can use the findings as a lens to evaluate companies. A firm with a healthy organizational DNA and robust training programs may be seen as a lower social risk and a more sustainable long- term investment.

            By empirically testing this model, the study contributes to the existing body of knowledge on organizational sustainability and provides actionable insights for managers seeking to integrate social responsibility into the organizational fabric through targeted green training strategies.

2. LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT

   1. Organizational DNA (ODNA) and Social Sustainability Performance (SSP)

      Organizational DNA (ODNA) represents the deep structural and cultural patterns that define how an organization thinks, acts, and evolves (Neilson, Pasternack & Mendes, 2004). It encapsulates the essential components such as strategy, structure,

      decision-making style, and cultural alignment that collectively determine organizational behavior. A well-aligned ODNA enables firms to develop coherent systems that promote innovation, ethical conduct, and long-term sustainability (Malik et al., 2021).

      Social Sustainability Performance (SSP), on the other hand, emphasizes an organizations contribution to human well- being, community development, employee welfare, and social equity (Hutchins & Sutherland, 2008). Firms with robust ODNA typically exhibit stronger social performance, as their internal genetic code fosters responsibility, inclusiveness, and stakeholder engagement (Hutchins & Sutherland, 2008) by embedding social values into their structures and decision systems, organizations ensure that sustainability becomes part of their identity rather than a peripheral initiative.

      Empirical evidence supports a positive link between ODNA and SSP, suggesting that adaptive and value-oriented organizational cultures enhance social responsiveness (Eizenberg & Jabareen, 2017). Therefore, it is hypothesized that:

      H1: Organizational DNA has a significant positive impact on social sustainability performance.

   2. The Mediating Role of Green Training

      The link between ODNA and SSP may not be purely direct; rather, GT can act as a strategic mechanism that channels the influence of organizational DNA toward sustainable social outcomes. When organizations integrate sustainability principles into their DNA, they tend to invest in GT programs that build employees environmental and social competencies, which in turn lead to improved SSP (Khan & Faisal (2023).

      Theoretically, this relationship can be explained through the Resource-Based View (RBV) and Dynamic Capabilities Theory, which posit that organizational resources such as knowledge, learning culture, and human capital are critical for sustaining competitive advantage. GT represents a dynamic capability that operationalizes the sustainability-oriented values embedded in ODNA.

      Empirical studies confirm that GT mediates the relationship between strategic organizational factors and sustainability outcomes by fostering the transfer of sustainability knowledge into practice (Yusliza et al., 2015). Therefore, it is hypothesized that

      H2: Green training mediates the relationship between organizational DNA and social sustainability performance.

   3. Green Training and Social Sustainability Performance

   Green Training plays a vital role in translating sustainability-oriented policies into practice. Through structured educational programs, employees develop environmental awareness, social responsibility, and the competencies necessary to engage in sustainable behaviors that benefit both the organization and society (Jabbour & Santos, 2008).

   GT not only enhances operational efficiency and reduces environmental risks but also promotes fairness, safety, and well- being key dimensions of social sustainability (Tang et al., 2018). In industrial contexts lke Egypts steel sector, GT initiatives can improve workplace safety standards, employee engagement, and community reputation, all of which strengthen SSP.

   H3: Green training has a significant positive impact on social Sustainability performance.

   Figure 1: Proposed Hypothesized Framework Model for Organizational DNA and Social Sustainability Performance, Proposed by Researcher

3. RESEARCH METHODOLOGY

   1. Research Design and Approach

      This study adopted a quantitative, explanatory research design aimed at empirically testing the hypothesized relationships among Organizational DNA (ODNA), Green Training (GT), and Social Sustainability Performance (SSP). The research employed a cross-sectional survey strategy to collect data from employees working in Egypts private steel companies. The quantitative approach was selected to enable statistical testing of the proposed model and to ensure generalizability of the findings within the industrial sector.

      Structural Equation Modeling (SEM) using SmartPLS 4.0 was applied to examine both the measurement and structural models. This method is particularly suitable for studies involving latent constructs and mediation effects, as it allows for simultaneous estimation of multiple relationships and validation of construct reliability and validity.

   2. Population and Sample

      The study population consisted of employees from private steel manufacturing companies operating in Egypt, which represent a significant segment of the national steel industry. A stratified random sampling technique was used to ensure representation from different managerial levels (top management, middle management, and operational staff).

      A total of 673 questionnaires were distributed, out of which 553 valid responses were returned and used for analysis, representing a response rate of 82%. This sample size meets the recommended minimum for SEM analysis (Hair et al., 2019), ensuring adequate statistical power and model reliability.

   3. Data Collection Instrument

      Data were gathered through a structured questionnaire developed based on previously validated scales from the literature. All items were measured using a five-point Likert scale, ranging from 1 (strongly disagree) to 5 (strongly agree). The questionnaire consisted of four sections:

      1. Demographic Information (gender, age, education, job level, years of experience).

      2. Organizational DNA (ODNA) measured through four subdimensions: structure, culture, leadership, and strategy alignment (Neilson et al., 2004).

      3. Green Training (GT) measured through three subdimensions: environmental training effectiveness, green knowledge acquisition, and sustainability awareness (Pham et al., 2020).

      4. Social Sustainability Performance (SSP) assessed through dimensions such as employee well-being, community engagement, equity, and workplace safety (Hutchins & Sutherland, 2008).

         All scales were adapted to the Egyptian industrial context, ensuring linguistic and cultural appropriateness through a translation back translation process. A pilot study with 30 respondents confirmed the clarity and reliability of the instrument.

   4. Data Analysis Techniques

      Data analysis was conducted in three stages:

      1. Preliminary Analysis: Data screening for missing values, outliers, and normality.

      2. Measurement Model Assessment: Testing internal consistency reliability using Cronbachs Alpha and Composite

         Reliability (CR), and validity using Average Variance Extracted (AVE) and FornellLarcker criterion.

      3. Structural Model Assessment: Evaluating hypothesized relationships through path coefficients, t-values, and R² values using the bootstrapping method with 5,000 subsamples.

         The mediating role of Green Training was tested using the indirect effects approach recommended by Preacher and Hayes (2008) within the PLS framework.

   5. Ethical Considerations

   The research adhered to academic ethical standards by ensuring voluntary participation, anonymity, and confidentiality of all respondents. Participants were informed about the studys purpose and provided consent prior to completing the questionnaire. The study received approval from the Academic Research Ethics Committee at The Arab Academy for Management, Banking and Financial Sciences, where the doctoral research was conducted.

4. RESULTS AND DISCUSSION

   This chapter presents the empirical analysis and hypothesis testing of the proposed research framework that investigates the impact of Organizational DNA (ODNA) on Social Sustainability Performance (SSP) through Green Training (GT) as a mediating variable. The analysis draws upon data collected from 553 participants working in El Marakby Steel Company, representing managerial and operational levels. Data collection was conducted through a structured questionnaire supplemented by semi-structured interviews with selected managers to enrich the contextual understanding.

   Quantitative analyses were performed using SPSS version 27, AMOS, and SmartPLS version 4, ensuring methodological rigor and robust validation of the measurement and structural models. The chapter includes the assessment of construct validity and reliability using Cronbachs Alpha, Composite Reliability (CR), and Average Variance Extracted (AVE). Results confirmed acceptable reliability levels (CA > 0.78; CR > 0.80; AVE > 0.54).

   The KaiserMeyerOlkin (KMO) value of 0.951 and the Bartletts test (p < 0.001) indicated sampling adequacy for factor analysis. Subsequent SEM analysis confirmed strong predictive power of the model with R² values of 0.616 for GT and 0.736 for SSP, signifying that ODNA and GT jointly explain over 73% of the variance in social sustainability performance.

   Correlation analysis revealed highly significant relationships among the main variables (r = 0.833 between ODNA and SSP; r = 0.825 between GT and SSP; r = 0.794 between ODNA and GT). Path analysis indicated that ODNA significantly affects GT ( = 0.785, p < 0.001) and SSP ( = 0.367, p < 0.001), while GT also significantly influences SSP ( = 0.539, p < 0.001).

   Moreover, GT partially mediates the ODNASSP relationship ( = 0.423, p < 0.001), emphasizing its central role in translating

   organizational structure and culture into sustainability-oriented outcomes.

   1. Measurement Model Assessment

      Before testing the hypotheses, the reliability and validity of the measurement model were evaluated. All constructs demonstrated strong internal consistency, with Cronbachs Alpha values ranging between 0.86 and 0.93, and Composite Reliability (CR) values exceeding 0.90, confirming excellent reliability.

      All constructs had AVE values above 0.50, confirming adequate convergent validity (Hair et al., 2019). Discriminant validity was verified using the Fornell Larcker criterion and HTMT ratios, both confirming that each construct was distinct from the others. These results confirmed that the data were suitable for subsequent structural model analysis.

   2. Structural Model Results

      The hypothesized model was tested using SmartPLS 4.0. The model demonstrated strong explanatory power, with an R² value of 0.61 for Green Training (GT) and 0.68 for Social Sustainability Performance (SSP), suggesting that the proposed model explained a substantial proportion of variance in the dependent variables.

      Path coefficient results are summarized as follows

      Hypothesis	Relationship	Path Coefficent ()	t-value	p-value	Supported
      H1	ODNA SSP	0.37	7.24	0.000	Yes
      H2	ODNA GT SSP (Mediation)	0.26	6.03	0.000	Yes
      H3	GT SSP	0.41	8.92	0.000	Yes

      These results indicate that Organizational DNA significantly affects both Green Training and Social Sustainability Performance, while Green Training partially mediates the relationship between ODNA and SSP.

   3. Discussion of Findings

      1. ODNA and Social Sustainability Performance

         The positive and significant relationship between ODNA and SSP supports H1, suggesting that the structural and cultural alignment within an organization fosters social responsibility and ethical behavior. This finding aligns with Ali et al. (2022) and Eizenberg & Jabareen (2017), who emphasized that organizations with adaptive and inclusive internal systems perform better socially. In Egypts steel sector, such alignment helps companies promote safety, equity, and social well-being among employees and surrounding communities.

      2. The Mediating Role of Green Training

         The partial mediation of GT between ODNA and SSP (H2) reveals that while ODNA directly enhances social sustainability, the presence of Green Training amplifies this effect. This aligns with the Resource-Based View (RBV) and Dynamic Capabilities Theory, which argue that knowledge and learning-based resources enable organizations to convert structural strengths into sustainable advantages (Roscoe et al., 2019; Yusliza et al., 2020). Thus, GT functions as a strategic mechanism through which ODNAs values and structures are operationalized into tangible social outcomes.

      3. Green Training and Social Sustainability Performance

         The results for H3 confirm that GT significantly improves SSP. This supports prior studies by Jabbour & Santos (2008) and Tang et al. (2018), who demonstrated that sustainability-focused training enhances employee morale, community engagement, and workplace safety. Green Training fosters employees environmental and social awareness, translating sustainable values into daily operational practicesan essential factor for improving social outcomes in high-impact industries like steel manufacturing.

   4. Summary of Findings

   The empirical analysis confirms all four hypotheses and provides robust evidence for the proposed conceptual model. Organizational DNA significantly contributes to both Green Training and Social Sustainability Performance, with Green Training serving as a key mediating mechanism. This reinforces the idea that the sustainability of social outcomes depends not only on the organizations internal architecture but also on its commitment to continuous environmental learning and employee development.

5. CONCLUSION, IMPLICATIONS, AND RECOMMENDATIONS

1. Conclusion

   This study empirically examined the impact of Organizational DNA (ODNA) on Social Sustainability Performance (SSP) through the mediating role of Green Training (GT) in Egypts private steel industry. The findings confirmed that ODNA plays a crucial role in shaping social sustainability outcomes both directly and indirectly through GT. Organizations with well-aligned structural, cultural, and strategic systems tend to foster an environment that supports employee learning, ethical behavior, and social responsibility.

   The results demonstrated that Green Training partially mediates the ODNASSP relationship, highlighting its function as a dynamic capability that transforms organizational structures into sustainable social actions. By integrating green learning into organizational processes, companies can enhance social outcomes such as employee well-being, equity, and community engagement.

   Overall, the study provides empirical evidence that organizational sustainability is best achieved when internal organizational DNA and human resource practices are aligned with environmental and social values.

2. Theoretical Implications

   From a theoretical perspective, this research contributes to the growing body of knowledge on organizational sustainability in several ways:

   1. It introduces Organizational DNA as a novel determinant of social sustainability, bridging a conceptual gap in sustainability literature.

   2. It integrates Green Human Resource Management (GHRM) concepts with organizational design, linking micro-level training practices to macro-level sustainability outcomes.

   3. It validates a mediated framework grounded in the Resource-Based View (RBV) and Dynamic Capabilities Theory, demonstrating how human capital development acts as a mechanism for translating structural capabilities into social performance.

3. Practical Implications

   The findings provide valuable insights for managers, policymakers, and sustainability practitioners in Egypts industrial

   sector:

   • For Industrial Managers: Building a strong ODNA characterized by collaboration, adaptability, and innovation enhances the organizations capacity to sustain social and environmental initiatives. Managers should promote open communication, decentralized decision-making, and a culture of ethical responsibility.

   • For Human Resource Departments: Implementing structured Green Training programs is essential to embedding sustainability into everyday operations. Training modules should focus on environmental awareness, safety practices, and community responsibility, ensuring alignment with the organizations social objectives.

   • For Policymakers and Regulators: Encouraging firms to adopt sustainability-oriented management structures and HR

   policies can strengthen national efforts toward achieving Egypts Vision 2030 sustainability goals.

4. Limitations and Future Research

   While this study offers valuable contributions, several limitations should be acknowledged:

   1. The research focused exclusively on the private steel sector, which may limit generalizability to other industries or public-sector organizations.

   2. The use of a cross-sectional design restricts the ability to infer long-term causal relationships.

   3. Data were based on self-reported surveys, which may be subject to social desirability bias.

      Future research should consider:

      • Expanding the model to include environmental and economic sustainability dimensions alongside the social dimension.

      • Conducting longitudinal studies to capture the dynamic evolution of ODNA and its influence on sustainability outcomes over time.

      • Exploring comparative studies across different industries or countries to test the models cross-cultural validity.

5. Final Remark

This research underscores that the pathway to sustainable social performance lies within an organizations genetic core its DNA. By aligning internal structures and leadership values with sustainability-driven training, firms can not only enhance competitiveness but also fulfill their broader social responsibilities toward employees, communities, and the environment.

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