Most recent papers:

• The Bi‐Directional Relationship Between Corporate Sustainability and Environmental Uncertainty: The Moderating Role of Organizational Capabilities.
  Felix Peter Thiesen, Rainer Lueg.
  Business Strategy and the Environment. 2 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study investigates the bi‐directional relationship between corporate sustainability and environmental uncertainty, focusing on key moderators that shape firms' strategic responses. Using fixed‐effects regressions with S&P 500 data (LSEG Refinitiv Workspace, 2005–2022), we present two key findings. First—mobilizing resource‐based theory (firm level)—we show that firms increasing corporate sustainability can reduce the environmental uncertainty they face. This effect is more pronounced for firms with strong brands and patents value (moderator variable). Second—using contingency theory (industry level)—we find that rising environmental uncertainty across an industry prompts firms to increase corporate sustainability. This response is more effective when firms provide environmental management training (moderator variable). These empirical results synthesize conflicting views in the literature. We theorize why corporate sustainability and environmental uncertainty may have both negative and positive relationships simultaneously, depending on the level of analysis and firms' capabilities.\n"]

  May 08, 2026   doi: 10.1002/bse.70796   open full text
• The Impact of Women's Board Representation on Environmental Sustainability: Empirical Evidence From US Firms.
  Ahmed Hassan Ahmed, Sudharshan Reddy Paramati, Chandan Sharma, Imam Arafat.
  Business Strategy and the Environment. 2 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study investigates the impact of women's representation on corporate boards on firm‐level environmental sustainability. Female board presence is measured by both the percentage of women and the number of female board members, while environmental sustainability is assessed through six indicators: total CO2 emissions, direct CO2 emissions, CO2 intensity, emission score, environmental innovation score, and resource efficiency score. Using annual data from 2000 to 2021 for 657 US firms, we employ robust panel econometric techniques that account for potential endogeneity in the models. The findings show that higher female representation on boards significantly improves environmental performance by reducing emissions and promoting innovations and resource efficiency. Further analysis confirms that corporate social responsibility (CSR) and environmental, social, and governance (ESG) strategies also play important roles in promoting sustainability. These results are consistent across alternative specifications and measurements. The empirical evidence clearly highlights a critical policy outcome: increasing gender diversity in corporate boards can be a strategic tool for advancing environmental sustainability at the firm level.\nJEL Classification: L21L22M14Q56R11\n"]

  May 08, 2026   doi: 10.1002/bse.70964   open full text
• CEO Risk Orientation and Environmental Sustainability Disclosure: Managerial Discretion, Institutional Constraints, and Strategic Transparency.
  Muhammad Jameel Hussain, R. M. Ammar Zahid, Yang Qian, Noha Alessa.
  Business Strategy and the Environment. 2 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines whether CEO risk orientation shapes environmental sustainability disclosure (ESD) and how institutional constraints condition this relationship. We argue that environmental disclosure constitutes a strategic exposure decision because greater transparency can increase regulatory scrutiny and stakeholder pressure. Using 37,779 firm‐year observations of Chinese A‐share listed firms from 2009 to 2023, we find that firms led by more risk‐averse CEOs disclose significantly less environmental information; additional analyses show that greater environmental disclosure is associated with higher environmental litigation exposure. However, the relationship weakens in contexts that constrain managerial discretion, including the adoption of Global Reporting Initiative standards, mandatory CSR reporting requirements, state ownership, and pollution‐intensive industries. These findings highlight the behavioral foundations of sustainability disclosure and demonstrate how institutional governance moderates executive influence over corporate transparency.\n"]

  May 08, 2026   doi: 10.1002/bse.70927   open full text
• Bridging the Information Gap: Corporate Sustainability Disclosure and Retail Investor Trading in Emerging Markets.
  Yanli Wang.
  Business Strategy and the Environment. 2 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines the association between corporate ESG disclosure quality and retail investor trading behavior in Chinese A‐share market, where retail investors account for approximately 90% of trading volume. Using a five‐dimensional disclosure quality framework based on information economics principles and 8756 firm‐year observations (2016–2023), we document several findings. A one‐standard‐deviation increase in ESG disclosure quality is associated with an 8.3% increase in retail trading volume (approximately 2.9 percentage points relative to a sample mean of 35.2%), corresponding to approximately RMB 190 million in additional annual retail trading volume per firm based on sample averages. Mediation analysis suggests that information asymmetry accounts for approximately 40% of this association, operating through reduced bid–ask spreads, analyst forecast dispersion, and illiquidity. The association is significantly stronger in weaker information environments (43% larger) and contexts with higher ESG demand (53% larger). These findings extend the literature on ESG disclosure by developing a five‐dimensional quality framework beyond binary indicators, quantifying the information asymmetry channel, and providing a theoretically motivated test in a retail‐dominated emerging market. While causal inference remains challenging, the results offer insights for disclosure standard setting in emerging markets with similar characteristics.\n"]

  May 08, 2026   doi: 10.1002/bse.70953   open full text
• Decoding Green Innovation Through Multitier Carbon‐Adjusted Supply Chain Complexity.
  Miaomiao Tao, Shuai Che, Chuansong Zhao.
  Business Strategy and the Environment. 2 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines whether incorporating carbon‐conscious elements into supplier–firm networks influences the green innovation performance of focal firms, grounded in adaptive theory. We construct a measure of supplier‐to‐firm supply chain complexity that captures horizontal, vertical, and geographic dimensions, explicitly integrating carbon emission considerations. Empirical results indicate that firms situated within more complex supply networks tend to exhibit higher levels of green innovation, and these relationships remain consistent after addressing potential endogeneity. Additional analyses suggest that a firm's strategic orientation and operational flexibility can enhance the positive effect of supply chain complexity, although the magnitude of this moderating role differs across the distinct dimensions. The evidence implies that managerial commitment to R&D and organizational adaptability can help convert the challenges posed by carbon‐intensive, complex supply chains into avenues for environmentally focused innovation and competitive positioning. By introducing a carbon‐adjusted, multidimensional perspective on supply chain complexity, this study offers a framework for understanding how structural and spatial characteristics of supply chains contribute to eco‐innovation outcomes.\n"]

  May 08, 2026   doi: 10.1002/bse.70967   open full text
• The Role of Women on Corporate Boards in Driving Green Product and Process Innovation in Sri Lanka.
  Sandunima Kaluarachchi.
  Business Strategy and the Environment. 2 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThe purpose of this study is to explore the impact of female leadership on the green innovation efforts of firms in Sri Lanka. Green product innovation was evaluated through the presence of ‘green’ patents, whereas green process innovation was assessed based on environmental management certifications. This study utilises secondary data from the annual reports of publicly listed companies covering the period from 2012 to 2023, applying probit regressions to examine the relationship between female directors and firm‐level green innovation. The findings indicate a systematic relationship between female board representation and the occurrence of green innovation at the firm level. This is evident through factors such as the presence of female directors, female chairpersons, board size, ESG, R&D, firm size and industry type. An additional increase in female representation on boards is more likely to enhance green product innovation, rather than green process innovation. The study provides empirical evidence that women in top management play a crucial role in shaping a firm's proactive environmental strategies. The findings offer valuable insights for enhancing corporate governance with a focus on environmental sustainability.\n"]

  May 08, 2026   doi: 10.1002/bse.70974   open full text
• Climate Stress Testing on European SME Securitised Loans Under Climate Mitigation Scenarios.
  Luca Zanin, Raffaella Calabrese.
  Business Strategy and the Environment. 3 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAssessing the future impact of climate risks on the probability of default (PD) of small and medium enterprises (SMEs) is challenging due to limited disclosure, policy uncertainty and exposure to physical risks. This paper addresses this gap by integrating macroeconomic variables from the Network for Greening the Financial System (NGFS) scenarios into a survival analysis framework to project forward‐looking PDs for SME securitised loans up to 2050. The analysis is based on a comprehensive dataset of 3.9 million SME securitised loans observed between 2013 and 2022 across Belgium, Italy and Portugal. The results show that climate risks increase projected SME PDs in the short term relative to a baseline, particularly under scenarios with rapid and stringent climate policy action. In the long term, the Net Zero 2050 transition generates cobenefits, with PDs falling below those projected under alternative scenarios, while insufficient mitigation increases portfolio risk from physical climate impacts. The findings also highlight that a business‐confidence shock, driven by uncertainty about delayed or fragmented climate policies, can represent an additional source of credit risk.\n"]

  May 07, 2026   doi: 10.1002/bse.70941   open full text
• Political Appointment of Executives, Green Action and Firm Performance: Evidence From the World Bank Enterprise Survey.
  Post Raj Pokharel, Munirah Sarhan AlQahtani, Suman Lodh, Monomita Nandy.
  Business Strategy and the Environment. 3 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nEnvironmental sustainability and political influence increasingly shape corporate strategy, yet the link between politically appointed executives and firms' environmental actions remains underexplored. This study investigates whether political appointments to top executive positions influence the adoption of green action initiatives and how these initiatives, in turn, affect firm performance. Using World Bank Enterprise Survey data from 28,042 firms across 41 Middle Eastern and North American countries (2018–2020), we examine five environmental practices to construct a green action index and analyse its mediating role in the political appointment–performance relationship. Our results show that firms led by politically appointed executives are significantly more likely to adopt green initiatives, even after controlling for firm characteristics and institutional factors. We further find that green action partially offsets the otherwise ambiguous or adverse association between political appointments and sales growth, indicating that environmental initiatives serve as a strategic legitimacy mechanism. This mediating effect is particularly pronounced in publicly listed firms, where external scrutiny is higher. The study contributes to research on political connections, ESG strategy and firm performance by demonstrating that green action is not merely compliance‐driven but a strategic response to political embeddedness, offering practical insights for policymakers, investors and corporate boards.\n"]

  May 07, 2026   doi: 10.1002/bse.70968   open full text
• Governing the Circular Shift: A Multitheoretical Model of Open Innovation in Circular Economy Ecosystems.
  Surajit Bag, Gautam Srivastava.
  Business Strategy and the Environment. 3 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study investigates how open innovation is organized and coordinated when multiple actors work together in platform‐based circular economy (CE) ecosystems. This study also examines how these ecosystem interactions and partnership dynamics shape firms' ability to generate successful circular innovations and what conditions make these effects stronger. A two‐phase mixed‐method design is used. The first phase involves semistructured interviews with 20 European platform firms engaged in circular initiatives. The analysis identifies core governance mechanisms and partnership dynamics that shape collaboration in multi‐actor CE ecosystems. These insights inform the development of a conceptual model that explains how coordination practices, cross‐boundary negotiation, and credibility derived from partner affiliations interact to influence circular innovation outcomes. The second phase analyzes the measurement model using 400 survey data with covariance structural equation modeling and further tests the moderated‐mediation hypotheses using PROCESS. The findings contribute to the literature by providing empirical evidence that effective governance, cross‐boundary capabilities, and institutional legitimacy interact to shape innovation performance in CE ecosystems.\n"]

  May 07, 2026   doi: 10.1002/bse.70892   open full text
• Supply Chain Network, ESG Scores and Financial Performance.
  Michail Filippidis, Renatas Kizys, Panagiotis Tzouvanas.
  Business Strategy and the Environment. 3 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis paper provides novel evidence on the role of supply chain networks in influencing firms' environmental, social and governance (ESG) scores and financial performance. Our analysis employs financial, board, ESG and supply chain data, resulting in an unbalanced panel of over 16,000 firm‐year observations from 3028 publicly traded US firms, spanning fiscal years from 2005 to 2021. We use two different supply chain network metrics, namely, the number of supply chain connections (degree centrality) and eigenvector centrality, and we use various financial performance measures such as ROA, ROE, ROS, Tobin's Q$$ Q $$ and stock returns. Building on resource dependence theory, our results indicate that a larger supply chain network has a positive impact on ESG scores, while there is limited evidence to support a direct relationship between supply chain networks and financial performance. Interestingly, the impact of supply chain networks on financial performance appears to be indirect, operating through ESG, in line with signalling theory. Important practical implications are also discussed.\n"]

  May 07, 2026   doi: 10.1002/bse.70916   open full text
• Firms' Green Responses to Environmental Regulations: A Three‐Dimensional Concurrent Engineering Perspective.
  Thomas Alexopoulos, Dimitra Kalaitzi, Giorgos Papagiannakis, Konstantina Spanaki.
  Business Strategy and the Environment. 3 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study investigates companies' responses to energy efficiency policies, focusing on mandatory and voluntary regulations that create a complex landscape for businesses to navigate. Using a sample of 1473 firms across 29 European countries (2002–2018), we explore the impact of legislation on green redesign—operationalized through sustainability‐related indicators reflecting specific initiatives in firms' production process, product, and supply chain—through a three‐dimensional concurrent engineering (3DCE) framework. Multilevel growth models show that mandatory measures outperform voluntary ones. In addition, mixed‐type regulations—combining mandatory and voluntary elements—exert a positive effect. Responses occur in all three operational pillars of the 3DCE model concurrently, and the green redesign of one of them is systematically related to the redesign of the other two. Policy implications suggest that mandatory and mixed‐policy approaches drive more sustainable improvements. Firms should adopt a holistic transformation across their operations.\n"]

  May 07, 2026   doi: 10.1002/bse.70902   open full text
• How Can Eco‐Friendly Products Be Marketed Effectively? Evidence From a Multinational Study on the Intention–Behaviour Gap for Smartphones Made With Eco‐Friendly Substitute Materials.
  Kimitaka Nishitani, Eri Nakamura, Fumikazu Morimura, Yumi Nakamori, Tsugio Watanabe, Daisuke Furuta, Tomoya Mizuta.
  Business Strategy and the Environment. 3 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAs global environmental concerns intensify, firms are increasingly expected to embed environmental responsibility into their core strategies. However, uncertainty remains over whether eco‐friendly initiatives are economically rewarded, reflecting ambiguity in consumers' true environmental preferences. Although consumers frequently express positive intentions towards eco‐friendly products, these rarely translate into actual purchases—an issue known as the intention–behaviour gap. This study empirically examines the psychological mechanisms underlying this gap using data from a 2024 survey undertaken in Japan, Germany, China and the United States. Cross‐national partial least squares structural equation modelling reveals that while both altruistic and self‐interested motives shape purchase intentions, self‐interest largely constrains willingness to pay. Providing clear, specific information about environmental and consumer benefits narrows the intention–behaviour gap, especially for recycled and plant‐based plastics. These findings show that effective marketing must appeal to consumers' self‐interest through functionality and reliability while reinforcing environmental value with credible, transparent communication.\n"]

  May 07, 2026   doi: 10.1002/bse.70926   open full text
• Top Management Environmental Concern, Eco‐Product Development Effectiveness and Firms' Environmental Performance: The Paradoxical Moderating Role of Environmental Information Sharing.
  Ayodele C. Oniku, Awele Achi, Solomon Jeresa, Olamide O. Akintimehin, Adejumoke Adeoti.
  Business Strategy and the Environment. 3 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study investigates the combined effect of top management environmental concern and eco‐product development effectiveness on firms' environmental performance. The study also considers the moderating impact of environmental information sharing on this process. Building on the integration of upper echelons perspective and resource‐based theory, the research model was tested using covariance‐based structural equation modelling with survey data from 171 small and medium‐sized technology firms operating in Nigeria. The findings show that top management environmental concern facilitates eco‐product development effectiveness, which in turn positively influences firms' environmental performance. Additionally, the findings indicate that environmental information sharing strengthens top management environmental concern but weakens the impact of eco‐product development effectiveness on environmental performance. These results contribute to extant literature by unpacking the boundary conditions through which the interplay of top management environmental concern and eco‐product development effectiveness can promote environmental performance within emerging market firms. For practitioners, the study generates valuable insights into how environmental information sharing can amplify or attenuate their environmental initiatives and performance outcomes.\n"]

  May 07, 2026   doi: 10.1002/bse.70978   open full text
• ESG Controversies in Global Firms: A Black Mark?
  Beatrice Bais, Guido Orzes, Marco Sartor.
  Business Strategy and the Environment. 3 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nDespite increasing attention paid by companies to sustainability, there is still evidence of environmental, social and governance (commonly referred to as ESG) scandals. As research on this topic is scant, this paper aims to analyse the impact of ESG controversies on firms' sustainability practices, that is, ESG policies, as well as environmental management, communication and supply chain management actions. A heterogeneous sample of 1791 observations, comprising companies from various countries and sectors, is analysed using panel regressions over a 4‐year period. Overall, our results seem to imply a rather weak or null effect of ESG controversy presence on firms' sustainability practices uptake decisions with no direct causality effect. In particular, firms do not appear to be deterred by negative ESG events when deciding whether to adopt ESG practices. Instead, we suggest that a range of external (e.g., market, stakeholder and political pressures) and internal factors (e.g., firm‐level characteristics) jointly shape firms' ESG practice decisions. This work contributes to academic and practitioner knowledge as it resonates with companies' sustainability practices backsliding and approaches in order to make companies more responsible for their conduct.\n"]

  May 07, 2026   doi: 10.1002/bse.70880   open full text
• The Perils of Environmental, Social, and Governance (ESG) Controversies: Implications for a Firm's Financial and Nonfinancial Performance.
  Amalesh Sharma, Sourav Bikash Borah, Anirban Adhikary, Sanjay Kumar Jena.
  Business Strategy and the Environment. 3 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAlthough ESG controversies are on the rise, research investigating them yields contradictory findings. The paper provides resolutions to the debate through investigating (a) how ESG controversies influence firms' short‐term and long‐term financial performance; (b) how firms navigate ESG controversies' effect; and (c) how ESG controversies influence firms' nonfinancial performance. Relying on legitimacy theory, the paper theorizes the relationships and, using 2992 and 2970 firm‐year observations, respectively, finds that ESG controversies negatively influence a firm's short‐ and long‐term performance; corporate ESG communication and environmental innovation reduce these effects. Although ESG controversies negatively affect ESG performance, they positively affect carbon emissions, customer complaint controversies, and responsible marketing controversies. To regain legitimacy lost through ESG controversies, firms can invest in supplier ESG training, responsible product development, and CSR committees. The paper contributes to the sustainable business strategy literature and guides managers in managing controversies for a better business environment.\n"]

  May 07, 2026   doi: 10.1002/bse.70765   open full text
• ESG, Uncertainty Avoidance, and Firm Performance in the Global Healthcare Industry.
  Wen‐Min Lu, Hsin‐Ling Ku, Chung‐Chuan Lin.
  Business Strategy and the Environment. 4 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines the association between environmental, social, and governance (ESG) pillars and firm performance in the global healthcare industry, with a focus on the moderating role of national culture, specifically uncertainty avoidance (UAI). Employing a two‐stage network data envelopment analysis (NDEA) followed by truncated regression, we analyze 185 firm‐year observations from 37 healthcare firms across 15 countries (2019–2023). The production process is divided into two stages: eco‐business efficiency (Stage 1) and market efficiency (Stage 2). Our results reveal a clear “decoupling effect,” where improvements in operational efficiency driven by ESG initiatives do not immediately translate into market valuation. Specifically, UAI serves as an “operational shield,” enhancing the positive impact of all ESG pillars on operational eco‐efficiency (Stage 1). However, financial markets respond differently: Only Governance maintains a significant positive relation to market efficiency (Stage 2), especially in high‐UAI cultures where it acts as a key signal of stability. In high‐UAI cultures, markets may view environmental and social investments as ambiguous sunk costs; however, governance acts as a critical “market signal” and safety net. We find a significant positive interaction between governance and UAI for market efficiency (b = 0.9513, p < 0.05), suggesting that in risk‐averse societies, robust governance is a primary correlate of financial valuation. These findings extend the resource‐based view (RBV) and stakeholder theory by mapping the specific cultural boundary conditions where ESG is associated with value creation.\n"]

  May 06, 2026   doi: 10.1002/bse.70952   open full text
• When Are Capabilities Necessary? Threshold Effects in Circular Economy Performance Achievement.
  Tesfalidet Tukue, Francis Kamewor Tetteh, Kwame Owusu Kwateng.
  Business Strategy and the Environment. 4 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nDespite the growing discourse on strategic alliances and circular economy practices, there is limited insight into the mechanisms and conditions under which green alliance management capabilities generate enhanced circular economy outcomes. To address this gap, we drew on resource orchestration and contingency theories to investigate the influence of green alliance management capabilities on circular economy adoption and circular target performance through green collaborative practices under varying conditions of eco‐innovation leadership. Data were collected from 312 managers of manufacturing enterprises in Ghana. The data were analyzed using structural equation modeling, necessary condition analysis, and importance‐performance map analysis. The results indicate that green alliance management capabilities positively influence green collaborative practices, which, in turn, significantly affect both circular economy adoption and circular target performance. Green collaborative practices mediate the relationships between green alliance management capabilities and both circular economy adoption and circular target performance. However, eco‐innovation leadership does not significantly moderate the relationship between circular economy adoption and circular target performance. Using the NCA, we found green alliance management capabilities and circular economy adoption as necessary conditions for enhanced circular economy target performance, whereas green collaborative practices are just nice to have. Managers should prioritize the development of green alliance management capabilities to foster knowledge exchange, innovation, and long‐term value creation in circular economy contexts. Encouraging green collaborative practices enhances coordination, reduces costs, and strengthens circular economy implementation. This study offers valuable insights into the complex mechanisms through which organizations must achieve circular economy transformation.\n"]

  May 06, 2026   doi: 10.1002/bse.70970   open full text
• Corruption, Green Unfairness and Institutional Hypocrisy: Why Distorted Markets Discourage Audit Adoption and Sustainability Accountability.
  Haiying Qin, Kazeem Bello Ajide.
  Business Strategy and the Environment. 4 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nSustainability‐oriented business strategies rely on institutional environments that reward credible accountability rather than symbolic compliance. Yet, in many contexts, corruption may distort these incentives, weakening firms' commitment to substantive governance practices. This study examines how corruption affects firms' adoption of external auditing as a proxy for governance substance and sustainability‐oriented accountability. Using country–year data from the World Bank Enterprise Surveys covering 128 countries over 2006–2020, we construct multiple measures of corruption, including bribery incidence, bribery depth, tax‐related informal payments and administrative ‘gifts to get things done’. Employing pooled models with year fixed effects and correlated random effects (CRE/Mundlak) estimators suited for sparse panels, we find a robust negative relationship between corruption and audit adoption. Mechanism analyses show that this adverse effect is amplified in environments characterised by intense informal competition, consistent with the green unfairness channel. In contrast, corruption has a weaker and less consistent effect on website adoption, suggesting that it undermines substantive governance investments more than visible modernisation signals. These findings contribute to institutional and sustainability literature by demonstrating how corruption discourages firm‐level accountability investments that underpin credible sustainability transitions. The results highlight the importance of anti‐corruption enforcement, market formalisation and transparency reforms in strengthening governance substance and enabling sustainability‐oriented business conduct.\n"]

  May 06, 2026   doi: 10.1002/bse.70966   open full text
• Green Brand Equity: Conceptual Foundations, Drivers, and Future Pathways.
  Huynh Thi Ngoc Ly, Vo Thi Quy.
  Business Strategy and the Environment. 4 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nGreen brand equity (GBE) attracts eco‐conscious consumers and secures global financial support, enhancing competitiveness in the green era. GBE encompasses brand assets and liabilities linked to green commitments and environmental orientation, aligning with its name and symbol, which either manifest or decline the perceived value of provided products or services. This study advances GBE research through a bibliometric analysis and content co‐occurrence review, examining 73 Scopus‐indexed publications from 2010 to April 2025, processed via PRISMA. Five key themes emerge: GBE conceptualization and measurement, green marketing strategies, psychological drivers, green consumer behavior, and GBE in emerging sectors. Current research emphasizes consumer perspectives but overlooks financial dimensions and relies on unidimensional scales, limiting GBE's scope. Drivers often resemble traditional brand equity, underscoring the need for unique green antecedents. The banking sector, vital for green financing, lacks sufficient GBE research. Multidimensional scales and financial perspectives require further exploration to strengthen GBE strategies. This study pioneers insights into GBE's publication trends, key antecedents, impacts, and future agenda.\n"]

  May 06, 2026   doi: 10.1002/bse.70969   open full text
• Too Complex to Control? How Firms Navigate Scope 3 Governance Under Institutional Uncertainty.
  Victoria Fohrer, Alexander Stierstorfer, Florian Gilljam.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAs Scope 3 emissions make up the largest share of many firms' carbon footprints, firms face growing pressure to manage emissions beyond their direct control. Ongoing revisions of the CSRD, the GHG Protocol, and the SBTi Net‐Zero Standard further increase regulatory and methodological uncertainty. Drawing on 30 interviews with German Scope 3–intensive firms and 10 expert interviews, we examine how firms operationalize Scope 3 emissions and what explains the heterogeneity in their governance approaches under comparable institutional uncertainty. Firms do not converge on a single governance approach. Instead, organizational capabilities mediate how institutional uncertainty is interpreted, giving rise to three distinct response archetypes: Wait & React, Improve, and Explore. The archetypes differ in capability maturity and governance integration. Across archetypes, a key tension persists: expanding reporting, auditing, and target‐setting absorb resources, whereas decarbonization impacts remain uncertain. We therefore frame Scope 3 less as a precise control metric and more as a value‐chain steering tool that helps firms to identify emission hotspots and coordinate across their supply chains.\n"]

  May 05, 2026   doi: 10.1002/bse.70959   open full text
• Free Trade Zones and Corporate ESG: Evidence From a Quasi‐Natural Experiment in China.
  Wen Li, Yinghan Zhao, Brian Lucey.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines how China's Pilot Free Trade Zones (FTZs) influence corporate ESG performance. Using a staggered difference‐in‐differences model on Chinese listed firms from 2009 to 2024, we combine coarsened exact matching (CEM) and geography‐based instrumental variables to ensure robust identification. We document three main findings. First, FTZ designation significantly enhances firms' composite ESG scores, with effects that intensify over time. Second, mechanism analysis clarifies that the ESG improvement is driven by institutional openness and market incentives, rather than a mechanical injection of foreign capital. Specifically, we find that the effect is contingent on firm‐level heterogeneity: ESG gains are most pronounced among firms with high global connectivity or high financing constraints. Third, addressing concerns regarding ESG authenticity, we distinguish substantive innovation from symbolic disclosure. We find that FTZs significantly increase green patent grants without raising greenwashing scores, indicating genuine sustainability upgrading. The findings highlight that institutional liberalization reshapes nonfinancial corporate behavior by transmitting global norms and alleviating resource bottlenecks. Crucially, these results offer actionable insights for policymakers designing future mandatory ESG disclosure frameworks, demonstrating that institutional empowerment fosters authentic green governance in emerging markets.\n"]

  May 05, 2026   doi: 10.1002/bse.70942   open full text
• Expanding the Company's Innovation Boundaries for Circularity: The Mediating Role of Green Strategic Orientation and the Moderating Role of Environmental Turbulence.
  Nelson Lozada, Sjors Witjes, Hans van Kranenburg.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4705-4718, May 2026. ", "\nABSTRACT\nCircular economy capability (CEC) is an increasingly adopted approach by companies to address the challenges of mitigating the impact of corporate processes on the deterioration of the natural environment. Ensuring that businesses respond appropriately to current and future challenges on the efficient use of resources stakeholder demands is critical for their survival. Likewise, open innovation (OI) has demonstrated that companies can create value within their boundaries through collaborative work with external stakeholders. In line with the dynamic capabilities perspective, we explore the relationship between OI and CEC by studying the mediating effect of green strategic orientation (GSO) and the moderating effect of Technological Turbulence (TT) and market turbulence (MT). The research model was tested using structural equation modeling with data obtained from 157 companies located in an emerging country. The results confirm the positive impact of OI, that is, the exchange of information and knowledge flows, along with collaborative work with external actors, on the transition of companies to the circular economy. Additionally, the mediating role of GSO and the positive moderation exerted by MT and TT are highlighted.\n"]

  May 05, 2026   doi: 10.1002/bse.70385   open full text
• The Impact of Acquisition Intensity on ESG Performance.
  Ugbede Amedu, Paraskevas Pagas, Arief Daynes.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4861-4875, May 2026. ", "\nABSTRACT\nThis study investigates the impact of Acquisition Intensity on ESG performance using a panel of 1,736 US‐listed companies from 2002 to 2023. Employing a robust OLS framework, we assess both Value‐Based and Volume‐Based Acquisition Intensity against overall ESG scores and their environmental, social, and governance pillars, controlling for firm size, leverage, and capital expenditure. The findings reveal a statistically significant negative relationship between Acquisition Intensity and ESG scores, particularly within the governance pillar. Larger firms tend to achieve higher ESG scores overall, though they underperform on environmental metrics. These results highlight a critical trade‐off between aggressive growth strategies and sustainability, offering timely insights for managers, investors, and regulators navigating ESG priorities in M&A decisions.\n"]

  May 05, 2026   doi: 10.1002/bse.70429   open full text
• Applying High Reliability Organisation Theory to Guide Implementation of the Global Industry Standard for Tailings Management (GISTM).
  Layla Howe, Claire Cote, Susan Johnston.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4846-4860, May 2026. ", "\nABSTRACT\nUnreliable tailings management performance can result in serious, sometimes irreversible environmental, social and economic harm. The Global Industry Standard for Tailings Management (GISTM), being implemented by some mining companies, represents a potential turning point towards safer, more sustainable tailings storage. Although there has been over 30 years of research describing the practices that High Reliability Organisations (HROs) sustain to remain free from catastrophic failure and routinely fulfil their performance goals, this knowledge is yet to be applied to tailings management. In this study, we used Qualitative Content Analysis (QCA) methods and HRO thinking to consider how GISTM requirements can be operationalised with high reliability. We found examples where GISTM guides the development of organisational practices that enable greater reliability in the delivery of desired Tailings Storage Facility (TSF) performance. However, GISTM provides limited or no guidance aligning with some hallmark HRO characteristics, primarily a collective mindset and commitment to resilience. We argue that companies will need to develop and sustain additional approaches if all GISTM requirements are to be implemented with high reliability.\n"]

  May 05, 2026   doi: 10.1002/bse.70427   open full text
• Does Eco‐Innovation Reinforce Better Waste Management? The Role of Industry Sensitivity and Environmental Policy Frameworks.
  Muzhar Javed, Ammar Ali Gull, Abdul Ghafoor, Tanveer Ahsan, Muhammad Zahid Nawaz.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5285-5307, May 2026. ", "\nABSTRACT\nEnvironmental sustainability is a critical global concern, and waste generation poses a major threat to ecological balance. We investigate eco‐innovation's role in enhancing waste management practices via the natural‐resource‐based view and dynamic capability perspective. While eco‐innovation is recognized as a key strategy for sustainability, empirical evidence on its direct impact on firm‐level waste management performance remains limited, creating a critical research gap. Using a dataset of publicly listed firms from 42 countries, covering 17,339 firm‐year observations from 2002 to 2019, we find a positive and significant relationship between eco‐innovation and waste management performance. This relationship is especially pronounced in environmentally sensitive industries, firms with formal waste reduction policies, and countries with stringent environmental regulations. By integrating two strategic management frameworks, this study deepens theoretical understanding while extending empirical evidence across a broad geographical and temporal scope. Our study thus addresses a key literature gap by providing large‐scale, cross‐country evidence that positions eco‐innovation as a dynamic capability directly relevant to waste management. Our findings highlight the value of eco‐innovation as a dynamic capability that supports firms in more effectively addressing environmental challenges. There are key implications for managers, policymakers, and scholars, given eco‐innovation's key role in supporting sustainable development and several United Nations Sustainable Development Goals.\n"]

  May 05, 2026   doi: 10.1002/bse.70426   open full text
• Does Geography Matter for Eco‐Innovation? A Comparison of Collaborative Eco‐Innovation Between Core and Peripheral Regions.
  Xiangyu Quan, Andra Riandita, Marte C. W. Solheim.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5364-5377, May 2026. ", "\nABSTRACT\nThis paper examines the role of geographic location in the relationship between external collaboration and eco‐innovation by drawing on eco‐innovation and the geography of innovation literature. Analyzing data from 3518 Norwegian firms in the service sector, we find that geographic location shapes how firms collaborate with external partners on eco‐innovation. Despite finding that collaboration with partners at all geographic scales is positively associated with eco‐innovation in both core and peripheral regions, we find a positive relation between firms located in peripheral regions and collaboration with international partners. Moreover, the geographic breadth of partners holds a more pronounced association for firms in peripheral regions than for those in core regions. Our findings highlight the need for firms to take account of location when formulating collaboration strategies and emphasize the importance of diverse partnerships for advancing eco‐innovation development in peripheral regions.\n"]

  May 05, 2026   doi: 10.1002/bse.70423   open full text
• Is Circular Also Sustainable? Assessing Circularity and Sustainability to Enhance Legitimacy in Agri‐Food Industry.
  Maria Elena Latino, Marta Menegoli, Maria Laura Giangrande.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5926-5954, May 2026. ", "\nABSTRACT\nThe agri‐food industry faces major sustainability challenges, requiring a shift in companies' approach. Circular economy principles offer a promising path by enhancing resource efficiency, reducing waste, and valorizing by‐products. However, the integration of sustainability and circularity practices remains limited, especially in developing effective, sector‐specific assessment models. This study addresses the gap by proposing a novel self‐assessment framework based on mixed methods, to evaluate sustainability and circularity performance. It combines ESG dimensions with 10 circular R‐strategies, offering a dual‐level assessment. Legitimacy theory underpins the framework, highlighting that firms pursue sustainable and circular practices not only for compliance but also to gain social acceptance. The framework is validated through a multiple case study of three agri‐food firms. Results show that circularity is not always equivalent to sustainability, revealing differing levels of strategy adoption. This research contributes a comprehensive, practical tool to support sustainable innovation and measure circularity in agri‐food.\n"]

  May 05, 2026   doi: 10.1002/bse.70420   open full text
• Exploring the Role of Green Training on Organizational Resilience: A Multisectoral European Analysis.
  Giulia Alessandri, Fabio Iannone, Annamaria Pesci, Tiberio Daddi, Fabio Iraldo.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5641-5654, May 2026. ", "\nABSTRACT\nThe double transition paradigm has imposed to redefine the rules to compete. The demand for green skills, driven by European policy targets, currently outpaces the supply available in the labor market. This study surveys European companies across multiple sectors to assess the role of green training, a key element of green human resource management, in bridging this gap. Additionally, it evaluates the influence of green training on the internal work climate and the firms' green reputation and performance. The results indicate a positive impact of green training on the internal working climate and through it on the green reputation and performance of firms involved in the survey, encouraging its adoption in their strategies. The final goal is the definition of the role of green training both from an academic and practical point of view in addressing the challenges imposed by the increasingly turbulent environment building long‐lasting resilience of companies.\n"]

  May 05, 2026   doi: 10.1002/bse.70417   open full text
• More Than 10 Years on: Does a State‐of‐the‐Art Review and Synthesis Offer New Frameworks to Guide Future Design for Remanufacturing Research?
  Okechukwu Okorie, Yogendra Singh, Jennifer Russell, Chris Turner, Kingsley Oturu.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5194-5235, May 2026. ", "\nABSTRACT\nThere is strong evidence that design for remanufacturing (DfRem) can reduce initial‐design carbon emissions by up to 30%, and that product design can critically affect remanufacturing feasibility, yet academic adoption of DfRem remains limited. The last major review of DfRem dates to 2011, despite substantial evolution across environmental, economic, technological, and methodological domains. Through a review of 174 publications, this study maps the current DfRem research landscape and proposes a systematic framework approach to guide future research directions. Review findings reveal a transition from DfRem research addressed within conventional design challenges and tool development priorities, to data‐driven, sustainability‐motivated methodologies and studies. Clear emphases on OEM perspectives and the automotive sector are also identified. Notably, recent exploration and integration of Industry 4.0 technologies into DfRem research, that is, via digital twins, smart remanufacturing, and cyber‐physical systems, marks a significant and evolving shift that is logical in the context of OEM case studies. Methodologies used to study these innovations are founded upon, and increasingly aligned with eco‐design, life‐cycle assessment, and human‐centric frameworks. Methodologically, DfRem research is evolving from conceptual and secondary‐data studies toward empirical, validated research predominantly conducted as case studies, while a strong emphasis on technical engineering perspectives persists. Two resulting frameworks are presented to capture diverse perspectives related to emergent research priorities for DfRem on the basis of process versus product research focus, and analysis versus design research focus. Through the course of this review, we demonstrate DfRem as an increasingly relevant and critical enabler for the advancement of operationalized circular economy, lifecycle extension, and net‐zero strategies within sustainable manufacturing systems, and present our recommendations for continued progress, accordingly.\n"]

  May 05, 2026   doi: 10.1002/bse.70416   open full text
• CEO Power and Corporate Environmental Sustainability: An Examination of Waste Management Practices.
  Mubashir Ali Khan, Ammar Ali Gull.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4830-4845, May 2026. ", "\nABSTRACT\nThis paper explores the influence of chief executive officer (CEO) power on corporate environmental sustainability through the lens of waste management, an underexplored yet critical aspect of environmental sustainability. Drawing on the approach–inhibition theory of power, we argue that powerful CEOs are more likely to engage in risk‐taking behavior and exercise greater control over resources. Therefore, they may prioritize short‐term profits over long‐term sustainability. Using data from listed companies across 37 countries over the year 2002–2019, we find that high CEO power is positively linked with waste generation, implying that firms with powerful CEOs tend to produce more waste. Further analysis indicates that this relationship is stronger for firms in environmentally nonsensitive industries, in common‐law countries, and with low governance quality. Our findings are robust to alternative estimations, cross‐sectional analyses, variable measurements, and endogeneity tests. These results offer valuable insights into how CEO power shapes environmental sustainability, guiding regulators, stakeholders, and policymakers in assessing the impact of powerful CEOs on sustainability outcomes.\n"]

  May 05, 2026   doi: 10.1002/bse.70414   open full text
• Environment Innovation and ESG Performance in EU Firms: Exploring the Impact of Environmental Innovation on Sustainability Outcomes.
  Mujtaba Momin, Suzan Dsouza, Ariz Naqvi, Rini Rini.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4925-4941, May 2026. ", "\nABSTRACT\nThis study examines the influence of environmental innovation on key sustainability outcomes, namely ESG performance, workforce satisfaction, and SDG 9 adoption, among firms operating in the European Union. Using a panel of 5155 firm‐year observations across 952 companies from 2010 to 2024, the analysis draws on Refinitiv data and applies firm‐fixed effects regressions and dynamic system‐GMM estimation to address endogeneity and unobserved heterogeneity. The results indicate that environmental innovation has a consistently positive effect on ESG ratings (β ≈ 0.13, p < 0.001), employee satisfaction, and infrastructure‐related SDG engagement. Environmental management training further amplifies these benefits, particularly when programs are tailored to eco‐innovation processes. However, generic training may dilute the innovation–ESG link. The originality of this study lies in offering a unified framework that simultaneously evaluates environmental, social, and infrastructure outcomes; introduces environmental management training as a critical boundary condition; and situates the analysis in the EU context, which features stringent regulatory and governance frameworks. These findings underscore the importance of aligning green innovation strategies with customized capability‐building efforts and governance mechanisms, including board diversity and performance incentives. The study contributes to stakeholder theory, dynamic capabilities theory, and the resource‐based view (RBV) by demonstrating how eco‐innovation creates long‐term stakeholder value, enhances adaptive capacity, and strengthens intangible assets. Practical recommendations are advanced for managers, policymakers, and investors on how to design targeted training, allocate innovation capital, and align governance incentives to achieve superior sustainability outcomes.\n"]

  May 05, 2026   doi: 10.1002/bse.70411   open full text
• Unveiling Digital Transformation Challenges in the Rice Supply Chain Toward Sustainability in Thailand: A Strategic Roadmap Analysis.
  Tanawan Kumpimpa, Feng Ming Tsai, Ming K. Lim, Kanchana Sethanan, Ming‐Lang Tseng.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 6045-6068, May 2026. ", "\nABSTRACT\nThis study aims to elucidate the digital transformation (DTN) challenges in the Thai rice supply chain (RSC) and to propose a strategic roadmap for advancing sustainability through the construction of a hierarchical structure using technology–organization–environment (TOE) perspectives and cobenefit theory. This work is needed because the RSC in Thailand faces sustainability challenges because of fragmented production networks, inconsistent quality standards, environmental pressures, and limited digital adoption. DTN enhances efficiency, traceability, and resilience through advanced technologies and data‐driven processes; however, its adoption remains partial and hindered in TOE dimensions. In this study, a hybrid approach including the fuzzy Delphi method, exploratory factor analysis, and reliability testing is used to validate the attributes. Fuzzy synthetic evaluation–decision‐making trial and evaluation laboratory (FSE‐DEMATEL) results constitute strategic roadmapping to address practical challenges. Strategic digital resource capabilities and regulatory and policy support are taken from TOE perspectives to address the DTN challenges in the RSC. In practice, this study reveals that cloud computing and data storage, insufficient monetary resources for digital tools, and green digital economy strategies are the practical criteria for overcoming DTN challenges.\n"]

  May 05, 2026   doi: 10.1002/bse.70395   open full text
• A Multidimensional Machine Learning Study of Environmental Innovation and ESG Integration in BRICS Economies.
  Midrar Ullah, Xiaoxia Huang, Liukai Wang, Subhan Ullah, Pervaiz Akhtar.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5776-5801, May 2026. ", "\nABSTRACT\nEnvironmental, social, and governance (ESG) performance has developed as a critical axis of business strategy, specifically within countries enduring institutional transformation and coping with extreme environmental exposures. This empirical study considers the degree to which environmental innovation improves ESG outcomes in BRICS economies (Brazil, Russia, India, China, and South Africa). Using a dataset from Refinitiv Eikon covering the 2009 to 2023 data, this study applies elastic net regression and a comprehensive stacked ensemble learning framework combining random forest, gradient boosting, ridge regression, and support vector machine (SVM) models to evaluate the predictive capability of environmental innovation with governance and firm‐specific determinants. We find that environmental innovation positively influences ESG performance, suggesting environmental innovation is not only strategic, but also an important driver of corporate sustainability initiatives in emerging markets. Results reveal that institutional quality and CEO power moderate the relationship between environmental innovation and ESG. These insights feature the economically significant and contingent value of sustainability investments and offer actionable inferences for corporate leaders and policymakers.\n"]

  May 05, 2026   doi: 10.1002/bse.70432   open full text
• Digital Technologies Disclosure and the Cost of Capital: The Mediating Role of Sustainability Performance.
  Hussein Mohsen Saber Ahmed, Awad Elsayed Awad Ibrahim, Khaldoon Albitar.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5895-5925, May 2026. ", "\nABSTRACT\nThis study examines the economic consequences of Digital Technologies Disclosure (DTD), focusing on its impact on the cost of capital. The increasing significance of digital transformation in shaping corporate strategies and market perceptions motivates the study. Using a sample of 280 nonfinancial firms listed on the FTSE All‐Share Index between 2015 and 2022, we conducted an empirical analysis. This period represents a dynamic phase of digital evolution and heightened regulatory focus on corporate disclosures. We employ automated content analysis, using the Python language, to analyze the frequency of DTs in the annual reports. Our findings report that there is a positive relationship between DTD and the cost of capital, suggesting that higher levels of DTD may increase perceived risks, leading investors and lenders to demand higher returns. Furthermore, ESG performance mediates the relationship between DTD and the cost of capital. These findings highlight the importance of incorporating DTD into investment decision‐making processes. The study contributes to the growing body of literature on the economic implications of technology‐related disclosures. This paper is the first study to examine how DTD affects the UK capital market using a holistic view of digital activities. The current research provides valuable insights for financial market participants, academics, and regulators, emphasizing how DTD influences the cost of capital and its broader economic impact.\n"]

  May 05, 2026   doi: 10.1002/bse.70383   open full text
• Think Global, Act Local? Fortune 500 Business Strategies for Sustainable Cities and Communities (SDG 11).
  Andreas Georgiou.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4912-4924, May 2026. ", "\nABSTRACT\nThe role of business towards achieving the 17 Sustainable Development Goals (SDGs) has been well established. However, SDG contextualization continues to pose a conundrum, particularly for firms operating in multiple contexts. This becomes even more problematic in the case of SDG 11, the only goal in the sustainable development agenda directly focusing on cities and local communities. Building upon a thematic analysis of Fortune 500 sustainability reports and related data, the study reveals four business strategies towards contextualizing and contributing to the underexplored SDG 11: reducing their own negative impact, outsourcing community support, mobilizing context‐relevant competences, and reshaping the community fabric. Importantly, I then synthesize the findings into a matrix and unpack how each of the four strategies represents a distinctive way of business thinking and acting sustainably (local/global), providing theoretical and practical implications for SDG contextualization and the achievement of SDG 11.\n"]

  May 05, 2026   doi: 10.1002/bse.70382   open full text
• Green Human Resource Management and Employee Green Behaviour in Hotels: Mediating Roles of Job Satisfaction and Work Well‐Being.
  Vanessa Guerra‐Lombardi, Desiderio Gutiérrez‐Taño, Raúl Hernández‐Martín, Noemi Padrón‐Fumero.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4688-4704, May 2026. ", "\nABSTRACT\nThis study investigates the impact of green human resource management (GHRM) practices on employee green behavioural intention (GBI) and in‐role green behaviour (EGB‐IR) in the hospitality sector. Drawing on conservation of resources (COR) theory, we examine the mediating roles of job satisfaction and employee well‐being as psychological resources activated by GHRM. Survey data from 536 hotel employees in the Canary Islands were analysed using consistent partial least squares structural equation modelling (PLSc‐SEM). The results show that GHRM significantly enhances both GBI and EGB‐IR, with job satisfaction playing a key mediating role. While GHRM also increases employee well‐being, this construct does not mediate the relationship with actual green behaviour, suggesting potential limitations in its capacity to trigger voluntary sustainability actions under high‐pressure work conditions. Mediation analysis further confirms that job satisfaction serves as a more robust psychological mechanism than employee well‐being for translating green intentions into actual environmental behaviours. These findings highlight the need to align environmental strategies with human sustainability and reinforce the importance of psychological enablers in fostering behavioural change. This is especially relevant in the hospitality industry, where employees are both strategic actors and sustainability ambassadors in a sector facing critical environmental challenges.\n"]

  May 05, 2026   doi: 10.1002/bse.70379   open full text
• Consumer Responses to Physical, Digital and Integrative Sustainability Strategies in the Apparel Industry: A Systematic Review.
  Maria Leonor Ferreira, João J. Ferreira.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4659-4687, May 2026. ", "\nABSTRACT\nThe apparel industry is one of the world's most profitable sectors but also among the most environmentally damaging. Growing sustainability pressures have led companies to adopt diverse strategies to reduce their impact, yet no single study has systematically analysed these approaches or their consumer implications. This review addresses that gap by categorising sustainability strategies in the apparel sector and identifying the tools used—whether physical, digital or integrative. Using a systematic approach, we synthesise key trends, theoretical foundations and research methods to provide a structured view of the field. A central contribution is the development of the consumer response matrix, a theoretical model that illustrates how consumers respond to different sustainability strategies. Our findings reveal the importance of integrative frameworks that combine physical and digital approaches to enhance consumer engagement. This study maps current strategies and sets the foundation for future research on hybrid approaches and long‐term sustainable consumption.\n"]

  May 05, 2026   doi: 10.1002/bse.70375   open full text
• Does Accounting Scope 3 Emissions Improve Sustainable Business Outcomes? Evidence From the S&P 500 Technology Companies.
  Nuri C. Onat, Murat Kucukvar, Tadesse Wakjira, Amr Elalfy, Adeeb A. Kutty.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 6111-6133, May 2026. ", "\nABSTRACT\nCorporate sustainability efforts increasingly emphasize Scope 3 emissions due to their substantial share of total corporate carbon footprints. However, reporting these emissions remains inconsistent, limiting transparency and comparability across firms. This study examines the role of carbon footprint accounting (especially Scope 3 emissions accounting) in shaping corporate sustainability outcomes among S&P 500 technology companies, focusing on how firms measure, disclose, and integrate these emissions into their environmental strategies. Using an empirical analysis of corporate sustainability reports and Environmental, Social, and Governance (ESG) performance data, this study investigates whether comprehensive Scope 3 accounting enhances corporate environmental performance. Findings indicate that firms adopting standardized Scope 3 reporting practices demonstrate improved sustainability integration and stronger ESG performance. However, methodological inconsistencies and voluntary disclosure limitations highlight the need for policy interventions and standardized adoption. This study contributes to the growing literature on carbon accounting by providing empirical insights into Scope 3 emissions disclosure and its implications for corporate sustainability. The findings inform regulatory discussions on mandatory emissions reporting and offer practical recommendations for enhancing transparency in corporate climate strategies.\n"]

  May 05, 2026   doi: 10.1002/bse.70370   open full text
• Beyond Closed Loops: Advancing Climate Change Mitigation by Collaborative Open Approaches.
  Anna‐Kristin Behnert, Oliver Antons, Julia Arlinghaus.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nEven as world leaders emphasize the urgency of limiting global warming, a slow transition to a circular economy persists. While climate mitigation efforts focus on renewable energy and efficiency measures, addressing the 45% of emissions from product manufacturing remains critical. While previous research has focused on collaborative approaches like open innovation, other forms like open‐source hardware and open data remain understudied. There is a limited understanding of how open concepts and their collaboration mechanisms influence sustainable practices in global value chains. To address this gap, we conduct a structured literature review following the PRISMA guidelines and using the Gioia methodology. Additionally, we analyze 27 cases and derive key enabling properties of open concepts for climate change mitigation, drawing inspiration from the foundational theories of relational view, resource‐based view, and knowledge‐based view. This study serves as a starting point for future studies on the potentials of open collaboration mechanisms in shaping sustainable practices.\n"]

  May 05, 2026   doi: 10.1002/bse.70898   open full text
• CEO Compensation and the ESG Activities of Compensation Peers.
  Jamshed Iqbal, Jukka Pellinen, Mohsin Riaz.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study investigates the relationship between executive compensation at focal firms and the environmental, social, and governance (ESG) performance of compensation peer (CP) firms. Despite the growing integration of ESG metrics into executive compensation design, and the mandatory disclosure of CP groups, no prior research has examined whether the ESG performance of CP firms influences focal firm CEO compensation. Drawing on managerial power theory, we hypothesize that CEOs strategically exploit CP benchmarking by selecting peers with superior ESG credentials to justify higher compensation. Using panel data from S&P 1500 firms (2006–2022), we document that CEO compensation at the focal firm is positively associated with higher ESG performance of CP, suggesting that firms in which CP are chosen with high ESG performance generally reward CEOs with greater compensation. Moreover, our additional analysis reveals that higher ESG performance of CP is also positively related to a larger CEO pay slice suggesting that higher ESG performance of CP may lead to an increase in the CEO's pay as compared with the other executives. Importantly, this association is stronger when CEO power is higher and concentrated in firms with weaker governance, consistent with rent extraction rather than efficient contracting. The results are robust to multiple identification strategies including propensity score matching, entropy balancing, lagged specifications, and difference‐in‐differences analysis. The results support managerial power theory, indicating that powerful CEOs may influence CP benchmarking to increase their compensation and pay slice.\n"]

  May 05, 2026   doi: 10.1002/bse.70932   open full text
• Green Finance, Digitalization, and Banks' Sustainable Business Model Innovations Toward Net‐Zero Transitions.
  Akihisa Mori.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nFinancial capital is widely recognized as having the potential to provide investments needed for net‐zero transitions. While recent empirical studies reveal that financial digitalization and fintech have changed Chinese banks' loan portfolios and business models, they stem from credit restrictions on heavily polluting enterprises and from Chinese manufacturers' dominance in decarbonization technologies. To address this research gap, this study investigates on‐the‐ground mechanisms between green and renewable loans, digitalization, and banks' sustainable business model innovations (SBMIs) by statistical analysis and multiple case studies with heterogeneous tests. The results reveal that green loans have triggered SBMIs in a few regional banks. Regional banks have reoptimized their loan portfolios to attain the green finance targets. Only those who reframed wind power finance as enhancing local industrial chains have actively advanced SBMIs. This finding suggests that the government sustainability disclosure requirement, digitalization in financial and electricity systems, and the co‐evolution of financial institutions are enabling factors.\n"]

  May 05, 2026   doi: 10.1002/bse.70955   open full text
• Climate Change Pressure: Enhancing or Diminishing Corporate ESG Performance?
  Xiaohui Chen, Yanxue Zhang, Xuerui Qin.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study employs resource conservation theory as the theoretical framework and empirically examines the effect of climate change pressure on corporate environmental, social and governance (ESG) performance and its underlying mechanisms using data from 3562 A‐share listed companies in China from 2008 to 2023. First, climate change pressure exerts an inverted U‐shaped effect on corporate ESG performance. On the one side of the inflection point, rising climate change pressure improves ESG performance; on the other side, further increases in pressure lead to a decline in ESG performance. Second, climate change pressure exerts a positive U‐shaped effect on corporate agency costs, which, in turn, adversely affects ESG performance, ultimately resulting in an inverted U‐shaped effect of climate change pressure on corporate ESG. Third, climate change pressure exerts an inverted U‐shaped effect on corporate debt financing levels, which, in turn, positively affects corporate ESG performance, thereby resulting in an inverted U‐shaped effect of climate change pressure on corporate ESG performance. Accordingly, governments should adopt a gradual approach when advancing carbon reduction initiatives to avoid excessive forces that could stifle ESG performance and prove counterproductive.\n"]

  May 05, 2026   doi: 10.1002/bse.70949   open full text
• Applying the Theory of Planned Behaviour to Predict Investment Intention in Energy Transition by Small Businesses' Owners.
  Renato Passaro, Ivana Quinto, Giuseppe Scandurra, Antonio Thomas.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5378-5393, May 2026. ", "\nABSTRACT\nEnergy transition (ET) is the core of sustainable development. Therefore, ET is a growing operational imperative for all types of businesses. Until now, the majority of studies focus on the presence of specific factors that should encourage the adoption of ET practices, while little attention has been paid to the factors supporting the emergence of the intention of companies to follow ET practices. Intention is a stage that is upstream of the decision to perform a certain behaviour. This knowledge gap is more evident for small businesses (SBs), although they are the major responsible for pollution and GHG emissions. Hence, while most research focuses on identifying the factors that may encourage SBs to invest in ET without certainty that investments will materialise, this study investigates the process through which the intention to invest in ET emerges among SBs. For this purpose, the theory of planned behaviour (TPB) is applied to a specific population of SBs with a high propensity toward innovative investments. The findings show that the TPB can effectively help to explain investment choices of SBs. Specifically, economic and financial expectations seem to be the best factors that push SBs to invest in ET, even if great importance can be devoted to external requests for sustainability practices that cannot be ignored by any company. Even managers/owners' environmental sensitivity plays a relevant role and is somewhat shaped by the new environmental culture that is widespread around the EU. From this evidence, various implications occur.\n"]

  May 05, 2026   doi: 10.1002/bse.70444   open full text
• The Moderating Role of Strategic Investment in R&D and Advertising in Firms' ESG–Performance Relationship.
  Syed Zulfiqar Ali Shah, Saeed Akbar, Sardar Ahmad.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5723-5748, May 2026. ", "\nABSTRACT\nThis paper examines the association between environmental, social, and governance (ESG) ratings and firm performance, taking into account the role of firms' strategic investments in research and development (R&D) and advertising. Drawing on resource‐based view and signalling theory perspectives and employing the generalised method of moments (GMM) estimator for a sample of UK firms over the 2002–2018 period, our findings suggest a significantly positive association of firms' aggregate ESG rating with accounting and market‐based measures of firm performance. Further, we find that R&D and advertising expenditures positively moderate firms' ESG–performance relationship. The moderating role of R&D and advertising persists when we analyse the three (environmental, social, governance) pillars of ESG separately. The results suggest that strategic investments in R&D and advertising complement firms' ESG efforts. The findings remain robust after using alternative measures of performance, an ESG combined score that takes both positive and negative aspects of ESG into account, propensity score matching and controlling for self‐selection bias. Our findings provide useful insights for managers in the evaluation of the efficacy and disclosure of strategic investments in ESG, R&D and advertising and for policy makers and standard setters in the deliberation of sustainability standards and disclosure regulations.\n"]

  May 05, 2026   doi: 10.1002/bse.70467   open full text
• Reputational Risk: An Investigation Into How Environmental Failures Drive Stock Price Crashes.
  Man Dang, Premkanth Puwanenthiren, Edward Jones, Hoang Long Phan, Abdelhafid Benamraoui.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5987-6008, May 2026. ", "\nABSTRACT\nThe study examines the relationship between stock price crashes and firm environment reputational risk. Using a large sample of US listed firms, covering a time span from 2007 to 2021, we test the effect of environmental reputation risk on three measures for the stock price crash risk (NEGCSK, DRUV, and CRASH). The findings reveal a strong positive relationship between stock price crash risk and environmental reputation risk. The relationship is more pronounced in firms with weaker governance, less concentrated industries, and subject to corporate cultures that lack innovation. The study contributes to the literature linking corporate environmental approach or strategy and financial markets, emphasizing the importance of green reputation in firms' strategy to protect shareholder value and to promote long‐term sustainability.\n"]

  May 05, 2026   doi: 10.1002/bse.70466   open full text
• Environmental Impact‐Adjusted Firm Value and Debt: A Multi‐Country Analysis.
  Paolo Saona, Antonio Renzi, Gianluca Vagnani, Pietro Taragoni.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5677-5706, May 2026. ", "\nABSTRACT\nThe study finds a nonlinear, inverted U‐shaped relationship between leverage and environmental impact‐adjusted firm value (\nEIAFV), confirming the trade‐off theory. The firm value increases with leverage up to an optimal point, approximately 58%–61% of total assets, after which higher leverage leads to value erosion due to rising default risk and financial distress costs. Our results also reveal that higher leverage is associated with lower environmental impact. Quantile regression analysis highlights that the impact of leverage varies across the distribution of \nEIAFV, with stronger effects observed at higher quantiles. Contextual country‐level variables, such as capital market development, positively influence \nEIAFV, while banking system inefficiencies, like higher net interest margins and banking crises, negatively affect it. Despite data limitations for country‐specific variables, the findings remain robust, emphasizing the nuanced relationship between leverage and firm value in a multi‐country context.\n"]

  May 05, 2026   doi: 10.1002/bse.70465   open full text
• The Double‐Edged Sword of Sustainability Reporting: The Role of Board Independence.
  Ruixin Zhang, Abid Noor, Rohail Hassan, Shahzad Ali.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5529-5543, May 2026. ", "\nABSTRACT\nThis study examines the relationship between sustainability reporting and earnings quality management (EQM) in Pakistan's listed financial firms, with a focus on the moderating effect of board independence on the Pakistan Stock Exchange (PSX). The data are analyzed using multiple regression analysis alongside robust standard error (RSE) and the panel‐corrected standard error (PCSE) technique to affirm robustness. The data were based on 960 firm‐year observations of PSX's listed financial companies from 2015 to 2024, collected from the annual audited reports available at PSX, Open Doors, and the D‐space repository. The findings reveal significant negative results for sustainability reporting and EQM in the absence of independent directors. Board independence acts as a moderator, yielding significant and positive results regarding sustainability reporting, EQM, and interacting terms. The “RSE” and PCSE affirm the robustness of the results. This study is of concern from the viewpoint of direct, indirect, and connected stakeholders. Prospective investors should be aware of the risks associated with investing in Pakistan's financial sector, particularly when the role of independent directors is limited. Regulatory authorities of Pakistan, like the Securities and Exchange Commission of Pakistan (SECP) and PSX, should devise a governance mechanism where the reporting is not confined to books only, but is also practiced, and sustainability reporting should not be taken as a cushion for EQM. The study sheds light on the importance of independent directors in the Pakistani financial sector in overcoming the issue of EQM. The research has contributed to the existing literature on sustainability reporting and EQM by examining the moderating role of board independence in the financial listed sector of Pakistan. The use of the income smoothing ratio, “discretionary LLC,” is taken as a gap for the study, which is replenished.\n"]

  May 05, 2026   doi: 10.1002/bse.70460   open full text
• A Dynamic Capability View to Evaluate the Role of FinTech in Green Supply Chain Performance: Moderating Role of Data‐Driven Lean and Green Practices.
  Yineng Wu, Khalid Mehmood, Sachin Kumar Mangla, Fauzia Jabeen.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5841-5858, May 2026. ", "\nABSTRACT\nGlobal industries are increasingly challenged to bring together digital transformation and sustainable development in response to intensifying climate and resource pressures; however, despite increasing international attention on green transition, many firms, especially in emerging economies, are still struggling to use financial technologies (FinTech) to enhance the performance of sustainable supply chains. This research is based on the Dynamic Capability View (DCV) and investigates how FinTech, which includes big data analytics (BDA), artificial intelligence (AI), blockchain technology utilization (BT), and the industrial internet of things (IIoT) utilization, supports green technological innovation (GTI) and improves green supply chain performance (GSCP) among manufacturing small‐ and medium‐sized enterprises (SMEs). Using a time‐lagged design and data collected from 373 manufacturing SMEs across three survey waves, the results showed that BDA, AI, BT, and the IIoT significantly enhance GTI, which in turn improves GSCP. Moreover, data‐driven lean and green practices (DLGP) have a positive moderating relationship, indicating that both digital financial tools and analytics‐based management practices together have greater environmental and operational benefits. The research builds on the DCV by conceptualizing FinTech as a strategic resource for sustainability‐oriented innovation with practical insights for managers and policymakers that facilitate green and digital transformation in supply chains.\n"]

  May 05, 2026   doi: 10.1002/bse.70459   open full text
• Connecting Industry 4.0, Servitisation and Sustainability: Territorial Implications for Global Value Chains.
  Javier Bilbao‐Ubillos, Vicente Camino‐Beldarrain, Gurutze Intxaurburu‐Clemente, Eva Velasco‐Balmaseda.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5973-5986, May 2026. ", "\nABSTRACT\nGlobalisation has deepened the integration of international production within global value chains (GVCs), where the various stages of the manufacturing process are dispersed across countries. In today's volatile business environment, characterised by rapid technological advances (Industry 4.0) and evolving consumer preferences towards use‐based models (servitisation), firms are compelled to adapt swiftly to maintain competitiveness and environmental performance. However, existing research has paid limited attention to how the combined dynamics of Industry 4.0 and servitisation reshapes GVCs in spatial terms and influence proximity constraints and sustainability outcomes. This paper addresses this research gap by examining how digital and servitised production models affect the reconfiguration of GVCs and contribute to the transition towards more circular and sustainable production systems. The study follows a mixed theoretical‐empirical approach, combining an extensive literature review with 23 semistructured interviews conducted with executives and experts from industrial firms, technology centres and cluster organisations in the Autonomous Community of the Basque Country (Spain). Findings indicate that the technological adaptation challenges of Industry 4.0 and the growing cognitive complexity of servitised solutions reinforce spatial concentration dynamics, leading to reshoring and regionalisation processes in high‐tech environments. These dynamics may contribute to reducing the ecological footprint, enhancing resource efficiency and facilitating circular economy practices. The paper provides new insights into the territorial implications of the joint deployment of Industry 4.0 and servitisation, contributing to a more comprehensive understanding of the emerging geography of sustainable global production.\n"]

  May 05, 2026   doi: 10.1002/bse.70456   open full text
• Multidimensional Models for Building Decarbonization Pathways.
  Francesco Tajani, Giuseppe Cerullo, Federico Stara, Francesco Sica.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5598-5618, May 2026. ", "\nABSTRACT\nThe increasing urgency to reduce greenhouse gas emissions has positioned the decarbonization of the existing building stock as a pivotal strategy. It plays a crucial role in the global transition towards forms of low‐carbon economies. This research proposes an integrated and replicable methodological framework designed to steer strategic investment decisions across the energy retrofitting initiatives field by harmonizing economic, environmental and technical dimensions. The methodology integrates established instruments from scientific literature, such as the Carbon Risk Real Estate Monitor (CRREM) for environmental risk evaluation, two‐dimensional scatter plots for exploratory analysis of trade‐offs and multiobjective optimization models based on goal programming principles. It has been applied to a diversified portfolio of 13 buildings located in the city of Rome (Italy). The results highlight the framework's capacity to identify optimal retrofit scenarios that balance investment expenses, payback periods and the alleviation of asset‐stranding issues. Furthermore, the sensitivity analysis outlines the adaptability of the method to different priority weightings, facilitating decision makers in effectively managing complex multicriteria trade‐offs. The study underscores the relevance of integrating environmental and economic criteria to foster investment strategies aligned with ESG standards, supporting both public administrations and private investors in achieving climate objectives.\n"]

  May 05, 2026   doi: 10.1002/bse.70455   open full text
• Addressing the Attitude Behaviour Perception Gap—Multimethod Sustainable Tourist Behaviour Evaluation.
  Rachel Dodds, Mark Robert Holmes.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5514-5528, May 2026. ", "\nABSTRACT\nQuantitative and perceptual studies have been used to define and model sustainable tourist behaviour in past years, but few studies have undertaken qualitative research of actual behaviour to delve deeper into understanding the different classifications of such behaviour. This research employed a three‐phase design, comprising a pretrip survey, in‐person semistructured interviews and participant observation of tourist behaviour during an adventure cruise expedition. The aim was to test the accuracy of the Holmes–Frochot model of everyday behaviour and assess whether sustainable tourist behaviours were actually demonstrated rather than just intended. Survey data were analysed using cluster and regression analysis, while interview transcripts and field notes were examined through deductive thematic analysis. Findings suggest that the Holmes–Dodds–Frochot model of everyday behaviour can help be a good predictor of sustainable travel behaviour, and that the constructs of frugality, pro‐ecological behaviour and altruism emerge differently as distinct tourist influences. By combining these quantitative and qualitative findings, this research has been able to derive meta‐inferences examining how perceived intentions manifest to actual behaviours. Furthermore, these meta‐inferences highlight nuances in how travellers understand and practice sustainability, with the qualitative findings delving deeper into the motivations and constructs that may help destinations understand ‘sustainable’ travellers.\n"]

  May 05, 2026   doi: 10.1002/bse.70452   open full text
• Dynamic Ambidexterity in Corporate Venture Capital: A Pathway to Green Innovation and Environmental Performance.
  Fatima Shuwaikh, Sami Ben Jabeur, Rodrigo Miguel de Oliveira Gonçalves.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5428-5451, May 2026. ", "\nABSTRACT\nThis paper examines the influence of various ambidexterity tactics on green innovation among corporate investors. It explores how these investors might improve their environmental performance by acquiring green innovations through ambidextrous corporate venture capital (CVC) investments. The study demonstrates that 126 American corporate investors can successfully leverage green innovation by making ambidextrous investments in entrepreneurial enterprises. Results show that within‐period balance between exploration and exploitation is associated with higher green innovation. Corporate investors who pursue dynamic ambidexterity or a combination of dynamic and static ambidexterity show enhanced outcomes in green innovation. This research demonstrates a clear connection between the green innovation of corporate investors and their enhanced environmental performance, particularly in terms of reducing greenhouse gas (GHG) emissions. The study contends that ambidextrous CVC investments serve as a gateway for corporate investors to elevate their environmental performance through the strategic acquisition of green innovation. This research provides significant insights for company managers, regulators, and government bodies, delivering practical knowledge for establishing environmentally friendly practices in corporate investment strategies.\n"]

  May 05, 2026   doi: 10.1002/bse.70449   open full text
• Enhancing Consumers' Willingness to Pay for Energy‐Efficient Appliances: The Roles of Perceived Value, Trust, and Green Self‐Identity.
  Hoang Viet Nguyen, Bao Ngoc Le, Ninh Nguyen, Dung Minh Nguyen, Thi My Nguyet Nguyen, Tuan Duong Vu.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5065-5080, May 2026. ", "\nABSTRACT\nBusinesses and governments have sought to encourage consumers to purchase energy‐efficient appliances (EEAs), which contribute to environmental sustainability by reducing carbon emissions and conserving resources. The high prices of EEAs, however, often act as a purchasing barrier for consumers, suggesting the need for research into the antecedents of their willingness to pay (WTP) for these products, which has been underestimated in the literature. Drawing on consumer perceived value theory and stimulus–organism–response framework, this research examines the effect of perceived value on consumers' WTP premium prices for EEAs, with the mediating impact of consumer trust and the moderating role of green self‐identity (GSI). Following a pilot test of measurement items, the main study used a survey method to collect data from 405 consumers in Vietnam, which has one of the highest energy consumption rates in Southeast Asia. Partial least squares structural equation modeling (PLS‐SEM) shows that perceived quality, economic, social, and green value positively affect consumer trust, which in turn enhances WTP for a premium. Moreover, GSI positively moderates the consumer trust–WTP relationship. Importance–performance map analysis indicates that perceived quality and green value need managerial attention because of their underperformance. These findings offer theoretical references for researchers interested in energy efficiency behavior and implications for practitioners aiming to promote consumers' WTP for EEAs, especially in emerging countries like Vietnam.\n"]

  May 05, 2026   doi: 10.1002/bse.70445   open full text
• The Impact of Sustainability Disclosure on Access to Capital: the Risk–Return Perspective.
  Raffaele Trequattrini, Benedetta Cuozzo, Federico Schimperna, Maria Schimperna.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5560-5576, May 2026. ", "\nABSTRACT\nThis paper aims to analyze how companies that provide sustainability disclosure are considered regarding their risks by reducing informative asymmetries and analyzing the perspective of lenders and investors. After a literature review that showed not unanimous results, we developed an empirical analysis with a quantitative method on a sample of the Italian stock exchange's securities. The findings revealed how companies that carry out sustainability disclosure have better access to equity and a similar cost of credit than other companies. This difference also focuses on the average market cost of equity and credit. Additionally, filling a literature gap contributes to the body of knowledge about (i) the impact of sustainability disclosure on the cost of capital and risks and (ii) the relevance of increasing disclosure for the company. Practical implications are the following: (i) Companies are strongly encouraged to be socially and environmentally responsible; (ii) there is need to consider this factor in a company valuation.\n"]

  May 05, 2026   doi: 10.1002/bse.70468   open full text
• Exploring the Spillover Effect of Supply Chain Digitalisation on Pollution Emissions Through Social Network Analysis.
  Zengdong Cao, Nichola Latoya Williams, Ibrahim Labaran Ali, Ololade Periola, Yasanur Kayikci.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5577-5597, May 2026. ", "\nABSTRACT\nThe supply chain consists of interconnected businesses and organisations responsible for the flow of goods and services. As firms increasingly adopt digital technologies, the spillover effects of supply chain digitalisation (SCD) on environmental performance remain underexplored. This study examines how the digitalisation of suppliers and customers influences pollution emissions in midstream manufacturing firms. Using data from Chinese A‐share‐listed firms and social network analysis, we construct a novel indicator to measure SCD. Our findings reveal that digitalisation within the supply chain significantly reduces pollution emissions through three key mechanisms: cost efficiency, improved resource allocation and green technology innovation. The effect is more pronounced in high‐pollution industries, regions with stricter environmental regulations and regions with well‐developed digital infrastructure. These insights highlight the strategic role of digital transformation in driving corporate sustainability and provide valuable implications for firms and policymakers navigating green business strategies.\n"]

  May 05, 2026   doi: 10.1002/bse.70443   open full text
• The Role of Circular Economy, Technology, and Finance in Green Supply Chain Management: Evidence From Developed Nations.
  Jingxiao Zhang, Tufail Hussain, Pablo Ballesteros‐Pérez, Martin Skitmore, Syed Ale Raza Shah.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5655-5676, May 2026. ", "\nABSTRACT\nThis study investigates the determinants of green supply chain management (GSCHM) in nine high‐income economies from 2006 to 2022. Using a panel structural equation model, it finds that economic complexity promotes GSCHM, while urbanization constrains it. Unexpectedly, digitalization and artificial intelligence (AI) negatively impact GSCHM, possibly due to poor integration, misaligned strategies, or rebound effects. These technologies also weaken the positive effects of the circular economy (CE), suggesting that digital tools may disrupt sustainability without strategic alignment. Financial depth and stability support GSCHM, whereas financial development and efficiency hinder it, indicating risks from unregulated financial expansion. Targeted green policies are called for—such as mandatory sustainability audits, green finance standards, and digital innovation oversight—led by governments, regulators, and industry bodies. These findings offer actionable insights for aligning economic, technological, and financial systems to strengthen GSCHM and promote long‐term sustainability.\n"]

  May 05, 2026   doi: 10.1002/bse.70442   open full text
• Turning Mental Models Around: Boundary Objects as Enablers of Sustainable Business Model Innovation.
  Laura Hartung‐Geyer, Sascha P. Klein, Patrick Spieth.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5490-5513, May 2026. ", "\nABSTRACT\nOrganizations increasingly innovate their business models (BMs) toward sustainability to maintain competitiveness and comply with regulations. Sustainable business model innovation (SBMI) requires decision‐makers to identify ecological and social opportunities while balancing economic goals. However, BMs as mental models are guided by experiences and cognitive biases, influencing the recognition of SBMI opportunities. Research on how mental models affect opportunity recognition for SBMI in incumbent firms remains limited. We examine how boundary objects enhance opportunity recognition in SBMI. Through a single case study in the industrial automation sector, we identify significant variations in decision‐makers' mental models and demonstrate how boundary objects mitigate cognitive barriers. Findings highlight differences between managers with diverse professional backgrounds and propose measures to foster the identification of suitable opportunities in SBMI. This study contributes to SBMI research by identifying micro‐level cognitive constraints and offers practical recommendations to improve strategic decision‐making in contexts of sustainability innovation.\n"]

  May 05, 2026   doi: 10.1002/bse.70441   open full text
• What Is Essential Is Invisible to the Eye: Unraveling the Drivers of Purchase Intention and Willingness to Pay for Sustainable Underwear Using the Stimulus–Organism–Response Framework.
  Valerio Schiaroli, Luca Fraccascia.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 6069-6088, May 2026. ", "\nABSTRACT\nThis study explores sustainable fashion consumption, focusing on and comparing sustainable underwear made from Econyl and Tencel materials. The study uses the stimulus–organism–response (S‐O‐R) framework, integrating product‐specific and industry variables. Data were collected from a sample of 665 Italian consumers through a structured questionnaire. The findings reveal key determinants of purchase intention and willingness to pay a premium for sustainable fashion products. Notably, the study also highlights differences in the determinants of consumer behavior based on material type, with Econyl and Tencel showing distinct patterns. The results offer valuable theoretical and practical insights into sustainable fashion consumption, with implications for marketing strategies and future research directions in the fashion industry.\n"]

  May 05, 2026   doi: 10.1002/bse.70440   open full text
• Fostering Green Entrepreneurship: The Joint Impact of Innovation Capability, Knowledge Sharing and Circular Economy in SMEs in China.
  Fengsheng Chien, Muhammad Sadiq, Yunqian Zhang, Haonan Lin, Aisha Khan.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5471-5489, May 2026. ", "\nABSTRACT\nThe need and the emerging opportunity of green entrepreneurship have grown at a considerable pace particularly in the manufacturing and technology‐driven small‐ and medium‐sized enterprise sector. The sector should follow sustainable, environmentally friendly, and innovative practices to further reap the benefits of circular economy business approaches. This paper examines how innovation capability, knowledge‐sharing culture, entrepreneurial ecosystem support, and circular business design have compound effects on green entrepreneur success in manufacturing and technology‐related small‐ and medium‐sized enterprises in China. The study, which is conducted on a population size of 550 small‐ and medium‐sized enterprises and results based on PLS‐SEM, establishes that knowledge transfer effectiveness and sustainability mindset are critical mediators and the quality of digital infrastructure is a critical moderator. Results verify an integrated framework that internal capabilities, ecosystem support, and synergy provided by the added impact of digitalization are the prerequisites to attain entrepreneurial sustainability results. These findings offer practical implications to policymakers and managers who may be interested in enhancing green entrepreneurship and future research on sustainable business model innovation.\n"]

  May 05, 2026   doi: 10.1002/bse.70439   open full text
• Navigating Market Constraints: Sustainable Startups Driving Transformative Change Through Venture Creation.
  Ville‐Veikko Piispanen, Hanna Lehtimäki, Kaisa Henttonen.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5175-5193, May 2026. ", "\nABSTRACT\nThis paper contributes to venture‐creation research by examining how sustainable startups can overcome market constraints to drive transformative change through their business development. Conceptually, we address this question by identifying venture‐creation narratives in the learning and experimental phases of sustainable startups that contribute to the creation of social, economic, and environmental value. Empirically, we conducted a qualitative case study of sustainable circular economy (CE) startups in Finland. Our findings reveal three overarching categories of entrepreneurial narratives through which CE startups drive transformative change through venture creation. Moreover, two main implications are discussed: a deeper understanding of the integrative approach to venture and business opportunity creation in sustainability transition and a comprehensive view of initiating a sustainable entrepreneurial journey that seeks to transform a linear market.\n"]

  May 05, 2026   doi: 10.1002/bse.70438   open full text
• Environmental Sustainability in Wineries: How Contingency Factors and Environmental Management Accounting Tools Influence Environmental Performance?
  Andréia Cittadin, Fabricia Silva da Rosa, Januario Monteiro.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5802-5822, May 2026. ", "\nABSTRACT\nHow do wineries design sustainability practices and use environmental management accounting (EMA)? This study addresses that question by analyzing the influence of contingency factors on the adoption of sustainability practices and the use of EMA tools to improve the environmental performance of wineries. The research was carried out through a survey with 171 Brazilian wineries, and structural equation modeling regression was used to test the hypothesis. The results suggest that contingency factors, such as environmental uncertainties, environmental strategy, and technology influence the adoption of sustainability practices and the use of EMA tools and have a positive impact on the environmental performance of Brazilian wineries. The study also shows that there is no direct effect between the use of EMA tools and environmental performance, but there is a positive impact on financial and nonfinancial performance, indicating that in a winery setting EMA tools are mainly used for cost saving and economic purposes rather than environmental impact. This study extends our understanding of how wineries design sustainability practices and deploy EMA tools in response to contextual contingencies. Drawing on contingency theory, we highlight the role of environmental uncertainty, strategy, and technology in shaping sustainability behavior. Our findings further show that the use of EMA tools by Brazilian wineries often leads to economic benefits.\n"]

  May 05, 2026   doi: 10.1002/bse.70437   open full text
• Are Green Innovations Gender Sensitive? The Effect of Promoting Inventor Gender on Green Innovation Purchase Intentions.
  Cristobal Barra, Ignacio Vargas, Kealy Carter.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5050-5064, May 2026. ", "\nABSTRACT\nPromoting the gender of inventors in advertising can shape consumer preferences for green innovations. This research examines how highlighting a woman inventor enhances purchase intentions for environmentally friendly products by leveraging warmth perceptions. Across four experimental studies (n = 986), we demonstrate that the perceived warmth of woman inventors transfers to green products, significantly improving their appeal. The findings confirm this effect across two product categories (reusable packaging and face masks) and identify warmth as the mediating factor. Unlike previous studies that have focused on product‐ or firm‐level attributes, our research highlights the role of individual‐level cues, such as inventor gender, influencing consumer behavior. Furthermore, we discuss practical applications, including the alignment of marketing strategies with societal trends toward gender inclusivity and sustainability. By extending the stereotype content model to product‐level evaluations, this study contributes novel insights into the interplay of gender stereotypes, consumer behavior, and sustainable marketing.\n"]

  May 05, 2026   doi: 10.1002/bse.70436   open full text
• The Twin Transition in Practice. Digital Technologies, Sustainability, and the Role of Family Ownership in Europe.
  Francesco Aiello, Lidia Mannarino, Valeria Pupo.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4895-4911, May 2026. ", "\nABSTRACT\nThis paper examines whether and to what extent digital technologies (DTs) foster the adoption of environmental sustainability (ES), and how this relationship is moderated by family ownership. Using data from approximately 14,000 European firms surveyed in the Flash Eurobarometer 486, we estimate a recursive simultaneous equation model via a conditional mixed‐process (CMP) to address potential endogeneity concerns. Results indicate that digitalization has a positive influence on ES adoption, although the marginal effect declines as firms implement more DTs. Family firms exhibit a stronger overall commitment to sustainability than their non‐family counterparts. However, because of their distinctive organizational traits, they tend to adopt ES practices less responsively as digitalization increases. Further analyses reveal heterogeneity across the sustainability practices. These findings underscore the relevance of ownership in shaping digitalization outcomes and contribute to the growing literature on the twin transition by informing more tailored policy strategies for an inclusive and effective green pathway.\n"]

  May 05, 2026   doi: 10.1002/bse.70434   open full text
• “Good Citizen” or “Good Actor”: The Asymmetric Impact of Artificial Intelligence on Firms' Tactical Environmental Information Disclosure.
  Xinxin Yu, Majid Murad, Chen Chen, Tao Wang, Ximeng Jia.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5030-5049, May 2026. ", "\nABSTRACT\nSustainable development necessitates “good citizens” rather than “good actors” in environmental governance. This study employs data on Chinese A‐share listed companies spanning 2012 to 2023 and finds that artificial intelligence (AI) exerts a suppressive impact on corporate tactical environmental information disclosure (TEID). Specifically, AI exerts a linear suppressive effect on excessive tactical disclosure and greenwashing behaviors, whereas it exhibits an inverted U‐shaped relationship with brownwashing, initially promoting and then inhibiting such behaviors. The underlying mechanisms operate through three channels: enhancing internal control quality, alleviating financing constraints, and mitigating information asymmetry. Government regulation amplifies these suppressive effects, whereas public demands only reinforce the inhibition of excessive tactical disclosure and greenwashing. Heterogeneous analysis reveals that under strong regulatory regimes, the synergy between AI and regulation primarily enhances internal control quality and mitigates information asymmetry; under weak regulation, their interaction  mainly alleviates financing constraints. The suppressive effects are more pronounced for high‐pollution, manufacturing, and technology‐intensive firms. This study contributes theoretical insights into AI's role in corporate environmental governance and offers targeted policy implications for governments when formulating environmental information disclosure regulations.\n"]

  May 05, 2026   doi: 10.1002/bse.70433   open full text
• Leveraging Generative Artificial Intelligence to Enhance Carbon Performance in Supply Chains Through Green Product Innovation and End‐of‐Life Product Management: AI‐Driven Carbon Performance.
  Syed Muhammad Shariq, Roman Sperka, Saqib Shamim, Hassan Ali.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5268-5284, May 2026. ", "\nABSTRACT\nThis study illustrates how organizations reconcile their information processing capabilities with uncertainty within the supply chain (SC) through generative artificial intelligence (GAI) to achieve carbon performance (CP). A quantitative research methodology is applied, and 155 responses from manufacturing firms are analyzed through structural equation modeling (SEM) for hypothesis testing. The findings suggest that GAI for process automation and cognitive engagement has a positive influence on business intelligence (BI), whereas end‐of‐life (EOL) product management mediates the relationship between green product innovation (GPI) and CP. This study contributes to the SC context, focusing on GAI and BI in mitigating uncertainties within SCs to foster GPI and improve CP. This study highlights actionable frameworks for leveraging digital technologies in sustainable SCs by addressing technological challenges and integrating green innovation practices.\n"]

  May 05, 2026   doi: 10.1002/bse.70384   open full text
• The Strategic Role of Waste Inventories in Industrial Symbiosis: A Simulation‐Based Perspective on Performance and Resilience of Industrial Symbiosis Networks.
  Melissa Mollica, Alberto Nastasi, Luca Fraccascia.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5236-5267, May 2026. ", "\nABSTRACT\nEnsuring the resilience of industrial symbiosis networks (ISNs) has emerged as a key concern in the literature. However, existing studies focus on network‐level strategies, neglecting the potential benefits derived from strengthening the links between symbiotic partners. Indeed, the single symbiotic relationships serve as the building blocks of the network. Therefore, their breakdown is a major threat for ISNs' survival. Specifically, the mismatch between waste supply and demand is a renowned operational barrier for IS, which can often trigger the interruption of symbiotic relationships. In this study, we investigate through an agent‐based model whether introducing waste inventories—as a tool to counteract supply–demand mismatches—can increase the environmental and economic performance of an ISN and enhance its resilience. A case study involving marble producers and concrete producers exchanging marble residuals is used as a simulation setting. The analysis is performed with different levels of market dynamicity, disruptions' probability and magnitude, and waste inventory capacity. The main results suggest that inventories can increase both the economic and environmental performance of the ISN. This enhancement contributes to strengthening the link between symbiotic partners, resulting in a positive impact on network resilience.\n"]

  May 05, 2026   doi: 10.1002/bse.70339   open full text
• Strategic Sustainability Assessment in the Construction Sector: A Multidimensional Index for Decision Making in Decentralised Economies.
  Francisco José Castillo‐Díaz, Luis J. Belmonte‐Ureña, Pedro Fernandes da Anunciação, Francisco Camacho‐Ferre.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5879-5894, May 2026. ", "\nABSTRACT\nThis article evaluates the average business performance of construction firms across Spain's 17 autonomous communities within a decentralised governance framework. A regional composite sustainability index is developed, integrating economic, social and environmental intensity indicators. ANOVA, stepwise regression and k‐means clustering are applied to identify territorial differences and patterns. The findings reveal significant regional disparities: Galicia leads in environmental and overall sustainability, the Balearic Islands perform best in the social dimension and the Basque Country demonstrates the strongest economic performance alongside the weakest environmental profile. Positive predictors of sustainable performance include a higher share of nonresidential construction, labour productivity, employment levels, mixed income, fixed capital investment, business growth, contribution to gross value added (GVA) and wages. In contrast, key negative predictors include CO2 emissions, SOx, PM10, HFCs and temporary collective residential buildings. Cluster analysis identifies two business profiles: one prevalent in the Mediterranean arc, northern Spain and Madrid, characterised by high residential intensity and poor environmental metrics, and another dominated by nonresidential activity and stronger sustainability outcomes. From a managerial perspective, firms are encouraged to rebalance their portfolios toward nonresidential, efficient residential and rehabilitation projects; electrify construction processes; control particulate emissions; adopt design for disassembly principles; and implement reverse logistics. The proposed index is positioned as a performance dashboard to support interregional benchmarking and continuous improvement.\n"]

  May 05, 2026   doi: 10.1002/bse.70323   open full text
• Greening the Workplace: The Power of Transformational Leadership and GHRM in Driving Employee Eco‐Behavior.
  Ahmed M. Asfahani.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5707-5722, May 2026. ", "\nABSTRACT\nThis study investigates how transformational leadership influences employee green behavior (EGB) through the mediating role of green human resource management (GHRM) practices. Drawing on social learning theory and the ability–motivation–opportunity (AMO) framework, it explores the joint role of leadership and HR systems in promoting workplace sustainability. A quantitative, cross‐sectional survey was conducted with 780 employees across five major sectors in Saudi Arabia using validated scales and analyzed through structural equation modeling and mediation analysis. The findings reveal that transformational leadership significantly enhances the implementation of GHRM practices, which in turn positively affect EGB. A partial mediation effect was confirmed, indicating that leadership influences EGB both directly and indirectly through GHRM systems. Demographic analyses show that younger, male, and less formally educated employees report higher levels of green behavior, offering novel insights for workforce engagement strategies. The study suggests that organizations should institutionalize environmental values through GHRM practices rather than relying solely on leadership. It contributes to the literature by integrating leadership and GHRM theories within a Middle Eastern context and highlighting how demographic factors shape green behavior. The findings offer both theoretical advancement and practical guidance for fostering sustainability through coordinated leadership and GHRM strategies.\n"]

  May 05, 2026   doi: 10.1002/bse.70472   open full text
• When TCFD Meets TNFD: Can It Revolutionize Corporate Sustainable Risk Management?
  Xiaoyu Liu, Yazeed Alkhrijah, Monomita Nandy, Suman Lodh.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5544-5559, May 2026. ", "\nABSTRACT\nAmid escalating environmental risks, this study explores the novel integration of the Task Force on Climate‐related Financial Disclosures (TCFD) and the Taskforce on Nature‐related Financial Disclosures (TNFD) as a transformative approach to corporate sustainable risk management. Firms currently grapple with fragmented ESG frameworks and overlapping disclosure mandates, which heighten reporting burdens and exacerbate information asymmetry. Through a systematic literature review and bibliometric analysis of 276 peer‐reviewed articles, this research uncovers significant redundancies in sustainability reporting and a pronounced imbalance between the established TCFD literature and the nascent TNFD scholarship. The study reveals that embedding biodiversity risks within climate disclosures enhances corporate resilience, transparency, and strategic adaptability. A critical theoretical synthesis drawing on legitimacy, stakeholder, institutional, agency, and signaling theories demonstrates that aligning TCFD and TNFD frameworks fosters coherent, credible, and cost‐effective reporting. This integration not only streamlines compliance but also strengthens investor confidence and governance quality. By mapping thematic clusters and identifying disclosure challenges, governance drivers, and adaptive strategies, the study offers a timely and original contribution to sustainability discourse. It provides actionable insights for scholars, regulators, and policymakers seeking to harmonize climate and nature‐related disclosures and advance global standards for integrated environmental risk management.\n"]

  May 05, 2026   doi: 10.1002/bse.70463   open full text
• The Moderating Effect of CEO Narcissism on ESG Performance and Firm Value: An Emerging Market Analysis.
  Nana Adwoa Anokye Effah, Kun Su, Miriam Arthur.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5410-5427, May 2026. ", "\nABSTRACT\nThis paper examines the relationship between environmental, social, and governance (ESG) practices and firm value in South Africa. Drawing on the upper echelons theory, the study further highlights how CEO traits influence the ESG–firm value relationship and explores the moderating role of CEO narcissism. Utilizing a balanced panel dataset of listed firms on the Johannesburg Stock Exchange from 2014 to 2022, findings reveal that effective investment in ESG practices enhances firm value. However, CEO narcissism weakens the positive relationship between ESG performance and firm value. Robustness analyses using the two‐stage least squares, the Heckman two‐stage model, and entropy balancing validate our findings. By focusing on an emerging market that places value on responsible investing, the study offers insights for firms seeking to maximize ESG returns while mitigating potential leadership risks.\n"]

  May 05, 2026   doi: 10.1002/bse.70448   open full text
• Drifting Ideals: Sustainability Labels and the Syncretic Ethics of Certification.
  Fabien Martinez.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5394-5409, May 2026. ", "\nABSTRACT\nSustainability labels and certifications are widely promoted as tools for guiding markets toward fair and environmentally responsible practices. However, research shows that they often fall short of their transformative ambitions, becoming fragmented, confusing, or vulnerable to being captured by powerful actors. Existing studies focus mainly on credibility, consumer behavior, or firm performance, leaving underexplored the ethical processes through which certifications translate, reshape, or dilute sustainability ideals. This paper addresses this gap by introducing a syncretic ethics perspective—an approach that examines how heterogeneous values are blended and negotiated within certification systems. Drawing on insights from sustainability governance and syncretism studies, the paper identifies four mechanisms through which certification schemes may sustain incremental change rather than systemic transformation: (1) translating broad ideals into narrow metrics, (2) normalizing compromise to facilitate adoption, (3) providing reassurance that stabilizes legitimacy, and (4) governance arrangements that privilege dominant actors. Illustrations from Fairtrade, Rainforest Alliance, carbon‐neutral labels, and B‐Corp clarify how these mechanisms operate in practice. The paper advances the literature by conceptualizing certifications as normative infrastructures rather than neutral signals, and by specifying the conditions—transparent translation, participatory governance, and rigorous accountability—under which certification can support more ambitious sustainability transitions. This framework enriches debates on sustainability strategy by clarifying how the ethical design and governance of labels shape their capacity to drive meaningful change.\n"]

  May 05, 2026   doi: 10.1002/bse.70447   open full text
• The Role of Corporate Governance in Enhancing Environmental and Social Performance.
  Tommaso Fornasari, Marco Traversi, Mariasole Bannò.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4876-4894, May 2026. ", "\nABSTRACT\nThis study investigates how different corporate governance (CG) approaches influence firms' environmental and social performance, specifically focusing on the role of internal vs. external resources and operational vs. strategic approaches. Anchored in stakeholder and resource dependency theory, we develop a conceptual framework grounded in the dual mechanisms of exploration and exploitation. These mechanisms differentiate CG approaches into external advisors and independent directors (exploration), internal sustainability teams, and board sustainability committees (exploitation). We test this framework on a sample of 269 listed European manufacturing firms. Through a two‐stage methodology combining content and cluster analysis and multiple regression, we identify four distinct CG approaches and evaluate their effectiveness. Results reveal that firms adopting internal and external strategic CG approaches, blending board sustainability committee, internal sustainability team, and external expertise, achieve significantly higher environmental and social performance. Our findings show how firms can structure CG to embed sustainability into strategy, offering implications for managers, investors, and policymakers.\n"]

  May 05, 2026   doi: 10.1002/bse.70431   open full text
• Merging Psychological, Social, and Rational Perspectives: A Study of the Determinants of Consumer Choices for Sustainable Furniture.
  Rosa Maria Dangelico, Luca Fraccascia, Valerio Schiaroli.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4985-4999, May 2026. ", "\nABSTRACT\nThis study examines consumer purchase intentions for a sofa produced through industrial symbiosis (IS), utilizing recycled textiles and fibers. As a high‐investment product, the IS sofa requires a significant financial commitment and involves complex decision‐making, an area less studied compared with other sustainable goods categories. This study proposes a model that integrates the sociopsychological dimensions of the Theory of Planned Behavior with a rational choice perspective, incorporating green perceived utility, perceived value, and trade‐off acceptance. Survey data from 1150 Italian consumers reveal that trade‐off acceptance, green perceived utility, environmental concern, perceived value, and subjective norms significantly influence purchase intention. This study contributes to the literature on consumer behavior at the intersection of IS and complex purchases, providing a novel perspective on sustainable consumption. Additionally, it offers several directions for future research and practical recommendations for managers and policymakers to enhance the adoption of sustainable, high‐investment products, supporting the transition to a circular economy.\n"]

  May 05, 2026   doi: 10.1002/bse.70428   open full text
• Toward Carbon Accounting and Circular Harmony in Shipping Corporations: A Systematic Bibliometric Review.
  Assunta Di Vaio, Anum Zaffar, Marco Ferretti.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4961-4984, May 2026. ", "\nABSTRACT\nThis study examines how carbon accounting can be used to govern, not merely report, circular economy principles in shipping corporations. Grounded in institutional theory and aligned with the UN 2030 Agenda, this study introduces circular harmony as an accounting design principle: Circular interventions are embedded in a single well‐to‐wake (WTW) carbon ledger with audit‐ready KPIs, explicit allocation rules to avoid double counting, and marginal abatement cost (MAC) to prioritize projects. This study conducts a systematic literature review and bibliometric analysis of 60 peer‐reviewed articles (1990 to September 2025) retrieved from the Scopus database (core) with Google Scholar used only for forward‐citation snowballing. Four clusters emerge (policy/regulation, technologies, circular strategies, and carbon accounting/SDGs), yet none provides an integrated, WTW Scope‐3 treatment within a decision‐ready accounting architecture. We therefore operationalize circular harmony as an audit‐ready ledger design (boundaries, allocation rules, WTW factors, and MAC) and propose a minimum KPI set to make circular choices assurance‐ready. The SLR synthesizes mechanisms linking waste/circular practices to measurable abatement and distills a minimum, ledger‐embedded indicator set. This study contributes an operational definition of circular harmony for sustainability accounting, a template of KPIs and attribution rules to make circular choices assurance‐ready, and a MAC‐based decision lens that connects abatement to compliance cash effects. For practitioners, aligning carbon accounting and circular choices within a WTW ledger improves MRV/ETS readiness, investment ranking, and stakeholder assurance.\n"]

  May 05, 2026   doi: 10.1002/bse.70422   open full text
• Greening Under Pressure: Climate Change Exposure and Eco‐Innovation.
  Pietro Perotti, Fanis Tsoligkas, Kangding Wang.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4736-4765, May 2026. ", "\nABSTRACT\nThis study explores the impact of climate change exposure on corporate eco‐innovation. Recognizing the urgent need to address climate change, we examine how firms directly respond to climate risks through eco‐innovation. Our findings indicate that climate change exposure is positively associated with corporate eco‐innovation. To further understand the mechanisms, we show that external forces such as product market competition and analyst coverage, and internal forces such as corporate social responsibility practices and sustainability commitments, strengthen this relationship. We also document that landmark policy events, including the 2006 Stern Review and the 2015 Paris Agreement, intensify firms' eco‐innovation responses to climate risks. Overall, our results suggest that firms facing higher climate change exposure are more committed to eco‐innovation and that institutional pressures encourage more proactive and comprehensive strategies for sustainability and long‐term competitiveness.\n"]

  May 05, 2026   doi: 10.1002/bse.70393   open full text
• Sustainability Assessment of Circular Strategies in the Agri‐Food Industry: The Case of Olive Mills' By‐Product Valorization.
  David Polonio, Rubén Granado‐Díaz, José A. Gómez‐Limón, Anastasio J. Villanueva.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4641-4658, May 2026. ", "\nABSTRACT\nThis study integrates multidimensional sustainability indicators into a unified assessment approach to evaluate circular strategies in agri‐food industry businesses. This methodological approach is applied to empirically examine the case of the olive oil industry's by‐product valorization. Specifically, three valorization alternatives are evaluated: composting, gasification, and pomace oil extraction. A new integrated framework encompassing life cycle assessment (LCA) is used to assess environmental indicators, while economic and social indicators are used to assess all three dimensions of sustainability. Results suggest that extraction is the most sustainable circular strategy due to its excellent economic performance, which offsets the medium–low environmental and social performance. Gasification almost matches the overall sustainability performance of extraction, as it shows high environmental and moderate social performance, but medium–low economic performance. Composting excels in the social dimension, fostering rural employment, yet struggles with profitability. These results are confirmed by robustness tests based on Monte Carlo simulations and using different normalization, weighting, and aggregation methods.\n"]

  May 05, 2026   doi: 10.1002/bse.70371   open full text
• From Ecosystem Threats to Balance Sheets: Biodiversity Risks Exposure and Corporate Cash Policies.
  Jing Hao, Ran Sun, Brian Lucey, Feng He, Andrew Urquhart.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4942-4960, May 2026. ", "\nABSTRACT\nThis study investigates how firms strategically respond to biodiversity risk by examining their cash holding decisions. Using firm‐level data from China, we find that firm‐level biodiversity risk exposure significantly increases corporate cash holdings. This effect is more pronounced when firms have higher debt costs and fewer high‐skilled employees. Furthermore, cross‐sectional heterogeneity analysis reveals that the impact of firm‐level biodiversity risk exposure on cash holdings is more pronounced in firms with higher risk‐taking levels, greater reliance on short‐term debt, and stronger pressures for green transformation. These findings provide novel insights into how firms adapt their financial strategies in response to the global challenge of biodiversity loss, highlighting the interplay between environmental risks and corporate financial decision‐making.\n"]

  May 05, 2026   doi: 10.1002/bse.70380   open full text
• Economic, Environmental, Social, and Governance (ECON ‐ ESG) Strategies For Sustainable Development: Theory and a Holistic Evidence From Germany.
  Cem Işık, Serdar Ongan, Rahman Aydın, İlyas Kays İmamoğlu.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5133-5157, May 2026. ", "\nABSTRACT\nTo achieve the SDGs, in addition to environmental (E), social (S), and governance (G) indicators, economic components should also be evaluated holistically. In this context, this research aims to test the time series characteristics of the indicators in the ECON‐ESG structure, which is created by integrating the economic dimension into the ESG framework for Germany. For this purpose, linear and nonlinear structures, Fourier‐based stationarity tests, and Bai–Perron multiple structural break tests were employed to examine the linear and nonlinear structures, stationarity cases, and structural breaks of various ESG and economic indicators (ECON). Findings show that many indicators are nonstationary, undergo structural changes over time, and exhibit nonlinear dynamics. The results indicate that sustainability policies should focus not only on indicator levels but also on the behavioral patterns and vulnerabilities of these indicators over time. In this regard, policymakers need to develop a holistic perspective on the economy and ESG, focusing on long‐term and flexible policy designs. The study also offers important implications for how the ECON‐ESG framework can serve as a model for both national and international markets, particularly in Germany, a developed and leading country in terms of sustainability. Therefore, the proposed ECON‐ESG framework offers both theoretical and practical roadmaps for policymakers, firms, and investors to create long‐term ESG strategies in support of the SDGs.\n"]

  May 05, 2026   doi: 10.1002/bse.70342   open full text
• Enabling Green Hydrogen Integration in the Automotive Sector: Business Strategies for Net‐Zero Goals.
  Naveen Virmani, Reeti Agarwal, Deepak Sharma, Vijay Lahri, Dhruv Galgotia, Hind Alofaysan.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5108-5132, May 2026. ", "\nABSTRACT\nGreen hydrogen (GH) plays a crucial role in achieving net‐zero targets. It is a clean source of energy generated through greener or renewable production methods. The worsening impacts of climate change, environmental pollution, and the pressing need for decarbonization have prompted the automotive industry to adopt GH. The presented study explored the enablers of GH in the automotive sector, which is a grey area of research and contributes significantly to sustainable mobility. A research framework was developed based on the technology, organization, and environment (TOE) and institutional theories. Based on an in‐depth literature review and experts' opinions, 17 enablers were finalized that facilitate the sustained use of GH in the automotive industry. After that, we employed an integrated approach of ISM‐fuzzy‐DEMATEL to develop a hierarchical structure and identify contextual and causal relationships among the noticeable enablers. The research outcomes reveal that skilled workforce, government policies, and incentives are the dominant drivers of GH technology adoption. Developing standard policies and working protocols will help gain stakeholders' confidence to transition to GH adoption. The government must open technical training centers to upgrade employee skills and prepare them for upcoming hydrogen mobility plans. The results are beneficial for the automobile industry in addressing environmental issues and achieving a competitive advantage.\n"]

  May 05, 2026   doi: 10.1002/bse.70332   open full text
• Leadership and Sustainability in a Globalized World: Emerging Trends, Global Contexts, Key Challenges, and Effective Strategies.
  Muzhar Javed, Bilal. Bilal, Nacef Mouri, Muhammad Faisal.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5081-5107, May 2026. ", "\nABSTRACT\nThis systematic review analyzes 109 studies from top business journals, exploring the connection between leadership and sustainability, including key leadership styles, emerging trends, and challenges in integrating sustainability into organizational strategies and operations. Our analysis reveals responsible leadership, followed by transformational and female leadership, as the most common styles used to drive the integration of sustainability into organizational strategies and operations. Core sustainability practices are more closely aligned with addressing grand societal challenges, particularly “climate action” followed by “quality education,” “innovation,” and “gender equality.” The study highlights key challenges facing the leadership in driving sustainability include stakeholders' resistance to change, financial constraints, capacity building, and regulatory hurdles. Overcoming these requires raising stakeholder awareness, aligning sustainability with business goals, leveraging cross‐sectoral collaboration, and regulatory harmonization. This study highlights the transformative role of leadership in promoting sustainability, emphasizing cross‐sectoral learning to drive meaningful change.\n"]

  May 05, 2026   doi: 10.1002/bse.70329   open full text
• Human‐Centric Generative AI in Circular Supply Chains: Theoretical Insights From Ethics, Dynamic Capabilities, and Resource Conservation.
  Surajit Bag, Muhammad Sabbir Rahman, Susmi Routray, V. Raja Sreedharan.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5000-5029, May 2026. ", "\nABSTRACT\nIn response to growing calls for ethical, sustainable, and digitally enabled supply chains, this study investigates how the responsible deployment of generative AI (GenAI) enhances circular supply chain performance (CSP). Anchored in ethical theory, the dynamic capability view (DCV), and conservation of resources (COR) theory, we develop a multitheoretic framework examining how firms' digital humanism orientation and procurement innovation mindset shape responsible GenAI use. We further theorize how this responsible GenAI use activates AI‐augmented supplier development for circularity (AISD) as a dynamic capability, which mediates the relationship between responsible GenAI use and CSP. Contextual stressors, specifically, polycrisis experience and precarious behavior among supply chain professionals, are introduced as moderators that may undermine these relationships. The model is tested using time‐lagged survey data from firms in India and South Africa, analyzed via covariance‐based structural equation modeling. Findings support all proposed relationships across both country contexts. The study contributes by (1) extending ethical theory into GenAI‐enabled circular supply chains, (2) conceptualizing responsible GenAI use and AISD as firm‐level second‐order and first‐order dynamic capabilities that enhance sustainability outcomes, and (3) revealing how crisis‐driven human behavior conditions the efficacy of responsible GenAI in complex supply chain environments. Our results offer actionable insights for building ethically grounded, technologically enabled, and contextually responsive circular supply chains, especially relevant for emerging economies navigating digital transformation under resource constraints.\n"]

  May 05, 2026   doi: 10.1002/bse.70280   open full text
• Turning Carbon Into Cash? Cross‐Country Evidence on the Profitability of Emission Reductions.
  Mauro Aliano, Daniela Lo Cascio, Saudi‐Yulieth Enciso‐Alfaro, Isabel‐María García‐Sánchez.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 6026-6044, May 2026. ", "\nABSTRACT\nDoes corporate CO2 abatement pay? We assembled an international panel of listed firms (2019–2023), linking Scope 1–2 emissions to institutional (G7, CCPI) and search‐based attention measures. The dataset consists of an unbalanced panel of 1724 multinational firms, together with a sub‐sample of 922 firms operating in G7 economies. Firm and time fixed effects, dynamic system‐GMM, and Granger tests indicate that reductions in operational CO2 are followed by higher returns on assets, with larger effects in G7 markets. National climate ambition (CCPI) does not reliably amplify profitability. By contrast, the information environment moderates payoffs: in G7 economies, ecological‐risk attention amplifies the abatement–performance relationship, whereas climate‐crisis attention weakens it, despite a modestly positive main effect. Results are robust with alternative abatement measures, though a binary specification produces weaker results outside the G7. The sum of the evidence indicates that decarbonisation is a value‐creating capability whose payoff is mediated by attention rather than headline policy. Implications for managers, lenders, investors and regulators follow: credibility, disclosure quality and enforcement shape returns on cuts CO2.\n"]

  May 05, 2026   doi: 10.1002/bse.70481   open full text
• Unpacking Rigor and Methodological Consistency in Sustainability‐Related Case Study Research.
  Selahaddin Samil Fidan.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5859-5878, May 2026. ", "\nABSTRACT\nIn organizational research, the extent to which case study articles adhere to rigor criteria is analyzed; however, a similar assessment in the sustainability field is lacking. This study aims to systematically examine the extent to which case study articles published in two leading journals in the sustainability field satisfy quality criteria and demonstrate methodological coherence. The research findings reveal that there are several problematic practices related to the implementation of quality criteria in the sustainability field. Although sustainability researchers largely provide satisfactory explanations for their rationale in choosing the case study methodology and their case selection processes, there remain concerning methodological inconsistencies between their case study approaches and data analysis. Additionally, the research findings have identified deficiencies in the application of fundamental transparency criteria regarding the background and procedural details of interview data in sustainability articles, such as the failure to report interview duration, the omission of the interview language, and the lack of presentation of the interview questions. Furthermore, although case study articles report the use of document and observation data, this study finds that evidence related to these types of data is not sufficiently presented in the research findings section. The research findings regarding the quality criteria for data analysis reveal that researchers are subject to the ceremonial data analysis problem (e.g., merely referencing a specific data analysis technique without providing methodological interpretation or reflexive explanation) when reporting their data analysis. Although they make superficial references to conducting a more rigorous qualitative research design and reference the concept of triangulation, the findings demonstrate a lack of concrete evidence and methodological reflection demonstrating how these criteria are actually met. This study highlights both problematic practices and exemplary applications regarding quality criteria and also offers methodological recommendations for improving problematic practices. Finally, the implications of the research findings for scholars, reviewers, and editors are also discussed.\n"]

  May 05, 2026   doi: 10.1002/bse.70480   open full text
• Understanding the MSME Environmental Transition: Nonlinear and Moderation Effects of Digitalization and Institutional Context.
  José Antonio Clemente‐Almendros, Marcelo Vallejo García, María Blanco‐Hernández.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 6009-6025, May 2026. ", "\nABSTRACT\nThe necessary environmental transition involves a substantial challenge for micro, small, and medium‐sized enterprises (MSMEs). Moreover, in the Ibero‐American context, it is even more challenging. Our study aims to shed light on the scarce and inconclusive evidence in this regard, analyzing the influence of digitalization, given its inclusion in the so‐called MSMEs' double transition, as well as the effect of the institutional setting. The so‐called double transition is more sensitive in emerging areas. By means of analyzing direct and moderation effects on a representative database of 17.498 Ibero‐American MSMEs, we aim to show the existence of linear and nonlinear relationships that determine the level of environmental involvement of those organizations. Our results show that the expected positive effect of digitalization exists, but it is not linear, but U‐shaped. The extension of the Kuznets curve is confirmed for digitalization in MSMEs. Additionally, the institutional context's positive influence also moderates this nonlinear influence. These findings involve the need for not only digital technologies but also a transformational internal process, which is influenced by institutional quality. Managers need to understand the importance of substantial organizational commitment and their own transformational capacity in the dual transition to avoid negative effects. In this vein, institutions must focus on reducing the duration of the downward part of the U‐shaped influence of digitalization. Ultimately, digital transformation and institutional quality must move forward to sustainable change in MSMEs aligned.\n"]

  May 05, 2026   doi: 10.1002/bse.70477   open full text
• Sequencing Finance for Climate Resilience: Instruments, Institutions and Hong Kong's Role in Mobilising Private Capital in Southeast Asia.
  Laurence L. Delina, Madeleine Rachel Widia, Olivia Felice Janice Boedijanto, Sharon Feliza Ann P. Macagba, Johanne Rei R. Castro, Rainbow Yi Hung Lam.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 6089-6110, May 2026. ", "\nABSTRACT\nThis paper investigates innovative financing strategies to mobilise private capital for climate adaptation, emphasising Hong Kong's role in advancing efforts across Southeast Asia. Using expert interviews and case studies, it addresses two key questions: which financial instruments can strengthen public–private collaboration, and what best practices can overcome barriers to private‐sector engagement. Findings highlight blended finance—through adaptation and green bonds, insurance pooling and guarantee facilities—as essential for reshaping risk‐return profiles and attracting investment. Effectiveness, however, depends on alignment with project economics and integration into robust governance frameworks. Persistent challenges, including information asymmetries, discontinuous hazard and performance data, inadequate capacity for project preparation and misaligned return expectations, continue to impede progress. Experts recommend a sequenced approach: first, invest in open data systems, standardised metrics and project preparation facilities; then pilot demonstrator projects with transparent concessional support and independent verification; and finally, scale successful initiatives through market instruments. Hong Kong's comparative advantage in transaction structuring, bond markets and investor convening positions it as a regional catalyst. The paper proposes a pragmatic framework for public–private (philanthropic) partnerships combining instrument matching, capacity building, transparent guarantees and equity safeguards. These insights offer actionable guidance for policymakers, development banks and investors seeking to expand bankable adaptation projects and build climate resilience.\n"]

  May 05, 2026   doi: 10.1002/bse.70473   open full text
• Bridging R&D Outsourcing and Innovation: the Role of Competitive Intensity and Speed to Market in Responsible Innovation.
  Samuel Adomako, Nguyen Phong Nguyen.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5308-5319, May 2026. ", "\nABSTRACT\nAlthough R&D outsourcing has become a common strategy for strengthening firms' innovation capabilities, limited attention has been given to how outsourcing shapes responsible innovation or the conditions under which this relationship is amplified or constrained. This study investigates how R&D outsourcing influences responsible innovation and how this effect is moderated by competitive intensity and speed to market. Drawing on institutional theory and responsible innovation literature, we argue that outsourcing enables firms to access diverse knowledge and stakeholder perspectives, helping them anticipate risks, reflect on societal values, and design environmentally and socially responsible innovations. We further propose that competitive intensity enhances the positive effect of outsourcing on responsible innovation, as firms facing stronger rivalry experience greater pressure to differentiate through responsible practices. However, this moderating effect depends on firms' speed‐to‐market orientation. When speed to market is low, firms have greater opportunity to integrate stakeholder input and reflexive practices, strengthening the outsourcing–responsible innovation link. Conversely, high speed‐to‐market pressures may reduce deliberation and weaken this effect. Using survey data from 236 entrepreneurial ventures in Vietnam, the findings support all hypotheses and advance understanding of when and how outsourcing promotes responsible innovation.\n"]

  May 05, 2026   doi: 10.1002/bse.70470   open full text
• Female Board Representation and Firms' Environmental Performance: A Comparison Between Western and East‐Asian Cultures.
  Yuqi Chen, Sen Yan, Xueying Yu.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5955-5972, May 2026. ", "\nABSTRACT\nWhile the global representation of women on boards has steadily increased, regional disparities persist, with Europe leading and East Asia lagging behind. We propose that national culture moderates the impact of female directors on corporate environmental outcomes. Our empirical findings suggest that adding female directors to boards significantly enhances environmental performance in Western economies, whereas this effect is absent in East Asia. Compared to their Western counterparts, female directors in East Asia tend to be younger insiders with limited independence. The lack of independence may compromise their effectiveness. Within this cultural context, we find that only the number of independent female directors is positively associated with firms' environmental performance, particularly among firms in nonmanufacturing industries and those without institutional ownership. This study highlights the interconnectedness of the environmental, social, and governance (ESG) pillars, demonstrating how national culture moderates gender disparities in corporate environmental governance. It also sheds light on ESG strategy design in culturally conservative regions.\n"]

  May 05, 2026   doi: 10.1002/bse.70451   open full text
• Does Green Supply Chain Management and Green Intellectual Capital Influence Business Environmental Performance? The Moderating and Mediating Role of Governance Quality and Green Innovation Practices in an Emerging Economy.
  John Wiredu, Ernest Konadu.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nEnvironmental performance in business has become a core component of sustainable development, especially amid escalating climate challenges and ecological degradation. In Ghana, where industrial growth intersects with ecological fragility, a focused shift toward sustainable operational practices is increasingly critical. This paper investigates how green supply chain management (GSCM), green innovation practices (GIP), and green intellectual capital (GIC), moderated by governance quality (GOQ), influence business environmental performance (BEP) within the Ghanaian business sector. Grounded in the natural resource–based view (NRBV), the research offers a comprehensive model that captures the interplay between firm‐specific green capabilities and institutional frameworks. Using firm‐level data of 340 through a stratified random sampling technique and PLS‐SEM, the analysis reveals that GSCM significantly enhances BEP, particularly when synergized with GIP and a well‐developed GIC. Furthermore, strong governance mechanisms strengthen the positive impacts of these green practices by promoting institutional alignment and reinforcing environmental accountability. The findings underscore the importance for manufacturing firms in Ghana to cultivate sustainable and dynamic capabilities, invest in eco‐innovative strategies, and collaborate with governance institutions to meet sustainability targets effectively. This research enriches the discourse on environmental sustainability in emerging markets by contextualizing green performance drivers within sub‐Saharan Africa. It offers practical insights for corporate leaders and policymakers seeking to integrate sustainability into their business strategies. Ultimately, the study advocates for an integrated approach that combines competitiveness and ecological responsibility, paving the way for a more robust and ecologically conscious industrial sector in Ghana and similar economies.\n"]

  May 05, 2026   doi: 10.1002/bse.70925   open full text
• Building Resilience Through ESG: How ESG and Green Innovation Drive Risk Mitigation in Emerging Economies.
  Mohamed Marie, Baolei Qi, Ahmed A. Elamer, Ahmed A. El‐Masry, Mahmoud Marzouk.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study investigates the intricate relationship between environmental, social, and governance (ESG) performance and firm risk, emphasizing the moderating role of green innovation in the unique context of Chinese publicly listed firms. Using a comprehensive dataset from 2015 to 2022, the analysis employs three‐stage least squares (3SLS) and system generalized method of moments (GMM) techniques to address endogeneity and ensure robustness. The findings reveal that ESG performance reduces systematic risk but exacerbates insolvency risk and stock price volatility, underscoring its multifaceted impact on firm vulnerability. Green innovation emerges as a critical moderator, amplifying ESG's benefits by mitigating systematic risk while simultaneously elevating insolvency and total risks under specific conditions. These results extend stakeholder theory and the resource‐based view by uncovering the conditional dynamics through which ESG practices and innovation interact to influence firm outcomes. The study offers actionable insights for policymakers and corporate leaders, highlighting the strategic integration of ESG frameworks and innovation as essential for managing risk and achieving sustainable growth, particularly in emerging markets. By contextualizing ESG within the post‐COVID‐19 landscape, this research illuminates pathways for enhancing organizational resilience amid global uncertainties.\n"]

  May 05, 2026   doi: 10.1002/bse.70904   open full text
• From Complaints to Cleaner Production: How Public Environmental Complaints Stimulate Corporate Green Innovation.
  Rong Ding, Rebecca Kechen Dong, Jianhua Zhu.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nPublic environmental complaints are increasingly used as a mechanism of social monitoring in environmental governance, yet their role in shaping firms' strategic behaviors and responses, particularly green innovation, remains insufficiently understood. Existing studies largely focus on macro‐level governance outcomes or assume uniform regulatory enforcement, leaving limited insight into why and how public complaints influence private firms' green innovation. Drawing on the signaling theory and resource‐based view, this study examines how environmental complaints influence green innovation among 5493 Chinese private enterprises, employing econometric analyses and a difference‐in‐differences (DID) approach. Results reveal that environmental complaints significantly stimulate green innovation, primarily through the mediating roles of government supervision and public opinion pressure. However, firms with abundant resources and strong political connections show reduced responsiveness to such complaints, highlighting governance challenges. This research extends the understanding of the interplay between social accountability and corporate green innovation. It underscores the need for robust complaint mechanisms and stricter regulatory enforcement, particularly for politically connected firms, while encouraging enterprises to address community grievances as a strategic pathway to sustainability and cleaner production.\n"]

  May 05, 2026   doi: 10.1002/bse.70938   open full text
• Innovative Minds, Sharing Hesitations: Open Innovation Meets Green Entrepreneurship.
  Ebru Polat.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines the relationships between innovative thinking tendency, knowledge hiding behavior within organizations, open innovation, and green entrepreneurship among employees in technology firms. Data collected from 386 participants were analyzed using cluster analysis and structural equation modeling. The findings reveal three distinct employee profiles based on their engagement in innovative thinking and open innovation processes: protective innovative entrepreneurs, collaborative and sustainable entrepreneurs, and traditional and resistant individuals. Protective innovative entrepreneurs demonstrate a high level of innovation orientation and awareness of green entrepreneurship, yet they maintain a cautious approach toward knowledge sharing. Collaborative and sustainable entrepreneurs actively promote knowledge sharing while displaying strong tendencies toward both innovation and open innovation. In contrast, traditional and resistant individuals exhibit relatively low levels of innovation orientation and a limited understanding of open innovation. The results of the structural equation modeling indicate a positive relationship between innovative thinking tendency and open innovation, as well as between knowledge hiding behavior and open innovation. Moreover, a positive relationship was also identified between open innovation and green entrepreneurship. Furthermore, it was found that both innovative thinking tendency and knowledge hiding behavior significantly and positively influence green entrepreneurship through the mediating role of open innovation.\n"]

  May 05, 2026   doi: 10.1002/bse.70885   open full text
• Board Networks and Corporate Carbon Emissions: A Cross‐Country Analysis of Causal Effects.
  Katarzyna Burzynska, Sara Jonsson, Lu Liu, Michał Dzieliński.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines whether board networks influence corporate carbon emissions and the strategic pathways through which firms decarbonize. Using a sample of 1952 firms across 48 countries from 2003 to 2020, we employ dynamic stacked regressions that exploit exogenous carbon‐regulation shocks affecting firms connected through shared third‐party board memberships. We find that focal firms reduce absolute emissions by about 9%. The effect concentrates in high emitting firms operating under strict environmental regulations, with emission targets and policies, and low financial constraints. However, emission intensity does not improve. This pattern suggests that network‐driven emission reductions primarily reflect divestment or contraction of carbon‐intensive activities, rather than operational decarbonization through technological upgrading. While indirect board ties transmit regulatory responses, overall board centrality does not reduce emissions though it is associated with higher environmental ratings. Our findings challenge conventional wisdom about board networks and highlight their nuanced role in spreading environmental practices.\n"]

  May 05, 2026   doi: 10.1002/bse.70878   open full text
• Unveiling the Past, Present, and Future of Statutory Sustainability Reporting: An Integrated Application of Bibliometric and Qualitative Content Analysis.
  Rajesh Desai, Jahanvi Vyas.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nDespite the growing prevalence, the research faculty of legislative sustainability disclosures is still at the nascent stage and requires a synthesized review to direct future research inquiries. Thus, the present study systematically reviews the literature on statutory sustainability reporting (SSR) and intellectually maps the research clusters to discover the prominent knowledge themes as well as the future research agendas. Considering the POWER framework as the review protocol, the study selects 409 research articles published on the Scopus database from 1980 to 2025 to analyze the bibliometric performance and research themes through qualitative content analysis. The findings unveil the following five multilayered knowledge themes: (i) evolution of SSR dimensions, (ii) financial and strategic implications of SSR, (iii) nexus between sustainable performance, and SSR, (iv) value relevance of SSR in the capital market, and (v) corporate accountability and transparency implications of SSR. Moreover, the study also elaborates theme‐wise research questions and pathways to guide future research for advancing the body of knowledge. The current research is a first‐of‐its‐kind to provide a comprehensive appraisal of the extant state of SSR literature and paves the way forward to further develop the research domain.\n"]

  May 05, 2026   doi: 10.1002/bse.70935   open full text
• Mapping the Global South Circular Economy: A Bibliometric‐Narrative Analysis.
  Dede Iskandar Siregar, Rory Padfield, Sally Russell, James van Alstine.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAlthough the circular economy (CE) is gaining popularity because of its propensity to optimise the sustainability of resources, few scholars have examined how this field has evolved in the Global South. Using bibliometric‐narrative analysis, our paper maps general and thematic trends of CE in the Global South using micro, meso, and macro level frameworks. Based on our dataset, retrieved from the WoS database, we found that the first reference to CE studies in the region emerged in 2007 and was largely focused on waste management and recycling. We identified key themes of CE across different levels of its practices, which interplay either bottom‐up or top‐down, meaning actions in one area will affect outcomes in others. We also found uneven CE studies in the Global South and highlighted future works to advance the understanding and adoption of the field in the region.\n"]

  May 05, 2026   doi: 10.1002/bse.70971   open full text
• Revisiting Roots to Rise—Harnessing Indigenous Knowledge System for Responsible Business.
  Sonal Manik Gursahani, Akhila R. Udupa.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThe responsible business practices in the sustainability scholarship are predominantly framed as compliance‐driven frameworks, overlooking the role of traditional knowledge and wisdom as culturally embedded logic. This study examines the implicit role of Indigenous knowledge system in shaping business practices, its alignment as well as its implicit integration with modern business practices, and its socio‐economic impact and associated challenges. The qualitative design and triangulation method were used to identify the convergence and divergence of the findings from in‐depth interviews of chief executive officers/founding directors of three Indian organizations across industries (agriculture, construction, and handicraft). Triangulation insights confirm that Indigenous principles play an implicit practice role in forming organizational practices and routine such as ethical actions, recycling, and community building. The findings of the study also highlight various alignment types such as normative (shared value), purpose‐driven (shared goal), representing the nature of correspondence between Indigenous knowledge system and modern business practices across cases. By repositioning Indigenous knowledge system as a strategic normative logic shaping a long‐term value‐driven, responsible business ecosystem, this study extends the existing sustainability literature beyond compliance‐driven model.\n"]

  May 05, 2026   doi: 10.1002/bse.70933   open full text
• Regulations, Openness, and Competition: Drivers of Green Innovation in China's Manufacturing Industries.
  Adnan Khurshid, Songhe Xu, Khalid Khan, Javier Cifuentes‐Faura.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis research examines how environmental regulations influence green innovation among manufacturing firms in China, with special focus on the mediating effect of market openness and the moderating influence of market competition. Research constructs a dual‐mechanism concept according to which environmental regulations directly and indirectly affect green innovation by increasing market openness, and the strength of the indirect channel depends on the intensity of market competition. Using panel data from 11,572 A‐share manufacturing firms in China over the period 2012–2022, the analysis applies multiple econometric models to ensure robustness. The findings indicate that environmental regulations substantially foster green innovation, with market openness functioning as a key transmission channel, and that increased market competition enhances both the direct and indirect effects. Additional analyses reveal that these effects are more pronounced among large firms, state‐owned enterprises, firms located in eastern China, and in the post‐pandemic period. The study makes an important addition to the literature by showing the interaction of regulatory pressure, openness, and competition to affect the level of green innovation in firms. It also provides policy suggestions on the formulation of environmental policies that can promote green and sustainable industrial transformation via innovation.\n"]

  May 05, 2026   doi: 10.1002/bse.70928   open full text
• Fostering Environmentally Friendly Fashion Consumption: Understanding Consumer Green Apparel Buying Behavior for Business and Policy.
  Yeshan Bai, Gibbson Adu‐Gyamfi, Emmanuel Nketiah, Bright Obuobi, Victor Shi.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAmid escalating environmental pollution characterizing the fashion industry, the green apparel transition remains an utmost sustainability priority. However, this hinges pivotally on actual consumer purchase behaviors. This study investigates green apparel buying behavior among consumers in Shanghai, a global fashion epicenter. Drawing on 529 respondents, the study examines the interplay of subjective norms, attitudes, quality orientation, hedonic motivations, message framing, and intentions on green apparel buying behavior, using structural equation modeling. The findings reveal that the model explains 51.0% of green apparel buying behavior. Subjective norms exert a direct influence on buying behavior, while attitudes, positively shaped by subjective norms and quality orientation, influence purchase intentions. Hedonic motivations and message framing emerge as critical drivers of both attitudes and intentions. Intentions predict buying behavior. The study offers actionable implications for businesses, marketers, and policymakers to accelerate the adoption of eco‐conscious fashion choices in fast‐paced, trend‐driven urban markets.\n"]

  May 05, 2026   doi: 10.1002/bse.70924   open full text
• Too Hot to Profit? Climatic Stress and Farm‐Level Performance in Italian Viticulture.
  Diego Grazia, Federico Zilia, Stefano Corsi, Chiara Mazzocchi, Jean‐Marie Cardebat.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5823-5840, May 2026. ", "\nABSTRACT\nThis paper investigates the economic impact of long‐run climatic conditions on Italian wine farms by applying a Ricardian framework to 1431 firms from the 2022 RICA‐FADN survey. We combine farm‐level revenues with viticulture‐specific agroclimatic indicators to assess how climate stress shapes profitability across 77 Italian NUTS3 provinces. Results reveal a significant non‐linear relationship between temperature, precipitation and net revenue per hectare, with stronger negative effects beyond thermal thresholds, particularly in Southern Italy. We further analyse the moderating role of EU subsidies, showing that while public support buffers short‐term losses, it may also weaken incentives for long‐term adaptation. Forward‐looking simulations under mild (+0.5°C), moderate (+1°C) and severe (+1.5°C) warming scenarios indicate potential revenue declines of up to −50 € per hectare by 2030 in the absence of adaptation. Policy implications highlight the need to align subsidy design with climate resilience, promote irrigation and varietal innovation and strengthen adaptation incentives in Mediterranean viticulture.\n"]

  May 05, 2026   doi: 10.1002/bse.70454   open full text
• What Drives Corporate Sustainability Strategies? A Context‐Sensitive Text Mining Analysis of Sustainability Disclosures of Global Firms.
  Balaji Balakrishna Pillai, Rojers Puthur Joseph, Sai Sandeep.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis manuscript presents an extensive examination of corporate sustainability reports from 340 firms included in the Forbes Global 2000, spanning a diverse array of industry sectors. The study investigates the relative significance of key drivers influencing sustainability strategies—specifically, institutional alignment, stakeholder engagement, and resource‐based advantages. Rather than assuming a single dominant strategic logic, the research recognizes that corporate sustainability strategies often represent combinations, shaped by multiple strategic logics to varying degrees. To interpret these hybrid orientations, the analysis draws on constructs and indicators from institutional theory, stakeholder theory, and resource‐based view. Using advanced large language models and context‐sensitive text‐mining techniques, the study systematically identifies and evaluates narrative patterns within sustainability reports. This enables a large‐scale, nuanced analysis of strategic orientations across multiple sectors. The findings indicate clear sector‐ and region‐specific differences in the influence of these strategic drivers, providing evidence‐based insights into how organizations formulate and articulate their sustainability initiatives.\n"]

  May 05, 2026   doi: 10.1002/bse.70922   open full text
• Artificial Intelligence and Environmental, Social, and Governance: A Hybrid Bibliometric Approach.
  Qiang (John) Wu, Muhammad Sualeh Khattak, Muhammad Anwar, Pascal Nevries.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5749-5775, May 2026. ", "\nABSTRACT\nThis study provides a comprehensive overview of research on artificial intelligence (AI) and Environmental, Social, and Governance (ESG) by creating a knowledge map of the field. Using a systematic–bibliometric approach, we quantitatively analyzed a total of 129 documents, which collectively were cited 4276 times (2017–2024). Following performance analysis, we conducted a rigorous systematic literature review, critically evaluating each document to identify key research methods, geographic focus, theories, and frameworks. We then performed citation network and co‐citation analyses to uncover the intellectual foundations of the field. We also employed bibliographic coupling to identify emerging research streams, while thematic evaluation provided insights into the evolution of research areas over time, highlighting both the most and least explored themes. Finally, our complementary systematic–bibliometric analyses enabled us to derive an integrated framework outlining key antecedents, mediators, moderators, and outcomes. This in turn allows us to develop a structured conclusion for each of the six identified research clusters, which will guide future research directions in AI and ESG. We also discuss practical and theoretical implications, offering valuable insights for scholars and practitioners in the field.\n"]

  May 05, 2026   doi: 10.1002/bse.70430   open full text
• Voluntary Environmental Regulation and Corporate Green Innovation: Evidence From the “Green Factory” Certification.
  Liang Lan, Yuxin Duan, Zhicheng Zhou, Shen Zhong.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4802-4829, May 2026. ", "\nABSTRACT\nAs a pivotal instrument in environmental governance, voluntary environmental regulation effectively drives corporate green innovation. This study leverages China's Green Factory Certification as a quasi‐natural experiment to examine the causal effect of voluntary environmental regulation on corporate green innovation. Using panel data on 2783 A‐share listed manufacturing firms from 2014 to 2021 and a staggered difference‐in‐differences model, we find that green factory certification significantly enhances corporate green innovation by improving both the quality and quantity of green patent outputs. The results remain robust across multiple robustness checks, including instrumental variable estimation and propensity score matching. Mechanism analysis identifies three channels: incentive, competition, and learning effects. Government incentives increase expected returns, motivating firms to invest in green innovation. Competitive pressure from peers and reputational pressure from stakeholders drive firms to strengthen their green performance. Disclosure requirements foster reflection and learning, enabling firms to align their strategies with green innovation goals. Heterogeneity analysis reveals that the effect is stronger in regions with higher government incentives and more developed markets. The effect is also more pronounced among firms with weaker bank relationships and limited political connections. This study provides new empirical evidence on the impact of voluntary environmental regulation on corporate green innovation, offering policy implications for advancing the green transition and sustainable development.\n"]

  May 05, 2026   doi: 10.1002/bse.70408   open full text
• Corporate Management of Environmental, Social, and Governance Ratings and Rating Divergence.
  Selina Hauch.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4784-4801, May 2026. ", "\nABSTRACT\nAs environmental, social, and governance (ESG) ratings increasingly influence investment and corporate decision‐making, companies face growing pressure to manage their ESG performance strategically. This study examines how firms navigate the fragmented ESG rating landscape marked by significant agency divergence. Based on a multiple‐case study of 13 listed German companies, the study identifies four ESG rating management archetypes: Passive Receivers, Selective Engagers, Responsive Optimizers, and Proactive Navigators. Companies with higher ESG performance adopt more proactive approaches, marked by internal integration and external engagement. The study highlights key challenges, including information blind spots, transparency gaps, and limited agency responsiveness. It contributes to institutional theory by incorporating internal drivers of corporate ESG responses, develops a framework for ESG rating management, and advances the ESG rating literature by examining corporate strategies for addressing rating divergence. The study informs policymakers on the need for greater transparency and helps companies benchmark effective ESG management practices.\n"]

  May 05, 2026   doi: 10.1002/bse.70406   open full text
• The Role of Sustainable Social Media Marketing Activities in Raising Bottom‐of‐the‐Pyramid Customers' Engagement, Satisfaction, and Subjective Well‐Being.
  Md. Al Amin, Md Masudur Rahman, Linda D. Hollebeek, Jamid Ul Islam, Moira K. Clark.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5158-5174, May 2026. ", "\nABSTRACT\nThough prior studies have explored the effects of firms' social media marketing activities on customer engagement, the dynamics characterizing this association in bottom‐of‐the‐pyramid (BoP) markets remain tenuous, exposing a critical gap. Addressing this gap, we develop and test a model assessing (a) the effects of firms' sustainable social media marketing activities (SSMMAs) on BoP customers' engagement, satisfaction, and subjective well‐being, and (b) the moderating role of environmental consciousness and customer empowerment. A self‐administered survey with 414 BoP customers was conducted, with the data being analyzed using partial least squares structural equation modeling (PLS‐SEM). The results reveal that SSMMAs drive BoP customers' engagement and satisfaction, impacting their subjective well‐being. The findings also confirm the mediating role of customer satisfaction and engagement in the association of SSMMAs and subjective well‐being. Finally, the results indicate that while perceived environmental consciousness moderates the association of SSMMAs and BoP customer satisfaction, empowerment moderates the relationship between satisfaction and subjective well‐being. By exploring the effects of firm‐based SSMMAs on customers' engagement, satisfaction, and well‐being, this research adds to the literature on social media marketing activities by focusing on sustainable social media communications at the BoP, raising pertinent implications.\n"]

  May 05, 2026   doi: 10.1002/bse.70357   open full text
• Beyond Case Studies: Mapping the Geography of Firm‐Level Circularity.
  Sophia Dadak, Jesús Valero‐Gil, Inés Suárez‐Perales.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5619-5640, May 2026. ", "\nABSTRACT\nInterest in the circular economy is growing, and to ensure credible circularity claims, broader analyses that encompass larger scales of analysis are needed. This study reviews current circularity measurement practices in business literature and examines recent larger scale assessments. Our findings show that empirical firm‐level circularity assessments remain largely small scale. Furthermore, our study evaluates the state of circularity assessment in business and management research by constructing firm‐level circularity indicators from Refinitiv Eikon data, offering an exploratory snapshot of global patterns and proposing a scalable measurement approach.\n"]

  May 05, 2026   doi: 10.1002/bse.70464   open full text
• Toward an SDG‐Based Typology for US Nonprofits.
  Dominik S. Meier, Elizabeth Searing.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5344-5363, May 2026. ", "\nABSTRACT\nThe Sustainable Development Goals (SDGs) represent an emerging institutional logic that nonprofits must navigate alongside existing sector‐specific frameworks. Drawing on institutional logics and organizational hybridity theories, we examine how nonprofits incorporate SDGs into their missions and what this reveals about managing institutional complexity. Using a large language model to analyze nearly 50,000 US nonprofit mission statements, we develop an SDG‐based typology that captures mission hybridity—a key dimension existing classification systems obscure. We find that nonprofits embedded in strong professional logics (e.g., healthcare, education) show concentrated SDG alignment, while those spanning multiple institutional spheres demonstrate diverse engagement patterns. Mission statements relate to an average of 1.94 SDGs, with modest intergoal correlations suggesting context‐specific rather than template‐driven implementation strategies. Our study advances understanding of how organizations translate global frameworks through existing institutional arrangements, provides a quantitative measure of mission complexity, and offers practical insights for nonprofit alignment with global sustainability priorities.\n"]

  May 05, 2026   doi: 10.1002/bse.70419   open full text
• Charting the Course: Real‐World Application of Sustainability and Innovation Principles in the Portuguese Blue Economy Firms.
  Jennifer Nicole Elston, Hugo Emanuel dos Reis Sales da Cruz Pinto, Carla Filipa Sequeira Valente Nogueira.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4766-4783, May 2026. ", "\nABSTRACT\nThe blue economy has emerged as a key sector for linking sustainability and innovation, yet existing research has largely overlooked how firms operationalize these processes in practice. This study addresses that gap by asking: How do Portuguese blue economy firms embed sustainability‐oriented innovation (SOI) into their strategies, and what institutional conditions enable or constrain it? This study explores SOI through an analysis of five Portuguese firms. Adopting a qualitative approach, it employs semistructured interviews, supported by content comparison techniques and thematic coding. The findings indicate that stakeholder collaboration, circular economy principles, and renewable energy integration support sustainability performance, whereas financial constraints, regulatory inefficiencies, and bureaucratic hurdles limit broader adoption. Drawing on institutional theory, the resource‐based view, and the triple bottom line framework, the study contributes theoretically by showing how SOI is negotiated between institutional pressures and firm capabilities, revealing tensions between compliance and strategic agency. The study underscores the importance of institutional support, stakeholder engagement, and adaptive business strategies in overcoming systemic barriers. These results provide practical direction for policymakers and business leaders, highlighting the need for streamlined regulation, targeted financial incentives, and cross‐sector collaboration. For policymakers, this means aligning incentives with SME capacities and building collaborative governance platforms; for firms, it means leveraging partnerships and resource‐based advantages to scale sustainable business models. By clarifying both institutional dynamics and firm‐level practices, the article advances understanding of how sustainability transitions are enacted within the blue economy.\n"]

  May 05, 2026   doi: 10.1002/bse.70396   open full text
• Advancing Sustainable Development in Manufacturing: A Strategic Framework for Overcoming Green–Lean Implementation Barriers.
  Jose Arturo Garza‐Reyes, Andrew Defanto, Ranjit Roy Ghatak, Rohit Joshi, Walid al Saad.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5320-5343, May 2026. ", "\nABSTRACT\nManufacturing's transition to sustainable development depends on integrating green with lean under credible environmental policy and stakeholder engagement. Although benefits are well established, the literature underspecifies implementation barriers and their prioritisation. This study identifies, structures, and prioritises barriers to green–lean adoption using an Indonesia‐based, mixed‐methods design, producing a decision‐oriented roadmap for sustainable production. A structured literature review (SLR) informed a survey of manufacturing managers (n = 132), with exploratory factor analysis (EFA) categorising barriers into five dimensions: managerial orchestration (MO), ecosystem and governance (EG), behaviour and belief (BB), knowledge and know‐how (KK) and tools, methodology and technology (TMT). An analytic hierarchy process (AHP) with a diverse expert panel (n = 12) then ranked these dimensions and derived sequenced deployment guidance. MO and EG emerged as the most significant barriers, with salient impediments including inadequate top management support, substantial initial capital requirements, limited government incentives and resistance to organisational change; BB, KK and TMT factors further constrain diffusion via skills gaps and methodological complexity. We propose and validate a theory‐linked framework for green–lean integration (GLI) barriers—derived via EFA and prioritised with AHP—anchored in diffusion of innovation (DoI), institutional theory, resource‐based view (RBV)/dynamic capabilities and change‐management; the process is portable, whereas weights require local reestimation. Bounded by Indonesia's institutional conditions—regulatory stringency and enforcement, energy mix and cost structures, small and medium‐sized enterprises (SMEs) prevalence and supplier informality, and hierarchical managerial norms—this study delivers a decision‐oriented roadmap for Indonesian manufacturing and a clearly defined process (SLR → EFA validation → AHP prioritisation with consistency ratio [CR] control) that can be adapted, via local reweighting and replication, to settings with comparable profiles.\n"]

  May 05, 2026   doi: 10.1002/bse.70390   open full text
• Institutional Ownership and Corporate Sustainability Performance—A Meta‐Analysis.
  Hans Henrik Scherer, Rüdiger Hahn, Jan Endrikat.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 4719-4735, May 2026. ", "\nABSTRACT\nThis study investigates the relationship between institutional ownership (IO) and corporate sustainability performance (SP), addressing inconsistent findings in prior research and clarifying the boundary conditions of this relationship by testing a defined set of potential moderators. Drawing on a comprehensive meta‐analysis of 116 empirical studies, we find evidence of a bidirectional positive association: higher IO is linked to superior subsequent SP, and prior superior SP attracts greater IO. Furthermore, country‐level institutional factors significantly moderate the IO–SP relationship, and temporal factors exert additional moderating effects. These results support arguments from agency theory and stakeholder salience theory.\n"]

  May 05, 2026   doi: 10.1002/bse.70389   open full text
• Are Ecosystems the Missing Link in Circular Transitions? Insights From a Comprehensive Literature Analysis.
  Aline Gabriela Ferrari, Fabiano Armellini, Daniel Jugend, Davide Pulizzotto, Catherine Beaudry.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, Volume 35, Issue 4, Page 5452-5470, May 2026. ", "\nABSTRACT\nAlthough recent literature on the circular economy (CE) has highlighted the important role of ecosystems, there is still limited understanding of the main themes that characterize circular ecosystems. This study addresses this gap by combining a comprehensive topic modeling analysis employing latent Dirichlet allocation (LDA) with a systematic literature review of 66 articles focused on circular ecosystems. The main results reveal that circular ecosystems have often been analyzed through the lens of (i) circular business models and ecosystem innovation, (ii) CE policies and stakeholder governance, and (iii) implementation and transition to CE. Furthermore, based on this study's findings, topics that have not yet been explored in this area are identified, and a research agenda is suggested. The results of this study also underscore key themes in the relationship between CE and ecosystems and provide managers with guidance on better integrating their businesses into ecosystems aligned with circularity objectives.\n"]

  May 05, 2026   doi: 10.1002/bse.70387   open full text
• The Twin Transition: Does Intelligent Manufacturing Crowd Out or Catalyze Green Innovation?
  Xinze Li, Yuhao Liu, Jiankun Gong, Kwok Yuen Fan, Morgan X. Yang.
  Business Strategy and the Environment. 5 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nFirms facing the “twin transition” toward digital transformation and environmental sustainability face a critical resource allocation problem: Do capital‐intensive digital upgrades compete for resources with or catalyze investments in green innovation? We examine this issue within the context of China's Intelligent Manufacturing Demonstration Project (IMDP), a hybrid industrial policy combining digitalization and environmental targets. Using a staggered difference‐in‐differences design with 25,125 firm‐year observations (2010–2022), we find that IMDP participation boosts green invention patent applications by 27%. This innovation is substantive, reflected in enhanced energy efficiency and reduced pollutant emissions, especially among nonstate‐owned and capital‐intensive firms operating under strict environmental regulations. Mechanism analysis suggests that these effects occur through easing financing constraints, lowering agency costs, and upgrading human capital.\n"]

  May 05, 2026   doi: 10.1002/bse.70931   open full text
• Patents as Green Signals: Capital Market Responses to Corporate Green Innovation in Carbon‐ and Energy‐Intensive Firms.
  Jeongdae Yim, Su‐Yol Lee.
  Business Strategy and the Environment. 6 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAdopting a signaling perspective, this study examines whether corporate green patenting reduces the cost of equity by mitigating information asymmetry in capital markets. Using longitudinal panel data from South Korea, we find that green patenting—encapsulating technological innovation related to energy, environmental protection, and climate change—is associated with a significantly lower cost of equity. Furthermore, this effect is more pronounced for firms with higher energy consumption and carbon intensity. Channel analyses further indicate that reductions in information asymmetry constitute an important mechanism linking green patenting to lower equity financing costs. The results collectively suggest that green patenting plays a meaningful role in alleviating capital market uncertainty, particularly for firms facing elevated transition risks due to carbon‐ and energy‐intensive operations. Our findings offer managerial and policy implications by highlighting the importance of green innovation in improving financing conditions and strengthening corporate competitiveness during the transition toward a low‐carbon economy.\n"]

  May 04, 2026   doi: 10.1002/bse.70960   open full text
• From Pro‐Environmental Purchasing Behavior to Environmental Citizenship: A Dual‐Causal Analysis.
  Norbert Lebrument, Cédrine Zumbo‐Lebrument.
  Business Strategy and the Environment. 6 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study tests whether pro‐environmental purchasing behavior (PPB) cultivates environmental citizenship. We analyze survey data from 1816 residents across seven French metropolitan areas using partial least squares structural equation modelling combined with necessary condition analysis. Environmental knowledge and related antecedents predict PPB; in turn, PPB increases both political and social participation (PSP) and internal political efficacy (IPE). Crucially, a sufficiency‐necessity design reveals an asymmetric causal structure: PPB is a sufficient antecedent of both PSP and IPE, but a necessary condition only for PSP. Hence, the behavioral and cognitive facets of environmental citizenship follow distinct developmental pathways. The findings refine theory by clarifying when private consumption translates into public engagement—and when it does not. They also inform firms and policy‐makers seeking to expand green markets while mobilizing civic environmental engagement: initiatives that raise PPB are likely to unlock participation, whereas IPE may require complementary cognitive interventions beyond consumption.\n"]

  May 04, 2026   doi: 10.1002/bse.70893   open full text
• Digital Strategizing and Green Innovative Competitive Advantage: The Mediating Role of Circular Economy and Sustainability Culture.
  Adilson Carlos Yoshikuni, Rajeev Dwivedi, Josh Morton, Roberto Kupper Jorge, Thiago Henriques Fernandes, Roberto Rodrigues.
  Business Strategy and the Environment. 6 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nDespite increasing pressure to integrate strategy and sustainability, executing digital strategizing remains complex. Organizations often lack clarity about which resource combinations to invest in—and how to deploy them—to build a firm‐wide digital strategizing capability that supports circular economy principles and enables green innovative competitive advantage. To address this issue, we developed a research model using partial least squares structural equation modeling based on survey data from 391 senior executives from firms in Brazil and France. The results show that stronger digital strategizing capability enhances green innovative competitive advantage through the mediating role of circular economy principles within a sustainability‐oriented culture across both developing and developed contexts. These findings validate the proposed model and highlight pathways for improving sustainable performance by implementing circular strategies through digital strategizing.\n"]

  May 04, 2026   doi: 10.1002/bse.70910   open full text
• Environmental Controversies on Business Risk in Energy Companies: Evidence of a Non‐Linear Relationship.
  Rui Miguel Pinto Ribeiro Guedes, Catarina Alexandra Neves Proença, Fátima Sol Murta, Maria Elisabete Duarte Neves.
  Business Strategy and the Environment. 7 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study explores how environmental controversies affect corporate risk in the global energy sector, using data from companies in 24 countries between 2016 and 2023. By employing Altman's Z‐score, return on assets volatility, and earnings volatility, and applying a system GMM estimator, the analysis identifies a robust U‐shaped relationship between controversies and risk. Moderate controversy levels appear to reduce risk, likely because heightened stakeholder scrutiny encourages corrective governance and risk‐management practices. However, severe controversies increase risk through reputational damage, regulatory pressure, and heightened uncertainty. Grounded in legitimacy and signaling theories, the study demonstrates that the effect of environmental controversies on business risk is non‐linear and context dependent, particularly in environmentally sensitive industries. Additionally, results highlight the mitigating role of board characteristics, including gender diversity and expertise. For managers and investors, the findings underscore the importance of transparency, governance improvements, and institutional factors in ESG‐based risk assessments.\n"]

  May 03, 2026   doi: 10.1002/bse.70930   open full text
• Towards a Socially Inclusive Circular Economy: Evidence From Social Enterprises in Low‐ and Middle‐Income Countries.
  Maria L. Granados, Adeyemi Adelekan.
  Business Strategy and the Environment. 7 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nCircular economy (CE) and social entrepreneurship (SE) are increasingly recognised as critical pathways for sustainable development, yet CE research often underplays social inclusion, particularly in low‐ and middle‐income countries (LMICs). This paper examines how organisations engaged in circular practices achieve social inclusion in practice. Drawing on a qualitative multiple case study of waste management organisations in Lagos (Nigeria) and Bogotá and Cali (Colombia), we analyse how empowerment is embedded within circular activities. Our findings show that organisations integrate agency‐building processes and opportunity structures into recycling, reducing and rethinking strategies, enabling marginalised actors to access services, gain recognition and participate in economic and civic life. We propose a socially inclusive circular economy (SICE) framework, which conceptualises social inclusion as an outcome of circular practices mediated by empowerment. The study contributes an empirically grounded understanding of how CE can support more inclusive and socially just sustainability transitions in LMIC contexts.\n"]

  May 03, 2026   doi: 10.1002/bse.70940   open full text
• Defining Remanufacturing: A Key Business Strategy Advancing Industrial Circularity.
  Erik Sundin, Jennifer D. Russell, Carl Dalhammar.
  Business Strategy and the Environment. 7 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nRemanufacturing is a key strategy in the circular economy, enabling substantial product value retention. However, inconsistent definitions across standards and legislation hinder global trade, core recovery and market acceptance. This study examines how remanufacturing is defined in laws and standards, and how these definitions impact industry practices. Through a literature review of key existing definitions and semistructured interviews with 20 remanufacturing professionals, we identified definitional preferences, problematic terminology and misalignments. Findings of this study reveal strong support for definitions that set expectations for quality and performance, clearly distinguish remanufacturing from refurbishment and avoid restrictive language. Based on these insights, we propose a refined definition of remanufacturing and present a visualisation of how products are made in a circular manufacturing context. This study provides greater clarity on industrial remanufacturing practices and preferences, thus supporting the continued development of circular operations, and reinforcing remanufacturing's role as a vital circular activity for the manufacturing industry.\n"]

  May 03, 2026   doi: 10.1002/bse.70906   open full text
• Human Capital at the Core: Unpacking Managerial Perceptions and ESG Reporting Effectiveness in Emerging Markets.
  Aruna Polisetty, G. Sowmya, Debarun Chakraborty.
  Business Strategy and the Environment. 9 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nEnvironmental, social, and corporate governance (ESG) reporting has emerged as a key critical dimension of corporate accountability, paralleling the global discourse on sustainable development. The present study investigates the perceived effectiveness of digital ESG reporting from the perspective of managers (human capital) in Indian small‐ and medium‐sized enterprises (SMEs), drawing on the interplay of institutional theory, the technology acceptance model (TAM), and the resource‐based view (RBV). Employing a mixed‐method approach, narrative inquiry was conducted with six managers across five randomly selected firms from the SEBI top‐500 list, complemented by 473 valid survey responses. The study findings reveal that perceived burdensomeness, compliance orientation, and strategic orientation significantly shape managers' evaluations of digital ESG reporting effectiveness, which in turn influences actual ESG outcomes. Moreover, organizational readiness expressed through digital maturity and managerial support (leadership commitment and employee training) emerges as a moderating factor, strengthening the link between perceived and actual effectiveness. This study contributes to ESG literature by integrating multi‐theoretical perspectives to explain reporting dynamics, offering both practical insights for firms navigating ESG mandates and policy implications for regulators.\n"]

  May 01, 2026   doi: 10.1002/bse.70915   open full text
• From Managerial Awareness to Behavior in the Circular Economy: The Role of Personality Traits and Organizational Support.
  Fiorenza Meucci, Flavio Spagnuolo, Annamaria Zampella, Marco Maffei.
  Business Strategy and the Environment. 10 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAs businesses are increasingly integrating circular economy (CE) principles to promote concrete sustainability actions, understanding which managerial aspects may align with this change becomes paramount. Employing a conceptual framework based on Cognitive‐Affective Personality System (CAPS) and Organizational Support theories, this study explores whether and how managers' personality traits affect their circular economy awareness (CEA), whether this awareness translates into circular economy behavior (CEB), and how perceived organizational support (POS) can strengthen this relationship. Using PLS‐SEM on a sample of 125 managers from five European countries, our findings reveal that extraversion and agreeableness positively affect managers' CEA, while neuroticism negatively impacts it. Notably, we suggest that the CEA positively relates to CEB, and that this effect is significantly strengthened when managers perceive high organizational support, which facilitates the translation of awareness into action. Overall, the research suggests profound implications for organizations, managers, and policymakers in fostering more circular business orientation, advocating for strategic organizational changes that align managerial awareness and behaviors with broader sustainability goals, and thereby advancing the implementation of CE strategies within corporate settings.\n"]

  April 30, 2026   doi: 10.1002/bse.70920   open full text
• ESG Performance and Stock Price Synchronicity: Empirical Evidence From the US Stock Market.
  Yosra Ridha BenSaid, Majdi Anwar Quttainah.
  Business Strategy and the Environment. 10 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines the relationship between environmental, social, and governance (ESG) performance and stock price synchronicity using a sample of 86 S&P 500 firms over the period 2011–2021. While prior literature has explored the role of ESG disclosure in shaping market efficiency and investor behavior, limited evidence exists on the specific informational channels through which ESG performance influences stock price synchronicity. Drawing on the irrational noise attenuation perspective, this study argues that improved ESG performance enhances the corporate information environment by reducing speculative trading and idiosyncratic volatility, leading to higher stock price synchronicity. Using Refinitiv ESG scores and a generalized least squares (GLS) framework with robustness tests, the results show that overall ESG performance, as well as environmental, social and governance dimensions, positively and significantly affect stock price synchronicity. These findings suggest that ESG‐related transparency contributes to more efficient price formation by improving information dissemination and reducing noise trading. The study contributes to the ESG–finance literature by providing new evidence on the informational role of ESG performance in a highly regulated and mature market context.\n"]

  April 30, 2026   doi: 10.1002/bse.70919   open full text
• Toward Sustainable Manufacturing: Green Knowledge, Leadership, and Innovation as Drivers of Environmental Performance.
  Jianhua Zhang, Salman Abbas, Aqsa Akbar, Maryum Sajjad Khan, Syed Ali Taqi, Muhammad Noman.
  Business Strategy and the Environment. 10 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nEnvironmental pollution caused by industrial activities continues to be a challenge for sustainable development, particularly in manufacturing sectors. This study investigates the effects of green knowledge management (GKM) and green transformational leadership (GTL) on environmental performance (EP) of China's manufacturers of renewable energy products. Drawing from the resource‐based and knowledge‐based view, survey evidence was collected from Henan and Hebei provinces. Shannon entropy, PLS‐SEM, and multigroup analysis point to GKM and GTL both having a positive impact on EP. Green technological innovation (GTI) is established as a mediating variable of utmost significance. Moderating effect of firm size reveals that large firms get benefits from resource scalability and small‐medium encounter implementation hurdles. Regional variation is observed, with Henan firms being more knowledge‐driven and innovation‐led and Hebei firms more leadership‐led. This study contributes to the literature by calling attention to internal organizational mechanisms that improve EP and supports the attainment of Sustainable Development Goal 13.\n"]

  April 30, 2026   doi: 10.1002/bse.70914   open full text
• Green Strategies in Family Firms: How Governance Heterogeneity Shapes Environmental Management and Performance.
  Muhammad Rizwan Ullah, Muhammad Zulfiqar, Mohamed Arbi Madani, Muhammad Zahid Nawaz.
  Business Strategy and the Environment. 10 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nFamily firms are central to sustainable development, yet the role of governance heterogeneity in shaping environmental outcomes remains insufficiently understood. Drawing on the natural resource‐based view and a governance perspective, this study examines how ownership structures condition the effectiveness of environmental protection management (EPM) and cleaner production in driving firm performance. Using panel data on Chinese listed firms (2011–2023) and system GMM estimation, we find that EPM constrains performance in some governance structures but enhances it in others. Controller ownership exerts heterogeneous effects, strengthening or weakening environmental engagement depending on incentive alignment. Moreover, cleaner production amplifies trade‐offs in certain firms while generating synergy between sustainability and financial performance in others. These findings demonstrate that environmental capabilities are governance‐contingent, advancing theory and offering actionable insights for managers and policymakers.\n"]

  April 30, 2026   doi: 10.1002/bse.70912   open full text
• A Strategic Framework for the Sustainable Transformation of the Global Fish Supply Chains: Insights From a Systematic Literature Review.
  Kariyawasam Pinikahana Gamage Lahiru Sandaruwan, Shavindya Laksirini Sumanasekara, Robert Jeyakumar Nathan, Maria Fekete‐Farkas.
  Business Strategy and the Environment. 10 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nResearch on sustainable fish supply chain transformation remains fragmented across governance, financial, technological and behavioural domains, offering limited explanation for why similar initiatives produce uneven outcomes across contexts. This systematic review synthesises 213 peer‐reviewed studies from Scopus and Web of Science (1999–2025) using qualitative thematic content analysis. The synthesis develops the Layered Conditional Transformation Model (LCTM), a middle‐range theory organised across institutional, relational and operational layers and transferable to other fragmented value chains. LCTM proposes a structural feasibility mechanism in which sustainability outcomes depend more consistently on enabling institutional and relational conditions than on intervention design alone, reframing transformation as a readiness‐conditioned process. Three contributions follow: a conditional effectiveness logic explaining the divergence of outcomes, a structural coordination failure mechanism identifying how sustainability signals are transmitted or suppressed and a feasibility threshold defined as a minimum‐sufficiency diagnostic boundary that guides intervention sequencing. An integrative vignette illustrates LCTM as a pre‐investment diagnostic for identifying bottlenecks and sequencing transformation strategies.\n"]

  April 30, 2026   doi: 10.1002/bse.70867   open full text
• Corporate Environmental Responsibility and Cost of Equity Capital: A Meta‐Analytical Review.
  Robert Witte, Ewald Aschauer, Helmut Pernsteiner.
  Business Strategy and the Environment. 10 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nDespite extensive research on the relationship between corporate environmental responsibility (CER) and cost of equity capital (COEC), empirical evidence remains inconsistent. This study addresses these inconsistencies through a comprehensive meta‐analysis of 1139 effect sizes from 75 studies. The analysis establishes a statistically significant but economically weak negative association (r = −0.041, p < 0.001), indicating that enhanced environmental practices reduce financing costs, though the magnitude is practically negligible by conventional standards. This relationship proves robust across multiple tests. The analysis also examines previously under‐explored moderators, finding significant effects of economic conditions (economic development and crises) and regulatory frameworks (disclosure and performance regulations), whereas the sociocultural background shows inconclusive results. Moreover, the analysis detects limited publication bias, which does not, however, alter the main conclusions. These findings provide the first meta‐analytical benchmark estimate of the CER–COEC relationship and highlight the need to shift research focus from establishing the relationship's existence to investigating its economic relevance, offering valuable insights for researchers, managers, policymakers, and investors.\n"]

  April 30, 2026   doi: 10.1002/bse.70853   open full text
• Transforming From Green to Circular Through Strategic Enablers of Intellectual Capital.
  Avinash Chopra.
  Business Strategy and the Environment. 10 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nIn the context of increasing environmental demands and accelerated technological progress, the healthcare sector is confronted with the challenge of balancing the tension between the quality of services provided and sustainability. The study aims to transform green intellectual capital (GIC) into a regenerative concept, circular intellectual capital (CIC). This study identifies, ranks, and maps the dependencies of six dimensions of CIC using a hybrid fuzzy AHP–DEMATEL methodology. The study is unique in its approach as it uses a hybrid methodology of the FAHP–DEMATEL approach. According to empirical data gathered on 21 domain experts working in/on the Indian healthcare sector, it is shown that knowledge spillover, resource feasibility, and innovation and environment are the most influential enablers, and green human capital and green structural capital are the key causal factors that lead to a systemic shift. The results highlight that effective circular change in the field of healthcare is not a technological or fiscal undertaking but a knowledge‐based process based on human capabilities and interorganizational learning. The research adds to theory by redefining intellectual capital in the context of the circular economy paradigm and providing practical information to managers and policymakers who aim to incorporate sustainability into healthcare innovation ecosystems.\n"]

  April 30, 2026   doi: 10.1002/bse.70877   open full text
• Does Mixed‐Frequency Data Efficiently Predict Future ESG Ratings? A RMIDAS‐Based Machine Learning Approach.
  Yali Zhang, Xinpeng Ding, Liukai Wang, Yangyan Shi.
  Business Strategy and the Environment. 10 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nESG ratings prediction provides critical reference for investment decisions, as they reflect firm performance and risk management while measuring corporate social responsibility performance. However, existing studies exhibit limitations in predictor completeness and temporal feature utilization: most predictions rely on annual financial data without considering nonfinancial factors such as social or environmental governance. Besides, high‐frequency financial information and its time‐varying features remain underexplored, limiting dynamic assessments of ESG performance. Hence, this paper proposes a novel ESG ratings prediction framework—the RMIDAS (restricted mixed data sampling)—ML (machine learning) framework. The framework integrates heterogeneous information across social, environmental, and financial dimensions when constructing the ESG predictor system. We utilize high‐frequency financial data and introduce internal pay gaps and green innovation achievement as social and environmental indicators to enhance predictive accuracy. Meanwhile, RMIDAS models promote the utilization of mixed‐frequency information and explore the time‐varying patterns of predictors through weight adjusting. We evaluate ML models with single‐frequency predictors and the RMIDAS‐ML framework with mixed‐frequency data. The results demonstrate that RMIDAS‐ML outperforms other models, with the RMIDAS‐RF (random forest) model performing best. Then, by analyzing feature importance and SHAP values, it is observed that firm size, profitability, and internal pay gaps play a significant role. The findings further reveal a nonlinear relationship between ESG ratings and internal pay gaps beyond a U‐shaped correlation. Therefore, our proposed framework not only effectively utilizes time‐series features of mixed‐frequency data for ESG forecasting but also uncovers additional details regarding the connection between internal pay gaps and ESG ratings.\n"]

  April 30, 2026   doi: 10.1002/bse.70884   open full text
• Fueling Tomorrow: Scenario Planning for the Future of Gas Stations.
  Joao Gabriel Rosa, Fabiano Armellini, Jean‐Marc Robert.
  Business Strategy and the Environment. 10 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nTransport electrification is reshaping the service infrastructures that mediate everyday mobility, yet most electrification scenario studies remain macrolevel and offer limited insight into how incumbent forecourt (gas‐station) networks can adapt under deep uncertainty. This study recenters gas stations as sociotechnical transition actors and develops a traceable, design‐integrated scenario approach to derive place‐based transition pathways. Using a Canadian case (with emphasis on Quebec), we combine field observation and hierarchical task analysis with a PESTEL horizon scan (patents, literature, and policy) and a two‐round Delphi with nine experts. A QFD‐inspired impact matrix and expert appraisal are used to construct and validate 12 prospective service‐use scenarios across urban, highway, and rural/outskirt contexts. Results indicate three recurring pathway archetypes: (1) urban charging embedded in commercial/parking ecosystems, (2) highway destination‐style multi‐service hubs requiring high‐CAPEX energy and service orchestration, and (3) rural/outskirt nodes where on‐site generation and prosumer participation plausibly complement conventional station roles. Across scenarios, feasibility is shaped by permitting and interconnection timelines, grid capacity constraints, land‐use and safety requirements, user acceptance, and utilization‐sensitive economics. The scenario set yields capability and staging logics that support policy‐industry coordination and roadmapping/portfolio decisions during prolonged coexistence of liquid‐fuel and electric infrastructures.\n"]

  April 30, 2026   doi: 10.1002/bse.70887   open full text
• Beyond Economic‐Environmental Dominance: Knowledge Management and Responsible Sustainability in Business Strategy Research.
  Jaime J. González‐Masip.
  Business Strategy and the Environment. 10 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study provides an exploratory, descriptive analysis of how knowledge management (KM) research engages with responsible sustainability from a strategic perspective. Using bibliometric science mapping, we analyse 97 Web of Science publications to identify dominant thematic patterns, relative emphases and conceptual blind spots shaping the field. The findings reveal a persistent strategic coupling between the economic and environmental sustainability dimensions, while the social dimension remains peripheral and weakly consolidated. Knowledge flows are predominantly framed around external stakeholders, whereas internal governance mechanisms and financial stakeholders receive limited attention. Technology‐oriented themes are largely approached in an actor‐agnostic manner, with limited explicit integration of ethical and accountability considerations. By clarifying the cognitive structure of KM‐oriented sustainability research, this study highlights structural imbalances in sustainability dimensions and stakeholder representation that constrain the strategic integration of responsible sustainability within KM scholarship. The analysis informs grounded implications for managerial practice and outlines avenues for future research.\n"]

  April 30, 2026   doi: 10.1002/bse.70908   open full text
• Do Management Attributes Drive Green Innovation? Evidence From International BRI Economies.
  Huang Ting, Maalisuo Sakpiti Bismark, Ummar Faruk Saeed, Mohammed Abdul‐Karim.
  Business Strategy and the Environment. 11 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study investigates how management attributes accelerate green innovation as a pathway toward climate neutrality, emphasizing the mediating role of technological innovation capacity and the moderating role of managerial ability. Focusing on environmentally sensitive manufacturing firms in Belt and Road Initiative (BRI) economies across the MENA region, the study employs dynamic panel data from 487 firms covering the period 2013–2024. The Baron and Kenny three‐step mediation procedure is used to examine the mediating mechanism, while interaction‐effect models are applied to test moderation. To address endogeneity concerns and strengthen causal inference, the analysis relies on dynamic GMM estimation. The findings indicate that gender diversity in management, performance‐based incentives, and managerial ownership significantly promote green innovation, whereas larger management teams and longer managerial tenure exert negative effects. Technological innovation capacity partially mediates these relationships, and higher managerial ability strengthens the positive influence of governance‐related mechanisms on green innovation outcomes. These results provide new insights into how firms operating in institutionally constrained environments can strategically configure internal governance structures to promote green innovation. By integrating technological capability as a mediator and managerial ability as a boundary condition, the study contributes to the corporate sustainability and environmental strategy literature. Ultimately, it demonstrates that strengthening internal governance is a critical lever for advancing green innovation and accelerating the transition toward climate neutrality in emerging‐market contexts.\n"]

  April 29, 2026   doi: 10.1002/bse.70888   open full text
• Climate Risk in Supply Chains: How Supplier Vulnerability Impairs Corporate ESG Performance.
  Quanfei Zhang, Mengrui Xie, Chuan Qin, Khaldoon Albitar.
  Business Strategy and the Environment. 12 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAs global climate physical risks intensify, localized extreme weather events increasingly trigger systemic supply chain disruptions, posing a severe but often overlooked threat to corporate sustainability. Although existing literature predominantly focuses on a firm's direct exposure to climate shocks, the indirect transmission of these physical risks through upstream supply networks remains critically underexplored. To bridge this gap, this study constructs a novel Supplier Climate Physical Risk (SCPR) index by mapping granular meteorological data to the geographical footprints of key suppliers for Chinese A‐share listed firms over the 2011–2023 period. Our empirical analysis reveals a profound penalizing effect: A one‐standard‐deviation increase in upstream climate risk leads to a decrease of approximately 4.7% of a standard deviation in the downstream focal firm's overall Environmental, Social, and Governance (ESG) performance. By unpacking this aggregate shock, we uncover a multidimensional transmission mechanism driven by supply chain disruption risks. Specifically, upstream climate turbulence simultaneously stifles interfirm green collaborative innovation (the ‘E’ channel), crowds out corporate social responsibility (CSR) investments due to emergency resource reallocation (the ‘S’ channel), and induces managerial myopia (the ‘G’ channel). Furthermore, this penalizing effect is mitigated for state‐owned enterprises, firms with diversified suppliers, and environmentally aware executives. Ultimately, this study advances the intersection of supply chain resilience and corporate sustainability, providing compelling evidence that mitigating upstream physical climate risks is imperative for safeguarding long‐term ESG strategic goals.\n"]

  April 28, 2026   doi: 10.1002/bse.70900   open full text
• Women Are Eco‐Friendly, so Are They From Venus? Exploring Green‐Feminine Stereotyping and Green Gender Gap.
  Agnieszka Chwialkowska, Waheed Akbar Bhatti, Andreea Bujac.
  Business Strategy and the Environment. 12 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nMarketers and policy makers have tried to bridge the green attitude–behavior gap through the use of pro‐environmental appeals using advertising to convey the “greenness” of their products. However, due to green‐feminine stereotyping, by focusing mainly on the green characteristics of the product, we may have alienated men, who, to safeguard their gender identity, are less willing than women to engage in sustainability efforts. This conceptual paper draws on gender identity theory and cross‐cultural research to examine how green‐feminine stereotyping shapes men's green and eco‐friendly consumption. We develop a conceptual framework explaining how green‐feminine stereotyping can trigger masculinity threat among men and how this mechanism varies across masculine and feminine cultural contexts. The framework further identifies culturally congruent marketing interventions that can mitigate masculinity threat and promote men's engagement in sustainable consumption. We discuss the importance of gender identity maintenance as a culturally learned construct that cannot be universally applied across contexts and show that the adverse effects of green‐feminine stereotyping on men's green behavior are culturally contingent rather than universal.\n"]

  April 28, 2026   doi: 10.1002/bse.70957   open full text
• Not All Voices Are Green: Unpacking Supportive, Constructive, and Defensive Green Voice Through GHRM and Personality.
  Pragya Gupta, Hina Zafar, Norah Albishri, Abhishek Bhushan Singhal, Taewoo Roh, Brendan Boyle.
  Business Strategy and the Environment. 12 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study explores the impact of green human resource management (GHRM) practices on three distinct green voice behaviors. Grounded in the person‐organization fit theory, the research examines how GHRM practices influence employees' willingness to express their environmental concerns and ideas while investigating the role of the Big Five personality traits. The data were collected from 287 respondents from the hospitality sector and analyzed using structural equation modeling. Our findings reveal a significant impact of GHRM practices on green voice behaviors. Supportive and constructive voice behaviors are enhanced when employees perceive alignment between their personality traits, such as openness and conscientiousness, and the organization's green initiatives. At the same time, the findings indicate that GHRM practices may also elicit defensive voice behaviors among employees with high neuroticism or low agreeableness, highlighting potential unintended effects when sustainability initiatives are perceived as misaligned or imposed. Practical implications include emphasizing GHRM practices that foster green voice behaviors, like sustainability training, eco‐friendly performance evaluations, and green pay and rewards programs, to engage employees in environmental initiatives, ultimately enhancing organizational sustainability.\n"]

  April 28, 2026   doi: 10.1002/bse.70939   open full text
• The Effect of Entrepreneurs' Sustainability Knowledge, Orientation, and Intentions on Sustainability‐Oriented Entrepreneurial Actions.
  İbrahim Turkmen, Burçin Karahan.
  Business Strategy and the Environment. 12 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThe purpose of this research is to determine the impact of entrepreneurs' sustainability knowledge, orientation, and intentions on their sustainability‐focused entrepreneurial actions. The research is based on the theory of planned behavior. The study is designed as cross‐sectional quantitative research. The research population consists of 9939 business owners and partners operating in Usak, Türkiye. Research data were obtained from 474 entrepreneurs through a convenience sampling method. Knowledge, intention, orientation, and action scales related to sustainability developed by Muñoz and Dimov (2015) were used in the study. The data were analyzed using SPSS and AMOS programs. The hypotheses formed for the study were tested with structural equation modeling (SEM). According to the research findings, entrepreneurs' sustainability knowledge positively affects their sustainability orientation. In addition, entrepreneurs' sustainability knowledge and orientation have a statistically significant positive effect on their sustainability intention. Entrepreneurs' sustainability knowledge, orientation, and intention positively affect their sustainability‐oriented actions. The study concludes that entrepreneurs' adoption and performance of sustainability‐oriented actions are significantly affected by their knowledge, orientation, and intention with regard to sustainability.\n"]

  April 28, 2026   doi: 10.1002/bse.70961   open full text
• Genuinfluencers and Climate‐Conscious Outdoor Tourism: A Social Cognitive Perspective on Female Instagram and TikTok Creators.
  Yunchao Du, Jintao Lu, Cristina Caterina Amitrano, Filippo Monge.
  Business Strategy and the Environment. 12 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nClimate change is affecting different economic sectors and among them, the tourism industry, particularly outdoor tourism, is increasingly vulnerable. As sustainability communication moves onto social media, influencers are emerging as key actors in shaping climate‐conscious travel behaviours, although their effectiveness and credibility remain debated. This study explores how female genuinfluencers promote climate‐conscious outdoor tourism on Instagram and TikTok, adopting social cognitive theory to examine how modelling, reinforcement and self‐efficacy are activated in digital narratives. Semi‐structured interviews reveal three themes: influencers' journey where personal experiences build authenticity and trust; climate awareness through which influencers foster reflection and responsibility; and sponsored content characterised by tensions between authenticity, commercialisation and sustainability. The findings advance the debate on digital sustainability communication by highlighting both the opportunities and contradictions of influencer‐led climate action, while offering practical insights for marketers and destination managers seeking to promote more responsible forms of outdoor tourism.\n"]

  April 28, 2026   doi: 10.1002/bse.70962   open full text
• Low‐Carbon Energy Transition and Corporate Carbon Emissions: The Critical Role of Climate Change Mitigation Policies and Institutional Context.
  Bilal Ahmed Abbasi, Mushtaq Hussain Khan, Ambreen Gul, Inam Ul Haq, Muhammad Umer Azeem.
  Business Strategy and the Environment. 12 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines the strategic efficacy of corporate low‐carbon energy transition, such as through nuclear energy adoption, as a response to decarbonization pressures. Analyzing an international sample of energy firms, we demonstrate that the relationship between this form of transition and emission reductions is not technologically determined but institutionally channeled. Our analysis reveals that the contribution of a low‐carbon transition strategy to corporate decarbonization is significant only when embedded within a robust institutional framework characterized by stringent climate policies and a strong rule of law. The empirical evidence further highlights a fundamental divergence in outcomes between pronuclear and antinuclear regulatory environments, particularly within the context of the EU's sustainable finance taxonomy. These findings compel a strategic reappraisal. For corporate leaders, pursuing a low‐carbon transition via contested technologies represents not merely an engineering choice but a sophisticated legitimacy‐management instrument whose success is contingent on institutional context. For policymakers, our results underscore that realizing the decarbonization potential of such transitions requires deliberate institutional architecture rather than mere technological adoption.\n"]

  April 28, 2026   doi: 10.1002/bse.70894   open full text
• Strategic Governance for Sustainability: The Role of Whistleblowing and Board Oversight in ESG Performance.
  Abdullah, Muhammad Arsalan Hashmi, Hanita Kadir Shahar.
  Business Strategy and the Environment. 12 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThe growing emphasis on ESG performance has pressured firms to transform their business operations to become more environmentally friendly and socially responsible. Despite its importance, less attention has been paid to its drivers. Therefore, this study fills this gap by examining the static and dynamic interactions between whistleblowing and corporate board oversight indicators, as well as their joint influence on ESG performance in selected Asian emerging markets. The study uses a sample of 5631 firm‐year observations from three Asian emerging economies for the period 2010–2023. We apply both the static and dynamic panel data estimation approaches, robust to endogeneity concerns, to examine the complex two‐way and three‐way interactions between whistleblowing and board oversight measures. The results suggest that whistleblowing has a positive impact on the ESG performance of a firm. Furthermore, board size and board independence strengthen the positive relationship between whistleblowing and the ESG performance of a firm. In addition, the three‐way interaction results suggest that board gender and cultural diversities complement larger and more independent boards in strengthening the positive impact of whistleblowing on the ESG performance of a firm. This study advances theory by demonstrating that whistleblowing contributes meaningfully to firms' ESG performance, broadening understanding beyond traditional financial outcomes in emerging Asian markets. It also clarifies mixed insights on board independence and size by showing that both attributes amplify the impact. The results have several implications for policymakers, investors, and other stakeholders.\n"]

  April 28, 2026   doi: 10.1002/bse.70907   open full text
• Policy and Market Mechanisms for Sustainable Finance: A Systematic Review and Research Agenda.
  Jihyung Joo, Byounguk Keum, Taewoo Roh.
  Business Strategy and the Environment. 12 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nSustainable finance has emerged as a critical instrument for addressing the dual challenges of climate change and sustainable development. Nonetheless, a substantial financing gap persists, while the concept remains under‐theorized without a universally accepted definition, and empirical evidence of its effectiveness remains inconsistent and fragmented. This study undertakes a systematic literature review of 143 high‐quality academic literature screened by high‐ranking journals according to the Academic Journal Guide of the Chartered Association of Business Schools (ABS). Employing bibliometric techniques and network clustering analysis, it traces the evolution of research trends and qualitatively analyzes the thematic clusters of research on sustainable finance and policy. The review highlights gaps in knowledge regarding the interactive roles of environmental policy and financial mechanisms—spanning both public and private sources—and the pathways at multiple levels through which innovation mediates sustainable development. The findings underscore the need for more robust theoretical frameworks, stronger empirical case studies, and systematic integration of sustainable finance mechanisms to assess their complementarity and ensure their effectiveness. Owing to complexity of the practice, the review further stresses the importance of interdisciplinarity and suggests that business and management, economics and finance research cross‐pollinate ideas and approaches with other fields. Future research agenda include (i) the dynamic interaction between financial instruments and policy design, (ii) the drivers and barriers shaping the capacity to foster technology and process innovation, (iii) empirically grounded case studies in less developed contexts, and (iv) the role of international financial institutions in accelerating sustainable development.\n"]

  April 28, 2026   doi: 10.1002/bse.70958   open full text
• ESG Disclosure as a Strategic Information Mechanism: A Bibliometric Review.
  Tan Dat Nguyen, Tran Quang Duong Hoang, Qian Long Kweh.
  Business Strategy and the Environment. 13 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study presents a theory‐oriented bibliometric review of research on environmental, social, and governance (ESG) disclosure and corporate outcomes, with particular attention to the evolving role of disclosure within the corporate information environment. Drawing on 590 peer‐reviewed articles indexed in Scopus, this study employs bibliometric mapping and network visualization to examine the intellectual structure of the field and its development over time. The findings reveal a shift from an early emphasis on ESG performance and corporate social responsibility to a disclosure‐centered perspective that links sustainability activities to financial and strategic consequences. ESG disclosure emerges as a structurally central construct connecting sustainability research with outcomes such as cost of capital, firm value, and financial performance. This configuration indicates that disclosure increasingly functions as a mechanism through which firms communicate sustainability‐related information and influence market evaluations. Simultaneously, themes related to disclosure quality, credibility, and greenwashing remain weakly integrated, suggesting that the informational properties of ESG communication are not yet fully theorized. The analysis also highlights the growing contributions of emerging markets alongside limited cross‐national integration. By synthesizing these structural developments, this study advances the understanding of ESG disclosure as a mediating interface between sustainability practice and corporate outcomes and outlines research directions concerning disclosure quality, institutional context, and information transmission processes. Consistent with bibliometric methodology, the results identify structural patterns rather than causal effects and are limited to Scopus‐indexed publications.\n"]

  April 27, 2026   doi: 10.1002/bse.70903   open full text
• An Empirical Study of Green Transformational Leadership, Creativity and Eco‐Innovation: Insights From Ecotourism in the Dominican Republic.
  Hayrold José Ureña‐Espaillat, Antonio Juan Briones‐Peñalver, Juan Andrés Bernal‐Conesa.
  Business Strategy and the Environment. 13 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThe increasing popularity of ecotourism in regions like Central America and the Caribbean, particularly in the Dominican Republic, necessitates a deeper understanding of how these businesses can integrate innovation with environmental sustainability. Thus, this study analyzes the organizational mechanisms that explain how ecotourism companies convert environmental leadership into eco‐innovation results. Specifically, this paper explores the relationships among green transformational leadership, green creativity, and eco‐innovation within ecotourism companies. Addressing gaps in current research, we employed a quantitative survey methodology, collecting data from 187 ecotourism companies in the Dominican Republic. Our findings, analyzed using partial least squares structural equation modelling (SEM‐PLS), reveal that green transformational leadership positively influences extrinsic motivation, green creativity, and ultimately eco‐innovation. The study highlights the significance of aligning green creativity with business strategies to foster sustainable innovation. Additionally, we discuss the potential negative impacts of extrinsic motivation on employee development and propose hybrid management approaches to mitigate these effects. These insights offer valuable academic and practical implications, suggesting that effective leadership and creativity are crucial for the sustainable development of ecotourism businesses. These findings allow us to reinterpret eco‐innovation as a systemic organizational capacity, particularly relevant in territorially and ecologically sensitive contexts such as island environments.\n"]

  April 27, 2026   doi: 10.1002/bse.70937   open full text
• Beyond Structural Interventions: The Human Architecture Shaping ESG Integration in Corporate Systems.
  M. Schulte, Dimitris Christopoulos.
  Business Strategy and the Environment. 13 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nDespite the promotion of ESG in corporate discourse, substantive integration of ESG principles into business practices remains challenging. This study applies and extends Meadows' leverage framework to examine ESG integration in UAE‐listed firms. Based on 21 semi‐structured interviews with ESG report preparers, aided by template analysis, the research uncovers a reliance on surface‐level interventions, while deeper interventions, particularly organisational goals and the underlying paradigm, receive comparatively little attention. The study identifies three mediating factors: awareness and education, issue salience and leadership and agency, bridging cognition and systemic structure. Awareness enables the internalisation of ESG values, salience determines which issues gain strategic attention and leadership translates intent into action. These mediators form the human architecture of systemic change. The study contributes to systems‐based ESG theory, showing that meaningful transformation requires not just structural redesign but also informed, salient and values‐driven leadership capable of integrating ESG into organisational culture and purpose.\n"]

  April 27, 2026   doi: 10.1002/bse.70936   open full text
• Unpacking ESG Controversies: A Proposed Integrated Framework of Organizational Frictions and Fallout From a Systematic Literature Review.
  Cristina Alexandrina Ştefănescu, Andra Larisa Suciu.
  Business Strategy and the Environment. 13 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nResearch on ESG controversies has expanded rapidly, but findings remain fragmented and lack a unifying perspective. This study conducts a PRISMA‐guided, framework‐based systematic review of 68 empirical articles published between 2018 and 2025 (May) to synthesize the main determinants and consequences of ESG controversies. Using the theories, contexts, and methods—antecedents, decisions, and outcomes (TCM–ADO) framework and drawing on contingency and open systems theory, we develop an integrated framework that explains how controversies emerge and evolve. Incorporating evidence from 28 determinants, 3 mediators, 24 moderators, and 31 consequences, the analysis identifies 3 recurring organizational frictions—performance–compliance gaps, governance–responsibility mismatches, and context–exposure vulnerabilities—that trigger reputational, operational, and systemic outcomes. The review provides a consolidated, theory‐informed synthesis and an integrative framework that organizes scattered evidence, highlights future research directions, and offers practical insights for managers, investors, and policymakers seeking to understand and mitigate controversy risks.\n"]

  April 27, 2026   doi: 10.1002/bse.70780   open full text
• Governing Sustainability Transitions Under Systemic Disruption: ESG‐Related Productivity Frictions and Structural Heterogeneity in Semiconductor Manufacturing.
  Shih‐Pin Chen, Yu‐Chun Liu.
  Business Strategy and the Environment. 13 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nSustainability transitions in capital‐intensive manufacturing depend on governance that aligns productivity with environmental, social, and governance (ESG) demands. We investigate whether ESG shortfalls serve as internal productivity constraints in the Taiwanese semiconductor manufacturing context. We apply an input‐oriented data envelopment analysis (DEA)–Malmquist productivity index (MPI) framework to 21 listed firms (2018–2022), operationalizing ESG shortfall as the complement of the Taiwan Economic Journal (TEJ) ESG rating (TESG), defined as 100 − TESG, and incorporating it as an undesirable factor to be minimized. The mean aggregate efficiency is 0.750, and the 5‐year geometric mean MPI is 0.974 (an annual decline of approximately 2.6%). The contraction is driven mainly by technological change (0.983) and scale‐efficiency change (0.981) despite an improvement in pure technical efficiency (1.011). These results contribute to the field by providing an ESG‐internalized DEA–MPI diagnosis of sustainability‐related productivity frictions and identifying governance‐embedded capability building as central to transition readiness under disruption.\n"]

  April 27, 2026   doi: 10.1002/bse.70842   open full text
• Synchronising Stakeholder Roles: How Do Stakeholders Actively and Dynamically Shape Networked Business Models for Sustainability?
  Giovanna Attanasio, Cinzia Battistella.
  Business Strategy and the Environment. 13 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nTackling sustainability challenges requires coordinated actions across diverse stakeholders. Sustainability‐oriented innovation thus demands networked business models for sustainability (NBMfS), where focal companies and stakeholders co‐create value through interdependent but coordinated roles. Using multiple case studies, this paper maps the stakeholders' roles in developing an NBMfS and traces their transformation over time. We identify three novel roles in sustainability contexts (seeker, negotiator, innovator) and conceptualise synergistic roles (sustainability pioneer, strategist, influencer, administrator) emerging through enlargement, enrichment and  simplification. We propose the Sustainable Business–Stakeholder Role Synchronisation framework, theorising a temporal and dynamic theory of networked BMfS innovation, where the synchronisation between NBMfS development phases and stakeholder network dynamics drives role transformation that in turn impacts on sustainable change.\n"]

  April 27, 2026   doi: 10.1002/bse.70889   open full text
• Impact Assessment of Climate Change on Financial Market Resilience: Evidence From China.
  Jie Zhou, Lei Wang, Zidan Luo.
  Business Strategy and the Environment. 13 days ago
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nClimate change has emerged as a major threat to global financial stability, as increasingly frequent extreme weather events damage ecosystems and disrupt economic activity. In China, climate change exacerbates regional risks; affects agriculture, infrastructure, and local economies; and increases volatility in financial markets. This study employs double machine learning to explore how climate change affects China's financial market resilience. Findings reveal that climate change undermines China's financial market resilience for 1–3 years, notably within stock, bond, and foreign exchange markets. This study further reveals that climate change further weakens market resilience by reducing enterprise output, tightening credit, and increasing government regulatory costs. Moreover, our findings suggest that the development of green finance and digital finance acts as a crucial buffer against climate‐related shocks and contributes to greater market stability. This study offers theoretical support for policymakers seeking to address climate risks and strengthen the resilience of financial markets.\n"]

  April 27, 2026   doi: 10.1002/bse.70816   open full text
• ESG Governance and Employee Trust in the CEO: Strategic Complementarity in Firm Value.
  Jaehyun Park.
  Business Strategy and the Environment. April 26, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines whether ESG governance and employee trust in the CEO jointly shape firm value. Using a panel of Korean listed firms from 2019 to 2021, we combine ESG governance evaluations, employee‐review‐based trust indicators, and both market‐based and accounting‐based outcomes. We find that employee trust in the CEO is positively associated with market‐based firm value, and ESG governance is also positively related to valuation. More importantly, the value relevance of employee trust becomes stronger when ESG governance is higher, supporting a strategic complementarity view in which credible formal oversight and internal behavioral credibility reinforce each other. This interaction pattern is most consistently observed in market‐based valuation measures, while the governance main effect and the interaction are weaker and less consistent for ROA. Robustness checks, including lagged specifications, alternative dependent variables, and review‐volume controls, weights, and thresholds, support the stability of the complementarity result. By highlighting the joint role of governance credibility and internal trust, this study extends research on how ESG is translated into firm value and provides multisource panel evidence that combines formal governance evaluations with platform‐based employee signals.\n"]

  April 26, 2026   doi: 10.1002/bse.70944   open full text
• Beyond Reporting: The Integration of Climate Change and Biodiversity Into Business Strategies and Governance Structures of Swedish Firms and Financial Institutions.
  Fredrik N. G. Andersson, Susanne Arvidsson.
  Business Strategy and the Environment. April 26, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis paper analyses how large Swedish firms and financial institutions integrate climate change and biodiversity into their business strategies and governance structures. Using unique 2022 and 2023 survey data and logistic probability models, we examine how internal and external factors shape early responses to the EU Taxonomy and the CSRD. Our findings confirm that the integration of climate change into business strategies and governance structures has progressed faster than that of biodiversity. Most organisations have already integrated climate change to a significant extent, whereas biodiversity remains far less prioritised. Notably, the integration of biodiversity is primarily driven by the presence of board members with environmental sustainability competence compared to climate change that is more broadly integrated. Experience with the NFRD supports integration, whereas voluntary frameworks such as the TCFD play a weaker role. Overall, organisations remain in an early learning phase, with most changes centred on mapping and reporting rather than on substantive behavioural transformation.\n"]

  April 26, 2026   doi: 10.1002/bse.70873   open full text
• From Awareness to Action: Consumer Behaviour, Attitudes and Business Strategy in Sustainable and Circular Electronic Devices.
  Idiano D'Adamo, Steven De Meester, Simone Di Leo, Massimo Gastaldi, Domiziana Lunadei.
  Business Strategy and the Environment. April 26, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nTechnological change and the increasing use of electronic devices have made electronic waste one of the fastest‐growing waste streams worldwide, posing significant environmental and social challenges. Thus, understanding consumer behaviour regarding the purchase, use and disposal of electronic products is key to developing effective circular economy strategies. This study aims to investigate the determinants of purchasing decisions, replacement habits and end‐of‐life management of electronic devices by Italian consumers, with a focus on generational and gender differences. An online questionnaire with 407 respondents was administered, and the data were analysed using statistical tests, principal component analysis and K‐means clustering. The results highlighted a good level of environmental awareness, not always accompanied by consistent behaviour. Only a minority of consumers knew where to dispose of end‐of‐life devices (29.48%), resulting in domestic accumulation (53.04%). However, growing attention to product repairability emerged, alongside greater confidence in the refurbished market compared to the second‐hand market. From a generational perspective, young people showed interest in design and innovation, but less responsibility in disposal, while older age groups were more aware and informed. Finally, economic incentives emerged as the most effective measure for guiding sustainable behaviour (30.71%). Distinct behavioural patterns and motivations were found across consumer groups, requiring differentiated strategies: educational initiatives for younger individuals, economic incentives for those with limited resources and premium programmes for eco‐conscious consumers. The results suggest that effective policies to reduce electronic waste should integrate incentives, targeted information campaigns and enhanced collection infrastructures, fostering responsible consumption and greater citizen engagement in circular economy practices.\n"]

  April 26, 2026   doi: 10.1002/bse.70954   open full text
• Beyond Specialist Directors: Nonspecialist Boards and Environmental Innovation.
  Ammad Ahmed, Hoa Luong.
  Business Strategy and the Environment. April 26, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nFirms are under increasing pressure from regulators, investors, and civil society to appoint specialist directors with expertise in areas such as climate change, cybersecurity, and diversity. While specialists can strengthen oversight, boards dominated by them may risk authority bias, symbolic appointments, and narrower strategic focus. This study examines whether nonspecialist directors, those with broader managerial experience rather than narrow technical expertise, play a complementary role in advancing environmental innovation. Drawing on the resource‐based view, we argue that nonspecialists contribute integrative human and relational capital that fosters strategic flexibility and broad‐based problem solving. Using panel data on firms from Australia, the United Kingdom, and the United States (2007–2021), we find that a higher proportion of nonspecialists is positively associated with environmental innovation. This effect is amplified in firms with governance committees, environmental management teams, and active strategic investors. By highlighting the value of balancing specialist and nonspecialist expertise, this study contributes to corporate governance and sustainability research and offers actionable insights for boards seeking to align governance with environmental performance.\n"]

  April 26, 2026   doi: 10.1002/bse.70865   open full text
• Beyond the Plate: A Systematic Literature Review on Consumer‐Driven Food Waste in Hospitality.
  Fizza Asif, Carmela Donato, Muhammad Ishtiaq Ishaq.
  Business Strategy and the Environment. April 26, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nFood waste caused by consumers in the hospitality industry is a significant issue that connects sustainability, consumer behavior, and service design. This review examines 81 studies published between 2016 and 2024, using the SPAR‐4‐SLR protocol and bibliometric analysis. The review highlights four main themes: how consumers waste food and related service factors; psychological and behavioral influences; emotional and management interventions; macro‐level disruptions and policy responses. Factors like portion size, buffet layout, feelings of control, emotional signals, and cultural norms such as face‐saving and collectivism all contribute to food waste. Interventions like digital nudges, customizable portions, AR menus, and staff involvement work best when they align with diners' values. This study supports SDG 12, Target 12.3, which aims to halve global food waste by 2030. It also provides a framework for hospitality managers, policymakers, and sustainability experts to develop behavior‐based waste‐reduction strategies and identify areas for future research.\n"]

  April 26, 2026   doi: 10.1002/bse.70901   open full text
• Exploring Supply Chain Visibility for Circularity: A Delphi Approach.
  Tarun Kumar Agrawal, Ravi Kalaiarasan, Sayyed Shoaib‐ul‐Hasan, Seyoum Eshetu Birkie, Sandeep Jagtap, Jan Olhager, Magnus Wiktorsson, Patrik Jonsson.
  Business Strategy and the Environment. April 26, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nCircular supply chains (CSCs) depend on enhanced supply chain visibility (SCV) to track and manage resource flows and thereby enable efficient decision‐making. Despite confronting silo mentalities, fragmented information, technological barriers, resistance to change, and a lack of standardization, data sharing remains crucial for SCV and circularity. In this study, following the Delphi method, 22 experts explored SCV for circularity, identified 11 circular economy (CE) strategies and 16 critical data elements for implementing CSCs, and assessed data accessibility and the willingness to share data among supply chain actors. Findings show that the experts especially prioritized CE strategies and data elements that support existing business models and forward supply chains. Although those data elements are critical for SCV, they are primarily used for planning internal operations and thus not readily shared with external partners. Such insights contribute to empirical evidence and managerial perspectives and can also help managers to plan SCV tailored to CE strategies.\n"]

  April 26, 2026   doi: 10.1002/bse.70857   open full text
• Fostering Green Innovations in SMEs: The Serial Interplay of Green HRM Practices, Green Strategy and Green Knowledge Sharing.
  Moses Ahomka Yeboah, Flavio Odoi‐Yorke.
  Business Strategy and the Environment. April 25, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines the impact of green human resources management (HRM) practices on employee green innovation, focusing on the mediating and moderating roles of green strategy and green knowledge‐sharing behaviour. Data were collected from 387 owner‐managers and employees of small‐ and medium‐sized enterprises (SMEs) in Ghana. The results show that green HRM practices positively influence employee green innovation. Although green strategy did not moderate the relationship between green HRM practices and green innovation, it significantly mediated the effects of green HRM practices on both green innovation and green knowledge sharing. Sequentially, green HRM practices strengthen green strategy, which promotes green knowledge sharing and ultimately enhances employee green innovation. These findings highlight how SMEs in developing economies can leverage human resource practices and strategic relational mechanisms to drive green innovation.\n"]

  April 25, 2026   doi: 10.1002/bse.70790   open full text
• How HR Contributes Towards Sustainable Business? An Integrated Framework Using Multi‐Review Method.
  Juhi Agarwal, Usha Lenka.
  Business Strategy and the Environment. April 25, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study addresses the growing need for organizations to integrate sustainable business practices (SBPs) to achieve organizational sustainability. It comprehensively examines the extant literature on the intersection of SBPs and strategic human resource (SHR), which remains underdeveloped. Following a systematic PRISMA protocol, 216 articles were identified and analyzed using a multi‐review method (MRM). The findings identified key publication trends, influential journals, prominent keywords, and major thematic clusters, suggesting significant interconnectivity between HR, corporate sustainability, and environmental management. Furthermore, building on the resource‐based view, a conceptual framework is developed that sequentially explains how strategic reforms in organizational policies, particularly HR practices, shape sustainable employee behavior (SEB), which plays a central role in translating SBPs into meaningful outcomes. Additionally, this study outlines future research directions (based on underlying theories, contexts, and methods) and suggests implications for researchers, policymakers, and managers seeking to strengthen corporate actions for sustainability‐oriented outcomes.\n"]

  April 25, 2026   doi: 10.1002/bse.70881   open full text
• Retire, Reimagine and Reconfigure: Leveraging Exnovation to Unlock Circular‐Economy Business‐Model Adoption.
  Noor Ul Hadi.
  Business Strategy and the Environment. April 25, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nDigital transformation is accelerating at an unprecedented pace, yet many technology‐intensive firms remain embedded in linear, efficiency‐oriented business models. Motivated by this persistent paradox, this study examines how exploitative innovation, explorative innovation and exnovation jointly relate to circular‐economy business‐model (CEBM) adoption in the ICT sector. Grounded in ambidexterity and dynamic‐capabilities theory, the study conceptualises exnovation as a strategic reconfiguration capability that conditions how efficiency gains are redirected toward exploratory experimentation, rather than treating it as a stand‐alone innovation activity. Survey data from 262 ICT managers were analysed using Hayes' PROCESS macro. The findings show that exploitative innovation is positively associated with CEBM adoption both directly and indirectly via explorative innovation and that the indirect association is significantly stronger under higher levels of exnovation capability. By framing CEBM adoption as an emergent outcome of the integrated exploitation–exploration–exnovation triad, the study advances theoretical debates on innovation‐portfolio alignment under sustainability constraints and bridges sustainability‐transition research with mainstream strategic‐management literature. The evidence further shows that systemic circularity is unlikely to arise from ecoefficiency alone; instead, it is associated with innovation portfolios that combine optimisation, experimentation and deliberate withdrawal from legacy technologies and routines.\n"]

  April 25, 2026   doi: 10.1002/bse.70934   open full text
• The Twin Transition Paradox: Is Green Strategy Always Profitable? A Longitudinal Threshold Analysis of EU Firms.
  Hasan Tutar, Dalia Štreimikienė.
  Business Strategy and the Environment. April 24, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThe debate over the financial returns of environmental investments remains unsettled, largely because prior research has relied too heavily on linear modeling assumptions. Drawing on the natural resource‐based view, this study examines the nonlinear relationship between eco‐innovation and firm value using longitudinal data from EU‐27 firms for the period 2010–2024. By applying system GMM, MMQR, and panel threshold regression, the analysis provides robust evidence of a U‐shaped relationship. The findings show that eco‐innovation initially depresses firm value due to higher implementation and operating costs, but begins to generate stronger financial returns once the quadratic turning point at 30.38 on the ECO_INN scale is exceeded. At the same time, the panel threshold model identifies a distinct regime threshold at 24.82, beyond which the marginal effect of eco‐innovation weakens but remains positive. The study also identifies a “twin transition paradox,” a strategic tension that arises when firms pursue digital and green transformations simultaneously. Although these transitions may be complementary in the long run, their concurrent implementation can intensify competition for limited organizational resources, increase coordination costs, and weaken short‐term financial performance. In contrast to techno‐optimistic expectations, digital transformation is found to negatively moderate the eco‐innovation–firm value relationship in the smaller subsample for which digital disclosure is available. In contrast, environmental policy uncertainty does not significantly alter this pattern. The quantile results further indicate that the U‐shaped pattern is strongest among low‐ and mid‐value firms and weaker at the upper end of the firm‐value distribution. Taken together, these findings provide conditional rather than universal support for the profitability paradox. The managerial implications should therefore be interpreted as provisional guidance consistent with the evidence, rather than as firm prescriptions.\n"]

  April 24, 2026   doi: 10.1002/bse.70876   open full text
• Operations Research‐Based Formalisation and Design of Sustainable Reverse Logistics for E‐Waste Supply Chains.
  Sheeba Pathak, Hajar Fatorachian.
  Business Strategy and the Environment. April 24, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study demonstrates how a profitable, lean, and environmentally responsible e‐waste reverse logistics system can be designed using integrated Operations Research (OR) techniques. Addressing the growing urgency of responsible consumption (UN SDG 12) and the projected rise of the e‐waste sector to USD 137.60 billion by 2029, the research develops decision structures that jointly optimise value recovery, emissions reduction and time efficiency. An extended multiple‐case design compares a formal municipal recycling centre with a decentralised, community‐based Repair Café model to capture variation in governance and recovery logic. aTrans‐shipment optimisation, mixed‐integer decision‐tree modelling and queueing theory are then applied to design emissions‐efficient network flows, select optimal repair–reuse–cannibalisation routes and configure service capacity. Results show that most products reach obsolescence within 4–8 years, that structured repair and urban‐mining decisions support economic viability and that optimised routing and service configuration reduce emissions and waiting times. The research advances circular economy and urban‐mining theory by operationalising the PURE and CReW frameworks, offering a scalable, optimisation‐driven architecture for municipalities, waste processors and circular service organisations.\n"]

  April 24, 2026   doi: 10.1002/bse.70789   open full text
• How Corporations Operationalize Climate‐Related Risks and Opportunities: Evidence From Qualitative Expert Interviews.
  Sebastian Rhein, Laura Engel, Thomas Dreier, Helene Ida Kleiber.
  Business Strategy and the Environment. April 24, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nClimate‐related risks and opportunities have become a central concern for companies as climate change increasingly affects business models, value chains, and long‐term competitiveness. However, limited evidence exists about how corporations confront the attendant practical and strategic challenges of climate‐related risk and opportunity disclosure. Empirical evidence remains limited on how firms confront the practical and strategic challenges of responding to growing regulatory and stakeholder expectations embedded in climate‐related reporting frameworks, such as the TCFD. Addressing this gap, this study investigates how organizations interpret and operationalize these rising expectations in practice. We conducted eight semi‐structured interviews with sustainability professionals across industries and analyzed the data using the GABEK method in WinRelan to map expert perspectives and infer underlying meaning structures. Findings indicate that the TCFD has become the primary reference framework for risk‐ and opportunity‐related reporting, yet organizational approaches remain heterogeneous and largely nascent. Most companies emphasize risk avoidance and regulatory compliance over opportunity‐oriented innovation. The study highlights three interrelated domains that function as both enablers and barriers to effective climate‐related reporting and climate resilience, namely (1) stakeholder dynamics; (2) implementation maturity and institutionalization; (3) data availability, quality, and integration; and (4) organizational governance and structural embedding. The findings contribute to the literature by shedding light on the organizational conditions under which climate‐related reporting frameworks are translated into practice, highlighting persistent gaps between formal disclosure requirements and substantive implementation.\n"]

  April 24, 2026   doi: 10.1002/bse.70918   open full text
• From External Pressures to Internal Implementation: A Qualitative Investigation of Eco‐Innovation Drivers in Moroccan Free Zones.
  Boutayna El Ouardi, Souad Boungab.
  Business Strategy and the Environment. April 23, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis research explores the drivers of eco‐innovation adoption in multinational companies operating in Moroccan free zones. Using semi‐structured interviews with 24 organizations, we examine the relationship between external influence and internal capabilities in eco‐innovation projects. Through employing Atlas.ti for systematic coding and analysis, this study demonstrates a hierarchical structure of eco‐innovation drivers functioning at multiple levels. The results indicate that eco‐innovation adoption is influenced by both internal and external factors (such as normative pressures and regulatory requirements), with internal drivers (196 citations) outnumbering external ones (151 citations). The analysis revealed three key mechanisms: (1) a hierarchical influence structure that permits external pressures to move within organizational levels; (2) dynamic interactions among drivers that generate feedback loops that reinforce one another; and (3) certification adoption that bridges the gap between internal capabilities and external requirements. This study expands on institutional theory and the resource based‐view by showing how companies turn external pressures into internal capabilities in an emerging market context. The certification bridging mechanism represents a novel contribution, highlighting how ISO standards act as responses to institutional demands as well as accelerators of internal capability development. The results, which emphasize proactive capability building and strategic certification prioritization, provide useful suggestions for companies operating in export‐oriented zones. The finding showcases the significance of harmonizing regulations between developed and emerging economies for policymakers. The study emphasizes also strategies for sustainable industrial development in emerging economies while filling in methodological and geographic gaps in the literature on eco‐innovation.\n"]

  April 23, 2026   doi: 10.1002/bse.70863   open full text
• Stimulating Environmentally Responsible Behavior in Electronic Markets: Perceived Value and eWOM for Refurbished Products.
  Ankur Srivastava, Jighyasu Gaur, Nishtha Rai, M S Balaji.
  Business Strategy and the Environment. April 23, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study adopts a mixed‐method approach to examine the key drivers of perceived value for refurbished products in rapidly expanding electronic marketplaces. Through in‐depth interviews and focus groups, key antecedents are identified, followed by conceptual model testing using the stimulus–organism–response framework. Quantitative analysis is conducted using covariance‐based structural equation modeling and artificial neural networks. The results revealed that perceived risk, customer reviews, online trust, retailer credibility, third‐party seal, and corporate social responsibility significantly shape perceived value, which in turn drives electronic word‐of‐mouth intentions. Additionally, greenwashing perceptions and concern for future consequences moderate these relationships. The study offers theoretical and practical insights for enhancing consumer engagement in electronic marketplaces for refurbished products.\n"]

  April 23, 2026   doi: 10.1002/bse.70913   open full text
• Advancing Theory and Practice Concerning CO2e Emissions: A Time‐Based Tool for Organisations.
  Andrea Stevenson Thorpe, Frank Figge.
  Business Strategy and the Environment. April 22, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAlthough organisations are increasingly scrutinised on their CO2e emissions, economic growth is frequently encouraged. Eco‐efficiency–based initiatives—‘doing more with less’—could be a solution. The problem is that many organisations (e.g., smaller enterprises without access to specialist knowledge) have difficulties in gauging the impact of their initiatives on macrolevel targets of CO2e reduction. Conversely, a time‐based approach, as seen in some social communication tools (e.g., Earth Overshoot Day), is inherently more intuitive, producing a specific date on which organisations cease being sustainable. The problem is that this approach fails to accommodate economic growth in its logic, thus eschewing the benefits growth can bring. In our conceptual article, we develop a simple tool for practitioner use, using a time‐based rationale whilst incorporating eco‐efficiency principles. In doing so, we advance theory by synergising two different approaches within the sustainable resource use discourse and indicate positive implications for macropolicy development.\n"]

  April 22, 2026   doi: 10.1002/bse.70879   open full text
• How ESG Shapes the Competition–Stability Nexus in Banking: Nonlinear Evidence From MENA.
  Ahmed Rashed, Dexiang Wu, Aya Abdelbaky, Ahmed A. Elamer, Dina Mohsen.
  Business Strategy and the Environment. April 22, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines how environmental, social, and governance (ESG) performance shapes the relationship between bank competition and financial stability in emerging markets. Using a panel of banks from 15 Middle East and North Africa (MENA) countries over the period 2007–2023, we investigate whether ESG engagement functions as a strategic mechanism through which competitive pressures influence financial resilience. Employing generalized least squares (GLS) and generalized method of moments (GMM) estimators, we document two nonlinear relationships. First, we identify a U‐shaped association between bank competition and ESG performance: Moderate competition encourages stronger environmental and governance practices, whereas excessive competition constrains resources and managerial attention devoted to sustainability initiatives. Second, we find an inverted U‐shaped relationship between market concentration and bank stability, indicating that moderate market power enhances stability, whereas excessive concentration promotes risk‐taking and weakens systemic resilience. Importantly, ESG performance operates as a mediating channel linking competition and stability. Banks with stronger ESG engagement—particularly in less competitive environments—exhibit higher financial stability, consistent with stakeholder and resource‐based perspectives. We further show that ownership structure, governance quality, and institutional conditions shape these dynamics. State ownership tends to weaken market discipline, whereas foreign ownership strengthens governance oversight. Overall, our findings highlight ESG as a strategic capability that enables banks to convert competitive pressure into financial resilience, offering important implications for competition policy, sustainability regulation, and financial stability in emerging banking systems.\n"]

  April 22, 2026   doi: 10.1002/bse.70831   open full text
• The Impact of Climate Change on the Regulation of Italian DOCG Wines.
  Flora Cortese, Giuseppe Calabrese, Pasquale Ezio Lampugnale, Piero Mastroberardino.
  Business Strategy and the Environment. April 22, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nClimate change threatens the delicate balance between the natural environment, terroir, and economic sustainability that underpins the identity and competitiveness of Italian wine. This study focuses on Denominazione di Origine Controllata e Garantita (DOCG), the highest classification level for Italian wines, which ensures a close link between the product and its territory of origin. The objective of this work is to assess whether the regulatory framework for DOCG wines is evolving in response to climate change and what actions, if any, are being taken to address it. This is a qualitative study based on document analysis. DOCG wine regulations serve as an important source of data to understand how the regulatory and institutional framework of the wine sector is adapting to climate change and, indirectly, to gauge the level of awareness regarding the significance of climate change in the wine industry. The analysis of updated DOCG production specifications in Italy between 2015 and 2025 reveals a cautious awareness of the need to adapt to climate change within the institutional framework of high‐quality viticulture. The analysis is based exclusively on officially approved modifications to DOCG production specifications, which represent a small portion of Italian wine production. Furthermore, the study intentionally focuses only on changes that have already been approved, excluding those still under discussion or pending approval This study opens several avenues for future research. By shedding light on the evolving relationship between climate change and regulatory governance in the wine sector, it encourages deeper reflection on how institutional systems can foster resilience without compromising identity, a tension at the core of sustainability transitions in traditional agro‐ecosystems. Despite growing attention to the agronomic and economic implications of climate change in viticulture, its specific impact on the regulatory frameworks governing premium wines remains largely underexplored in academic literature. The significance of this study lies in the inseparable bond between a DOCG wine and its territory of origin. By its very nature, the DOCG system is committed to protecting ecosystems and biodiversity and is particularly sensitive to the challenges posed by climate change.\n"]

  April 22, 2026   doi: 10.1002/bse.70855   open full text
• The Fast, the Steady and the Tenacious: Funding Pathways for Circular Start‐Ups.
  Pilar Mejía‐Vélez, Wim Van Opstal, Christina Bidmon, Saskia Manshoven, Julian Kirchherr.
  Business Strategy and the Environment. April 21, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nCircular start‐ups (CSUs) are critical for unlocking the circular economy, yet they face persistent barriers in accessing finance. Despite growing interest from policymakers and financing institutions, little empirical evidence explains how these ventures pursue and secure funding. This is the first academic empirical study analysing how CSUs navigate and combine different funding sources. Based on semistructured interviews, supported by survey responses and firm‐level data from 32 early‐stage CSUs in the Netherlands, Belgium, Germany and France, we explore how CSUs navigate and combine different funding sources over time. Our findings reveal three stylised funding pathways—fast, steady and tenacious—that shaped the interaction between funding amount and start‐up age. While business model type influences funding needs, our findings show that market‐fit and founder characteristics emerge as decisive factors determining funding success. Most CSUs rely on grants, subsidies and personal funds, while private and social impact investors remain scarce. The study contributes primarily to the circular economy literature, while also advancing the fields of sustainable entrepreneurial finance and circular entrepreneurship, offering practical insights to strengthen CSUs' growth.\n"]

  April 21, 2026   doi: 10.1002/bse.70820   open full text
• Investor Perceptions of Climate Policy: Insights From the US Inflation Reduction Act.
  Laura Ferraro, Arati Kale, Devendra Kale, Franco Ernesto Rubino.
  Business Strategy and the Environment. April 21, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis paper provides the first event study evidence on how the Inflation Reduction Act's (IRA) dedicated climate provisions reshaped equity valuations in the US carbon‐intensive sectors. Focusing on environmentally sensitive industries (ESI), we analyze cumulative abnormal returns around the four key IRA milestones in 2022–2023. Using the IRA setting allows us to sidestep the bias arising from external ESG ratings or companies' ESG‐related disclosures. Drawing on the Efficient Market Hypothesis, we find a significant positive market reaction immediately after the Senate's approval. This reaction is concentrated among large firms, firms with extensive analyst coverage, and those operating in less competitive markets. We demonstrate that investor responses are heightened in Democratic‐controlled states compared with Republican‐leaning states. Our results are robust to several robustness checks, placebo dates, ex‐dividend returns, and propensity score matching. Our results suggest that investors' positive reactions may be driven by expectations that IRA subsidies can mitigate the cost implications of sustainability and thereby limit the negative impact on firms' financial performance. Our insights inform investment professionals on investor perceptions of climate provisions and policymakers on how climate legislation affects financial markets.\n"]

  April 21, 2026   doi: 10.1002/bse.70859   open full text
• Consumer as a Driver of the Circular Economy.
  Magdalena Wojnarowska, Mariusz Sołtysik, Jakub Więckowski, Maciej Frączek, Janina Filek, Anna Stanisławska‐Mischke, Szymon Jarosz.
  Business Strategy and the Environment. April 21, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThe article investigates how closely consumers' intuitive priorities for the circular economy (CE) actions correspond to the scientifically accepted 10R hierarchy and what this implies for policy and education. Building on a literature review that identifies the consumer as the pivotal, but still under‐researched, agent in the circular economy. Hence, a survey of Polish consumers has been conducted. The study, conducted in January 2025, surveyed 500 Polish adults using online (CAWI) and telephone (CATI) interviews. The sample was representative in terms of gender, age, and place of residence. Respondents ordered the 10 CE strategies and assessed their own CE awareness. The aggregate ranking diverged markedly from the expert hierarchy: Preventive options such as Refuse, Rethink, and Reduce were placed too low, while end‐of‐pipe options such as Recycle and Recover were overrated. Alignment improved with higher education, younger age, and urban residence, suggesting that knowledge and social context strongly mediate pro‐circular choices. The analysis shows that correcting misconceptions about the top three strategies would almost eliminate the ranking gap, offering a cost‐effective lever to accelerate consumer‐driven circularity. It has been concluded that outreach programs should foreground high‐impact preventive actions and tailor messages to the demographic segments with the most significant misalignment. The methodological framework presented here can be replicated to track consumer engagement with the full 10R spectrum across countries and over time.\n"]

  April 21, 2026   doi: 10.1002/bse.70891   open full text
• Mapping the Evolving Landscape of Porter Hypothesis: A Bibliometric and Content Analysis for Environmental Management.
  Ramphul Ohlan, Anshu Ohlan.
  Business Strategy and the Environment. April 21, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nEnvironmental regulation is often seen as a trade‐off between compliance costs and competitiveness. The Porter hypothesis (PH) challenges this view, proposing that well‐designed regulation can stimulate innovation and enhance firm performance. This study presents a comprehensive bibliometric and content analysis of 1035 PH publications from the Web of Science, covering the period 1993–2025. It offers the first systematic mapping of the field's intellectual structure, thematic evolution, and empirical evidence. Findings reveal rapid recent growth, with over 82% of studies published in the last 7 years. The research network is increasingly collaborative and global. Science mapping identifies four key clusters: firm‐level competitiveness, macroeconomic policy dynamics, empirical mechanisms, and innovation–policy linkages. Evidence consistently supports the weak and narrow forms of the Porter hypothesis, while validation of the strong form remains context‐dependent. Over time, research has shifted from early debates on regulatory costs to a focus on green innovation, productivity, and sustainable competitiveness. The results suggest that flexible, market‐based regulations are most effective in generating innovation‐driven win–win outcomes. These insights are relevant for managers and policymakers aiming to align environmental strategy with competitive advantage.\n"]

  April 21, 2026   doi: 10.1002/bse.70890   open full text
• Exploring the Barriers to Social and Environmental Responsibility in Family‐Owned Small Restaurant Businesses.
  Mark Anthony A. Canlas.
  Business Strategy and the Environment. April 21, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThe purpose of this study is to examine how family‐owned small restaurants perceive and experience barriers to social and environmental responsibility, as well as the strategies they adopt to address them. Using a qualitative constructivist grounded theory approach, 36 owners and managers were purposively sampled and interviewed until data saturation was achieved. Analysis employed constant comparative, focused, and theoretical coding. Findings reveal that family‐owned small restaurants face key barriers, including financial pressures, resource and infrastructure limitations, regulatory and compliance demands, and human capital constraints. To respond, the constraint–adaptation–sustainability (CAS) model was developed, linking these barriers to strategies such as customer‐oriented strategies, supplier and resource management, and packaging adjustments. This model provides a holistic framework for understanding sustainability integration and offers actionable insights for sustainability‐oriented entrepreneurship in family businesses.\n"]

  April 21, 2026   doi: 10.1002/bse.70862   open full text
• Achieving Carbon Neutrality: Strategic Pathways to Sustainability and Net Zero in Manufacturing Supply Chains.
  Vimal K. E. K., Sivakumar K., Jayakrishna Kandasamy, Umesh Kumar, Anil Kumar, Ashutosh Samadhiya.
  Business Strategy and the Environment. April 21, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nReaching global net‐zero targets has become an urgent priority as businesses and nations face increasing pressure to reduce greenhouse gas emissions. Achieving carbon neutrality in manufacturing supply chains requires comprehensive systemic changes across business processes. It demands forward‐looking strategies that guide companies toward long‐term sustainability and net‐zero objectives. While earlier research has identified several drivers and barriers, there remains a lack of clear, actionable roadmaps that companies can follow. This paper fills this research gap by determining 11 interdependent strategies and grouping them into six levels of hierarchy and discovering that they play the roles of driving and dependent. Results showed that important strategies consist of policy development and incentives, carbon accounting, collaborative learning, renewable energy adoption, low‐emission transportation, digitalization, and circular practices. Using expert insights and a multi‐round Delphi technique, the study identifies key strategies, which are then organized through total interpretive structural modeling (TISM) and cross‐impact matrix‐multiplication applied to classification (MICMAC) analysis. Results identify a pathway roadmap where strategies connect, allowing businesses to focus on initiatives including circular practices, digitalization, and waste reduction. Policy and incentives serve as essential tools, with companies responsible for turning concepts into key performance indicators. Our research offers a blueprint for global organizations to better align efforts, lower emissions, and work toward net‐zero. It outlines the relationship among the strategies and priorities needed by global companies and governments to develop effective cross‐border collaboration and coordinate sustainability efforts, thus supporting climate change commitments.\n"]

  April 21, 2026   doi: 10.1002/bse.70899   open full text
• Why ESG Fails Inside Organizations: A Behavioral–Institutional Misalignment Perspective on Sustainability Implementation.
  Fredrick Githui.
  Business Strategy and the Environment. April 20, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAlthough the world is urging organizations to implement environmental, social, and governance (ESG) standards, a large number of companies are still finding it difficult to convert ESG commitments into impactful actions. Existing studies describe the adoption of ESG as a result of resource availability, compliance motivations, or institutional pressures. However, these explanations overlook the fact that there are still many inconsistencies in the outcomes of implementations. The present article proposes the behavioral–institutional misalignment perspective, which combines and extends the existing knowledge by specifying the mechanisms through which and the reasons why the differences between the behavioral patterns of managers, cultural norms of organizations, and institutional expectations lead to the failure of ESG implementation in a systematic way. The proposed perspective combines the insights of institutional theory, behavioral leadership theory, and organizational sense‐making, thus moving beyond the traditional views of ESG implementation by emphasizing its interpretative and cultural nature, in contrast to the traditional views that focus primarily on the role of resources and compliance in ESG implementation, in order to account for the variance in ESG implementation across organizations facing similar structural conditions, thus advancing the discussion in the field of management research.\n"]

  April 20, 2026   doi: 10.1002/bse.70897   open full text
• Initiating Market Formation Through Local Policy Innovation: Plot Handover as a Driver for Circular Construction.
  Erkki‐Jussi Nylén, Tommi Halonen.
  Business Strategy and the Environment. April 20, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThe transition to circular construction suffers from uncertainties related to costs, market realities, supply, regulations and expertise using secondary materials in building projects. Uncertainties are large, and resolving them needs policy interventions. This study examines a local policy innovation that successfully prompted construction companies to develop business cases for circular construction. At the heart of policy innovation was a novel use of a plot handover procedure. A city used the procedure in the form of a competition where construction companies competed for a valuable plot by drafting a concept for circular residential building. Our data consisted of interviews, documents and observations. We used uncertainty management from market formation studies as our main analytical tool. This research provides empirical evidence of how policy can facilitate the circular construction transition and provides methodological and theoretical contributions to market formation studies by showing in detail how public interventions can support the development of sustainable markets.\n"]

  April 20, 2026   doi: 10.1002/bse.70909   open full text
• Internationalization and ESG Controversies: Do Foreign Directors on Corporate Boards Matter?
  Mohamed Elsayed, Ali Meftah Gerged, Yousry Ahmed, Ali Uyar, Abdullah S. Karaman.
  Business Strategy and the Environment. April 20, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines the relationship between internationalization and environmental, social, and governance (ESG) controversies, focusing on whether foreign directors on corporate boards influence this relationship. Drawing on resource dependence theory, we argue that internationalization increases ESG controversies due to the complexity of managing diverse regulatory environments and stakeholder expectations. Although foreign directors may contribute valuable global expertise and networks, they can either mitigate or exacerbate these controversies depending on their advising and monitoring capabilities. Using a sample of 5834 firm‐year observations from US companies, we find a positive association between internationalization and ESG controversies. Additionally, foreign directors significantly exacerbate the effect of internationalization on ESG controversies. Our results, which underscore the adverse impact of internationalization and culturally diverse boards on ESG controversies, remain consistent after a battery of sensitivity tests and the addressing of potential endogeneity concerns. Our results are also robust to external shocks, such as the global financial crisis and the COVID‐19 pandemic. This research advances the literature on corporate governance and sustainability, offering practical insights for policymakers and firms on the importance of strategic board composition and effective governance structures for managing ESG risks across global operations.\n"]

  April 20, 2026   doi: 10.1002/bse.70833   open full text
• Addressing Climate Change in Healthcare Organizations: A PRISMA‐Based Bibliometric Review of Governance and Clinical Revolution.
  Fiorella Pia Salvatore, Rosa Spinnato, Michele Milone.
  Business Strategy and the Environment. April 20, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nClimate change poses a growing managerial challenge for healthcare organizations. As climate risks transcend institutional boundaries, interorganizational connectivity is essential to harmonize standards and scale effective climate action. This study maps organizational responses aligned with SDG 13. Following the PRISMA protocol, a Scopus search (2015–2025) identified 129 eligible records. Thematic synthesis was combined with author‐keyword co‐occurrence and co‐citation analysis using VOSviewer and Biblioshiny (RStudio). The field is young but rapidly expanding after 2022. The following five thematic clusters emerge: (1) governance and system framing, (2) measurement and greenhouse‐gas accounting, (3) waste and impact management, (4) clinical operations decarbonization, and (5) planetary health and quality improvement. Governance and accounting practices catalyze climate action at the point of care, with progress strongest where measurement links to procurement and accountability. Research priorities include Scope‐3 supplier engagement, cost‐carbon evidence at service level, and a shift toward more connected, collaborative, and system‐oriented healthcare governance.\n"]

  April 20, 2026   doi: 10.1002/bse.70883   open full text
• Linking Manufacturing Processes With Sustainability: Unpacking the Financial Effects of Green Factory Certification.
  Lei Du, Renjie Zhou, Zhengye Gao.
  Business Strategy and the Environment. April 20, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study investigates the impact of green manufacturing strategies on firm performance by shifting the focus from external pressure to strategic legitimacy. Building on legitimacy theory about dual legitimacy support from governmental and market entities, we explain why a firm with green factory certification has a stronger competitive advantage. Using a longitudinal panel data comprising 7612 firm‐year observations from publicly listed Chinese manufacturing firms between 2014 and 2020, we find that green factory certification significantly improves firms' financial performance. This effect is more pronounced for state‐owned firms, whereas it is weaker for firms with low analyst coverage.\n"]

  April 20, 2026   doi: 10.1002/bse.70917   open full text
• From ESG Performance to Environmental Stewardship: Evidence From Corporate Pollution Governance in China.
  Yanqi Sun, Howard Davey, Yuzhong Lu, Cheng Xu.
  Business Strategy and the Environment. April 20, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nEnvironmental sustainability has become an essential component of corporate strategic behavior, yet the mechanisms through which ESG performance influences firms' environmental pollution governance remain underexplored. Drawing on resource dependence theory and agency theory, this study examines whether and how ESG performance drives corporate environmental pollution governance using panel data from Chinese A‐share listed firms between 2009 and 2022. The results show that higher ESG performance significantly increases firms' investment in environmental pollution governance. Mechanism tests reveal two mediating pathways: Firms with stronger ESG performance exhibit higher equity concentration, which enhances shareholder oversight, and more effective board governance behavior, which improves environmental decision‐making. Furthermore, executives' overseas experience and equity incentives strengthen the positive association between ESG performance and environmental governance. Heterogeneity analyses indicate that the effects are more pronounced in non–state‐owned enterprises, firms with greater analyst attention, and those operating in economically developed regions. These findings enrich the understanding of how ESG performance translates into substantive environmental action in emerging markets and offer practical implications for firms seeking to enhance their environmental governance capabilities.\n"]

  April 20, 2026   doi: 10.1002/bse.70838   open full text
• Strategic Green HRM and Environmental Performance in Tourism SMEs: The Mediating Role of Pro‐Environmental Attitudes and Engagement.
  Shuja Iqbal, Komal Khalid, Shamim Akhtar.
  Business Strategy and the Environment. April 20, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAchieving higher environmental performance for small‐ and medium‐sized enterprises is critical to staying competitive in the tourism sector. This study examines how green human resource practices influence environmental performance through the direct and indirect serial mediation of pro‐environmental attitudes, environmental awareness, and employee engagement. The data were collected from 507 employees in the tourism sector of China. Smart PLS (4.0) was used to test the proposed relationships statistically. The findings indicate that green HRM practices have a significant influence on environmental performance, both directly and indirectly, through pro‐environmental attitudes, environmental awareness, and employee engagement. Pro‐environmental attitudes and environmental awareness have a positive impact on employee engagement, and all three mediators demonstrate significant individual and serial mediation effects. Theoretically, the study extends Social Exchange Theory by conceptualizing environmental reciprocity as a moral and cognitive exchange, and by unpacking the sequential psychological mechanisms that link HR practices to firm‐level sustainability outcomes. It adds empirically to existing models by emphasizing multilayered mediation rather than linear causality. Practically, the findings offer a roadmap for SME managers and policymakers to enhance environmental performance by strategically implementing green HRM, cultivating environmental values and awareness, and fostering employee engagement. The study highlights the crucial role of internal HR‐driven mechanisms in driving sustainable transformation within the tourism SME sector.\n"]

  April 20, 2026   doi: 10.1002/bse.70851   open full text
• Integrating Green Strategy Across the Organization: How Human Resource Management, Marketing, and Organizational Culture Drive Environmental Performance.
  Rizwan Raheem Ahmed, Rana Salman Anwar, Dalia Streimikiene, Justas Streimikis.
  Business Strategy and the Environment. April 19, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis article analyzes the dynamic function of green human resource management and sustainable marketing practices in shaping organizational environmental performance across the United States. The mediating role of organizational green culture is investigated by comparing its impact across time points. Using a longitudinal approach, this study captures the dynamics of relationships over time. Data were collected from four organizations in the United States over 12 months, in four successive phases, employing hierarchical modeling to account for nested data and time‐lagged effects. A random forest was also applied to identify the most salient predictors of OEP and to estimate their relative weights. Results confirm that OEP is significantly enhanced by green marketing and GHRM and that organizational green culture is a high‐impact mediator. In time‐lagged analysis, the magnitude of these relationships increased with the lag, suggesting cumulative organizational and behavioral adaptation. Machine‐learning findings were consistent with statistical findings, with organizational green culture and GHRM identified as the leading features. This paper introduces a novel combination of longitudinal, hierarchical, and machine‐learning techniques to estimate both statistical significance and predictive value, providing strong evidence for the development of environmental sustainability in organizational contexts across the United States.\n"]

  April 19, 2026   doi: 10.1002/bse.70875   open full text
• Strategic Shift: The Power of Green Strategy on Sustainability Performance.
  Post Raj Pokharel.
  Business Strategy and the Environment. April 19, 2026
  ["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nEmploying FTSE Russell's unique Green Revenues data on S&P 1500 firms from 2016 to 2024, this study examines the long‐term effects of a corporate strategic shift toward green strategy, proxied by green revenue reporting, on corporate sustainability performance. Using ordinary least squares, complemented by the treatment model, the study's findings reveal that adopting a strategic shift to green strategy has a persistently positive effect on firm‐level sustainability performance. The treatment effects of green revenue reporting are exceptionally robust with firm‐level controls. This study further documents that the environmental innovation score mediates the relationship between green strategy and sustainability performance. Given the study's various novelties, the hypothesis is empirically robust and is of significant value to future studies.\n"]

  April 19, 2026   doi: 10.1002/bse.70866   open full text
• Too Old to Bother: CEO Age and Corporate Stakeholder Engagement.
  Mehwish Yousaf, Pascal Nguyen.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3539-3560, March 2026. ", "\nABSTRACT\nWe examine how CEO age, a key demographic attribute, affects corporate stakeholder engagement. Drawing on Upper Echelons Theory, we argue that older CEOs are less responsive to stakeholder concerns because of heightened conservatism, shorter time horizons, and greater risk aversion. Using a panel of French listed firms from 2006 to 2023, we show that CEO age is negatively associated with both the likelihood and intensity of stakeholder engagement. This relationship is robust across multiple specifications and alternative engagement indicators, including CSR strategy formalization, participation in the UN Global Compact, and board‐level sustainability oversight. We further document that older CEOs are associated with weaker CSR performance, particularly in areas such as resource use and emissions. These findings highlight the behavioral constraints of executive aging and suggest that CEO age should be a consideration for boards, investors, and policymakers aiming to promote effective stakeholder and sustainability strategies.\n"]

  March 09, 2026   doi: 10.1002/bse.70365   open full text
• Determinants of Customer Eco‐Friendly Goods Consumption in the Hospitality and Tourism Industry.
  Jiyoung Lee, Pipatpong Fakfare, Heesup Han, Jin‐Soo Lee.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3857-3877, March 2026. ", "\nABSTRACT\nThis study investigates the key attributes of eco‐friendly products in the hospitality and tourism industries and examines the impact on consumer behavior through a three‐study approach. Study I utilized principal component analysis and identified five key factors: price relevance, external charm, visual attention, product symbolism, and emotional well‐being, explaining 79.06% of total variance. Confirmatory factor analysis confirmed the measurement model's validity. Study II employed Importance–Performance Analysis (IPA) with 406 respondents, revealing a notable performance gap (0.588) between importance (M = 5.645) and performance (M = 5.057), highlighting the need for performance improvements in eco‐friendly attributes. Attributes related to environmental considerations ranked highest in both importance and performance, whereas emotional and design‐related factors scored lower. Study III applied structural equation modeling (SEM) to explore relationships among eco‐friendly product attributes, brand marketing benefits, and repurchase intentions. Price relevance, product symbolism, and emotional well‐being positively influenced brand utilitarian benefits, whereas external charm negatively affected it. Visual attention was not significant. Brand utilitarian benefits strongly impacted both brand hedonic benefits and brand prominence, which in turn significantly affected self‐brand connection. Self‐brand connection exhibited a strong positive effect on repurchase intention. Overall, these findings emphasize that environmental and functional benefits are key drivers of brand marketing success and repurchase intentions for eco‐friendly goods in hospitality and tourism. The study provides robust quantitative insights to guide academics and practitioners in developing effective strategies to promote eco‐friendly consumption.\n"]

  March 09, 2026   doi: 10.1002/bse.70391   open full text
• Green Banking Practices, Social, Health and Environmental Disclosures and Bank Financial Performance: The Role of Innovations and Corporate Governance.
  Douglas A. Adu, Musa Mangena, Emmanuel Adegbite, Frank Boateng.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4035-4056, March 2026. ", "\nABSTRACT\nRegulators in the banking industry in the Sub‐Saharan Africa (SSA) region are progressively concentrating on corporate innovation and bank social, health and environmental disclosures (BSHED) as crucial corporate governance (CG) structures to improve bank financial performance (BFP). Nonetheless, it is unclear whether corporate innovation and BSHED can lead to an improvement in BFP. Understanding these crucial relationships can help regulators and banking practitioners to design and implement sustainable strategies that can enhance BFP. This paper seeks to bridge this gap by investigating the effects of corporate innovation and BSHED on BFP and examining whether CG mechanisms moderate these relationships. Through the lens of multi‐theoretical perspectives, the study conducts fixed effects and dynamic two‐step system generalised method of moments models over a dataset of 2785 observations (220 banks) from 16 SSA countries between 2007 and 2022. The findings show that corporate innovation has a positive effect on BSHED and BFP. The study detects that corporate innovation has a positive association with BFP. We find that BSHED is positively related to BFP. The study identifies and tests possible moderators of these associations. We observe that CG mechanisms positively moderate these relationships. Finally, we establish that the predicted associations vary across different operating periods. The findings help stakeholders including corporate boards, executives and regulators to understand how innovation investments and internal governance structures such as CG mechanisms are associated with BSHED and BFP.\n"]

  March 09, 2026   doi: 10.1002/bse.70328   open full text
• Biodiversity Risk and Working Capital Management.
  Efstathios Magerakis, Ahsan Habib.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3445-3467, March 2026. ", "\nABSTRACT\nUsing a large sample of US‐listed firms, this study explores the relationship between biodiversity risk and working capital management. Biodiversity risk, an emerging external factor, pressures firms to optimize resource allocation due to increasing regulatory scrutiny and stakeholder awareness. Using a novel firm‐level proxy derived from 10‐K filings, we find that biodiversity‐related risk is negatively associated with a firm's working capital. These findings align with both the precautionary motive theory and the disciplinary channel framework, suggesting that biodiversity risk incentivizes firms to divert resources from working capital management. Cross‐sectional analyses show that this effect is particularly pronounced in financially constrained, distressed, and non–high‐tech firms. Our results are robust to several identification and sensitivity tests, including two‐step GMM estimation, propensity score matching, entropy balancing test, and placebo test, among other approaches. This study highlights the critical role of biodiversity risk as a driver of corporate financial behavior.\n"]

  March 09, 2026   doi: 10.1002/bse.70317   open full text
• A Natural Resource‐Based View of Circular Economy Practices in the Pharmaceutical Industry.
  Amna Farrukh, Muhammad Sohaib Sajjad.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4587-4605, March 2026. ", "\nABSTRACT\nPharmaceutical industry is facing escalating environmental sustainability issues including gaseous emissions, waste generation, and excessive consumption of energy and non‐renewable materials. Nevertheless, the adoption of sustainable business models such as the circular economy (CE) is still in its infancy in this sector due to complex manufacturing and supply chain operations. Further, a scarcity of empirical research in this domain calls for an in‐depth investigation into CE implementation in the pharmaceutical industry. Accordingly, this study aims to examine the CE practices in the pharmaceutical industry for reducing hazardous waste, improving environmental protection, conserving resources, and ensuring responsible and safe disposal of medicines. Using a multiple case study approach, 18 semi‐structured interviews were conducted with senior executives and corporate managers in four large pharmaceutical companies in Pakistan. Drawing on the natural resource‐based view (NRBV), the findings revealed green procurement, sustainable production, reverse logistics, sustainable distribution, and digitalization as significant CE practices in the pharmaceutical supply chain management. This study contributes to the existing body of knowledge by developing a holistic model of CE enablers linking with the NRBV framework. The findings can guide practitioners in deploying CE practices in the complex supply chain operations of the pharmaceutical industry and improving sustainability which can strengthen their organization's pollution prevention, product stewardship, and sustainable development strategic capabilities. Further, the study findings can assist policymakers in developing stakeholder‐specific policies and frameworks to promote CE adoption in the pharmaceutical industry.\n"]

  March 09, 2026   doi: 10.1002/bse.70413   open full text
• Sustainability in Dissonance: Investigating ESG Misalignment Within Organizations.
  Rosanna Spanò, Annamaria Zampella, Gianluca Ginesti.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4294-4308, March 2026. ", "\nABSTRACT\nThe paper at hand deals with the rising worrisome, along with Environmental, Social, and Governance (ESG) transition, concerning possible discrepancies between individuals' cultural understanding and perceptions, and the broader organizational ESG orientation. The aim of the paper is to explore whether and why such discrepancies may emerge. To this aim, the paper draws from Cognitive Dissonance Theory to understand if individual characteristics, such as ESG sensitivity, ESG personal commitment, and perceived organizational support, shape the magnitude of any possible misalignment. Methodologically, the paper relies upon data collected by means of a survey among 122 Italian managers and analyzed using Partial Least Squares Structural Equation Modeling (PLS‐SEM). The findings confirm that dissonance between the individual and organizational levels is often detectable and that these circumstances are traceable to both personal attributes and the degree of perceived support from the organization, factors playing a critical role in shaping (or not) individuals' alignment with corporate ESG strategies. On this ground, the paper advances ESG literature by introducing and corroborating an individual‐level perspective into a discussion often dominated by organizational or regulatory viewpoints and offers actionable insights for organizations and policymakers.\n"]

  March 09, 2026   doi: 10.1002/bse.70400   open full text
• Recombining Knowledge for Climate Innovation: Evidence From US Energy Incumbents.
  Kyung‐Baek Min, Kyzai Baikishieva, Young‐Choon Kim.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4277-4293, March 2026. ", "\nABSTRACT\nAs the climate crisis intensifies, energy incumbents must strategically transform their fossil‐fueled legacies to remain competitive and sustainable. Yet, little is known about how internal knowledge architectures and external industry positions jointly shape their capacity for climate innovation. Building on the knowledge recombination literature, this study introduces knowledge coupling—the integration of diverse knowledge elements—as a structural mechanism enabling technological adaptation. We theorize an inverted U‐shaped relationship between coupling and climate technology development, where moderate coupling balances coherence and flexibility. Extending this logic, we argue that firms positioned at the technological periphery—facing fewer institutional constraints—derive greater sustainability benefits from coupling by pursuing unconventional innovation paths. Using panel data on US energy incumbents from 1981 to 2022, our analysis supports these propositions. The findings reveal how internal knowledge design and external positioning jointly drive environmental innovation in the transition toward sustainable energy systems.\n"]

  March 09, 2026   doi: 10.1002/bse.70399   open full text
• Dynamic Capabilities for Circular Economy: Leadership, Eco‐Innovation, and the Mediating Role of Digital Transformation.
  Ali Nawaz Khan, Huang Honglei, Mohsin Ali Soomro.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4484-4494, March 2026. ", "\nABSTRACT\nThis study looks at how internal capabilities shape the adoption of circular economy (CE) practices in Pakistan's manufacturing sector. The focus is on three main levers: visionary leadership, eco‐innovation strategic orientation (EISO), and digital transformation (DT). Using survey data from 262 firms, analyzed through structural equation modeling, the study finds that leadership and strategy both matter, but in different ways. Visionary leaders help drive digital initiatives forward, while EISO has an even stronger pull, showing how much firms gain when sustainability becomes part of their innovation DNA. DT turns out to be the bridge linking leadership and strategy to CE outcomes, and its effectiveness depends heavily on whether an organization is “ready” for it, structurally, technically, and culturally. Drawing on dynamic capabilities theory, the paper highlights how these factors combine to push firms toward more CE practices. Beyond theory, the findings tie directly to the UN's Sustainable Development Goals, particularly those on industry, responsible consumption, and climate action.\n"]

  March 09, 2026   doi: 10.1002/bse.70397   open full text
• Do Environmental Certifications Pay? A Bibliometric and Systematic Review of Environmental Management Systems and Eco‐Label Impacts.
  Alberto Citterio.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4459-4483, March 2026. ", "\nABSTRACT\nThis paper investigates how environmental certifications—specifically, formal environmental management systems (EMSs) (ISO 14001, EMAS), and consumer‐facing eco‐labels—influence firm financial performance. Using a dual approach that includes a bibliometric review and a systematic analysis of key studies, we identify key trends, theoretical underpinnings, and methodological approaches across these distinct certification types. Our bibliometric results highlight a rapidly evolving field, with EMSs and eco‐label research growing along different paths and showing varying levels of international collaboration. The systematic review complements these findings by examining evidence on how certifications impact internal efficiencies, market positioning, and overall profitability. We observe that benefits depend strongly on organizational context, implementation quality, and stakeholder engagement. By integrating insights from both reviews, this paper clarifies the conditions under which environmental certifications enhance financial outcomes and offers directions for future research aimed at advancing both environmental responsibility and firm‐level success.\n"]

  March 09, 2026   doi: 10.1002/bse.70392   open full text
• Mandatory TCFD Disclosure and Corporate Financial Performance: Evidence From UK Non‐Financial Firms.
  Prashant Gupta.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3826-3842, March 2026. ", "\nABSTRACT\nThe escalating urgency of climate change has intensified calls for transparent corporate reporting on climate‐related risks and opportunities. This study examines the causal impact of the United Kingdom's mandatory Task Force on Climate‐Related Financial Disclosures (TCFD) framework on the financial performance of non‐financial firms. Using a DiD approach with firm and year fixed effects and a validated parallel‐trends assumption, we find that the TCFD mandate significantly enhances profitability, as measured by Return on Assets (ROA) and Return on Equity (ROE). The effect is strongest among larger firms and varies by energy intensity, with more pronounced ROE gains for high energy‐intensive firms. Mechanism analysis indicates that TCFD compliance initially reduces asset utilisation efficiency, reflecting strategic investments in long‐term sustainability capabilities. The findings provide robust causal evidence that mandatory climate disclosure delivers both financial and strategic value: It aligns transparency with improved corporate performance and fosters organisational adaptation to climate‐related risks. For policymakers, the results highlight that well‐designed disclosure regimes can mobilise private‐sector innovation and accountability in support of national climate goals. For firms, the evidence demonstrates that climate transparency can serve as a strategic asset—enhancing resilience, investor confidence and long‐term competitiveness in a transitioning economy.\n"]

  March 09, 2026   doi: 10.1002/bse.70374   open full text
• Environmental Performance Drivers: A Political Cost Approach.
  Kazi Abul Bashar Muhammad Afzal Hossain, Mahmoud Elmarzouky, George Giannopoulos.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4102-4147, March 2026. ", "\nABSTRACT\nWe contribute to the business strategy and the environment literature by examining the effect of political cost pressures on corporate environmental performance in the context of United Kingdom‐listed firms. Drawing on a sample of non‐financial firms from the FTSE All‐Share Index over a period of 10 years (2013–2022), we construct novel indices of political cost pressures, regulatory compliance, penalties and fines, strategic and risk management and market/social expectations, using textual analysis of annual reports. Employing firm fixed effects and two‐stage least squares (2SLS) models, we find that political cost pressures are significantly associated with lower carbon emissions (Scope 1 and Scope 2), with the strongest effects observed for regulatory and penalty‐related disclosures. The results persist over time when lead variables are used, supporting the temporal validity of the relationships. Overall, our findings advance the political cost hypothesis by demonstrating that mandatory disclosure and external scrutiny prompt firms to enhance their actual environmental performance, thereby reinforcing institutional and stakeholder accountability mechanisms.\n"]

  March 09, 2026   doi: 10.1002/bse.70372   open full text
• Exploring Biodiversity Disclosure and Financial Performance in the European Context: The Moderating Role of Board Experience.
  Silvio Bianchi Martini, Antonio Corvino, Federica Doni, Antonietta Trecca.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4083-4101, March 2026. ", "\nABSTRACT\nIn recent years, the growing recognition of biodiversity as a pivotal pillar in environmental and economic stability has intensified. Its role extends beyond ecological preservation, influencing business resilience, risk management and long‐term sustainability strategies. However, while previous studies explored the link between biodiversity disclosure and financial performance, the experience of boards of directors (BoDs) in shaping this relationship remains largely overlooked. Against this backdrop, our study seeks to explore how biodiversity disclosure affects corporate performance over the period 2014–2023 and investigates the moderating effect exerted by BoD experience. A longitudinal approach is applied to a sample of 481 leading European listed companies across various industries. Building on the legitimacy theory (LT) and upper echelon theory (UET), our findings show a significant positive relationship between biodiversity disclosure and financial performance, with BoD experience strengthening this effect. From a theoretical perspective, the integration of LT and UET fuels the broader academic debate on how managerial characteristics influence environmental disclosure and its financial outcomes. From a practical standpoint, our research sheds light on how nature and biodiversity disclosure can play a crucial role in supporting corporate strategic development, providing valuable insights for managers, investors, and policymakers. Overall, by integrating natural capital protection and restoration into its core activities, firms can pave the way to novel growth patterns consistent with the planet's future.\n"]

  March 09, 2026   doi: 10.1002/bse.70368   open full text
• Environmental, Social and Governance (ESG) Factors for Sustainable Tourism Development: The Way Forward Toward Destination Resilience and Growth.
  Mark Anthony Camilleri.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4057-4082, March 2026. ", "\nABSTRACT\nAlthough environmental, social and governance (ESG) performance is increasingly gaining popularity in corporate and financial domains, its application in the tourism industry is still relatively underexplored. Hence, the objectives of this research are fivefold: (1) A systematic review appraises the extant literature on the intersection of the ESG dimensions and sustainable tourism; (2) It provides a synthesis of the content of the extracted articles and maps thematic intersections related to travel destinations' environmental stewardship, social equity and governance frameworks; (3) It assesses ESG‐aligned strategies that are intended to address the destinations' challenges including their carrying capacities and overtourism issues, climate risks, sociocultural tensions as well as institutional accountabilities; (4) It provides a holistic conceptual framework that guides policymakers, practitioners and stakeholders in integrating ESG into tourism planning and development, for sustainable and economically viable outcomes. In conclusion, (5) it advances theoretical and managerial implications.\n"]

  March 09, 2026   doi: 10.1002/bse.70366   open full text
• A Conceptual Framework for Assessing Comparability Between Corporate Biodiversity Impact Accounting Tools.
  Benjamin Stimpson, Sarah Raymond, Joseph Bull, E. J. Milner‐Gulland.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4510-4520, March 2026. ", "\nABSTRACT\nIntegrating corporate biodiversity impacts into investment decisions can direct investments toward nature‐positive firms, creating a market signal. The strength of this signal is a function of how closely investments align. This alignment depends on the comparability (the degree of similarity and difference) of tools used to account for biodiversity impacts. Yet, whether and why such tools are comparable remains poorly understood. Here, we develop a framework to discern and explain comparability by introducing two analytical perspectives: an input‐based view (similarity in metrics and methods) and an output‐based view (similarity in results). Expanding on the input‐based view, we review 20 widely used tools, enabling 11 input‐comparability assessments: five showed strong comparability, two moderate, and three low, with one unable to assess because of limited information. We then demonstrate how evidence from both perspectives can be integrated, revealing opportunities for future research, and discuss the implications of comparability for users and tool quality.\n"]

  March 09, 2026   doi: 10.1002/bse.70404   open full text
• The Mediating Role of Climate Targets in Corporate Emission Reductions.
  Evgenia Anagnostopoulou.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3523-3538, March 2026. ", "\nABSTRACT\nCorporations worldwide increasingly commit to Sustainable Development Goal 13 (SDG 13), yet the extent to which such commitments translate into measurable greenhouse gas (GHG) reductions remains uncertain. Drawing on Institutional and Legitimacy Theory, this paper examines the mediating role of climate targets in the relationship between SDG 13 adoption and corporate emission outcomes. We compile a balanced panel of 152 publicly listed firms across 32 countries and seven carbon‐intensive industries, resulting in 760 firm‐year observations for the period 2020–2024, using data from Refinitiv Datastream. Structural equation modeling (SEM) is employed to test whether long‐term and short‐term GHG emission reduction targets serve as pathways through which SDG 13 commitments affect subsequent GHG performance.\nOur results show that SDG 13 adoption strongly predicts the establishment of long‐term targets, which are significantly associated with lower emissions. By contrast, short‐term targets are less frequently adopted and display weaker effects. Temporal analysis indicates a rapid institutionalization of SDG 13 commitments and target adoption during the 2020–2024 period, consistent with coercive, normative, and mimetic pressures. These findings suggest that while visible commitments enhance legitimacy, substantive emission reductions require embedding long‐term targets into corporate strategies. The study contributes to climate governance research by clarifying the symbolic versus substantive nature of corporate climate action. It offers practical implications for managers and policymakers seeking to strengthen climate accountability.\n"]

  March 09, 2026   doi: 10.1002/bse.70364   open full text
• Does Where We Live Influence How Green We Act? Urban Expansion and Climate Disclosure.
  Xiaohang Ren, Yu ling, Alessia Palma, Benye Shi.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3790-3812, March 2026. ", "\nABSTRACT\nAs climate‐related risks intensify, corporate environmental information disclosure (EID) plays a critical role in environmental governance. This study examines how urban sprawl influences EID quality and the mechanisms behind this relationship. Based on panel data of 4387 listed firms in China from 2010 to 2023, using a text‐mined EID score alongside a remote‐sensing sprawl index, we show that spatially fragmented governance motivates firms to substitute reputational assurance for regulatory compliance. This effect is moderated by city‐level regulatory pressure, carbon reduction performance, firm‐level environmental performance, and executive environmental awareness. Further examination indicates that state‐owned, tech‐intensive firms, as well as those based in central and western areas, experience a more substantial effect. Grounded in institutional theory, legitimacy theory, and the reputation management perspective, this study develops a conceptual framework linking urban spatial structure to corporate environmental behavior. The findings extend the external governance perspective in EID research and provide practical implications for strengthening regulatory responses in spatially dispersed urban areas and promoting corporate green transition.\n"]

  March 09, 2026   doi: 10.1002/bse.70360   open full text
• Navigating the Net Zero Transition: Towards Improved Effectiveness of Corporate Decarbonization Strategies.
  Linda Schenzle, Timo Busch.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3774-3789, March 2026. ", "\nABSTRACT\nWith net zero CO2 emissions as the benchmark for mitigating the worst impacts of climate change by mid‐century, businesses are urged to deploy robust reduction measures. However, in light of increasing emissions globally, the effectiveness of current corporate decarbonization strategies remains unclear. To identify underlying drivers of and potential solutions to this problem, this study explores the aspects that accelerate or limit the effectiveness of corporate decarbonization strategies. Through a qualitative approach based on semi‐structured expert interviews, we assessed and synthesized advantages, disadvantages, synergies and trade‐offs associated with various mitigation options. The results yield four dimensions for enhanced decarbonization effectiveness: redefining perceived impact boundaries, closing the mitigation readiness gap, integrating climate and corporate strategies and leveraging the value creation mechanisms emanating from climate action. These insights shed light on the dynamics of effective decarbonization and on how corporations may approach the design, implementation and evaluation of related strategies.\n"]

  March 09, 2026   doi: 10.1002/bse.70358   open full text
• How Organizations Utilize Blockchain Technology to Improve Sustainable Performance: Unveiling the Role of Blockchain Capability and Social Capital.
  Xiaoxin Zhang, Jiabao Lin, Xin (Robert) Luo.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3505-3522, March 2026. ", "\nABSTRACT\nSustainable performance has emerged as a critical concern for firms, and blockchain plays a pivotal role in facilitating sustainability outcomes. However, the mechanisms and boundary conditions through which blockchain use affects sustainable performance are unclear. Drawing on information technology‐enabled organizational capabilities theory, we propose how and when blockchain use affects sustainable performance, depending on the mediating role of blockchain capability and the moderating role of social capital. Based on survey data from 207 Chinese firms, the empirical results reveal that blockchain capability fully mediates the link between blockchain use and sustainable performance. Further analysis finds that social capital negatively moderates the connection between blockchain use and blockchain capability; namely, when blockchain is used to develop blockchain capability, social capital creates a substitution relationship. This research offers valuable insights into how firms can leverage blockchain to achieve sustainable performance by introducing a novel capability perspective.\n"]

  March 09, 2026   doi: 10.1002/bse.70351   open full text
• Barriers to Low‐Carbon Technology Adoption: Insights From the Automotive Manufacturing Sector in Emerging Economies.
  Hala Hmamed, Anass Cherrafi, Alireza Shokri, Jose Arturo Garza‐Reyes, Monika Foster.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4422-4443, March 2026. ", "\nABSTRACT\nIn response to global efforts to promote sustainability and combat climate change, industries increasingly leverage digital technologies to enhance organizational capabilities and adopt low‐carbon practices. This study focuses on the automotive manufacturing industry in Morocco, a critical sector in emerging economies, where low‐carbon technologies offer significant potential to reduce environmental impacts while driving economic growth. Addressing a crucial gap in the literature, this research investigates barriers to adopting these technologies through an empirical analysis involving 170 respondents. Using exploratory factor analysis, analytic hierarchy process, and decision‐making trial and evaluation laboratory, the study identifies and prioritizes barriers such as financial constraints, technological limitations, sociocultural dynamics, regulatory challenges, and market competition. The findings emphasize enhancing organizational capabilities and fostering collaborative stakeholder efforts. Practical recommendations are provided for policymakers and industry leaders to create enabling environments that support sustainable practices and advance global sustainability objectives in developing countries and beyond.\n"]

  March 09, 2026   doi: 10.1002/bse.70337   open full text
• Gender Diversity and ESG Performance: The Moderating Role of the Sustainability Committee.
  Aso Abdullah.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3878-3897, March 2026. ", "\nABSTRACT\nThis research examined whether board sustainability committees (SCs) influence the known connection between board gender diversity and environmental, social and governance (ESG) performance among companies in 10 different sectors listed in FTSE 350. Analysis of data spanning from 2010 to 2023 from the London Stock Exchange, Refinitiv and Fame databases assessed for moderation effect. Gender diversity was evaluated based on the proportion of women on boards (Blau and Shannon indices). Findings indicated board gender diversity's direct and positive impact on overall ESG performance and on each dimension of ESG performance; having a sustainability committee moderated this by amplifying the positive relationship between gender diversity and ESG performance. This research offers insights for managers, investors and regulators regarding the importance of gender diversity and sustainability committees in ESG performance, thereby facilitating more informed decision‐making around corporate governance regulation enhancing female representation on boards and subcommittees, thus safeguard stakeholders' interests.\n"]

  March 09, 2026   doi: 10.1002/bse.70336   open full text
• Circular Economy Disclosure and ESG Performance: Signal, Substance, or Symbol?
  Chiara Leggerini, Martina Percuoco, Irene Ricciardi, Anna Prisco.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3672-3690, March 2026. ", "\nABSTRACT\nThe study examines whether circular economy (CE) disclosures lead to tangible environmental improvements reflected in ESG performance or primarily serve reputational objectives linked to greenwashing. It investigates how disclosures on energy efficiency, resource reduction, water efficiency, and emission reduction influence ESG performance and whether external audits enhance disclosure credibility. Using a quantitative design, the analysis covers 1247 European firms (2015–2024) with data from Thomson Reuters, sustainability reports, and Orbis. Multiple regression models assess the relationship between CE disclosures and ESG performance, considering the moderating role of external audits. CE disclosures are positively associated with ESG performance, with energy efficiency and resource reduction showing the strongest effects. Water and emission disclosures also yield positive impacts, though the former is weakened when paired with external audits. Overall, external audits are positively related to ESG performance and strengthen the effect of energy and emission disclosures but may reduce the effectiveness of water‐related disclosures, highlighting the need for context‐specific assurance strategies. This study contributes to the debate on greenwashing by showing that external verification can strengthen the effectiveness of CE disclosures in improving ESG performance. It underscores the importance of transparent and verifiable reporting for corporate governance, investment decisions, and policy frameworks promoting genuine environmental progress.\n"]

  March 09, 2026   doi: 10.1002/bse.70334   open full text
• Strategic Marketing Tensions in Sustainable Business Models: A Conceptual Approach Through Customer Value Propositions and Stewardship.
  Päivi Petänen.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3655-3671, March 2026. ", "\nABSTRACT\nSustainable business models (SBMs) inherently involve tensions, which are contradictory or misaligned demands that companies must consider simultaneously. However, there is a gap in the literature regarding the relevance and linkage of these tensions to strategic marketing considerations, including positioning, competitiveness, differentiation, and a company's interaction with customers. This study aims to identify a set of tensions that arise in the strategic marketing of SBMs and to explore how these tensions can be responded to by companies. The study adopts a conceptual methodology, applying customer value propositions (CVPs) as a structured strategic marketing lens to explore tensions. Further, stewardship is suggested as an ontological approach that shapes the strategic marketing responses to tensions for the collective good of future generations. The resulting framework outlines how companies can embrace SBM tensions, including their hierarchical intensity, make sense of complexity and address the dominance of unsustainable models through strategic marketing mechanisms.\n"]

  March 09, 2026   doi: 10.1002/bse.70327   open full text
• Fear of Failure as a Gendered Barrier to Building Sustainable Entrepreneurial Ecosystems.
  Giusy Sica, Chiara Spiniello, Alessandra Micozzi, Maria Palazzo.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4393-4407, March 2026. ", "\nABSTRACT\nDrawing on four well‐established theoretical perspectives, this paper proposes an intersectional, emotionally grounded framework for understanding how gender and age jointly shape entrepreneurial perceptions across psychological, social, and cultural domains. Using 2024 Italian Global Entrepreneurship Monitor data and ordinal logistic regression, we find that women are approximately 30% more likely to report fear of failure and 20% less likely to feel self‐efficacious, despite perceiving high social respect for entrepreneurs. These emotional constraints persist across age, suggesting that gendered affective barriers are stable over time. We also demonstrate that composite indices, commonly used in entrepreneurial research, partially obscure gendered nuances that are better revealed through disaggregated analysis. This study contributes to entrepreneurship theory by integrating emotional risk into socially embedded models of entrepreneurial cognition. By addressing gendered emotional barriers, we contribute to building more socially sustainable and resilient entrepreneurial ecosystems, in line with the UN Sustainable Development Goals (SDGs). We further frame these barriers as strategic obstacles to environmentally responsible entrepreneurship, underscoring their relevance to SDGs 5, 8, 9, and 12. Finally, we highlight managerial implications: Incubators, accelerators, and firms should design gender‐sensitive interventions, such as inclusive training, mentorship, and financial instruments, to foster innovation, responsible production, and the resilience of entrepreneurial ecosystems.\n"]

  March 09, 2026   doi: 10.1002/bse.70421   open full text
• Experimentation and Learning in Business Model Innovation for Sustainability in Incumbent Firms: An Integrative Review.
  Mercy Masaeli, Vasiliki Bamiatzi, Marianna Marra, Stephan Manning.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4606-4623, March 2026. ", "\nABSTRACT\nThe pressure on corporations to contribute to sustainable development is increasing. It is widely recognised that the sustainable development goals and deadlines cannot be achieved without the support of incumbent firms. Business model innovation (BMI) is identified as a means for businesses to contribute to sustainable development. Yet, BMI is a risky endeavour that often ends in failure, especially in today's dynamic and constantly evolving environmental context. Within the wider process of Business Model Innovation for Sustainability (BMIfS), the experimentation phase plays a critical role in enabling firms to learn, adapt and validate new business model configurations. Despite the burgeoning body of research, our current knowledge of the BMI process, particularly in relation to experimentation, is disparate and lacks a dynamic and comprehensive framework. Drawing on 137 studies, we address this gap through two key contributions: first, by synthesising the existing knowledge on experimentation in BMIfS, and second, by developing a conceptual framework for dynamic learning driven experimentation that explicitly recognises the inherent tensions between economic, environmental and social objectives in BMIfS. This conceptual framework can serve as a useful framework for managers seeking to engage in BMIfS as it clearly outlines the stages in the BMIfS process under highly dynamic environments. We end the paper with several avenues for future research.\n"]

  March 09, 2026   doi: 10.1002/bse.70415   open full text
• Addressing Symbolic Versus Substantive Disclosures Under CSRD/ESRS E5 in the Circular Economy Disclosure of the Automotive Industry.
  Dominika Hadro, Davide Calandra, Justyna Fijalkowska, Michele Oppioli, Silvana Secinaro.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4360-4375, March 2026. ", "\nABSTRACT\nThis study examines how European automotive companies disclose circular economy (CE) information in light of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) E5. Using a mixed‐methods, data‐driven approach that combines keyword analysis and latent Dirichlet allocation (LDA) topic modelling on 53 corporate sustainability reports, the research identifies the main CE disclosure themes and evaluates their alignment with ESRS E5 requirements. Results reveal a strong dominance of symbolic communication, focused on compliance rhetoric and waste management, over substantive disclosures that reflect genuine engagement with circular strategies such as reuse, remanufacturing or regeneration. The findings expose the sector's limited preparedness for the new EU sustainability reporting framework and highlight a persistent reliance on linear production models. The study offers empirical evidence on the symbolic–substantive dichotomy in CE reporting and provides actionable insights for policymakers, regulators and firms aiming to strengthen substantive sustainability disclosure.\n"]

  March 09, 2026   doi: 10.1002/bse.70412   open full text
• From Trash to Treasure: The Moderating Role of Sustainability Governance Between Firm Strategy and Waste Management.
  Ali Uyar, Marwa Elnahass, Toka S. Mohamed, Cemil Kuzey, Abdullah S. Karaman.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4538-4562, March 2026. ", "\nABSTRACT\nThis study examines whether firm strategy is significantly associated with waste management and if sustainability governance moderates the relationship between firm strategy and waste management. Our investigation is based on an international sample from 47 countries over 20 years (i.e., 2002–2021). We find that as cost leadership focus increases, firms tend to generate more waste in tons. However, when a firm's operational intensity is considered in assessing waste production (i.e., waste in tons/total sales ratio), cost leadership is negatively associated with waste production. In addition, a cost leadership focus is positively associated with waste recycling in both tons and waste recycling ratios. On the other hand, although differentiation strategy is positively associated with waste production (i.e., waste in tons/total sales ratio), it is not significantly associated with waste recycling metrics. Moreover, the moderation analyses revealed that environmental management teams and sustainability committees enhance waste management for followers of both firm strategies in a similar and differing way.\n"]

  March 09, 2026   doi: 10.1002/bse.70409   open full text
• Reviewing the Integration of Distributive Justice in the Implementation of Science‐Based Targets: A Systematic Literature Review.
  Iris Ferreira, Julia Aldberg.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4408-4421, March 2026. ", "\nABSTRACT\nThis systematic literature review (SLR), guided by the PSALSAR framework, investigates how corporate science‐based targets (SBTs) incorporate distributive justice, amid a growing shift of responsibility from public to private sectors. By analysing 96 articles published between 2015 and 2024, this SLR addresses a critical research gap in the systemic integration of distributive justice principles within SBT design and implementation. The findings reveal four factors undermining the legitimacy and effectiveness of SBTs: the narrow scope of SBT goals and methods, the neglect of social and environmental interdependencies, the contested ‘science‐based’ label and insufficient policy involvement. In a novel way, this SLR links distributive justice and corporate climate governance to the knowledge‐to‐action (KTA) system, showing how inadequate interactions between science, policy and practice hinder equity. This SLR contributes to theory and practice by conceptualising justice within the SBT framework and identifying pathways to more legitimate, transparent and effective corporate climate commitments.\n"]

  March 09, 2026   doi: 10.1002/bse.70425   open full text
• Environmental Taxes and Subsidies for Sustainability: Experimental Evidence on Consumer Preferences for Business Strategy.
  Alessandro Cascavilla, Idiano D'Adamo, Simona Desideri, Martina Iannilli.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3357-3369, March 2026. ", "\nABSTRACT\nCircular textile management is essential to achieving sustainable consumption, as outlined in SDG 12, but consumer behavior and economic factors often hinder its adoption. This study investigates how environmental policies, such as carbon taxes and subsidies, influence consumer choices in the fast fashion sector by examining purchasing preferences for sustainable alternatives. Using an online survey‐based experiment focused on T‐shirts in Italy, the study analyzed stated purchase intentions in different price scenarios influenced by taxes and subsidies. The results show that subsidies significantly increase the preference for sustainable products, even among price‐sensitive consumers, while carbon taxes have a limited overall effect. A clear “circular premium” emerges, with many consumers willing to pay more for sustainable options. The results suggest that positive incentives, such as subsidies, are more effective than punitive measures in promoting sustainable behavior, especially among low‐income groups. From a business strategy perspective, circular fashion represents not only a sustainable alternative but also a valued choice for many consumers, as the circular premium highlights a growing willingness to invest in products that align with environmental responsibility. Policy strategies and business strategies should therefore prioritize support mechanisms that reconcile affordability with environmental objectives.\n"]

  March 09, 2026   doi: 10.1002/bse.70338   open full text
• Theories and Theoretical Approaches in Circular Economy Research.
  Raphael Aryee.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3177-3197, March 2026. ", "\nABSTRACT\nThe shift from traditional operations model to sustainable production and consumption paradigms such as circular economy (CE) has made the domain of CE a fertile avenue for theory development and theory utilization. Theories are essential requirement for the advancement and maturation of any scholarly field of study. However, studies on theories and theoretical approaches in CE research are still patchy. This affects our understanding of the inventory of theories and the theoretical approaches employed in the CE domain. Therefore, this current study used the systematic review approach (with the aid of content analysis) to analyze 655 articles distilled from the Scopus and Google scholar databases. The study identified 97 specific theories in the sample. These theories were then classified under various categories: socioecological, competitive, inventory, economic, etc. The resource‐based view, theory of planned behavior, stakeholder, institutional, game, and natural resource‐based view were some of the major theories identified. The study also illustrates the procedure for selecting and testing theories in CE research. This study offers scholars, reviewers and editors detailed insights on the usage of theories in CE research. This study will provide scholars with the needed impetus to develop theories in CE and may limit the borrowing of theories from other domains to the CE studies. To the best of the researcher's ability, this is the pioneering attempt to comprehensively offer a structural perspective into the theories and the theoretical techniques used in CE studies.\n"]

  March 09, 2026   doi: 10.1002/bse.70343   open full text
• Manipulators or Innovators? Corporate Misconduct and Green Innovation.
  Qifeng Zhao, Javier Cifuentes‐Faura, Long Wang, Qianfeng Luo.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3898-3922, March 2026. ", "\nABSTRACT\nAn ongoing debate in the literature is whether rule‐breaking actors are more innovative than others. This study examines how corporate misconduct influences green innovation. We find that firms involved in misconduct experience a 14.7% reduction in green patent quantity and a 20.4% decrease in citations, demonstrating a detrimental effect on green innovation. This adverse impact is more pronounced within firms characterized by lower transparency, higher default risk, independent central research institutes, stronger top management team power, and weaker local intellectual property protection. Our findings remain robust and consistent when implementing change analysis and instrumental variable approach. Further analysis indicates that corporate misconduct primarily inhibits green innovation by fostering a culture of dishonesty, releasing signals, and reducing human capital. Our findings contribute to the literature gap by establishing a direct link between corporate misconduct and green innovation, offering new insights into how dishonesty undermines long‐term strategic capabilities in emerging markets.\n"]

  March 09, 2026   doi: 10.1002/bse.70361   open full text
• The Impact of Carbon Pricing on Corporate Sustainability: Evidence From the European Union.
  C. José García, Begoña Herrero, Francisco Morillas‐Jurado.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3218-3232, March 2026. ", "\nABSTRACT\nThe European Union (EU) has played a leading role in the fight against climate change. One mechanism used to meet the targets for global greenhouse gas (GHG) emission reductions is carbon pricing. A prominent example is the EU Emissions Trading System (EU‐ETS). This study examines the effectiveness of political decisions to pursue environmental objectives from a firm‐level perspective. The aim of this research is to analyse how carbon prices affect firm‐level GHG emissions and environmental innovation. We also examine the relationship between environmental innovation and corporate GHG emissions, both independently and after including the effects of carbon pricing. Our findings show that carbon prices have a negative relationship with corporate CO2 emissions and a positive relationship with green innovation in low‐carbon technologies. Our results confirm that green innovation exerts a limited impact on GHG emissions, with carbon prices acting as the main driver of corporate GHG emission reductions.\n"]

  March 09, 2026   doi: 10.1002/bse.70324   open full text
• Between Calm and Passion for Organizational Authenticity: Seeking Efficiency Within the Financial–ESG Trade‐Off.
  Jihun Choi, Young‐Kyu Kim, Taewoo Roh.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3370-3391, March 2026. ", "\nABSTRACT\nEnvironmental, social, and governance (ESG) is pivotal for firms and their stakeholders, highlighting the importance of organizational authenticity (OA) in mitigating information asymmetry between signalers and receivers, thereby enhancing effective communication of social strategies. However, firms communicate with heterogeneous audiences whose interests and levels of information access differ, resulting in uneven reception of signals and complicating the communication process. Given the heterogeneity in signal receivers, stakeholder recognition of signals varies and aligning social strategies with executives' intrinsic values may conflict with certain stakeholders' expectations, creating an authenticity paradox. Therefore, clarifying whether OA strengthens or weakens signaling warrants careful examination. We tested our hypotheses using executive statements from S&P‐listed firms' earnings call transcripts on Seeking Alpha, supplemented with firm‐level data from multiple sources, including Morgan Stanley Capital International, Center for Research in Security Prices/Compustat, and ExecuComp. The findings indicate that the optimal level of social strategies depends on heterogeneity among receivers and that low OA enhances signaling efficiency.\n"]

  March 09, 2026   doi: 10.1002/bse.70350   open full text
• How Boundary‐Spanning Search, Design for Circularity, and Artificial Intelligence Powered Analytics Enhance Manufacturer's Circularity Performance?
  Saumyaranjan Sahoo, Ankur Chauhan, Rahul Meena, V. G. Venkatesh.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3484-3504, March 2026. ", "\nABSTRACT\nFirms increasingly pursue operational circularity to achieve sustainable growth amid volatile and uncertain business conditions. Although embracing a design for circularity strategy is recognized as important for enhancing operational outcomes, the mechanisms by which boundary‐spanning search influences circularity performance are not well explored. This study, rooted in the resource‐based view and dynamic capability view theories, investigates the effects of both proactive and reactive boundary‐spanning search on the circularity performance of firms, considering the mediating role of design for circularity and the moderating influence of artificial intelligence–powered analytics. Survey data from 196 manufacturing firms in India indicate that proactive boundary‐spanning search directly enhances circularity performance, and both forms of boundary‐spanning search positively affect design for circularity. Notably, design for circularity mediates the relationship between proactive search and performance. Artificial intelligence–powered analytics capabilities further strengthen the positive impact of proactive search on circularity outcomes. Conversely, several relationships were found to be nonsignificant: Reactive boundary‐spanning search showed no direct effect on circularity performance, and design for circularity did not significantly mediate the effects of reactive search. Additionally, artificial intelligence–powered analytics did not moderate the impact of reactive search nor did firm age, size, or sector significantly affect circularity outcomes. These findings illuminate the context‐dependent nature of implementing circular strategies and underscore that only certain combinations of search behaviors and analytics capabilities drive operational benefits. The results highlight the strategic value of artificial intelligence technologies and design for circularity in fostering sustainable manufacturing practices.\n"]

  March 09, 2026   doi: 10.1002/bse.70349   open full text
• European Ports as Energy Hubs: A Sustainability Index to Assess Territorial Development.
  Paolo Mazzocchi, Luigi Capoani, Fabio Carlucci, Barbara Trincone.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3711-3739, March 2026. ", "\nABSTRACT\nThe capacity of ports to act as energy hubs is increasingly relevant in light of sustainability challenges and global crises like the Ukraine conflict, the COVID‐19 pandemic and energy scarcity. Numerous international and national initiatives are shaping the future of port development to address environmental and economic concerns. This study investigates 37 European countries to assess the efficacy of the ongoing investment in fostering local growth, focusing on transforming ports into sustainable ‘green’ facilities. Particular attention is given to hydrogen as an innovative energy vector and to the role of small‐ and medium‐sized enterprises (SMEs). The empirical research employs partial least squares structural equation modelling (PLS‐SEM) to develop a multidimensional sustainability index that integrates policy regulation, production, financial and environmental indicators, also involving mediator and moderator analysis. The findings provide an analytical tool to support targeted policymaking and structural reforms in the port sector, enhancing the strategic governance of sustainability transitions.\n"]

  March 09, 2026   doi: 10.1002/bse.70348   open full text
• Operationalising Sufficiency in an Organisational Context: A Systematic Literature Review.
  Shahrokh Nikou, Erik‐Jan Hultink, Nancy M. P. Bocken.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3280-3300, March 2026. ", "\nABSTRACT\nEfficiency‐led sustainability is important but often fails to deliver absolute reductions in resource use, leaving organisations exposed to rebound effects. What remains underexplored is how sufficiency, the strategic limitation of consumption and resource use, is operationalised within organisational contexts. We address this gap through a systematic review of 70 peer‐reviewed studies, using the Structure‐Conduct‐Performance (SCP) framework to connect enabling conditions, organisational practices and sustainability performance. We identify eight thematic clusters reflecting how sufficiency is enacted across domains such as governance and policy, organisational practices, social norms and infrastructural systems. Building on these, we develop a typology of five strategic types through which organisations operationalise sufficiency. This paper (1) adds a system‐level perspective that bridges structural, strategic and performance domains; (2) extends the SCP framework as a theory‐building lens to expose misalignments that hinder sufficiency transitions; and (3) highlights tensions that challenge dominant assumptions in sustainability‐oriented organisational strategy.\n"]

  March 09, 2026   doi: 10.1002/bse.70347   open full text
• The Role of Corporate Sustainability in Shaping Integrated Reporting Quality: Insights From Europe.
  Soufiene Assidi, Mohamed H. Elmagrhi.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3265-3279, March 2026. ", "\nABSTRACT\nDrawing on corporate sustainability and integrated reporting literature, this study investigates the extent to which corporate sustainability strategy influences integrated reporting quality, with a particular focus on the moderating role of national governance. Using a comprehensive panel data sample of 2850 firm‐year observations from 285 non‐financial firms across six key European economies (the United Kingdom, Germany, Denmark, France, Sweden and Italy) over the period 2013–2022, our study contributes to the extant literature by providing timely evidence on the impact of corporate sustainability strategy on integrated reporting quality. Our findings show that firms with strong sustainability strategies tend to engage in high‐quality integrated reporting. Furthermore, our evidence suggests that the influence of corporate sustainability strategy on integrated reporting is moderated/explained largely by national governance. Our findings are robust to controlling for various endogeneity issues, with major implications for managers, policymakers, governments and other stakeholders.\n"]

  March 09, 2026   doi: 10.1002/bse.70346   open full text
• Are Philanthropic Firms Climate‐Friendly? The Role of Ethical Posture.
  Ali Uyar, Nohade Nasrallah, Cemil Kuzey, Abdullah S. Karaman.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3149-3176, March 2026. ", "\nABSTRACT\nThis study examines the relationship between corporate philanthropy and environmental performance, with the moderating effect of the ethical posture of firms. Using country–industry–year fixed effect regression on an international dataset spanning nine sectors and 44 countries from 2002 to 2021, we test two hypotheses: the synergy hypothesis, where philanthropy enhances environmental performance (supported by positive associations with aggregate performance, carbon emissions, and resource consumption), and the trade‐off hypothesis, where it hinders eco‐innovation. Additionally, we examine the moderating role of ethical posture and find a positive influence on the relationship between philanthropy and environmental performance for aggregate performance, carbon emissions, and eco‐innovation, but not for resource consumption. Subgroup analyses reveal variations across high‐ versus low‐Worldwide Governance Indicators (WGI) countries, polluting versus non‐polluting sectors, US versus non‐US samples, strong versus weak governance firms, and early versus late periods. These findings offer valuable implications for regulatory bodies, policymakers, companies, and governments in aligning philanthropy with sustainable outcomes.\n"]

  March 09, 2026   doi: 10.1002/bse.70345   open full text
• Eco‐Innovation: Drivers and Obstacles for Agriculture Firms in a Developing Country.
  Nelyda Campos‐Requena, Diego Rivera, Francisco J. Fernández, Felipe Vásquez‐Lavin, Roberto D. Ponce Oliva.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3247-3264, March 2026. ", "\nABSTRACT\nSustainable agriculture is becoming increasingly vital for food security and economic growth, particularly as the agricultural sector grapples with challenges posed by climate change. This study, grounded in the environmental innovation theory, resource‐based view, and dynamic capabilities approach, uses logistic and multinomial logistic regression models to evaluate the eco‐innovation behavior of agricultural firms in Chile. We focus on the impact of technology push, market pull, regulatory push or pull, and firm‐specific factors on eco‐innovations. Our key findings reveal that cost savings, market factors, non‐R&D through external knowledge acquisition, cooperation with other agricultural firms, and firm size are the most significant drivers of eco‐innovation in this context. Our results diverge from typical findings in the literature regarding the influence of regulatory push/pull factors, as we observed no significant effects of these variables. This study contributes to the understanding of eco‐innovation drivers in agriculture, an understudied sector in developing countries. This study provides crucial insights for policymakers and industry stakeholders who aim to enhance sustainability practices in response to global environmental challenges.\n"]

  March 09, 2026   doi: 10.1002/bse.70344   open full text
• Accounting for Impact: How Shipping Partnerships Drive e‐SDG Accountability for Climate Change Measures.
  Assunta Di Vaio, Elisa Van Engelenhoven, Anum Zaffar, Giuseppe Nicolò.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3691-3710, March 2026. ", "\nABSTRACT\nThe literature addresses decarbonisation technologies and stakeholder engagement separately, without considering partnership practices, accountability frameworks and environmental performance measurement for environmentally Sustainable Development Goals (e‐SDGs) in shipping companies. This research gap is increasingly relevant given rising regulatory demands and stakeholder expectations on sustainability practices and disclosures. Unlike prior studies, this study examines how shipping companies adopt decarbonisation practices to advance e‐SDGs, with particular attention to SDG 17–Target 17.G, which promotes multi‐stakeholder partnerships. Emphasising the integration of carbon accounting and accountability systems, this study aims to assess and guide progress toward decarbonisation. Drawing on legitimacy, stakeholder and resource‐dependence theories, a two‐stage content analysis, automated (via Leximancer v.5) and manual, was conducted on sustainability reports and webpages published between 2018 and 2025 by 30 leading shipping companies, mainly from Asia, with smaller representation from Europe, the Middle East and North America. The results highlight an increasing reliance on cross‐sectoral partnerships that facilitate the sharing of resources and knowledge, supporting the adoption of low‐carbon technologies and enhancing compliance with international regulations such as the IMO decarbonisation strategy and the EU Emission Trading System. Carbon accounting emerges as a strategic tool for monitoring Scope 1–3 emissions and the recently discussed ‘avoided’ emissions, known as Scope 4, and for enhancing corporate transparency and accountability by integrating climate measures into strategic planning (SDG 13–Target 13.2). Overall, this study demonstrates that identifying and measuring the effects of cross‐sectoral partnerships is critical for researchers, industry practitioners and policymakers seeking to advance e‐SDGs in the maritime sector.\n"]

  March 09, 2026   doi: 10.1002/bse.70341   open full text
• Climate Change, Healthcare, and Surgery: An Investigation of the Technology Acceptance Dynamics Among European Surgeons.
  Francesca Dal Mas, Maurizio Massaro.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3233-3246, March 2026. ", "\nABSTRACT\nThe relationship between climate change (CC) and healthcare is twofold. On one hand, the effects of CC impact the rise and worsening of several diseases and the need for medical and surgical interventions, especially when extreme weather events occur. On the other hand, the healthcare ecosystem contributes to increasing CC due to the high carbon footprint of its operations, especially in the operating theater. New technologies offer promising pathways for creating sound solutions to improve eco‐friendly surgical practices. However, realizing their potential depends on surgeons' willingness to adopt these innovations and on healthcare institutions' ability to integrate them into clinical routines. This study presents a survey conducted among 263 surgeons working in 18 countries in the European Union, following the technology acceptance model framework. Results reveal the relevance of the perceived usefulness and ease of use in implementing the willingness to adopt and, lastly, the effective use of new eco‐friendly surgical solutions. New paradigms on the concept of performance and the required competencies and guidelines arise, along with the role of female surgical leaders in adopting new greener surgical solutions aimed at reducing CC.\n"]

  March 09, 2026   doi: 10.1002/bse.70335   open full text
• Institutional Entrepreneurship and Work for Enhanced Sustainability at the Base of the Pyramid.
  Nikolas K. Kelling, Sadaat Ali Yawar, Stefan Gold.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4014-4034, March 2026. ", "\nABSTRACT\nPromoting sustainability at the base of the pyramid (BoP) often falls short of inclusive development due to informal and fragmented institutions, creating institutional voids. Although institutions are critical in BoP settings, there is limited clarity on how institutional mechanisms can address sustainability challenges in low‐income contexts with context‐specific setups and diverse stakeholders. Without such understanding, sustainability initiatives risk being ineffective or counterproductive, limiting their potential for long‐term inclusive development. To address this gap, we integrate insights from institutional entrepreneurship (IE) and institutional work (IW) with BoP research. Our analysis reveals four avenues: navigating the institutional environment, institutional bricolage, explanatory‐rhetorical skills and relations and engagement with state actors as critical elements in promoting inclusive and sustainable development. By highlighting how institutional entrepreneurs (IEs) leverage resources, build legitimacy and reconfigure formal and informal institutional arrangements, this study advances BoP literature and provides a roadmap for future empirical research for both practitioners and researchers focusing on emerging economies.\n"]

  March 09, 2026   doi: 10.1002/bse.70326   open full text
• Climate Risk and Capital Resilience in EU Deposit‐Taking Financial Institutions: Insights Into Environmental and Cultural Dynamics.
  Md Yousuf Ali, Naif Alsagr, Nicholas Apergis, Manirul Islam.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3740-3759, March 2026. ", "\nABSTRACT\nThis study investigates capital resilience in relevance to the European deposit‐taking financial institutions in response to climate shocks, using the Dynamic Capabilities Theory as the conceptual framework. Employing a panel dataset, spanning the period 2012 to 2021, the analysis documents that climate risk negatively influences the capital position of EU financial institutions, with a more pronounced adverse effect observed on core capital. We integrate cultural dimensions, along with environmental drivers, as moderating variables to provide fresh and comprehensive perspectives on these dynamic ties. While the moderating role of environmental tax exhibits a marginally positive influence, mitigating the adverse impact of climate risk on capital positions, the synergistic effect of per capita greenhouse gas (GHG) emissions weakens the baseline association. National cultural dimensions reveal heterogeneous moderating influences on the relationship between climate risk and capital resilience across EU financial institutions. Given Europe's accelerated warming, which is occurring at twice the global average, this study emphasizes the importance of firms' dynamic capabilities to sense, seize, and transform in response to external shocks, particularly in relation to regulatory capital adequacy, offering both theoretical and managerial insights.\n"]

  March 09, 2026   doi: 10.1002/bse.70352   open full text
• Tone Symphony in Climate‐Exposed Firms.
  Man Dang, Premkanth Puwanenthiren, Khanh Hoang, Thieu Quang Nguyen.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3625-3654, March 2026. ", "\nABSTRACT\nThis study investigates how firm‐specific climate change exposure affects the communicative tone of management, using a comprehensive dataset of US‐listed companies over the 2001–2021 period. We find that firms with higher climate change exposure exhibit a more negative textual tone in their management's communication within SEC filings. These results remain robust across a variety of tests, including alternative econometric models, considerations of endogeneity, alternative proxies for managerial sentiment, and a series of split‐sample analyses. Also, we identify innovative corporate culture and industry concentration as strategic mechanisms through which firm‐level climate change exposure shapes managerial sentiment. Overall, our study indicates that fostering innovation and strategic industry positioning are essential strategies for mitigating the adverse effects of climate risk on management communications.\n"]

  March 09, 2026   doi: 10.1002/bse.70321   open full text
• Progressing Triple Bottom Line Sustainability Performance via Cumulative Integration of Lean Production, Sustainable Supply Chain Management, and Sustainable Process Innovation.
  Bilal Mukhtar, Denni Arli, Ali Hussain.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3607-3624, March 2026. ", "\nABSTRACT\nA concerning surge in ecological challenges has heightened attention to the sustainability efforts related to stakeholders' expectations; however, the response of lean production, sustainable supply chain management (SSCM), and sustainable process innovation to these demands remains underexplored. Anchored by resource‐based view (RBV) theory, this paper undertakes a novel investigation and addresses the underexplored collective effects of lean production and SSCM on sustainability performance, covering the triple bottom line (TBL) dimensions while considering the moderating role of sustainable process innovation. Data were collected through a structured survey of 187 auto‐parts manufacturers affiliated with the Thai Auto Part Manufacturers Association (TAPMA). The hypotheses were tested using partial least squares structural equation modeling (PLS‐SEM). The findings reveal that lean production and SSCM are positively correlated with sustainability performance across all three dimensions of the TBL. Moreover, sustainable process innovation positively moderates the relationship between SSCM and both environmental and social performance, underscoring its pivotal role in amplifying sustainability outcomes. In contrast, the moderating role of sustainable process innovation in the SSCM and economic performance, does not follow sustainability‐oriented process innovations. Our research carries substantial implications, enriching the theoretical comprehension through empirically validating an integrated mechanism underlying lean production, SSCM, and sustainable process innovation to sustainability performance.\n"]

  March 09, 2026   doi: 10.1002/bse.70319   open full text
• Does ESG Investing Pay off? Comparing the Performance of ESG and Traditional ETFs Across European and US Markets.
  Sandra Tenorio‐Salgueiro, Andrea Martínez‐Salgueiro, Rubén Lado‐Sestayo, Milagros Vivel‐Búa.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3561-3606, March 2026. ", "\nABSTRACT\nInvestors have long recognized the importance of firms in promoting sustainability, leading to the rise of socially responsible investment (SRI). Specifically, there is a growing preference for exchange‐traded funds (ETFs) that prioritize environmental, social, and governance (ESG) principles. However, the performance of ESG ETFs has not been extensively studied, and existing findings remain inconclusive. This research addresses this gap by comparing ESG ETFs with traditional ETFs in Europe and the United States, analyzing the period 2014–2024, along with subperiods of pre‐crisis (2014–2019) and crisis (2020–2024). The results show that ESG ETFs can offer diversification benefits, hedging capabilities, and safe‐haven properties. However, performance outcomes vary across regions, investment strategies, and market conditions. In Europe, ESG ETFs improve risk‐adjusted performance in utility‐maximizing strategies. In the United States, ESG ETFs also enhance returns adjusted for risk in utility‐maximizing portfolios during periods of market stress, though this advantage is less evident in more stable market conditions.\n"]

  March 09, 2026   doi: 10.1002/bse.70309   open full text
• Business Strategies for Sustainable Meat Consumption: Multistage Investigation Into Profiling Environmentally Conscious Consumer Segments.
  Munish Saini, Gyan Prakash, Reeti Agarwal, Rsha Alghafes, Bhumika Gupta.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3329-3356, March 2026. ", "\nABSTRACT\nThe market for sustainable meats (SMs) is now in its initial phases of developing into a commercial enterprise. To ensure the success of sustainable alternative meats, it is necessary to have a comprehensive understanding of the consumer motivations, barriers and perceived values associated with these meats. Both the Theory of Consumption Values (TCV) and the Behavioural Reasoning Theory (BRT) were used in this research project to identify and characterise various potential consumer segments that exist within the SMs market. Using the mall intercept technique, data were collected from four different cities. Study 1 comprised 458 participants, whereas Study 2 included 463. Consumers were divided into 6 cluster groups using sequential cluster analysis, considering a variety of consumption values as well as reasons for and against adopting SMs. The findings indicate that the consumers in the different clusters are distinguished by distinct combinations of perceived consumption values and reasons for or against the consumption of SMs. The findings of the study have significant implications for producers, marketers and advocates for sustainable meats, as they can help them build product, marketing and positioning strategies that are specifically targeted to each consumer segment.\n"]

  March 09, 2026   doi: 10.1002/bse.70308   open full text
• Is ESG Transparency the Fruit of Corporate Digitalization: Strategic Pathways to Enhanced ESG Disclosure?
  Yanqi Sun, Jingtong Wu, Tairan Kevin Huang, Howard Davey, Yuzhong Lu.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3923-3951, March 2026. ", "\nABSTRACT\nThis study investigates the impact of corporate digitalization on environmental, social, and governance (ESG) disclosure, offering empirical evidence from a large panel of Chinese listed firms between 2011 and 2021. Drawing on institutional theory and stakeholder perspectives, we examine how digital transformation enhances firms' capacity to collect, manage, and report ESG‐related information. Our findings reveal that digitalization significantly improves both the extent and quality of ESG disclosure. Mechanism analyses indicate that green innovation and internal control systems serve as key strategic pathways through which digitalization promotes transparency. Furthermore, the effect of digitalization on ESG disclosure is moderated by board diversity in professional and educational backgrounds, and is more pronounced in manufacturing, high‐tech firms, and firms with greater analyst coverage or policy support. These results remain robust across alternative measures, models, and samples, and are further validated using an instrumental variable approach to address endogeneity concerns. The study contributes to the emerging literature on digital sustainability by clarifying the strategic role of digital technologies in advancing corporate environmental performance and disclosure practices. Our findings offer important implications for managers, policymakers, and investors seeking to align technological innovation with sustainable development goals.\n"]

  March 09, 2026   doi: 10.1002/bse.70304   open full text
• Benefit Corporations: The Moral Legitimacy That Requires More Rules.
  Laura Rocca, Monica Veneziani, Andrea Caccialanza, Claudio Teodori.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4376-4392, March 2026. ", "\nABSTRACT\nThis study examines why Italian for‐profit firms convert to Benefit Corporation status and how they navigate the ensuing hybridization. Survey data from 118 companies are interpreted through a pragmatic and moral legitimacy lens. Results show that the main trigger is pragmatic legitimacy: managers seek to strengthen trust with internal and external stakeholders' categories. Conversion to the Benefit status then feeds a ‘collective level legitimacy’ as firms identify themselves as members of a reputational business community promoting the ‘common good’. As a barrier to the adoption, the bylaw amendment represents the largest cost, while the Impact‐Officer role is usually internalized. Impact disclosure, however, remains uneven, raising doubts on possible ‘benefit washing’ concerns regarding the Impact Report credibility and tolerating potential ‘cherry picking’ opportunistic approaches. The paper calls for the adoption of harmonized metrics, tighter oversight and sanctions schemes to safeguard ‘collective level legitimacy’ and realize the systemic potential of European Benefit Corporations.\n"]

  March 09, 2026   doi: 10.1002/bse.70294   open full text
• Disentangling the Effects of Firm‐Level Climate Risk and Capital Market Signalling: Evidence From Stock Price Informativeness.
  Rawinder Kaur, Frank Kwabi, Wansu Hu, Samuel Fulgence, Neil Lancastle.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3198-3217, March 2026. ", "\nABSTRACT\nThis study examines the impact of firm‐level climate risk on stock price informativeness (SPI) through the integrated lens of stakeholder–shareholder theory. Using a global unbalanced panel of 73,770 firm‐year observations across 38 countries (2000–2020), we find that higher carbon emissions significantly reduce SPI, reflecting increased information asymmetry. Governance mechanisms, specifically board size, independence, tenure and nationality mix, consistently moderate this effect by enhancing disclosure and mitigating opacity. The negative relationship between emissions and SPI is strongest in common law countries and those with high institutional quality, where stricter enforcement and disclosure regimes heighten investor sensitivity to environmental risks. Additionally, we document that transparency in emission disclosure, financial risks and environmental liabilities is identified as a key channel through which firm‐level climate risk affects market informativeness. Furthermore, higher SPI is associated with lower cost of capital, more efficient capital allocation and reduced crash risk. This study contributes novel insights to the climate finance literature by integrating firm‐level governance factors with cross‐jurisdictional analysis. Robustness checks, including placebo tests, alternative SPI measures and system GMM estimation, confirm the validity of our results and underscore the importance of institutional context in pricing environmental risk.\n"]

  March 09, 2026   doi: 10.1002/bse.70291   open full text
• Exploring the Factors That Impact Employee Environmental Creative Performance in Taiwan's Environmental Manufacturing Sectors: A Multilevel Analysis.
  Szu‐Yin Lin, Yi‐Chun Huang, Chih Ta Chen.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3422-3444, March 2026. ", "\nABSTRACT\nGrowing environmental challenges have increased the demand for employee‐driven innovation to support organizational sustainability. Drawing on the Ability–Motivation–Opportunity (AMO) framework, this study explores how individual‐level proactive personality (PP) and organizational‐level high‐involvement green human resource management (HI GHRM) practices interact to foster employees' environmental creative performance (ECP). This study conceptualizes and measures HI GHRM as a five‐dimensional model integrating green HRM and high‐involvement HRM concepts. This study adopted multilevel analysis with data collected from 136 firms and 680 employees in Taiwan's environmental protection industry. The results show that PP has a significant positive impact on ECP, highlighting the importance of proactive traits in fostering creative environmental solutions. However, HI GHRM, as a bundled system, does not significantly moderate the PP–ECP relationship. This study contributes theoretical insights by combining strategic HRM and GHRM to propose the concept of HI GHRM. Furthermore, drawing on AMO theory, five dimensions of HI GHRM practices are identified. Additionally, multilevel analysis shows that personality traits and HI GHRM practices jointly influence ECP, emphasizing the role of environmental creativity in sustainability. These findings provide practical guidance for managers and policymakers in adopting HRM strategies that enhance employees' sustainability‐driven creativity.\n"]

  March 09, 2026   doi: 10.1002/bse.70285   open full text
• Can Hybrid Organisations Solve the Paradox of the Triple Bottom Line, and Does It Need Solving?
  Ruth Cherrington, Amanda Ayliffe, Danielle Farrow, Constantine Manolchev.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3468-3483, March 2026. ", "\nABSTRACT\nThis study investigates how B Corp certification enables hybrid organisations to integrate competing institutional logics of market and social purpose. Through a two‐stage qualitative design combining cross‐sector interviews with B Corps and an in‐depth case study, with a total of 30 participants, we analyse how certification supports hybrid organisations in practice. Three mechanisms of logic integration are identified: blending commercial and social logics to craft synergistic value propositions, assimilating social concerns into core business operations and elaborating existing practices to embed sustainability. B Corp certification emerges as a mediating institutional infrastructure that legitimises hybridity through frameworks for continuous improvement, stakeholder accountability and community building, while simultaneously imposing operational demands. Findings underscore the importance of sophisticated tension management across decision‐making, resource allocation and performance evaluation. The study contributes by refining theory on hybrid organisations and reframing certification as an enabling–constraining scaffold that renders paradoxes manageable rather than resolvable.\n"]

  March 09, 2026   doi: 10.1002/bse.70272   open full text
• Strategies of Sufficiency Under Institutional Complexity: A Study in the German Food Industry.
  Lena Leifeld, Simon Oertel.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3301-3328, March 2026. ", "\nABSTRACT\nOrganizations face increasing institutional complexity as they navigate competing demands from their institutional environment regarding financial performance and environmental responsibility. In our study, we examine how 39 award‐winning organizations in the German food industry frame sufficiency, a sustainability strategy focusing on reducing production and consumption, from 2000 to 2023. Although sufficiency has gained popularity as a normative concept, our findings reveal significant variation in how it is framed. Some organizations emphasize peripheral elements while others integrate sufficiency as a core principle that challenges conventional growth logics. We introduce a typology of three framing approaches—sustainability‐oriented framing, selective integration, and comprehensive sufficiency framings—and identify two influencing factors—family ownership and affiliation with the common good economy. Our findings contribute to strategy and sustainability research by showing how organizations use sufficiency as a boundary concept to balance competing institutional demands. Moreover, we also contribute to research on institutional complexity by demonstrating how contested concepts such as sufficiency can become proto‐institutionalized.\n"]

  March 09, 2026   doi: 10.1002/bse.70216   open full text
• Sustainability Practices in SMEs: An Explorative Study on Ethnic Minority–Owned SMEs in the United Kingdom.
  Nurul Islam, Faruk Bhuiyan, Shamsul Karim.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4189-4209, March 2026. ", "\nABSTRACT\nThe application of firm sustainability practices (FSP) in ethnic minority–owned small and medium–sized enterprises (ESMEs) has received significantly less scholarly focus, making ESME FSP an emerging academic field. This study aims to explore the factors influencing ethnic minority–owned SMEs involved in FSP and identify the factors hindering these SMEs' sustainability practices. Grounded in the theory of planned behaviour (TPB), this qualitative research study interviewed a total of 20 small and medium enterprises (SMEs) owned by British‐Bangladeshi individuals in the United Kingdom. The thematic analysis method was followed to analyse the interview data and extract/explore the research findings. The main influencing factors on SMEs' sustainability practices have been categorised into two broad groups: the influence of owners' personality and religious and cultural influences. The current research has revealed several factors that hinder ESMEs' intentions to engage in sustainability practices, namely, the SMEs' misconceptions of perceived efforts and sustainability practices outcomes, lack of awareness and confusion about the business's social role, lack of institutional support, and barriers to building strong public relations around SMEs and their sustainability‐related activities. The findings of the study contribute to the limited sustainability literature in the niche research context of ESMEs. The results will be useful for various stakeholders, including policymakers, government bodies and other regulators, to devise suitable policies and provide the necessary support for enhancing sustainability practices in SMEs.\n"]

  March 09, 2026   doi: 10.1002/bse.70378   open full text
• The Impact of ESG Ratings on Financial Performance: Evidence From Developing Economies.
  Taha Almarayeh.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4345-4359, March 2026. ", "\nABSTRACT\nDespite ongoing challenges, developing countries have made significant progress in addressing sustainability issues. This study examines the impact of ESG ratings on firm performance in nine Middle East and North Africa (MENA) countries. Based on a sample of 92 listed firms over the period 2012–2022 and using panel data regressions, the results show that the environmental, social and governance dimensions of ESG ratings have a positive and statistically significant impact on firm financial performance, as measured by ROA and ROE. Conversely, the total ESG score is negatively related to both ROA and ROE, suggesting that higher ESG ratings may have short‐term costs. However, the relationships with Tobin's Q are insignificant, implying that market recognition of ESG initiatives may be delayed, with the benefits becoming apparent over time. This study focuses on an underresearched region and provides valuable insights into the dynamics of ESG in this context.\n"]

  March 09, 2026   doi: 10.1002/bse.70407   open full text
• Leveraging Artificial Intelligence for ESG Reporting: A Case Study in the European Fashion Industry.
  Serena Strazzullo, Lucia Acampora, Livio Cricelli, Sara Ianniello, Maria Elena Nenni, Narinder Singh.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4521-4537, March 2026. ", "\nABSTRACT\nThe fashion industry in Europe has increasingly recognized the importance of Environmental, Social, and Governance (ESG) reporting as a key driver for sustainable development and transparency. As consumer awareness grows and regulatory frameworks evolve, companies are pressured to disclose their sustainability practices, ethical labor standards, and governance policies. Artificial intelligence (AI) is emerging as a powerful tool in this transformation, providing innovative solutions for data collection, analysis, and reporting. AI‐driven systems support fashion companies in monitoring environmental impacts, optimizing supply chains, and improving labor conditions while ensuring ESG compliance. Their predictive capabilities also enable early detection of ESG risks, supporting proactive sustainability strategies. However, the adoption of AI into ESG monitoring and reporting is still underdeveloped, particularly in sector‐specific contexts. This paper examines the intersection of ESG reporting and the role of AI in enhancing transparency and accountability, in the European fashion industry. Drawing on seven in‐depth interviews with sustainability managers from Italian companies, the study employs thematic analysis to identify key patterns in ESG reporting and AI adoption. The findings reveal heterogeneous ESG maturity levels, limited but growing AI integration, and strong managerial awareness of digital transformation needs in sustainability reporting. This study contributes to the growing body of research on sustainable business practices. Theoretically, it offers an empirical foundation to explore AI–ESG integration across industries. Practically, it drives both corporate responsibility and competitive advantage, emphasizing the need for digital transformation to meet the evolving demands of stakeholders in the European fashion sector.\n"]

  March 09, 2026   doi: 10.1002/bse.70405   open full text
• The Four‐Pillar Intersectionality Framework: Reframing Sustainable Entrepreneurship as a Transdisciplinary Domain.
  Giusy Sica, Chiara Spiniello, Alessandra Micozzi, Maria Palazzo.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4328-4344, March 2026. ", "\nABSTRACT\nThis study offers a comprehensive bibliometric and text‐mining overview of two decades of sustainability‐oriented entrepreneurship research. Drawing on 7563 peer‐reviewed articles from the Web of Science Core Collection, we map the field's evolution, thematic structure, and disciplinary convergence, identifying influential authors, networks, and journals. Using rule‐based classification and unsupervised learning, we categorize contributions within a four‐pillar framework encompassing environmental, social, economic, and cultural dimensions and examine their prevalence, overlap, and temporal trends.\nThe results reveal a pronounced shift toward transdisciplinarity: 77% of articles engage with at least three pillars, and 34.5% address all four simultaneously. Building directly on this empirical evidence, we propose the Four‐Pillar Intersectionality Framework (F‐PIF), which reconceptualizes sustainable entrepreneurship as a transdisciplinary knowledge domain shaped by interdependent sustainability logics. The F‐PIF is therefore both derived from and supported by the bibliometric findings, providing an empirically grounded conceptual model that advances theoretical understanding and offers practical guidance for scholars and practitioners navigating entrepreneurship in the age of sustainability.\n"]

  March 09, 2026   doi: 10.1002/bse.70403   open full text
• Leading With Contrast: How CEO Narcissism and Humility Shape Environmental Performance.
  Diletta Vianello, Anna Marrucci, Camilla Ciappei.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4495-4509, March 2026. ", "\nABSTRACT\nFirms face growing pressure to improve environmental performance, yet the psychological traits of CEOs remain an underexplored driver of sustainability outcomes. Building on paradox theory, this study investigates how the coexistence of humility and narcissism in CEOs shapes the environmental performance of European manufacturing firms. Using survey data from 201 managers and applying fuzzy‐set qualitative comparative analysis (fsQCA), we identify the conditions leading to high levels of environmental performance. Results show that outcomes improve when narcissistic ambition is balanced by humility, supported by coherent strategic direction and the active contribution of top management. By contrast, insufficient managerial commitment and limited adaptability to environmental dynamism hinder performance. These findings extend the paradox theory by highlighting how paradoxical traits jointly influence sustainability and demonstrating the value of configurational methods for examining complex causal mechanisms in corporate sustainability.\n"]

  March 09, 2026   doi: 10.1002/bse.70402   open full text
• How Supply Networks Influence Sustainable Innovation: Evidence From Ghana's Public Works Procurement.
  Peter Adjei‐Bamfo, Hadrian Geri Djajadikerta, Kerry Brown, Ferry Jie, Reza Kiani Mavi, Alain Neher.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4309-4327, March 2026. ", "\nABSTRACT\nRecent environmental and sustainability standards in procurement increase short‐term production and operational costs to suppliers, which are often recouped by charging price premiums for innovative solutions. However, public buyers are less likely to pay such price premiums, resulting in a disincentive among suppliers to bid for innovation (unique) contracts. This article examines how innovation procurement stimulates network emergence to mitigate innovation costs and facilitate suppliers' sustainable innovation capacity. We inductively analyse interview responses, observations, archival data and modified Delphi discussions with technical experts involved in innovation‐oriented public works procurement projects (i.e., building, water and road infrastructure) in Ghana. Our findings suggest that buyers' procurement strategy, driven by operational processes and mimetic mechanisms, stimulates emergent networks towards accessing complementary innovation resources and synergy benefits. The structure of each emergent network (i.e., formal or loosely binding) determines suppliers' reach and receptivity to complementary innovation resources needed to enhance their sustainable innovation capacity and mitigate innovation‐related costs. While the quality of innovation resources is often limited to a network's resource pool, our study found that members with absorptive capacity may access resources beyond their existing networks to innovate. We offer guidance to innovation procurement managers and researchers in designing network‐precise evaluation metrics and exploring the best levels to organically allow or stimulate emergent networks towards local suppliers' sustainable innovation capacity.\n"]

  March 09, 2026   doi: 10.1002/bse.70401   open full text
• Nature at Risk, Finance at Stake: A Systematic Literature Review of Biodiversity Risk in Finance Research.
  Thang Ngoc Dang, Monomita Nandy, Suman Lodh, Khaled Hussainey.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4256-4276, March 2026. ", "\nABSTRACT\nBiodiversity‐related financial risk is increasingly recognized not only as a market concern but as an ethical and systemic imperative for businesses and financial institutions. This systematic literature review synthesizes 103 peer‐reviewed studies to examine how biodiversity risk is conceptualized, measured, and integrated within financial research. While awareness of biodiversity as a systemic financial risk is expanding, the field remains theoretically fragmented and methodologically uneven. Four dominant themes emerge: financial materiality, visibility and recognition, governance and accountability, and levels of analysis. Building on these findings, the review introduces an eco‐financial transmission framework that connects biodiversity loss to financial exposure through valuation, governance, and disclosure channels. It further underscores the moral responsibility of financial actors to embed biodiversity into investment practices, ESG strategies, and regulatory design. By integrating ecological economics with ethical finance, this review advances a conceptual foundation for a financial system that not only mitigates biodiversity risk but also supports long‐term ecological resilience.\n"]

  March 09, 2026   doi: 10.1002/bse.70398   open full text
• Sensegiving, ESG, and Firm Value: Mitigating Interpretive Uncertainty in South Korea.
  Yanghee Kim, Chuljin Park, Yeonji Seo, Taewoo Roh.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4240-4255, March 2026. ", "\nABSTRACT\nAs environmental, social, and governance (ESG) becomes central to corporate strategy, firms must navigate the tension between meeting stakeholder expectations and avoiding overinvestment. This study examines how interpretive uncertainty—arising from stakeholders' divergent cognitive frames—produces a nonlinear relationship between ESG performance and firm value. Using panel data from Korean listed firms, we demonstrate an inverted U–shaped relationship, with higher ESG investment eroding returns. To explain this effect and its mitigation, we integrate sensegiving theory and cultural context into ESG research. We argue that firms can reduce interpretive uncertainty through strategic sensegiving activities, thereby mitigating the diminishing returns for high ESG performance in empathy‐laden cultural contexts by shaping the amount and richness of ESG‐related information. Specifically, we show that advertising intensity and philanthropic giving positively moderate the inverted U–shaped relationship, allowing firms to sustain the benefits of higher ESG scores. By linking interpretive uncertainty and sensegiving, this study offers a nuanced perspective on managing ESG performance and firm value.\n"]

  March 09, 2026   doi: 10.1002/bse.70394   open full text
• Does Audit Quality Curb Real Earnings Management? New Insights From Quantile Regression in FTSE 350 Firms.
  Muhammad Usman, Rami Salem, Musa Ghazwani.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4222-4239, March 2026. ", "\nABSTRACT\nIn this article, we tend to investigate the effect of audit quality (AQ) on real earnings management (REM) among the nonfinancial listed UK firms. This article employs a sample of 145 UK firms listed on the London Stock Exchange (LSE) covering the period from 2010 to 2019. Utilising the quantile regression technique, we investigate how AQ (proxied by audit committee independence, financial expertise and the auditor fees ratio) affects REM, operationalised via abnormal operating cash flows, production costs and discretionary expenses. We employed the principal component analysis (PCA) to measure AQ and aggregate REM. The study finds a nonlinear relationship between AQ and REM, indicating that AQ restrains managers from engaging in various forms of REM. However, the results show that AQ is ineffective in mitigating aggregate REM. For robustness, we employed the modified Jones model as an alternative form of earnings management to measure discretionary accruals (AEM), yielding similar results. Our findings also confirm that UK managers switch from REM to AEM and vice versa. This study benefits UK firms, as it suggests strengthening their audit committees to curb REM effectively. For policymakers, the results indicate that strengthening AQ standards is crucial to enhancing the integrity of financial reporting. Unlike prior studies, we used the quantile regression approach instead of conventional regression techniques to clarify the mixed findings.\n"]

  March 09, 2026   doi: 10.1002/bse.70388   open full text
• Managerial Digital Literacy and Responsible Innovation in Chinese Manufacturing Firms: Ambidexterity and Regulatory Focus in the New Quality Productive Forces Era.
  Xiaoyu Qu, Hongfei Tang, Adnan Khan, Syed Hussain Murtaza.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3843-3856, March 2026. ", "\nABSTRACT\nThe rapid advancement of digital technologies has reshaped innovation processes, raising questions about how managerial digital literacy (MDL) influences responsible innovation (RI). Yet, the mechanisms and boundary conditions of this relationship remain insufficiently understood, particularly given potential mismatches between individual and organizational‐level constructs. Drawing on dynamic capability theory (DCT) and regulatory focus theory (RFT), this study examines how ambidextrous capability, comprising exploitative capabilities, mediates the effect of MDL on RI, and how organizational regulatory focus moderates these pathways. Survey data were collected from 262 manufacturing firms in China, with senior managers serving as key informants for organizational constructs. Hypotheses were tested using hierarchical regression and PROCESS macro bootstrapping in SPSS. Results indicate that MDL enhances RI indirectly through ambidextrous capability. A promotion‐focused climate strengthens the role of exploratory capability, whereas the moderating role of prevention focus is less evident. These findings clarify the enabling role of MDL in shaping RI, while highlighting the contextual limitations of efficiency‐driven orientations. The study contributes by unpacking pathways that link MDL and RI within the policy context of China's “New Quality Productive Forces” era. Practically, it provides guidance for firms to foster RI by investing in MDL, balancing exploration and exploitation, and aligning regulatory orientations with long‐term goals. Limitations related to the cross‐sectional design, self‐reported survey data, and the single‐country, single‐industry setting are acknowledged, suggesting directions for future research.\n"]

  March 09, 2026   doi: 10.1002/bse.70386   open full text
• Technology Beliefs, Environmental Orientation, and Pro‐Environmental Behaviors: Evidence From 49 Countries.
  Edmund Y. Wu, Morgan X. Yang, Liangbo Zhang, Xiao (Shannon) Yi.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4210-4221, March 2026. ", "\nABSTRACT\nFostering employees' pro‐environmental behaviors (PEBs) is critical for addressing environmental degradation, as these behaviors can extend beyond the workplace to personal, organizational, and societal contexts. Drawing on the theory of planned behavior, we examined how employees' PEBs are influenced by their positive or negative beliefs about technology. We analyzed data from the sixth wave of the World Values Survey, which includes a dataset of 41,888 employees from 49 countries. The results indicate that employees' negative beliefs about technology enhance their PEBs by reinforcing an environmental orientation that prioritizes environmental protection over economic growth, while their positive beliefs about technology tend to undermine PEBs by attenuating this environmental orientation. Notably, the cross‐country evidence suggests that these findings are significant only among employees of for‐profit organizations. Our findings enrich the literature on green business management by elucidating the theoretical link between employees' beliefs about technology and their subsequent PEBs. Additionally, our research provides practitioners and policymakers with actionable insights to mobilize employees' collective efforts toward sustainability goals.\n"]

  March 09, 2026   doi: 10.1002/bse.70381   open full text
• Giving or Greening? Stakeholder Dynamics and Ex‐Military Executives.
  Hyeyoun Park, Jiangtao Xie, Tao Chen, Taewoo Roh.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4563-4586, March 2026. ", "\nABSTRACT\nFirms increasingly face competing demands from different stakeholder groups, yet little is known about how these demands interact and generate strategic trade‐offs. Drawing on stakeholder theory and upper echelons theory, we investigate whether an overemphasis on philanthropic initiatives can detract from investments in green innovation, and how this relationship is moderated by the attributes of military executives. Based on 2873 firm‐year observations from 930 Chinese listed firms from 2006 to 2017, we find that philanthropic overinvestment crowds out green innovation. However, this substitution effect is mitigated when firms are led by ex‐military executives, who possess stronger stakeholder orientation and resource mobilization capabilities. Furthermore, we show that compensation growth amplifies the positive moderating role of military experience. This study contributes to the literature by providing practical insights into the impact of ex‐military executive appointments on firms' green innovation strategies. We also highlight that firms must strategically manage the trade‐offs within their corporate social responsibility portfolio, recognizing that executive decisions on competing initiatives are significantly influenced by managers' characteristics such as prior military experience and incentive structures.\n"]

  March 09, 2026   doi: 10.1002/bse.70410   open full text
• Exploring Heterogeneous Forms of SDG Washing in the Strategic Integration of Sustainability.
  Stefan Korber, Grigorij Ljubownikow, Lisa Callagher, Hanoku Bathula.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4171-4188, March 2026. ", "\nABSTRACT\nThis study examines how New Zealand higher education institutions (HEIs) strategically integrate sustainable development in teaching and learning, and to what extent commitments are reflected in organisational components. We identify five distinct forms of sustainable development misalignment based on an analysis of 171 strategic documents from all eight New Zealand universities and 17,401 course outlines offered in 2022. Structural misalignment arises when structural changes, such as tailored policies or formal responsibilities, do not align with strategic priorities. Capacity misalignment occurs when sufficient resources and capabilities do not accompany changes in formal structures. Scope and scale misalignments signify cases where comprehensive commitments to a broad range of Sustainable Development Goals (SDGs) at the organisational level are not reflected at the instructional level, such as in programme and course descriptions. Instructional SDG misalignment occurs when instructional‐level goals captured in course descriptions are disconnected from key course design components (e.g., learning outcomes) that drive day‐to‐day learning. By integrating literature on decoupling and constructive alignment theory, we theorise how these misalignments resemble various forms of ‘SDG‐washing’ and undermine organisational contributions to sustainable development. We advance research at the intersection of strategy and corporate sustainability by providing a nuanced understanding of different manifestations of SDG‐washing and their implications.\n"]

  March 09, 2026   doi: 10.1002/bse.70377   open full text
• Shared Leadership Between Public and Private Leaders in Sustainable Ecosystems.
  Anne‐Lorène Vernay, Carine Sebi, Nuria Moratal.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3993-4013, March 2026. ", "\nABSTRACT\nInnovations addressing societal and environmental challenges often emerge within sustainable ecosystems, where diverse actors coordinate their efforts. We argue that the emergence of such ecosystems requires a protected space—one that must be cocreated by both public and private actors. This paper explores how these actors collaboratively establish and sustain protected spaces to enable the emergence of sustainable ecosystems. Drawing on a qualitative analysis of two case studies, we examine how public and private leaders share leadership and cocreate these protective environments. Our findings reveal the mechanisms through which shared leadership is established and public and private leaders mutually empower one another to perform leadership functions. We propose a framework that explains how shared leadership can be structured to support the creation of protected spaces that are conducive to sustainable ecosystems. Furthermore, we show that the involvement of public actors in ecosystem leadership transforms the ecosystem into a political object, introducing new vulnerabilities. The paper concludes by discussing the implications of shared ecosystem leadership for both public and private leaders.\n"]

  March 09, 2026   doi: 10.1002/bse.70376   open full text
• Does Politics Influence Environmental, Social, and Governance Disclosure? Empirical Evidence From US Listed Firms.
  Gianluca Moretti, Simone Terzani, Gennaro De Novellis.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4148-4170, March 2026. ", "\nABSTRACT\nThis study investigates the relations among firm political ideology, state political ideology, and environmental, social, and governance (ESG) disclosure. It is the first study to simultaneously explore both individual‐ and state‐level influences on ESG disclosure. Using panel regression models on a sample of firms in the United States of America from 2013 to 2020, the study finds that liberal ideology is associated with higher ESG disclosure. This behavior is driven by the desire to meet stakeholder expectations and operate in a supportive environment for addressing social and environmental issues. These findings remain consistent across various tests, demonstrating their robustness and reliability. The study contributes to the literature on informal political determinants of ESG disclosure, being potentially helpful for policymakers in developing more impactful regulations and recommendations to incentivize ESG disclosure. The findings may also assist firms in aligning their sustainability reporting with political contexts and stakeholder needs.\n"]

  March 09, 2026   doi: 10.1002/bse.70373   open full text
• Beyond the Frontier of Eco‐Efficiency: How Firms Achieve Eco‐Effectiveness in Corporate Environmental Management.
  Angeloantonio Russo, Rosamartina Schena, Pierluigi Toma, Massimo Frittelli.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3978-3992, March 2026. ", "\nABSTRACT\nGrowing environmental concerns have intensified the search for business strategies that balance long‐term competitiveness with ecological sustainability. This study explores the concepts of eco‐efficiency and eco‐effectiveness to assess whether firms can achieve sustainable growth while reducing their environmental impacts. We use industry‐specific data from publicly traded companies listed on the S&P 1200 index and apply output‐oriented and bad output efficiency analyses to evaluate the relationship between production levels and polluting emissions across sectors. The results reveal a positive correlation between firm growth and emissions, indicating that eco‐efficiency alone cannot guarantee sustainable outcomes. These findings highlight a decoupling dilemma: Firms face a strategic trade‐off between relative improvements in efficiency and the pursuit of absolute decoupling through eco‐effectiveness. By empirically identifying firms exhibiting eco‐effective trajectories, this study provides novel evidence on the conditions under which business growth becomes environmentally regenerative. This study advances strategic management and sustainability literature by positioning eco‐effectiveness as the next frontier for corporate environmental performance, with important implications for scholars, managers, and policymakers seeking to align business strategies with planetary boundaries.\n"]

  March 09, 2026   doi: 10.1002/bse.70369   open full text
• Are Women on Boards Associated With Disclosure Asymmetry? Evidence From Environmental and Social Disclosures in S&P 500 Firms.
  Nitin Jain.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3813-3825, March 2026. ", "\nABSTRACT\nAs Environmental, Social, and Governance (ESG) disclosures gain prominence among stakeholders, regulators, and investors, attention needs to be paid not just to their extent but also to their balance. While prior research has explored the board‐related drivers of overall ESG disclosure and its impact on firm performance, the board‐level antecedents of asymmetry between environmental and social disclosures remain underexamined. Many firms disproportionately emphasize one dimension, creating imbalances in sustainability communication. Concurrently, debates continue over whether women appointed to corporate boards, often during periods of adversity, have meaningful influence over governance outcomes. This study investigates whether board female representation is associated with reduced asymmetry between environmental and social disclosures. Grounded in signaling, institutional, and agency theories, we employ panel data from S&P 500 firms spanning 2016–2022. Our results show that higher female representation on boards is linked to relatively stronger environmental disclosures, though this relationship exhibits diminishing returns at higher levels of women representation. Additionally, we find that larger board size weakens this association, while board age has no significant moderating effect. These findings contribute to governance and ESG literature by highlighting how female‐centric boards shape sustainability communication strategies and by offering practical insights for firms seeking more integrated ESG reporting.\n"]

  March 09, 2026   doi: 10.1002/bse.70367   open full text
• Emotional Factors in the Consumption of Pro‐Environmental Foods: Keys to Reducing the Attitude–Behaviour Gap.
  Sergio Valdelomar‐Muñoz, Eva María Murgado‐Armenteros.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4444-4458, March 2026. ", "\nABSTRACT\nConsumers are becoming increasingly concerned about the environmental impact of their decisions, which suggests a greater inclination towards responsible consumption. However, scientific evidence shows a significant discrepancy between this favourable attitude and final purchasing decisions. This study examines the role that emotions play throughout the pro‐environmental purchasing decision process. For this, a CAWI study was undertaken in five European countries. A total of 4000 valid responses were received, and, after identifying 75 outliers, 3925 responses were analysed using the structural equations modelling technique. The results highlight that positive emotions have a stronger influence on attitude, whereas negative emotions play a key role in turning intentions into behaviours. In addition, through a multigroup analysis, significant differences were found by country. This demonstrates the complexity of the process and the barrier that the attitude–behaviour gap represents. In general terms, understanding how emotions can influence purchasing behaviour throughout the decision‐making process could be the key to companies and policymakers being able to design experiential marketing actions and effective communication messages, depending on whether the objective is to modify consumers' attitudes or influence them at more advanced stages of the purchasing process.\n"]

  March 09, 2026   doi: 10.1002/bse.70363   open full text
• An Eco‐Social Lens on Voice for Undervoiced and Unvoiced Stakeholders.
  Sandra Waddock.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 4624-4637, March 2026. ", "\nABSTRACT\nThis conceptual paper argues it is important from an ecological–social (eco‐social) whole system point of view for businesses and policymakers to take the interests of and impacts on unvoiced and undervoiced [un(der)voiced] stakeholders into consideration for both strategic and justice reasons. Un(der)voiced stakeholders are classified into three categories: undervoiced, fringe, or marginalized humans who can speak yet are often ignored or disregarded; unvoiced or silent humans who have no voice in the present; and places, species, ecosystems, and nonhuman beings that cannot speak for themselves in human terms. From firms' perspectives, the interests and needs of many un(der)voiced stakeholders may not yet have sufficient salience or voice to gain attention unless specific attention is paid. Yet their salience as stakeholders becomes clearer with considerations of whole system well‐being and justice. The Earth System Justice framework is used to identify intergenerational, intragenerational, and interspecies and Earth stability justice considerations for un(der)voiced stakeholders.\n"]

  March 09, 2026   doi: 10.1002/bse.70359   open full text
• Assessing Green Logistics and Supply Chain Resilience With Future Importance Analysis: Machine Learning and Multicriteria Decision‐Making Approach.
  Ahmed Ihsan Simsek, Erdinc Koc, Esma Gultekin Tarla.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3952-3977, March 2026. ", "\nABSTRACT\nThis study investigates the effectiveness of sustainability‐oriented factors in supply chain management and their effects on supply chain resilience. Using the “Supply Chain Management with Green Logistics” dataset obtained from the Kaggle platform, 19 basic supply chain components of 69 companies were examined with machine learning and multicriteria decision‐making (MCDM) methods. The modeling performed using Random Forest, Gradient Boosting, XGBoost, LightGBM, CatBoost, MLPRegressor, Lasso, Ridge, SVR, AdaBoost, and ExtraTrees algorithms was evaluated with performance metrics such as RMSE, MSE, MAE, MAPE, and R2, and the AdaBoost algorithm showed the best performance. In order to improve the performance of the model, fivefold K‐fold cross‐validation and hyperparameter optimization with GridSearch were performed. In the feature importance analysis, “Order Fulfillment Rate” stood out as the variable with the highest impact score, whereas sustainability‐oriented variables (recycling rate, carbon emissions and use of renewable energy) were found to be of lower importance. The results obtained from the study show that the most important variable is order fulfillment and customer focus. Within this framework, according to the results obtained for companies that have green‐focused processes, traditional supply chain elements are more important. Sensitivity analyses conducted with ADAM, CoCoSo, and MABAC methods examined the effects of changes in the weights of these variables on the results. The findings highlight the limited impact of green logistics practices on the efficiency of enterprises in the short term and show the importance of including these factors in strategic planning processes. This indicates that environmental sustainability should be supported by policy‐oriented interventions rather than market mechanisms. In this context, structural policy changes are needed, such as providing tax breaks and appropriate financing opportunities for green logistics investments, as well as encouraging logistics operations with low carbon footprints through certification and providing competitive advantages to these companies.\n"]

  March 09, 2026   doi: 10.1002/bse.70356   open full text
• Green Entrepreneurial Mindset for a Sustainable Future: Does Environmental Dynamism Have a Say?
  Rose Antony, Mahak Sharma, Alessio Ishizaka.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3760-3773, March 2026. ", "\nABSTRACT\nThe study investigates the influence of green entrepreneurial behaviour on the ever‐increasing concern to design a sustainable supply chain. The standard scales are utilized for the study, and data collected through online channels are tested for reliability and validity. Confirmatory factor analysis followed by structural equation modelling allows us to suggest several implications for green entrepreneurs and supply chain decision‐makers. Significant relationships are identified between the two predictors (green entrepreneurship and supply chain analytics adoption) and supply chain resilience. Gender is found to moderate the relationships between green entrepreneurship and supply chain resilience and between supply chain analytics and supply chain resilience, but it is found to be insignificant for the relationship between supply chain resilience and sustainable supply chains. Fascinatingly, environmental dynamism is found to strongly enhance supply chain analytics adoption among respondents to achieve resilience and also assists green entrepreneurs in developing resilience. The paper presents several policy implications for the adoption of advanced analytics and for fostering a culture of continuous green entrepreneurial behaviour in sustainable supply chains.\n"]

  March 09, 2026   doi: 10.1002/bse.70355   open full text
• Institutional Architectures as Market Catalysts: How Government Quality Moderates Private Investment in Renewable Energy in VISTA‐C Countries.
  Obumneke Bob Muoneke, Yan Tan, Guy Robinson.
  Business Strategy and the Environment. March 09, 2026
  ["Business Strategy and the Environment, Volume 35, Issue 3, Page 3392-3421, March 2026. ", "\nABSTRACT\nThis study advances the debate on sustainable energy transitions by investigating how government quality and political ideologies shape private sector investment in renewable energy across VISTA‐C countries (Vietnam, Indonesia, South Africa, Turkey, Argentina and Colombia). Challenging Ecological Modernization Theory's core premise, we reveal a paradox: while private investment generally reduces renewable adoption, parliamentary systems with high government quality (South Africa and Turkey) demonstrate positive market effects through policy stability and independent regulation. Using panel data (1990–2022) and the Panel Corrected Standard Error technique, we showed that higher levels of government quality strengthened the relationship between private sector investment and renewable energy in parliamentary systems. Notably, Turkey's centrist convergence shows how ideological pragmatism can overcome traditional left–right divides in energy policy. The findings provide policymakers with actionable insights: (1) legislative safeguards against policy reversals, (2) depoliticised regulatory frameworks and (3) cross‐party energy councils enhance investment viability. This research redefines the political economy of energy transitions by demonstrating that institutional architecture, not market forces alone, determines renewable investment success in emerging economies.\n"]

  March 09, 2026   doi: 10.1002/bse.70354   open full text
• Does the Eco‐Management and Audit Scheme Foster Innovation in European Firms?
  Fabio Montobbio, Ilaria Solito.
  Business Strategy and the Environment. October 19, 2017
  This paper studies whether environmental management systems can spur eco‐innovation, analyzing EMAS (Eco‐Management and Audit Scheme) adoption and patented innovations (at the European Patent Office) at firm level. It uses an original panel database of 30 439 European firms belonging to all sectors from 2003 to 2012. An original instrumental variable is implemented to control for potential endogeneity. The analysis reveals that EMAS adoption is conducive to more innovation at the firm level. The results vary across countries and sectors. In particular, EMAS is positively related to green patents for medium and low technology manufacturing. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  October 19, 2017   doi: 10.1002/bse.1986   open full text
• Measures for Sustainable Investment Decisions and Business Strategy – A Triple Bottom Line Approach.
  Maite Cubas‐Díaz, Miguel Ángel Martínez Sedano.
  Business Strategy and the Environment. October 19, 2017
  Traditionally, most investors have only taken economic variables (profitability and risk) into account when making investment decisions. In this paper we propose two measures, the Relative Sustainable Performance Measure (RSPM) and the Measure of Commitment‐failure (MC), that permit sustainable decision making, which takes environmental and social variables into consideration in addition to the economic variables, for both investors and companies themselves. This makes a triple bottom line (TBL) approach to investment decision making possible. We apply our measures to the worldwide chemical sector and validate them. Moreover, we propose a 2D graphical sustainability analysis, which is simple and easy for investors to understand when making investment decisions and can be used if they are concerned about environmental and social matters. It also enables companies to analyse their sustainability performance and adapt their business plans accordingly. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  October 19, 2017   doi: 10.1002/bse.1980   open full text
• Routine Rigidity and Environmental Sustainability: Why Rational Innovations are Regularly Ignored.
  Kenneth Dooley.
  Business Strategy and the Environment. October 12, 2017
  Rigidities describe the sluggishness of an organization's response in the face of discontinuous external change, and routine rigidity is the failure to change the organization's processes. This article aims to provide empirical evidence that substantiates the relevance of routine rigidity in the discussion on environmental sustainability. A qualitative approach employs a logic model to analyse two sequences of events and tracks the implementation of innovations that had been overlooked for some time. The evidence shows that the selected organizational innovations were previously inhibited by a failure to change the organization's formal processes and informal cultural norms. This is especially true of innovations that altered the daily routines of the focal firm's employees and of innovations that potentially alienated customers. The characteristics of the innovations (high impact and low barrier to implementation) indicate that firms are now less able to justify inaction through the traditional barriers of environmentally focused innovation. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  October 12, 2017   doi: 10.1002/bse.1984   open full text
• Market Orientation and FIRMS' Environmental Innovation: The Moderating Role of Environmental Attitude.
  Zhongju Liao.
  Business Strategy and the Environment. October 11, 2017
  Drawing on market orientation theory, innovation theory and the theory of reasoned action, this paper integrates market orientation, environmental attitude and firms' environmental innovation into a model to establish a relationship among these three variables. By taking 247 manufacturing firms in China as the research sample and by analyzing the data using SPSS19.0, we found that customer and competitor orientation have a significant and positive impact on firms' environmental innovation, while the effect of inter‐functional coordination is not significant. Furthermore, environmental attitude plays a positive moderating role between customer orientation and firms' environmental innovation, as well as between competitor orientation and firms' environmental innovation. Finally, the results of the study are discussed, and the theoretical and practical significance of this study is clarified further. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  October 11, 2017   doi: 10.1002/bse.1988   open full text
• Institutional Pressures and Environmental Management Practices: The Moderating Effects of Environmental Commitment and Resource Availability.
  Shanyong Wang, Jun Li, Dingtao Zhao.
  Business Strategy and the Environment. September 12, 2017
  With the deterioration of the environment and the shortage of natural resources, firms are facing increasing pressures to implement environmental management practices in their daily operation management. Drawing on institutional theory and environmental management literatures, this research tries to explore how institutional pressures motivate firms to implement environmental management practices, and how such effects are moderated by firms' environmental commitment and resource availability. The results of a survey of 188 Chinese firms suggest that regulatory pressures and normative pressures are positively and significantly related to firms' propensity to implement environmental management practices. Moreover, the results indicate that firms' environmental commitment positively moderates the relationships between institutional pressures and environmental management practices, while firms' resource availability plays different roles depending on the types of pressure (regulatory or normative pressures). Implications and suggestions for future research are provided. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  September 12, 2017   doi: 10.1002/bse.1983   open full text
• Substantive or Symbolic Environmental Strategies? Effects of External and Internal Normative Stakeholder Pressures.
  David G Hyatt, Nicholas Berente.
  Business Strategy and the Environment. August 28, 2017
  Different forms of stakeholder pressures drive different environmental strategies in organizations. This article differentiates between internal and external normative stakeholder pressures to test their potentially unique effects on environmental strategies. The findings suggest that internal, normative stakeholder pressures primarily drive substantive commitments to environmental practices, reflecting an internalized, voluntary commitment to the natural environment and dedication to environmental leadership by the firm. External, normative pressures instead primarily drive symbolic commitments to environmental practices, aimed at managing the image of the organization to establish and reinforce an appearance of commitment to the natural environment. This novel perspective accounts for the institutionally plural contexts of organizations and their environments, in which internal pressures directly drive substantive environmental commitments and external pressures drive symbolic responses. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  August 28, 2017   doi: 10.1002/bse.1979   open full text
• Green Product Development and Product Portfolio Management: Empirical Evidence from an Emerging Economy.
  Daniel Jugend, Joao Victor Rojas Luiz, Charbel Jose Chiappetta Jabbour, Sérgio Luis Silva, Ana Beatriz Lopes de Sousa Jabbour, Manoel Henrique Salgado.
  Business Strategy and the Environment. August 28, 2017
  Few studies have explored the relationship between green products development (GPD) and product portfolio management (PPM). When considering evidence from emerging economies, the knowledge gap is even deeper. Consequently, the objective of this work is to analyze how green and traditional practices of new product development (NPD) influence product portfolio and NPD performance. In addition, we explore how GPD opens new markets and technology opportunities. The empirical evidence is based on a sample of firms that are developing products and belong to innovative industrial sectors in Brazil. In general, the framework developed and tested in this research indicates the following: (i) the adoption of GPD practices significantly influences product portfolio performance; (ii) the adoption of GPD practices tends to generate positive results with regard to obtaining technological and market opportunities; (iii) the adoption of traditional PPM practices influences the dependent factors. Unexpectedly, correlations between a firm's size or age and its performance were not confirmed. This is the first empirical evidence relating GPD, PPM, and market and technology opportunities in Brazil. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  August 28, 2017   doi: 10.1002/bse.1977   open full text
• Corporate Carbon and Financial Performance: The Role of Emission Reductions.
  Stefan Lewandowski.
  Business Strategy and the Environment. August 22, 2017
  This article uses econometric techniques to examine the effect of corporate carbon performance on corporate financial performance. I extend the existing literature in this research field by differentiating between two measurement perspectives: carbon performance expressed as annually reported carbon dioxide (CO2) emission equivalents and improvements in carbon performance over time. Thereby, the article re‐addresses the research question ‘when and how does it pay to be green?’ in the context of carbon emissions and climate change mitigation. Using a nonlinear modeling technique, the findings indicate that it pays to be green for companies with superior carbon performance but not for companies with inferior carbon performance. The results also show that carbon emission mitigation is linearly and significantly positive related to return on sales (ROS) but negatively related to Tobin's q. These contradictory findings help us to understand why – in spite of growing regulatory pressure – companies have been slow to respond with effective action to tackle climate change beyond marginal efficiency improvements that correspond to ‘low‐hanging fruits’. The empirical analysis is based on an unbalanced sample of 7625 firm‐year observations covering carbon emission data (Scope 1 and Scope 2) for 1640 international firms from 2003 to 2015. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  August 22, 2017   doi: 10.1002/bse.1978   open full text
• Does Financial Development Affect Environmental Degradation? Evidence from the OECD Countries.
  George E. Halkos, Michael L. Polemis.
  Business Strategy and the Environment. July 21, 2017
  In this study, building a simple model that incorporates static and dynamic elements, the relationship of financial development and economic growth to environmental degradation is investigated together with the validation of the Environmental Kuznets Curve (EKC) hypothesis. Our analysis is based on an unbalanced panel data set covering the OECD countries over the period 1970–2014. Our approach thoroughly accounts for the presence of cross‐sectional dependence between the sample variables and utilizes second generation panel unit root tests in order to investigate possible cointegration relationships. The empirical findings do indicate that local (NOx per capita emissions) and global (CO2 per capita emissions) pollutants redefine the EKC hypothesis when we account for the presence of financial development indicators. Specifically, in the case of global pollution an N‐shape relationship is evident in both static and dynamic frameworks, with a very slow adjustment. Lastly, our study calls for a strengthening of the effectiveness of environmental degradation policies by ensuring sustainability of the OECD banking system in order to drastically reduce emissions. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  July 21, 2017   doi: 10.1002/bse.1976   open full text
• What Drives Green Product Development and How do Different Antecedents Affect Market Performance? A Survey of Italian Companies with Eco‐Labels.
  Rosa Maria Dangelico.
  Business Strategy and the Environment. July 21, 2017
  Green products can play a key role in the achievement of sustainable development goals. Through a survey of 188 Italian companies with eco‐labeled green products, this study aims at understanding the relative importance of several motivations to develop green products, the influence of different motivations and firm characteristics on green product features (radicalness and differentiation), and which factors affect market performance of green products. This study reports a ranking of 49 motivations, highlighting that the most relevant are related to the prospect of market benefits. Results also show that product radicalness and differentiation have partially different antecedents in terms of motivations, while being a family firm positively influences only product differentiation. With regards to factors affecting market performance of green products, prospect of market benefits, availability of new technologies, firm foreign ownership, product radicalness and differentiation show a positive influence, while firm age displays a negative effect. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  July 21, 2017   doi: 10.1002/bse.1975   open full text
• Mindfulness‐based Business Strategies and the Environment.
  
  Business Strategy and the Environment. July 11, 2017
  No abstract is available for this article.

  July 11, 2017   doi: 10.1002/bse.1972   open full text
• How Does Open Innovation Modify the Relationship between Environmental Regulations and Productivity?
  Die Hu, Yuandi Wang, Yu Li.
  Business Strategy and the Environment. July 03, 2017
  With increasingly severe environmental regulations, a pressing issue has been the need for firms to develop efficient strategies to achieve environmental protection and high productivity. Several environmental experts argue that firms can respond to environmental regulations through innovation; however, the question of how to innovate is unanswered in the environmental literature. Therefore, this study focuses on the open innovation strategy approach to respond to environmental regulations and maintain high productivity by incorporating the idea of innovation management. We first divide open innovation strategy into two modes of external technology acquisition: foreign and domestic. Next, we examine these modes' mediation effects on environmental regulations and productivity. In addition, we test the moderating effect of internal R&D on the relationship between external technology acquisition and productivity. Using data on 35 Chinese industrial sectors from 2001 to 2010, the empirical findings show that foreign technology significantly and positively mediates the link between environmental regulations and productivity, while domestic technology does not. Internal R&D investment, as an absorptive capacity, positively moderates the effect of foreign technology; however, it negatively moderates the effect of domestic technology on productivity. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  July 03, 2017   doi: 10.1002/bse.1974   open full text
• The Power of Stakeholders' Voice: The Effects of Social Media Activism on Stock Markets.
  Pablo Gomez‐Carrasco, Giovanna Michelon.
  Business Strategy and the Environment. July 03, 2017
  Building on social movement theory, this study assesses the influence of social media activism on the stock market performance of targeted firms. We focus on information published on Twitter by two critical stakeholders: consumer associations and trade unions. To the extent that social media represent a valid medium to mobilize stakeholders' activism, protests on Twitter may damage firm reputation, leading to capital market reactions. Using a corpus of over 1.5 million tweets referring to Spanish listed banks, we study the impact of activism by looking at targeted firms' abnormal variations in price and trading volume. Our findings suggest that the Twitter activism of key stakeholders has a significant impact on investors' decisions. Further, our empirical analyses indicate that the mechanisms affecting investors' behavior differ depending on the characteristics of the stakeholder group. Hence, this study contributes to understanding how social movements influence corporate behavior via social media. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  July 03, 2017   doi: 10.1002/bse.1973   open full text
• Intra‐Sectoral Differences in Climate Change Strategies: Evidence from the Global Automotive Industry.
  Matthias Damert, Rupert J. Baumgartner.
  Business Strategy and the Environment. June 06, 2017
  Companies are increasingly challenged for action on climate change. Most studies on business responses to climate change focus on cross‐sector comparisons and neglect intra‐sectoral dynamics. This paper investigates the influence of supply chain position and regional affiliation on climate change strategies within a particular industry. We present a generic framework integrating both market and non‐market responses to climate change. We argue that climate change strategies comprise several corporate activities that have different foci of interaction and four main objectives: governance, innovation, compensation and legitimation. Using a global sample of 116 automotive companies, we conduct a cluster analysis and identify four types of strategy. We find that the sophistication of automobile manufacturers' strategies significantly differs from that of suppliers. Regional affiliation and firm size prove to be determinants of the strategy type pursued. We cannot find evidence for a relationship between financial performance and a company's strategic approach to climate change. © 2017 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd

  June 06, 2017   doi: 10.1002/bse.1968   open full text
• Effects of Environmental Regulations on Trade Flow in Manufacturing Sectors: Comparison of Static and Dynamic Effects of Environmental Regulations.
  Jung‐Ah Hwang, Yeonbae Kim.
  Business Strategy and the Environment. June 06, 2017
  This study analyzes environmental regulations and trade performance in manufacturing sectors under static and dynamic conditions. We investigate environmental innovation induced by environmental regulations and the spillover effect on manufacturing sectors, determine whether the spillover effect offsets any negative effect found under static conditions and analyze environmental regulations on the import side. For this, we formulate a trade model that incorporates the environmental innovation equation. We analyze environmental tax, energy tax and the Emissions Trading System (ETS) using strong, balanced panel data from 19 OECD countries for 1996–2009. The results reveal that the static effect of energy tax on exports is negative, but the dynamic effect is positive; however, the positive effect does not offset the negative effect. In short, environmental tax and energy tax decrease the international competitiveness of the manufacturing sectors. Environmental tax and energy tax limit imports, especially in the high‐energy consumption group. The analyses of the ETS further complicate the overall picture. It shows that the further research on the effects of ETS on manufacturing firms' competitiveness over their foreign competitors in the global is required. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  June 06, 2017   doi: 10.1002/bse.1965   open full text
• Achieving Sustainable Development by Collaborating in Green Product Innovation.
  Lisa Melander.
  Business Strategy and the Environment. May 30, 2017
  Collaboration in green product innovation (GPI) is becoming increasingly important, and research on such innovation has grown in recent years. This study reviews literature on external collaborations in GPI to investigate drivers, inter‐organizational factors and intra‐organizational factors for such collaborations. The review includes a total of 67 papers. Survey studies and case studies are the methodologies applied most in the reviewed papers. The most common collaborators are suppliers and customers. Drivers include economic factors, regulations, customer demand, competitiveness and firm performance. Numerous inter‐organizational collaboration factors are presented and summarized in terms of partner selection, relationship management, knowledge access and agreements. Intra‐organizational factors mainly concern cross‐functional collaboration, capabilities and internal practices. Implications for policy and practitioners are presented. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  May 30, 2017   doi: 10.1002/bse.1970   open full text
• ‘Carrots for Corporate Sustainability’: Impacts of Incentive Inclusiveness and Variety on Environmental Performance.
  Frederik Dahlmann, Layla Branicki, Stephen Brammer.
  Business Strategy and the Environment. May 26, 2017
  In this paper we explore the role that managerial incentives play in improving corporate environmental performance, finding that greater inclusiveness of incentive beneficiaries and greater variety of incentive types are important factors in firms' incentive schemes. Drawing on a large dataset of multinational enterprises, our results suggest that including more beneficiaries from different levels within the corporate hierarchy and offering both monetary and non‐monetary rewards are generally more likely to lead to reductions in corporate greenhouse gas emissions. Developing two principles of incentive design, inclusiveness and variety, and the conceptualization of patterns of these in organizations as configurations of incentives, our research contributes substantially to normative advice regarding the relative effectiveness of alternative systems of environmental incentives. Such an understanding of the potential of incentives is critical to informing how firms address complex problems such as sustainability in the context of increasingly extended organizational hierarchies and designs. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  May 26, 2017   doi: 10.1002/bse.1971   open full text
• Setting Strategies outside a Typical Environmental Perspective Using ISO 14001 Certification.
  Andrea Chiarini.
  Business Strategy and the Environment. May 17, 2017
  The scope of this research is to evaluate whether ISO 14001 certification could be used as a strategic vehicle for achieving objectives that are not strictly linked to a technical and operative perspective, and to determine what these objectives are. In order to find these objectives, a review of the literature was first conducted to determine what they were and seven hypotheses emerged. The hypotheses concerned the possibility of using ISO 14001 as a strategy for achieving objectives related to finance and turnover, customer satisfaction, community satisfaction, employee satisfaction, health and safety in the workplace, and growth and skills of employees. The validity of each hypothesis was tested via a survey of 164 managers of European manufacturing companies. This research produced interesting findings, some of which contradicted the findings of other research, in particular for financial and turnover objectives. In addition, the research revealed interesting relationships between employees' skills and issues such as Design for the Environment and Sustainability. Furthermore, some limitations of ISO 14001 with respect to the Eco‐Management and Audit Scheme regulation emerged. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  May 17, 2017   doi: 10.1002/bse.1969   open full text
• Sustainable retailing – influencing consumer behaviour on food waste.
  C. William Young, Sally V. Russell, Cheryl A. Robinson, Phani Kumar Chintakayala.
  Business Strategy and the Environment. May 11, 2017
  The aim of this research was to examine the influence of a UK national retailer on its customers' food waste behaviour. Using six communication channels (in‐store magazine, e‐newsletter, Facebook site, product stickers and in‐store demonstrations), Asda presented standard food waste reduction messages to its customers during two time limited periods in 2014 and 2015. Six national surveys over 21 months tracked customers' self‐reported food waste. Our results showed that the combined communication channels and repeated messages over time had a significant effect on reducing food waste of customers. Surprisingly, customers who said they did not recall seeing the messages also reduced their food waste, showing the wider influence of interventions. Those who saw a food waste reduction message saved an estimated £81 annually from reducing food waste. The main conclusion of this paper is that retailers can influence the pro‐environmental behaviour of customers using conventional communication channels; however, repeat messages are needed in order to have a long‐term impact. © 2017 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd

  May 11, 2017   doi: 10.1002/bse.1966   open full text
• Coopetition as a Potential Strategy for Corporate Sustainability.
  Katherine L. Christ, Roger L. Burritt, Mohsen Varsei.
  Business Strategy and the Environment. May 05, 2017
  The paper is among the first to consider coopetition strategy in the context of corporate level sustainability. Through examination of literature and an example of an actual coopetitive agreement in wine industry logistics, consideration is given to the potential benefits of and problems with sustainability‐based coopetition strategies. The research, based on publicly available information, leads to suggestions for future study into specific theoretical, methodological and pragmatic aspects of sustainability‐related coopetition strategies. At a theoretical level, research into the dynamics of coopetition strategies and relationships between win–win and trade‐offs within economic, environmental and social performance settings is suggested. As the field of study continues to emerge, a broader set of exploratory case studies involving collaborative engagement and participation of practitioners is needed. Attention is also drawn to a broad range of settings available for further research into the design and implementation of sustainability‐related coopetitive strategies exploring advantages for corporations and society. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  May 05, 2017   doi: 10.1002/bse.1967   open full text
• Management for Sustainable Development and Its Impact on Firm Value in the SME Context: Does Size Matter?
  Mª Eugenia López‐Pérez, Iguácel Melero, F Javier Sese.
  Business Strategy and the Environment. May 02, 2017
  With the increasing demands from society towards sustainable and social responsible business practices, management for sustainable development has become a cornerstone to understand the success of many firms in the current competitive context. This article investigates corporate social responsibility (CSR) and examines the links between CSR practices and business outcomes – both financial and non‐financial (i.e. image and corporate reputation) – for small‐to‐medium sized enterprises (SMEs). In addition, we also attempt to determine whether the impact of such relationships is moderated by firm size. To this end, we carry out a quantitative study using PLS techniques to analyze a sample of SME owners and managers, with a view to test the proposed model in the light of social capital theory. In this sense, our study is pioneering in that it aims to determine – from a quantitative viewpoint – the degree to which firm size has a moderating impact on a series of relevant CSR‐driven outcomes. The data suggest that, in SME contexts, CSR impacts corporate reputation, brand image and financial value of the company. Importantly, we find that the larger the firm, the greater the intensity of the relationships linking CSR and business outcomes. Hence, our findings have important implications for CSR implementation in SME contexts. Finally, we provide a series of guidelines aimed at maximizing the effectiveness of CSR‐based business practices. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  May 02, 2017   doi: 10.1002/bse.1961   open full text
• Do Board's Corporate Social Responsibility Strategy and Orientation Influence Environmental Sustainability Disclosure? UK Evidence.
  Akrum Helfaya, Tantawy Moussa.
  Business Strategy and the Environment. April 19, 2017
  The environmental implications of corporate economic activities have led to growing demands for firms and their boards to adopt sustainable strategies and to disseminate more useful information about their activities and impacts on environment. This paper investigates the impact of board's corporate social responsibility (CSR) strategy and orientation on the quantity and quality of environmental sustainability disclosure in UK listed firms. We find that effective board CSR strategy and CSR‐oriented directors have a positive and significant impact on the quality of environmental sustainability disclosure, but not on the quantity. Our findings also suggest that the existence of a CSR committee and issuance of a stand‐alone CSR report are positively and significantly related to environmental sustainability disclosure. When we distinguish between firms with high and low environmental risk, we find that the board CSR/sustainability practices that affect the quantity (quality) of environmental sustainability disclosure appear to be driven more by highly (lowly) environmentally sensitive firms. These results suggest that the board CSR/sustainability practices play an important role in ensuring a firm's legitimacy and accountability towards stakeholders. Our findings shed new light on this under‐researched area and could be of interest to companies, policy‐makers and other stakeholders. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  April 19, 2017   doi: 10.1002/bse.1960   open full text
• Measuring the Choice of Environmental Sustainability Strategies in Creating a Competitive Advantage.
  Philip R. Walsh, Rachel Dodds.
  Business Strategy and the Environment. April 17, 2017
  Environmental sustainability has often been claimed as a means to providing a competitive advantage by encouraging efficiencies, attracting customers and obtaining business. This work critically considers this idea in the context of the hotel industry by comparing the strategic intent and implementation of sustainability initiatives in hotels across North America. Environmental sustainability strategies can employ a low cost, a differentiated or a hybrid (a combination of the two) approach to creating a competitive advantage. Controlling for the type and age of hotel we find that the hotels sampled in this study used a combination of all three approaches but tended to rely on their need to create environmental sustainability legitimacy by placing an emphasis on differentiation through environmental sustainability branding. A lack of recognition by management of the contribution to their future economic success that low cost strategies can provide has implications for hotel owners. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  April 17, 2017   doi: 10.1002/bse.1949   open full text
• Sustainable Development, Sustainability Leadership and Firm Valuation: Differences across Europe.
  Maria del Mar Miralles‐Quiros, Jose Luis Miralles‐Quiros, Irene Guia Arraiano.
  Business Strategy and the Environment. April 17, 2017
  Sustainable development is nowadays a high priority for firms all over the world. Consequently, numerous firms have increased their social responsibility initiatives, reinforcing the credibility and trust of their stakeholders. However, prior research about the relevance of sustainability leadership for the European investment community is scarce. In this context, the aim of this study is to examine whether sustainability leadership – proxied by membership of the Dow Jones Sustainability Index Europe – is value relevant for investors on the 10 major European stock markets over the 2001–2013 period. Our overall results reveal that there exist significant differences across markets. These findings are relevant especially for investors, but also for the managers of listed firms, market regulators and policymakers. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  April 17, 2017   doi: 10.1002/bse.1964   open full text
• Innovation Capacity and the Implementation of Eco‐innovation: Toward a Contingency Perspective.
  Kuen‐Hung Tsai, Yi‐Chuan Liao.
  Business Strategy and the Environment. April 17, 2017
  This study develops a framework by drawing on the perspectives of contingency theory to investigate how innovation capacity affects eco‐innovation. The examination covers four moderators, including customer requirement, export destination, environmental regulation and government subsidy, and focuses on the types of eco‐innovation concerning pollution and waste. A sample of 2964 manufacturing firms from the Taiwanese Technological Innovation Survey is utilized to test the hypotheses. A moderated hierarchical logit method is adopted to analyze the data. The results overall suggest that the effect of innovation capacity on eco‐innovation depends on the levels of the four moderators. Specifically, the results show that innovation capacity has different effects on eco‐innovation when customers have a demand for eco‐innovation, export markets have high environmental awareness, future environmental regulations are expected, and the government provides a subsidy for environmental innovation. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  April 17, 2017   doi: 10.1002/bse.1963   open full text
• The Impact of Carbon Performance on Climate Change Disclosure.
  Grigoris Giannarakis, Eleni Zafeiriou, Nikolaos Sariannidis.
  Business Strategy and the Environment. April 05, 2017
  In the light of the significant role of environmental accounting in sustainable development, this study examines whether climate change disclosure reflects a firm's environmental performance. The novelty of the study stands on the approaches adopted to describe environmental performance. The first approach concerns performance in terms of output, direct and indirect greenhouse gas emissions, while the second one is based on environmental intention of mitigating climate change, including climate change policy and emission reduction initiatives. The Climate Performance Leadership Index is employed as a measure for climate change disclosure level, incorporating initiatives contributing to climate change mitigation, adaptation and transparency. Ordered logit regression is the appropriate methodology for the data employed concerning firms listed on FTSE 350. According to our findings, environmental performance for both adopted approaches entails a positive effect on climate change disclosure, a result that is consistent with voluntary disclosure theory. It is inferred that firms cannot manipulate their information reflecting their actual environmental performance and adopting a forthright and factual attitude towards sustainable development. Finally, findings provide an insight into managers' strategic behavior towards climate change issues. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  April 05, 2017   doi: 10.1002/bse.1962   open full text
• Eco‐efficiency: GHG reduction related environmental and economic performance. The case of the companies participating in the EU Emissions Trading Scheme.
  Albert Czerny, Peter Letmathe.
  Business Strategy and the Environment. April 05, 2017
  Empirical findings on eco‐efficiency are still inconsistent. Using survey data based on a sample of 283 European carbon‐intensive companies participating in the EU ETS between 2005 and 2012, this article investigates the causal relationships between the corporate environmental strategy focus, proactive GHG reductions and related environmental and economic performance, while taking into account an important contingent factor: the initial state of technology. The study's findings show that eco‐efficiency was generally not obvious among the companies during the first two trading periods. It furthermore indicates that GHG emissions were generally not reduced cost‐effectively, as companies' intrinsic values were more likely to have influenced carbon reduction related decisions to a greater degree than the economic incentives resulting from the market mechanisms of the ETS. The results not only shed light on firm behavior with regard to technology management but also provide insights for policy makers into how to stimulate more cost‐effective environmental investments. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  April 05, 2017   doi: 10.1002/bse.1951   open full text
• Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models.
  Steve Evans, Doroteya Vladimirova, Maria Holgado, Kirsten Van Fossen, Miying Yang, Elisabete A. Silva, Claire Y. Barlow.
  Business Strategy and the Environment. April 05, 2017
  Business model innovation has seen a recent surge in academic research and business practice. Changes to business models are recognized as a fundamental approach to realize innovations for sustainability. However, little is known about the successful adoption of sustainable business models (SBMs). The purpose of this paper is to develop a unified theoretical perspective for understanding business model innovations that lead to better organizational economic, environmental and social performance. The paper examines bodies of literature on business model innovation, sustainability innovation, networks theory, stakeholder theory and product–service systems. We develop five propositions that support the creation of SBMs in a unified perspective, which lays a foundation to support organizations in investigating and experimenting with alternative new business models. This article contributes to the emerging field of SBMs, which embed economic, environmental and social flows of value that are created, delivered and captured in a value network. It highlights gaps for addressing the challenges of business model innovation for sustainability and suggests avenues for future research. © 2017 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd

  April 05, 2017   doi: 10.1002/bse.1939   open full text
• Factors Influencing Consumer Willingness to Pay for Low‐Carbon Products: A Simulation Study in China.
  Yong Liu, Dewei Yang, Hengzhou Xu.
  Business Strategy and the Environment. March 30, 2017
  Consumer choice behavior is crucial to supporting cleaner production and plays an essential role in low‐carbon development and environmental policy‐making. Therefore, combining system dynamics with an agent‐based model (SD–AB), the present study explores influencing factors on both providers' and consumers' sides. Using empirical data from selected firms and a questionnaire survey of residents in China, the simulation results revealed that consumers' low‐carbon awareness and income have little effect on their willingness to pay for low‐carbon products. In contrast, some factors have an obvious effect on consumers' willingness to pay for low‐carbon products, including the delivery speed of low‐carbon products, consumers' patience and degree of satisfaction. Thus, companies that provide low‐carbon products should be more focused on customer expectations and should ensure timely and efficient delivery to consumers. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  March 30, 2017   doi: 10.1002/bse.1959   open full text
• European Pension Funds and Sustainable Development: Trade‐Offs between Finance and Responsibility.
  Riikka Sievänen, Hannu Rita, Bert Scholtens.
  Business Strategy and the Environment. March 28, 2017
  Pension funds try to account for sustainable development in their operations. This mainly translates in responsible investing. We investigate how this interacts with the financial objectives. We use a survey of more than 250 pension funds based in 15 European countries. Multinomial logistic regression is used to find out how pension funds trade off sustainable development and financial objectives. Our findings suggest that pension funds that have not included responsibility in their strategy and investments have a clear priority regarding their financial performance. Pension funds who integrate sustainable development in their strategy can bring balance between finance and responsibility. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  March 28, 2017   doi: 10.1002/bse.1954   open full text
• Doing More with Less: Building Dynamic Capabilities for Eco‐Efficiency.
  Jean D. Kabongo, Olivier Boiral.
  Business Strategy and the Environment. March 28, 2017
  This article sheds light on the manner in which managers perceive, develop and integrate dynamic capabilities for eco‐efficient activities inherent to industrial ecology. The research employs a case study of 12 Canadian facilities involved in the processing of a wide variety of waste materials. Findings from the experiences of 60 managers interviewed reveal that capabilities for industrial ecology largely depend upon the integration and coordination of competencies, innovations and new routines related to several functional areas: innovation and technological development; control of residual material flows; adjustments in human resources; management of environmental constraints; and networking and marketing. These dynamic capabilities are developed and integrated through a four‐stage process: local experimentation, internal operationalization, enlargement/cross‐functional integration and strategic consolidation. The paper contributes to the extant literature related to dynamic capabilities and the natural resource‐based view by offering an understanding of those factors necessary for the success of industrial ecology, and also by demonstrating the functional and dynamic nature of such factors. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  March 28, 2017   doi: 10.1002/bse.1958   open full text
• Understanding the Impact of Green Initiatives and Green Performance on Financial Performance in the US.
  Suhong Li, Thomas Ngniatedema, Fang Chen.
  Business Strategy and the Environment. March 28, 2017
  Sustainable development has received increasing attention in recent literature, driven by increased environmental concerns. We study the influence of green initiatives and green performance on financial performance for the top 500 publicly traded companies in the USA by industry sector. Green initiatives are measured using the concepts Green Pay Link, Sustainability Themed Committee and Audit. Green performance is measured using Energy Productivity, Carbon Productivity, Water Productivity, Waste Productivity and Green Reputation. The results show that green initiatives have a negative impact on Energy Productivity and Green Reputation, and that both green initiatives and green performance have a significant impact on financial performance. These results are mixed and vary by industry sector. The results suggest that companies take a reactive, not proactive, approach in the implementation of green initiatives. In addition, the results suggest that the impact of green performance on financial performance is not immediate, and may take more than a year for companies to observe. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  March 28, 2017   doi: 10.1002/bse.1948   open full text
• Examining the effect of managing GHG emissions on business performance.
  G Capece, F Di Pillo, M Gastaldi, N Levialdi, M Miliacca.
  Business Strategy and the Environment. March 27, 2017
  Unprecedented climate changes menace not only the planetary ecosystem, but also the stability of the global economy. The European Union has for years promoted the transition of the economy towards a model of sustainable development, stimulating companies to adopt a strategic approach based on quality and environmental efficiency, rather than on quantity and reduction of costs. The aim of this study is to analyze how greater attention to the environmental effects of a company's activities (environmental management) and monitoring and reduction of CO2 emissions (emission management) can improve the company's economic performance. We analyze the financial data and greenhouse gas (GHG) emission figures for a sample of large Italian companies, searching for potential relations between increasing returns on capital invested and the reduction of pollutants. The results show that the companies examined are ever more attentive to environmental policies, and that those with a green vision achieve better operating performance. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  March 27, 2017   doi: 10.1002/bse.1956   open full text
• Environmental Behavior and MNEs: A Strategy Pulled by Stakeholder Engagement.
  Blanca L. Delgado‐Márquez, Luis Enrique Pedauga.
  Business Strategy and the Environment. March 20, 2017
  This research attempts to examine how multinational enterprises (MNEs) from regulated and non‐regulated industries shape their environmental strategies with regard to environmental disclosure and performance. Results reveal that regulated (non‐regulated) MNEs display worse (better) environmental performance levels and disclose less (more) environmental information than MNEs operating in non‐regulated (regulated) environments. We argue that this strategy is set as an answer to cope with legitimacy problems faced by MNEs as well as to respond to increased demands from stakeholder groups. We contend that our findings may contribute to existing literature and be of relevance for practitioners. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  March 20, 2017   doi: 10.1002/bse.1955   open full text
• Does Innovation Drive Environmental Disclosure? A New Insight into Sustainable Development.
  Camélia Radu, Claude Francoeur.
  Business Strategy and the Environment. March 20, 2017
  Sustainable development is a hot topic in business and the media, and there is a growing demand for reliable environmental disclosure from a wide range of stakeholders. Ethical performance, including social and environmental performance, is actively scrutinized. A firm's stakeholders expect reliable disclosure to correctly assess its performance. Research on the link between environmental disclosure and environmental performance shows mixed results. Both a positive and a negative association have been found. This study reexamines this association by considering environmental innovation as a key determinant of environmental disclosure. We find that environmental performance and environmental innovation jointly determine environmental disclosure. At low levels of environmental performance, innovative firms tend to disclose more than their non‐innovative counterparts to inform stakeholders about their innovation and strategy to obtain an improved environmental performance. This disclosure gap tends to diminish as innovative firms become better environmental performers. The higher levels of environmental disclosure are closely associated with firms' environmental performance for both groups. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  March 20, 2017   doi: 10.1002/bse.1950   open full text
• Toward A Place‐Based Understanding of Business Sustainability: The Role of Green Competitors and Green Locales in Firms' Voluntary Environmental Engagement.
  Jennifer DeBoer, Rajat Panwar, Jorge Rivera.
  Business Strategy and the Environment. March 20, 2017
  Management research has extensively considered who, what, when, why, which and how aspects pertaining to firms' voluntary environmental practices, yet the where aspect, which would consider the role of a firm's location on its environmental practices, has received remarkably less attention. We explore three research questions relating social and physical attributes of a firm's location with its engagement in a voluntary environmental program (VEP). Drawing on a sample of hotels participating in a Costa Rican VEP, we find that the number of VEP certified competitors (i.e. green competitors) and firm proximity to a sacrosanct environment (i.e. a green locale) are positively related to a firm's level of VEP engagement. We also find an interaction effect such that the relationship between the number of VEP certified competitors and the level of VEP engagement is positively moderated by firm proximity to a green locale. We argue that firms' voluntary environmental engagement can be enhanced by developing green clusters amid green corridors. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  March 20, 2017   doi: 10.1002/bse.1957   open full text
• Determinants of monetary penalties for environmental violations.
  Ahsan Habib, Md Borhan Uddin Bhuiyan.
  Business Strategy and the Environment. February 23, 2017
  This research investigates the likely determinants of monetary penalties for poor environmental performance. We retrieve data from Bloomberg on the monetary penalties imposed on companies in the European Union (EU) found to have performed poorly in corporate social responsibility (CSR), and particularly in the environmental aspects of CSR. Our primary findings reveal that firms with high levels of greenhouse gas and hazardous waste emissions are more likely to receive monetary penalties. On the other hand, firms that invest in green supply chain practices and disclose environment‐related matters avoid monetary penalties more. We also find that firms having executive compensation linked with environmental compliance face more monetary penalties. This finding adds a new dimension to the voluminous research on executive compensation that has investigated primarily the effects of cash and stock option‐based compensation schemes on pay–performance sensitivities. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  February 23, 2017   doi: 10.1002/bse.1947   open full text
• Institutional Constraints, Stakeholder Pressure and Corporate Environmental Reporting Policies.
  Isabel Gallego‐Alvarez, Eduardo Ortas, José Luis Vicente‐Villardón, Igor Álvarez Etxeberria.
  Business Strategy and the Environment. February 23, 2017
  Within the theoretical framework of socio‐political economics, and more specifically of stakeholder theory, this work examines whether companies operating under different institutional constraints and stakeholder pressure tend to emphasize different models of corporate environmental reporting. Furthermore, the paper tests whether different corporate environmental reporting policies are driven by the countries' corporate governance systems. A sample of 3931 international companies was examined through a logistic biplot and conditional mean linear regression models. The main results reveal that companies follow two distinct environmental reporting approaches, which depend on specific stakeholders and institutional requirements. The first model, which is followed by firms within codified law countries, mostly focuses on water and emissions. The second approach, mainly followed by companies operating in common law countries, emphasizes materials and energy issues. This finding reveals that companies gradually modify their environmental strategies to make themselves more compatible with the characteristics of the social and institutional environment, which will result in several corporate benefits. The paper provides several outstanding implications for companies' strategic managers, national institutions and firms' stakeholders, especially for investors and customers. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  February 23, 2017   doi: 10.1002/bse.1952   open full text
• Sustainability in The Banking Industry: A Strategic Multi‐Criterion Analysis.
  Rakesh Raut, Naoufel Cheikhrouhou, Manoj Kharat.
  Business Strategy and the Environment. February 22, 2017
  The current paper aims to develop an effective and integrated MCDM model for the evaluation of the sustainability practices in the banking services, employing a multi‐stage, fuzzy MCDM model that integrates the Balanced Scorecard, fuzzy AHP and fuzzy TOPSIS. The approach aims to evaluate sustainability from the following four perspectives: financial stability, customer relationship management, internal business process and environment‐friendly management system. A real implementation dealing with the six largest commercial banks in India is discussed. The results highlights the critical aspects of the evaluation criteria and the issues in improving sustainable banking performances. Regarding the sustainability issues, it is shown that the environment‐friendly management system takes a back seat compared with the other criteria. Furthermore, the results show that there is a misunderstanding of the role that corporate social responsibility plays with respect to environmental issues. The developed evaluation model offers a valuable management tool for banks' administrators by assisting them in strategic choices in order to achieve their objective of sustainability and sustainable banking. Moreover, it offers a measuring tool with unique features that complements the emerging trend of integrated reporting considering uncertainty. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  February 22, 2017   doi: 10.1002/bse.1946   open full text
• Assessing the Effects of Climate Change Regulations on the Business Community: A System Dynamic Approach.
  Thomas A. Tsalis, Ioannis E. Nikolaou.
  Business Strategy and the Environment. February 15, 2017
  Based on the business environmental literature and system dynamics, this paper develops a simulation model for managing the business risks derived from climate change. In particular, the purpose of this paper is to transform the valuable findings from the literature regarding climate change and corporate implications into an effective business management model with a broad applicability, regardless of the size of the business or the sector in which it operates. A methodology consistent with the basic principles of the system dynamic modeling process is developed, and a case study is designed to determine the level of completeness of the simulation model and its ability to address different aspects of business performance. To do so, three different scenarios have been simulated to analyze the reactive, proactive and inactive stance of managers against climate change risks. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  February 15, 2017   doi: 10.1002/bse.1953   open full text
• A Personal Construct Psychology Based Investigation Into A Product Service System For Renting Pushchairs To Consumers.
  Maurizio Catulli, Nick Reed.
  Business Strategy and the Environment. February 01, 2017
  This paper explores how consumers construe a product service system (PSS) for the supply of pushchairs. A PSS is a system of products, services, networks of actors and supporting infrastructure designed to be more sustainable than traditional business models. PSSs face an implementation challenge in consumer markets, and this case based research explores some reasons for this. The study applies personal construct psychology (in particular, the repertory grid technique), which has not previously been used in relation to researching PSSs. Results suggest that a PSS might be difficult to implement in relation to pushchairs. Renting pre‐used equipment may meet resistance because of a perceived risk that acquisition by this means might endanger infants. Participants in the study construed buying new products from specialist infant product shops as being the best way of acquiring them. Accordingly, PSS providers may, for instance, have to implement certified quality assurance processes in order to reassure consumers. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  February 01, 2017   doi: 10.1002/bse.1944   open full text
• The Influence of Board Composition on Sustainable Development Disclosure.
  Mohammad Jizi.
  Business Strategy and the Environment. January 17, 2017
  Despite knowing the potential effect of social reporting on firms' continuity, there is limited research into the influence of the composition of boards of directors on CSR disclosure. This paper adds to the emerging CSR literature empirical evidence by examining how board composition relates to a firm's social and environmental disclosure as well as the implementation of social policies. Using a sample of FTSE 350 firms for the period 2007–2012, the results show that higher board independence facilitates the conveying of firms' good citizenship image through enhancing societal conscience. The results also show that female participation on boards is favorably affecting CSR engagement and reporting as well as the establishment of ethical policies. Hence, the research suggests that boards with higher female participation and independence boost the legitimacy of CSR reporting. Board gender diversity and independence facilitates directing part of the firm's scarce resources toward value maximizing social projects and subsequent reporting on these. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  January 17, 2017   doi: 10.1002/bse.1943   open full text
• Exploring the Framework Development Status for Sustainability in Supply Chain Management: A Systematic Literature Synthesis and Future Research Directions.
  Zulfiquar N. Ansari, Ravi Kant.
  Business Strategy and the Environment. January 17, 2017
  The need to integrate environmental and social aspects into the supply chain has created a debate amongst academicians and researchers on two topics: sustainability and the supply chain. A large number of journals and special volumes are publishing research that carries out a case study or survey, develops a mathematical model or builds a conceptual model/framework on sustainable supply chain management (SSCM). However, classified analysis of articles that develop a framework on SSCM has not been carried out by any researcher. The study thus aims to review SSCM framework articles to identify the major contributions and gaps. A total of 92 framework articles on SSCM from the sample of 349 over a period of 19 years (1998–2016) are structurally analyzed to meet the objectives. The selected literature is categorized by novel or adapted framework, source of framework, framework verification, method used for framework verification and identifying the constructs/elements that build the structural framework. Analyzing the literature sample using these categories reveals that framework development in the context of SSCM is still an area with ample future opportunities. The findings of the study are especially interesting for academicians and practitioners to investigate the critical gaps in the field of sustainable supply chain management frameworks (SSCMFs). Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  January 17, 2017   doi: 10.1002/bse.1945   open full text
• Our Collaborative Future: Activities and Roles of Stakeholders in Sustainability‐Oriented Innovation.
  Jennifer Goodman, Angelina Korsunova, Minna Halme.
  Business Strategy and the Environment. January 17, 2017
  While stakeholders have long been at the forefront of sustainable development debates, the emphases have tended to be on different stakeholder pressures, or managing stakeholder expectations about controversial issues. In this paper we bring a fresh direction to these debates and ask in what ways different stakeholders can contribute to sustainable innovation in firms. Based on 80 semi‐structured interviews, we conduct a fine‐grained qualitative analysis of stakeholder activities in sustainability‐oriented innovation (SOI) processes in 13 different companies across Europe. Our analysis identifies eight roles that stakeholders play in SOI processes: stimulator, initiator, broker/mediator, concept refiner, legitimator, educator, context enabler and impact extender. More traditional roles such as legitimator and educator are less common in our cases. However, emerging roles such as stimulator, concept refiner, context enabler and impact extender are clearly identifiable and could be particularly valuable for SOI. We enhance a collaborative perspective of stakeholder theory, finding that stakeholders can play highly collaborative and proactive roles, and argue that secondary stakeholders may actually be more relevant for SOI than primary stakeholders. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  January 17, 2017   doi: 10.1002/bse.1941   open full text
• Moving to the Next Strategy Stage: Examining Firms' Awareness, Motivation and Capability Drivers in Environmental Alliances.
  Lea Stadtler, Haiying Lin.
  Business Strategy and the Environment. January 10, 2017
  Complementing extant studies on the antecedents of firms' environmental strategy, this article focuses on the trajectories of corporate engagement in proactive environmental alliances. Specifically, we build an awareness–motivation–capability framework and analyze factors that drive the move beyond incremental pollution prevention and facilitate firms' engagement in transformative, sustainable development strategies in their alliances. Based on 212 environmental alliance‐related observations, our test results indicate limited explanatory power of regulatory pressures, but highlight the role of firms' environmental networks to sharpen their awareness to engage in transformative alliances. Further, we elaborate on the nuances and boundary conditions of firms' risk‐taking propensity, industry concentration, financial capacity and especially prior sector‐spanning experiences as motivation and capability drivers. These insights contribute to the discourse on firms' environmental strategy and alliance formation by depicting how and to what extent environment‐specific and more general firm attributes predispose them to engage in transformative rather than incremental environmental projects. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  January 10, 2017   doi: 10.1002/bse.1937   open full text
• Toward Sustainable Livelihoods: Investigating the Drivers of Purchase Behavior for Green Products.
  Chiou‐Fong Wei, Chang‐Tang Chiang, Tun‐Chih Kou, Bruce C Y Lee.
  Business Strategy and the Environment. January 09, 2017
  Green consumption involves comprehensive concerns that address the broad scope of sustainability, ecosystem balance, profit‐generation and people. Identifying the factors that influence consumers' purchase behavior enables manufacturers to understand consumers' decision‐making processes and can help them develop more environmentally beneficial products. However, scholars have recently found that a gap exists between environmental concern and consumers' actual purchase behavior. The purpose of this paper is to use cognitive behavior theory to investigate the drivers of green consumption behavior and the missing link in the concern–behavior gap. After collecting 375 valid questionnaires, this study validated the proposed conceptual model using structural equation modeling. The revised model indicates that environmental involvement, informational utility, green advertising skepticism and green trust are antecedent variables of consumer attitudes toward green products. Additionally, this study also provides a possible explanation of and remedies for the concern–behavior gap. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

  January 09, 2017   doi: 10.1002/bse.1942   open full text
• Corporate Sustainable Development and Marketing Communications on Social Media: Fortune 500 Enterprises.
  Ya‐Ching Lee.
  Business Strategy and the Environment. December 28, 2016
  This study proposes a measurement to evaluate corporate sustainability marketing communications on social media implemented by Fortune 500 enterprises. The results reveal significant differences between sustainability marketing communications in blogs and on Facebook. This study makes theoretical contributions by proposing a customer‐centric SMC framework that integrates sustainability issues, stimulation of sustainable mindsets and encouragement of sustainable consumption. It also demonstrates how corporate sustainability marketing communications differ on different social media. In addition, practical suggestions are provided. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  December 28, 2016   doi: 10.1002/bse.1936   open full text
• Integrating Environmental, Social and Governance (ESG) Disclosure for a Sustainable Development: An Australian Study.
  Chitra Sriyani De Silva Lokuwaduge, Kumudini Heenetigala.
  Business Strategy and the Environment. December 09, 2016
  Addressing environmental, social and governance (ESG) issues has become a critical part of business strategy. This article explores the extent of ESG reporting of metal and mining sector companies listed in the Australian Securities Exchange to determine the nature of ESG indicators in use in the sector. The current study argues that stakeholder engagement is the key to enhance company environmental policy and sustainable development. According to the results of this study, ESG reporting motives are highly influenced by reporting regulations. Given the diversity in reporting of ESG, comparability of ESG strategic performance is problematic. This study contributes towards developing an ESG disclosure index, which companies could use as a legitimacy tool that external stakeholders could use to reliably measure and compare the ESG performance of companies. It also reveals there is an increased demand for more empirical research on integration of sustainability into strategic planning process. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  December 09, 2016   doi: 10.1002/bse.1927   open full text
• The Value Relevance of Environmental Audits: Evidence from Japan.
  Ki‐Hoon Lee, Bum‐Jin Park, Hakjoon Song, Keun‐Hyo Yook.
  Business Strategy and the Environment. December 09, 2016
  Environmental audits are implemented internally in order to monitor compliance with environmental laws, regulations and related accounting rules, and to develop recommendations for ways in which to improve environmental accounting processes and performance. In addition, external third‐party assurance on environmental information is used to verify whether firms’ disclosures on environmental information are in compliance with environmental accounting rules and regulations. We examine whether firms’ environmental audits positively affect their market values and whether third‐party assurance strengthens positive effects, using value relevance theory as a theoretical foundation. Our main tests are based on 266 Japanese manufacturing firms’ published environmental reports for the period 2010–2013. We find that the average market value of firms that implement environmental audits is 9 percent greater than those that do not. Further, we find that environmental audits positively affect firm value, largely through interaction with third‐party assurance. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  December 09, 2016   doi: 10.1002/bse.1940   open full text
• Enhancing Market Valuation of ESG Performance: Is Integrated Reporting Keeping its Promise?
  Laura Mervelskemper, Daniel Streit.
  Business Strategy and the Environment. December 08, 2016
  This paper studies the effectiveness of a firm's strategy to report on its ESG activities with regard to the extent and direction in which the firm's ESG performance is valued by capital market investors. It is the first to disentangle the moderating effects of different types of ESG reporting on market valuation of ESG performance and to analyze whether following the current integrated reporting trend is worth the effort. Results indicate that ESG performance is valued more strongly and in the (desired) positive direction when firms publish an ESG report, irrespective of its type (stand‐alone or integrated). Furthermore, integrated reporting is associated with superior outcomes compared with a stand‐alone report for composite ESG and corporate governance performance. Our findings are important for corporate managers, as they help to understand market valuation of ESG performance in dependence on the reporting type and provide guidance for formulating and evaluating the reporting strategy. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  December 08, 2016   doi: 10.1002/bse.1935   open full text
• Environmental Strategy and Competitive Advantage: The Role of Small‐ and Medium‐Sized enterprises' Dynamic Capabilities.
  Wai Wai Ko, Gordon Liu.
  Business Strategy and the Environment. December 07, 2016
  Drawing on the resource‐based theory and institutional theory, we develop a framework to explain the processes by which the environmental strategy of small‐ and medium‐sized enterprises (SMEs) contributes to their competitive advantage. We test our assumption using data collected from 214 UK‐based SMEs in the technology sector. We find that the effects of environmental strategy can lead to development of their marketing competence, as well as research and development (R&D) competence, which ultimately contributes to superior financial performance. We also find that a reciprocal causal relationship exists between SMEs' marketing and R&D competences. Combined, we reveal the presence of a serial multiple mediation relationship between SMEs' environmental strategy and financial performance through marketing competence and then R&D competence, or vice versa. Our study offers important academic and managerial implications, and also points out future research directions. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  December 07, 2016   doi: 10.1002/bse.1938   open full text
• Organizational Visibility, Stakeholder Environmental Pressure and Corporate Environmental Responsiveness in China.
  Jieqiong Yu, Carlos Wing‐Hung Lo, Pansy Hon Ying Li.
  Business Strategy and the Environment. October 13, 2016
  This article investigates the relationship between organizational visibility and corporate environmental responsiveness in China. It also examines whether this relationship is mediated by stakeholder pressure, and whether the strength of the relationships among organizational visibility, stakeholder pressures and corporate environmental responsiveness is moderated by the type of enterprise ownership. Based on the responses from a survey involving 131 enterprises, this study suggests a potentially positive and significant correlation between organizational visibility and corporate environmental responsiveness in China. However, the study reveals surprisingly that stakeholder pressure for environmental improvements does not seem to account for the above correlation. Organizational visibility is found to be negatively associated with stakeholder pressure in the case of Chinese‐owned enterprises, and stakeholder pressure has no significant associations with corporate environmental responsiveness. In addition, the moderating effect of enterprise ownership is strongly evidenced, which provides important policy implications for developing effective mechanisms to stimulate environmental management practices. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  October 13, 2016   doi: 10.1002/bse.1923   open full text
• The Governance of Corporate Responses to Climate Change: An International Comparison.
  Rory Sullivan, Andy Gouldson.
  Business Strategy and the Environment. October 13, 2016
  In response to pressures from governments, investors, non‐governmental organizations and other stakeholders, many large corporations have adopted a variety of carbon and energy management practices, taken action to reduce their emissions and set targets to reduce their greenhouse gas emissions. Using the case of international retailers, this article examines whether, and under what conditions, non‐state actors might be capable of assuming the governance roles that have historically been played by national governments. This article concludes that external governance pressures can, if they are aligned, robust and of sufficient duration, have a significant influence on internal governance processes and on corporate strategies and actions. However, the specific actions that are taken by companies – in particular those that require significant capital investments – are constrained by the ‘business case’. That is, companies will generally only invest capital in situations when there is a clear financial case (i.e. where the benefits outweigh the costs, when the rate of return meets or exceeds company targets) for action. That is, the extent to which external governance pressures can force companies to take action, in particular challenging or transformative actions that go beyond the boundaries of the business case, is not at all clear. This is particularly the case if the business case weakens, or if the opportunities for incremental change are exhausted. In that context, the power of non‐state actors to force them to consider radical changes in their business processes and their use of energy therefore seems to be very limited. Copyright © 2016 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd

  October 13, 2016   doi: 10.1002/bse.1925   open full text
• Sustainable Corporate Entrepreneurship: Performance and Strategies Toward Innovation.
  Anna Katharina Provasnek, Erwin Schmid, Bernhard Geissler, Gerald Steiner.
  Business Strategy and the Environment. October 12, 2016
  The field of sustainable corporate entrepreneurship is in a nascent stage. By developing a position matrix of companies with respect to their corporate entrepreneurship and sustainability performance, we make conceptual contributions to an integrated perspective on elements supporting a sustainable corporate entrepreneurship process. We propose that such a process without evolving corporate sustainability is misleading. Methodologically, we investigate publicly available index ratings to assess strategies for and qualitative measurement of the sustainable development and innovation performance of eight top‐ranked international companies. Findings show that the strategies of the identified companies correspond well to our typology and allow suggestions of where efforts for corporate sustainability and/or entrepreneurship could be reinforced to gain or maintain a benchmark position. The article will clarify underlying elements of, and help to advance strategies for the implementation of, a sustainable corporate entrepreneurship process. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  October 12, 2016   doi: 10.1002/bse.1934   open full text
• Measuring Retailers' Sustainable Development.
  Chorong Youn, So‐young Kim, Yuri Lee, Ho Jung Choo, Seyoon Jang, Jae Im Jang.
  Business Strategy and the Environment. September 30, 2016
  This study aimed to develop a framework and measurement items for retailers to assess sustainability while avoiding potential subjectivity by combining top‐down and bottom‐up approaches, and verifying their validity based on consumer perceptions of sustainable retailing. The framework consisted of 54 measurement items categorized into a three‐order hierarchical model. At the top level of the model, there were three third‐order dimensions respectively related to consumers, retailers, and society. At the middle level, eight second‐order sub‐dimensions associated with retailing mix were classified into the aforementioned third‐order dimensions. At the bottom level, there were 21 first‐order sub‐dimensions related to the sustainable retailing activities. The development of sustainability assessment by combining top‐down and bottom‐up approaches and including consumer perceptions will allow retailers to assess their sustainability more strategically, as it will reduce the subjectivity and increase consumers' recognition of sustainable retailing. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  September 30, 2016   doi: 10.1002/bse.1924   open full text
• Integrating Behavioural and Branding Perspectives to Maximize Green Brand Equity: A Holistic Approach.
  Muhammad Mohsin Butt, Saadia Mushtaq, Alia Afzal, Kok Wei Khong, Fon Sim Ong, Pui Fong Ng.
  Business Strategy and the Environment. September 30, 2016
  The aim of this study is to expand the existing understanding of green consumers' behaviour by proposing and testing an integrated conceptual model that explores the influence of consumers' personal concerns for the environment and general attitudes towards green products on brand‐related knowledge structures (image and associations) and relationship preferences (trust and brand equity) for green brands. A questionnaire‐based survey method was used to collect data using convenience sampling. One hundred and ninety‐nine usable responses were obtained. A structural equation modelling procedure was used to test the proposed hypotheses. The results confirmed that a positive relationship exists between consumer concern for environmental values and general attitudes towards green products. Both these constructs influence consumers' knowledge structure of a green brand (image and associations). Furthermore, a strong relationship exists between consumers' knowledge structure (image and associations) and their relational preference (trust and brand equity) with green brands. These findings are important for business strategy formulation by providing empirical support for the idea that a firm should invest its resources not only to project its environmentally friendly brands but also to build consumers' concern for environmental values and their attitude towards green products. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  September 30, 2016   doi: 10.1002/bse.1933   open full text
• Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective.
  Rosa Maria Dangelico, Devashish Pujari, Pierpaolo Pontrandolfo.
  Business Strategy and the Environment. September 30, 2016
  Despite environmental sustainability being identified as one of the key drivers of innovation, extant literature lacks a theoretically sound and empirically testable framework that can provide specific insights into green product innovation from a capability perspective. This study develops a theoretical framework from a sustainability‐oriented dynamic capability (SODC) perspective. We conceive SODCs as consisting of three underlying processes (external resource integration, internal resource integration, and resource building and reconfiguration) that influence the change/renewal of sustainability‐oriented ordinary capabilities (SOOCs) (green innovation capability and eco‐design capability). This study answers two key questions: which SODCs are needed to develop green innovation and eco‐design capabilities? Which of these capabilities lead to better market performance of green products? We test a structural model linking SODCs to market performance in 189 Italian manufacturing firms. First, we find that the nature of the SODC–performance link (direct or indirect) depends on the SODC type. Specifically, resource building and reconfiguration is the only SODC with a direct effect on market performance. Second, all three types of SODC affect the eco‐design capability, which mediates the link between SODCs and market performance. Third, we find that external resource integration is the only SODC affecting the green innovation capability, which mediates the link between external resource integration and market performance. Resource building and reconfiguration is the SODC with the overall (direct and indirect) highest impact on market performance. This study, among the first to consider capabilities for green product innovation under a dynamic capability perspective, provides implications for scholars, managers and policy makers. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  September 30, 2016   doi: 10.1002/bse.1932   open full text
• Cultivating Ecological Knowledge for Corporate Sustainability: Barilla's Innovative Approach to Sustainable Farming.
  Stefano Pogutz, Monika I. Winn.
  Business Strategy and the Environment. September 05, 2016
  In this paper, we link three theoretical perspectives – organizational knowledge, ecological knowledge and social–ecological systems – to derive new conceptions of multi‐disciplinary, multi‐tier, sustainability‐oriented knowledge. Our study examines how collaboration between pasta‐producer Barilla, the farmers/smallholders supplying the firm and scientists generated sustainability practices in the agri‐food industry by creating transformative ecological, technical and scientific knowledge. In 2010, Barilla initiated a sustainable farming project to significantly reduce the environmental impact of cultivating durum wheat, its most important raw material. Core components included replacing monoculture with crop rotation, collectively creating innovative approaches that support farmers’ decision making and generating widely accessible guidelines for sustainability‐oriented cropping knowledge and practices. These collaborative efforts initiated profound transformations within and beyond the organization's boundaries via increased production yields, reduced environmental impacts and improved sustainability of farming practices, which generated economic, social and ecological benefits for farmers, surrounding communities and the firm. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  September 05, 2016   doi: 10.1002/bse.1916   open full text
• A Survey of Transparency: An Intrinsic Aspect of Business Strategy.
  Elisa Baraibar‐Diez, María D. Odriozola, José Luis Fernández Sánchez.
  Business Strategy and the Environment. September 01, 2016
  Well‐managed organizations must handle transparency strategically, but although research about transparency constitutes a great concern in businesses, management, society, and ethics, definitions are very diverse depending on the environment. The concept of transparency is revisited in this contribution, aiming to map the territory of transparency by surveying the terms and definitions in literature. The overview of these terms identifies two approaches of analysis: according to the content and according to the context. According to the context, two perspectives have been found: collective perspective and individual perspective. According to the content of the definition, two perspectives have been found: instrumental perspective and purposeful perspective. This survey helps to determine that transparency is an intrinsic aspect of business strategy since it is interweaved with all organizational components and systems of the strategic management process. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  September 01, 2016   doi: 10.1002/bse.1931   open full text
• Modelling Corporate Stakeholder Orientation: Does the Relationship Between Stakeholder Background Characteristics and Corporate Social Performance Matter?
  Michael O. Erdiaw‐Kwasie, Khorshed Alam, Enamul Kabir.
  Business Strategy and the Environment. September 01, 2016
  Though corporate stakeholder orientation is connected with corporate social performance practices, there is a dearth of knowledge on the theorized assertion that background characteristics influence stakeholders’ salience and attitude towards social performance practices of firms. The aim of this paper is to measure and examine this hypothesis. To test this claim, this research uses the Surat Resource Region in Queensland, Australia, as the case study. Based on the bivariate test, age, gender, occupation type and educational status have varying statistically significant effects on stakeholders’ attitude towards corporate social practices. The multinomial logistic findings showed that only education retained a net effect on a stakeholder's attitude to participation in corporate social practices, where those with a higher level of education are 1.388 times more likely to perceive stakeholder engagement practices as relevant, 2.864 times more likely for social impact assessment practices and 1.430 times more likely for practices aimed at rights of indigenous communities. Findings imply the need for awareness programs to be incorporated into corporate social practices, which can help promote the success of stakeholder‐oriented policies. The paper further makes suggestions that have both business strategy and policy planning implications. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  September 01, 2016   doi: 10.1002/bse.1930   open full text
• Gender Diversity on Boards and Firms’ Environmental Policy.
  Ji Li, Fuqiang Zhao, Silu Chen, Wanxing Jiang, Tao Liu, Shengping Shi.
  Business Strategy and the Environment. August 31, 2016
  This paper tests the relationship between gender diversity on boards and firms’ environmental policy. Based on prior research, we predict that gender diversity on boards of directors should have a positive relationship with firms’ environmental policy. Moreover, firm character in terms of pollution creation likelihood moderates the relationship between gender diversity on boards and firms’ environmental policy. Analyzing data from 865 publicly listed firms in the United States, we found direct and significant empirical evidence for our predictions. According to the findings, we highlight the importance of gender diversity for the development of good firm environmental policy as well as for the improvement of corporate governance. Moreover, the more likely firms in a given industry are to cause environmental pollution, the more salient will be the beneficial effect of gender diversity on boards on firms’ environmental policy in the industry. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  August 31, 2016   doi: 10.1002/bse.1918   open full text
• Sustainable Entrepreneurship and B Corps.
  Wendy Stubbs.
  Business Strategy and the Environment. August 31, 2016
  Sustainable entrepreneurship contributes to solving social and environmental problems through the means of successful for‐profit businesses. This paper contributes to understanding how sustainable entrepreneurship is implemented by exploring an emerging new form of business, ‘B Corps’, that employs market tactics to address social and environmental issues. Through interviewing 14 B Corps, the exploratory research study found that B Corps treat profit as a means to achieve positive societal ends, they regard the B Corp model as a tool for change, the B Corp model provides a common collective identity for internal and external validation, they are focused on societal impact rather than maximizing profits and they attempt to legitimate this form of sustainable entrepreneurship by influencing the business community and government officials. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  August 31, 2016   doi: 10.1002/bse.1920   open full text
• Sustaining Competitive Advantage Through Corporate Environmental Performance.
  Prayag Lal Yadav, Seung Hun Han, Hohyun Kim.
  Business Strategy and the Environment. August 31, 2016
  This research investigates the relationship between a firm's environmental efforts and the sustainability of its competitive advantage by analyzing the effects of change in firm environmental performance on the persistence of profitability growth. We find that environmental resources allow a firm with superior financial performance to sustain its competitive advantage, and also complement the efforts of a poorly performing firm to hasten recovery from inferior financial performance. Our findings further indicate that firms attain such positive effects through enhanced profit margins resulting from improved environmental performance. Additionally, we observe that a corporate strategy of improving environmental performance demonstrates management's responsibility to maximize the shareholder wealth of a well‐performing firm. The results provide valuable insights to align environmental activities towards developing unique resources for sustaining the competitive advantage. The study provides an empirical support for creating economic value by benefiting the environment. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  August 31, 2016   doi: 10.1002/bse.1921   open full text
• The Impact of Board Structure on Corporate Social Responsibility: A Temporal View.
  Jeremy Galbreath.
  Business Strategy and the Environment. August 31, 2016
  Time plays an important role in corporate social responsibility (CSR) decisions. In the context of time and the boardroom, the consideration of CSR can be affected by board structure. For example, because of considerable short‐term pressures, this study posits that insiders on the board are less likely to prioritize the longer‐term time horizons needed to affect CSR. Following this perspective, a hypothesis is put forth that insiders generally have temporal orientations that are more short term in nature and that they therefore have a negative effect on CSR. A study of 300 of Australia's largest firms confirmed this hypothesis. However, when inside director compensation linked to environmental and social metrics and inside director CSR training are introduced as moderating variables, their interactive effects lead to positive results: both positively moderate the negative insider–CSR relationship in environmental and social dimensions. The study contributes to a temporal view of boards of directors, as well as to corporate governance and CSR. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  August 31, 2016   doi: 10.1002/bse.1922   open full text
• Prioritizing Sustainability Indicators: Using Materiality Analysis to Guide Sustainability Assessment and Strategy.
  Jay Whitehead.
  Business Strategy and the Environment. August 31, 2016
  Despite the growing awareness of complexity in sustainable development, the practical implementation of sustainability assessment through the use of sustainability indicators requires prioritizing the myriad indicators available. This study identifies the highest priority sustainability indicators for the New Zealand wine industry using materiality analysis. Thirteen information sources representative of different stakeholder perspectives considered to drive the need for sustainability assessment are analysed to provide a measure of sustainability issue salience and risk. Based on a meta‐analysis of relevant information, it is found that environmental issues make up the highest priority issues, followed by social issues relating primarily to worker wellbeing. Significantly, economic and governance issues were not found to be high priorities. These findings are discussed in the context of the common bias in agricultural sustainability assessment towards environmental issues, and the broader business implications for sustainability assessment, strategy and policy. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  August 31, 2016   doi: 10.1002/bse.1928   open full text
• Sustainability Strategy and Eco‐Innovation: A Moderation Model.
  Kuen‐Hung Tsai, Yi‐Chuan Liao.
  Business Strategy and the Environment. August 31, 2016
  This study develops a moderation model to examine the role of a proactive environmental strategy on eco‐innovation. Drawing upon the perspectives of contingency theory, this study argues that the impacts of sustainability strategy on eco‐innovation depend on market demand, innovation intensity and government subsidy. The sample used to test the hypotheses is obtained from the Community Innovation Survey in Taiwan. A total of 2955 manufacturing firms are included in the final sample. A logit moderating regression is adopted to analyze the models. The results reveal that market demand and government subsidy positively moderate the relationship between environmental strategy and eco‐innovation. Specifically, firms are more likely to adopt a proactive environmental strategy to improve eco‐innovation under high levels of market demand and government subsidy. Furthermore, the results indicate that innovation intensity affects the effect of environmental strategy on eco‐innovation, but the direction of the influence varies with different categories of eco‐innovation. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  August 31, 2016   doi: 10.1002/bse.1926   open full text
• Remanufacturing for the Circular Economy: An Examination of Consumer Switching Behavior.
  Benjamin T. Hazen, Diane A. Mollenkopf, Yacan Wang.
  Business Strategy and the Environment. August 31, 2016
  For the circular economy to be tenable, consumers need to not only return products after use, but also purchase products that are remanufactured. However, research finds that consumers have a poor opinion of remanufactured products and are typically not prepared to adopt them. Thus, development of the circular economy is dependent upon deeper understanding of consumers’ attitudes and behaviors. Research typically considers either micro‐level or macro‐level factors when assessing consumer perceptions of remanufactured products. The current research incorporates macro‐level factors of price, government incentives and environmental benefits with the moderating influence of micro‐level consumer attitudes to examine consumers’ intention to switch from purchasing new products to remanufactured products. The findings suggest that a consumer's attitude toward remanufactured products is an important moderating factor predicting consumer switching behavior to remanufactured products. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  August 31, 2016   doi: 10.1002/bse.1929   open full text
• The Consolidation of the ESG Rating Industry as an Enactment of Institutional Retrogression.
  Emma Avetisyan, Kai Hockerts.
  Business Strategy and the Environment. June 29, 2016
  The socially responsible investing (SRI) movement has been aiming to create lasting institutional change by infusing the investment sector with new norms and values. Environmental, social and governance (ESG) rating agencies have emerged in response to the needs of SRI actors for reliable data on the social performance of firms. Since 2005, the ESG rating industry has witnessed a number of national and cross‐border consolidations. Based on a set of 37 interviews and secondary data, the paper explores the driving forces behind this consolidation as well as its impact. Our focus is on four ESG rating agencies, based in the United States, the United Kingdom, France and Switzerland. We conclude that in effect consolidation has at least partially resulted in institutional retrogression, whereby the traditional norms and values have reaffirmed their primacy, thereby somewhat negating the institutional change sought by the SRI movement. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  June 29, 2016   doi: 10.1002/bse.1919   open full text
• Fostering Stakeholder Engagement: The Role of Materiality Disclosure in Integrated Reporting.
  Marco Fasan, Chiara Mio.
  Business Strategy and the Environment. June 29, 2016
  This paper studies the determinants of materiality disclosure among International Integrated Reporting Council (IIRC) Pilot Program companies implementing the IIRC Framework. In other words, it studies which variables influence the way in which such companies provides information about their materiality determination process. In order to test our hypotheses we performed a number of statistical analyses on a unique hand‐collected dataset including IIRC and non‐IIRC Pilot Program companies for the 2012 and 2013 fiscal years. Our results indicate that industry and some firm‐level characteristics (board size and diversity) do play a significant role in the determination of materiality disclosure, whereas the legal environment in which companies operate does not. Also, we found that IIRC Pilot Program companies disclosed more information about materiality than their competitors that did not join the program. This paper provides interesting insights for policy makers (in particular, the IIRC) and extends previous academic literature on integrated reporting. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  June 29, 2016   doi: 10.1002/bse.1917   open full text
• Environmental Business–NGO Partnerships in Nigeria: Issues and Prospects.
  Uwafiokun Idemudia.
  Business Strategy and the Environment. May 24, 2016
  A number of insightful efforts have explored the nature of business–NGO partnerships and their associated outcomes for sustainable development. While some of these works have helped to clarify the benefits of such partnerships, and the different strategies NGOs can adopt in their interaction with business, others have identified the conditions necessary for a successful partnership. However, the question of how the different strategies adopted by NGOs in their engagement with business interact has remained relatively unexamined. Drawing on an environmental business–NGO partnership for sustainable development in Nigeria, this paper confirms the existence of a creative tension between the different NGOs’ strategies. This creative tension affects the nature of the environmental partnership and performs three main functions. These are an enabling function, a discipline function and a critical distance function. The article concludes by considering the theoretical and practical implications for business–NGO partnerships as a vehicle for sustainable development in developing countries. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

  May 24, 2016   doi: 10.1002/bse.1915   open full text
• Waste Livelihoods Amongst the Poor – Through the Lens of Bricolage.
  Diane Holt, David Littlewood.
  Business Strategy and the Environment. February 03, 2016
  This paper examines two social enterprises and 25+ informal economy micro‐entrepreneurs in Kenya who utilize waste materials to generate income, considered through the conceptual lens of bricolage. Waste materials can all be considered as sources of free or discounted materials that in resource‐constrained and poor communities might be leveraged to generate income in the absence of employment. This paper explores three key themes that emerge from the research findings, namely the various strategic dimensions of the cases, the networks and social capital they leverage and how these livelihood models relate to various dimensions of bricolage such as improvisation, making do and the process of ‘fiddling’ or recombining resources. The findings also suggest that differing waste livelihoods have different rates of return, or profitability, and differing input requirements of capital, skills and knowledge. The paper also stresses the role of boundary spanning organizations such as NGOs and hybrid/social enterprises. © 2016 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd.

  February 03, 2016   doi: 10.1002/bse.1914   open full text
• Does Size Matter? Evaluating Corporate Environmental Disclosure in the Australian Mining and Metal Industry: A Combined Approach of Quantity and Quality Measurement.
  Ki‐Hoon Lee.
  Business Strategy and the Environment. December 30, 2015
  There are an increasing number of companies in the mining and metals sector disclosing environmental sustainability information in their annual reports, sustainability reports and corporate internet web pages. However, there is ongoing debate about the relationship between the quantity and the quality of environmental disclosure. That is, does an increase in number equate to an increase in quality? This study investigates the relationship between the quantity and the quality of environmental disclosure reports. Using content analysis, we examine the environmental disclosure of 55 Australian mining and metal companies which are listed among the Australian Securities Exchange's (ASX) Top 100 mining and metal sector companies. We find that the size of firms influences both the quantity and the quality of corporate environmental disclosure. That is, we find that market capitalization is positively and significantly correlated to the quantity (number of words) and the quality of disclosure. We also confirm that there is a very highly significant, positive correlation between quantity (number of words) and quality of environmental disclosure. In order to investigate any differences between the top performing group and the bottom performing group in terms of environmental disclosure quality, further analysis also confirms that there is a positive relationship between the quantity and the quality of environmental disclosure. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  December 30, 2015   doi: 10.1002/bse.1910   open full text
• Environmental Upgrading of Developing Country Firms in Global Value Chains.
  Mohamed Akli Achabou, Sihem Dekhili, Mohamed Hamdoun.
  Business Strategy and the Environment. December 30, 2015
  While the strategic management literature on corporate social responsibility (CSR) is abundant, it tends to consider the context of developed countries, with a focus on certain specific issues such as the strategic behaviour of firms with regard to sustainable development and the economic benefits of CSR practices. The present study examines the influence of western organizations on responsible corporate behaviour in developing countries, an issue that has been somewhat neglected in the existing academic literature. In particular, it explores the environmental upgrading of developing country firms in global value chains. This research, conducted with the analytic hierarchy process (AHP) method, involves 24 Tunisian olive oil companies. The findings indicate that exporting companies have indeed benefited from environmental upgrading, but, because of the cooperation strategy adopted by leading western firms (imposition of standards) and the absence of financial and technical assistance, the extent of environmental upgrading remains limited. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  December 30, 2015   doi: 10.1002/bse.1911   open full text
• What We Know About Environmental Policy: An Inductive Typology of the Research.
  Elisabeth Albertini.
  Business Strategy and the Environment. December 30, 2015
  Environmental performance is a multidimensional concept that is difficult to measure since it concerns the pollution generated by companies, their energy consumption and their different environmental policies. Academic research has used objective and/or non‐objective indicators to measure this performance, dealing with both its managerial and measurement dimensions. This paper provides an inductive typology of the academic work concerning environmental policy through a computerized content analysis of 151 articles from 1992 to 2014 related to the management and measurement of environmental performance. The results highlight four major themes around which the academic research is organized: the relationship between environmental and financial performance, environmental performance under stakeholder engagement and institutional pressures, the strategic management of environmental performance, and increasing awareness of the sustainable development issue. Environmental performance research has evolved from a quantitative towards a more managerial dimension, highlighting the integration of performance within the management of a corporate business strategy. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  December 30, 2015   doi: 10.1002/bse.1913   open full text
• Greenwashing Revisited: In Search of a Typology and Accusation‐Based Definition Incorporating Legitimacy Strategies.
  Peter Seele, Lucia Gatti.
  Business Strategy and the Environment. November 24, 2015
  Is greenwashing a concept describing companies using misleading communication or is it co‐constructed in the eye of the beholder? By discussing the literature, we find that existing definitions of greenwashing overemphasize the strategic intention to mislead and do not incorporate unjust allegations. Then, by combining signaling theory with legitimacy theory, we frame the communication process of the greenwashing accusation and the emergence of a negative narrative caused by the accusation and its effect on legitimacy. Hence, in this paper we argue that greenwashing epistemologically is constituted in the eye of the beholder, depending on an external accusation. Following this view, the greenwashing accusation is understood as a distortion factor altering the signal reliability of green messages. Based on our conceptual analysis, we provide a conceptual framework introducing a new typology of case‐based greenwashing (greenwashing, false greenwashing, potential greenwashing and no greenwashing) and the effects of these types on corporate legitimacy. Finally, we propose a revised definition of greenwashing as co‐creation of an external accusation toward an organization with regard to presenting a misleading green message. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  November 24, 2015   doi: 10.1002/bse.1912   open full text
• Willingness to Pay for Green Products in Air Travel: Ready for Take‐Off?
  Gieri Hinnen, Stefanie Lena Hille, Andreas Wittmer.
  Business Strategy and the Environment. November 17, 2015
  We examine the willingness to pay (WTP) for green products in air travel. Green products in aviation are supplementary services, which are sold on top of the travel service (e.g. carbon offsets, organic on‐board food). We identify a set of potential green products in aviation and report the preferences for additional airline services of 811 Swiss air travellers using an adaptive choice‐based conjoint survey. We find that 20% of those passengers who are interested in purchasing supplementary services show a considerable WTP for green products. The green segment differs from the regular segment only in terms of behavioural features, not in terms of demographic or socio‐economic characteristics. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  November 17, 2015   doi: 10.1002/bse.1909   open full text
• Extending the Boundaries: An Assessment of the Integration of Extended Producer Responsibility Within Corporate Social Responsibility.
  Garth Hickle.
  Business Strategy and the Environment. November 17, 2015
  The paper examines how extended producer responsibility (EPR) as an environmental policy approach and, more broadly, product management strategies are characterized within corporate social responsibility (CSR). The author summarizes the key concepts and arguments for sustainable product management strategies with an emphasis on the collection of discarded products at end of life, and identifies primary tools for recognizing and advancing product management strategies within CSR such as sustainability reporting and product standard and certification programs. The article analyzes 121 CSR reports for references to EPR and, more broadly, end‐of‐life management strategies for discarded products. It concludes with recommendations as to how CSR practices can more effectively recognize product management strategies as well as how EPR policy can be enhanced to further embed product end‐of‐life management strategies and activities within the CSR activities of firms. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  November 17, 2015   doi: 10.1002/bse.1908   open full text
• Behavioral Effects of Sustainability‐Oriented Incentive Systems.
  Robert Huber, Bernhard Hirsch.
  Business Strategy and the Environment. September 17, 2015
  Companies increasingly extend their existing incentive systems by integrating several sustainable performance indicators. Although these ‘sustainability‐oriented’ incentive systems clearly highlight which business objectives should be attained, little is known about the effects that these incentive systems have on employee behavior. Based on signaling theory, social identity theory and a person–organization fit (PO‐fit) perspective, we assume positive relations between sustainability‐oriented incentive systems and employee attraction, motivation and cooperation. Furthermore, we examine whether these relations are moderated by personal attitudes toward corporate sustainability activities as well as the underlying mechanisms at the moderation (mediated moderation). Our experimental results (with students as future employees) do not give support for a general positive relation between sustainability‐oriented incentive systems and employee behavior. However, our data show that a person's attitude toward corporate sustainability activities moderates the link between sustainability‐oriented incentive systems and employee behavior. Additionally, we find PO‐fit perceptions to mediate the interaction effects. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  September 17, 2015   doi: 10.1002/bse.1905   open full text
• Circular Business Model Innovation: Inherent Uncertainties.
  Marcus Linder, Mats Williander.
  Business Strategy and the Environment. September 17, 2015
  Circular business models based on remanufacturing and reuse promise significant cost savings as well as radical reductions in environmental impact. Variants of such business models have been suggested for decades, and there are notable success stories such as the Xerox product–service offering based on photocopiers that are remanufactured. Still, we are not seeing widespread adoption in industry. This paper examines causes for reluctance. Drawing on a hypothesis‐testing framework of business model innovation, we show that circular business models imply significant challenges to proactive uncertainty reduction for the entrepreneur. Moreover, we show that many product–service system variants that facilitate return flow control in circular business models further aggravate the potential negative effects of failed uncertainty reduction because of increased capital commitments. Through a longitudinal action research study we also provide a counterexample to many of the challenges identified in previous studies, which could be overcome in the studied case. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  September 17, 2015   doi: 10.1002/bse.1906   open full text
• Environmental Policies for Evaluating Suppliers' Performance Based on GRI Indicators.
  Andrea Chiarini.
  Business Strategy and the Environment. September 17, 2015
  Many companies use a performance measurement system (PMS) to evaluate their suppliers' environmental performance (SEP). To do this a company can establish its own set of measures or adopt indicators borrowed from specific standards and guidelines such as the Global Reporting Initiative (GRI). However, the results of a literature review indicate that the weights of the different environmental performance indicators within an overall SEP rating are unclear. The aim of this paper is to understand what the environmental policies adopted by European manufacturing companies to evaluate their suppliers really are. In order to reach this objective, a quantitative model based on multiple linear regression has been developed. The model correlates different environmental aspects taken from the GRI set of indicators with the overall SEP rating. Interestingly, results show that performances on aspects such as transport and ISO 14001 certification do not count towards the final ranking, whereas compliance with laws and regulations is the cornerstone of the evaluation of the supplier. Other performance indicators can in some ways be linked to compliance with laws and regulations. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  September 17, 2015   doi: 10.1002/bse.1907   open full text
• Too Little or too much? Exploring U‐shaped Relationships between Corporate Environmental Performance and Corporate Financial Performance.
  Christoph Trumpp, Thomas Guenther.
  Business Strategy and the Environment. August 22, 2015
  Despite 40 years of research on the relationship between corporate environmental performance (CEP) and corporate financial performance (CFP), there is no generally accepted theoretical framework that explains the contradictory results that have emerged. This unsatisfactory status may be attributed to the fact that linear models dominate the research. Based on an international sample of 2361 firm‐years from 2008 to 2012, we find empirical evidence of a non‐linear, specifically a U‐shaped, relationship between carbon performance and profitability as well as between waste intensity and profitability. The same result holds for the relationship between carbon performance and stock market performance, but solely for manufacturing industries. Our empirical findings provide evidence for the theoretical framework of a ‘too‐little‐of‐a‐good‐thing’ (TLGT) effect, which indicates that the type of relationship (positive, negative) depends on the level of CEP. More precisely, there is a negative CEP–CFP relationship for companies with low CEP and a positive association for high CEP. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  August 22, 2015   doi: 10.1002/bse.1900   open full text
• Munificence, Dynamism, and Complexity: How Industry Context Drives Corporate Sustainability.
  Hongquan Chen, Saixing Zeng, Han Lin, Hanyang Ma.
  Business Strategy and the Environment. August 22, 2015
  Does external industry context exert an influence on the development of corporate sustainable development? In keeping with the view that environmental responsibility generates new and competitive resources for firms, we posit that three distinct industry contextual characteristics, namely munificence, dynamism, and complexity, can influence corporate environmentally responsible behaviors. Our conceptual framework is supported by empirical evidence that draws on a sample of 746 Chinese listed firms in manufacturing sectors. Our findings suggest that dynamism increases the likelihood of firms behaving in environmentally responsible ways, whereas complexity decreases this likelihood. The relationships between dynamism and environmental responsibility are stronger in firms with low levels of organizational slack. Moreover, we find that resource‐abundant firms are more likely to behave responsibly toward the natural environment in a high‐munificence industry context. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  August 22, 2015   doi: 10.1002/bse.1902   open full text
• Commitment to Sustainability in Small and Medium‐Sized Enterprises: The Influence of Strategic Orientations and Management Values.
  Johan Jansson, Jonas Nilsson, Frida Modig, Gabriella Hed Vall.
  Business Strategy and the Environment. August 22, 2015
  Ecosystem degradation and social sustainability have become important issues in the corporate sphere during the last few decades. However, research discussing corporate social responsibility and related concepts has often focused on larger companies, sometimes neglecting the specifics of small and medium‐sized enterprises (SMEs). The main purpose of this study is to examine the relationships between two common strategic orientations, market orientation (MO) and entrepreneurial orientation (EO), in relation to sustainability commitment, sustainability practices and management values in SMEs. Questionnaire responses from 450 Swedish SMEs were analyzed, confirming the influence of MO, EO and sustainability practices on commitment to sustainability, implying that firms committed to sustainability see both market and entrepreneurial advantages of sustainability. The results also show that different parts of MO and EO differ in importance for commitment to sustainability among SMEs. Implications concern the importance for firms and policymakers to work with sustainability issues using both internal and external perspectives. © 2015 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd

  August 22, 2015   doi: 10.1002/bse.1901   open full text
• Measuring Corporate Environmental Performance: A Methodology for Sustainable Development.
  Elena Escrig‐Olmedo, María Jesús Muñoz‐Torres, María Ángeles Fernández‐Izquierdo, Juana María Rivera‐Lirio.
  Business Strategy and the Environment. August 22, 2015
  Assessing corporate environmental performance (CEP) that is both comprehensive and consistent with sustainable development both for society and companies, while at the same time taking heed of the facts and interests of each stakeholder, is not a simple feat. Due to the multidimensional character of the sustainability concept, several questions must be considered in the evaluation process: (i) the qualitative nature of indicators and the complexity of developing a synthetic index; (ii) the difficulty of choosing properly statistical techniques for aggregation and (iii) the difficulty of introducing stakeholders’ preferences in the assessment models. This paper is an attempt to address this challenge by developing a framework for the assessment of CEP, based on the application of a fuzzy multi‐criterion decision‐making (MCDM) method. To achieve positive scores in a CEP assessment, an organization should be strategically committed and engage in environmental management and governance structures that are translated into good results in terms of both engagement and operational performance. Unless such premises are explicitly incorporated into the assessment criteria, the results would reveal that the CEP measurement could not be brought into a line with an earnest ambition of achieving true sustainable development. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  August 22, 2015   doi: 10.1002/bse.1904   open full text
• Engaging Employees in Sustainable Development – a Case Study of Environmental Education and Awareness Training in Hong Kong.
  Michelle Man Suet Law, Peter Hills, Billy Chi Hang Hau.
  Business Strategy and the Environment. July 31, 2015
  Environmental education and awareness training can help to develop and encourage a transition to a greener corporate culture. A series of environmental education and awareness training programmes of The Hongkong and Shanghai Banking Corporation Limited (HSBC) (Hong Kong) was used as a case study to assess how learning transfers through nature‐based environmental education and awareness training and to investigate the possible outcomes of providing nature‐based training to employees. Evaluation of the training outcomes, in terms of changes in employees’ environmental knowledge, attitudes and behaviour, was surveyed by using retrospective post‐ and then‐test questionnaires. Results showed that employees who joined these programmes gained knowledge and changed their values and behaviour towards the environment significantly. The study also indicated the establishment of trust in and satisfaction with the organization among employees through the training, which in turn promoted employees’ organizational commitment towards corporate sustainability. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  July 31, 2015   doi: 10.1002/bse.1903   open full text
• How to Green the red Dragon: A Start‐ups' Little Helper for Sustainable Development in China.
  Henk J. Steinz, Frank J. Van Rijnsoever, Frans Nauta.
  Business Strategy and the Environment. July 31, 2015
  This article qualitatively identifies and explains the barriers that foreign cleantech start‐ups can encounter when attempting to enter the Chinese market, as well as the possible strategies that can help overcome these barriers. We base our analysis on interviews with Chinese and foreign entrepreneurs and facilitators. To structure the analysis of such barriers, we use the components of the entrepreneurial ecosystem. We then explain the barriers using institutional theory. We demonstrate that they are caused either by the regulations in China or by the difference between Chinese and Western logics. We further recommend that cleantech entrepreneurs come prepared to China, remain flexible, associate themselves with reputable partners and take advice from those familiar with business in China. Cultural–cognitive barriers might be overcome by integrating the communities of foreign and Chinese start‐ups. Regulative barriers can be removed by the Chinese Government, but this conflicts with the logic of state control. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  July 31, 2015   doi: 10.1002/bse.1899   open full text
• Communicating Corporate Social Responsibility to Internal Stakeholders: Walking the Walk or Just Talking the Talk?
  Margaret Brunton, Gabriel Eweje, Nazim Taskin.
  Business Strategy and the Environment. May 18, 2015
  As organizations recognize the need to engage in CSR and sustainability initiatives, it is integral to success to communicate that they are doing so. However, the research focus is more often on communicating with external stakeholders to draw attention to corporate responsibility initiatives. Internal stakeholders as employees are not researched as often, despite their integral role in communicating the organization's CSR vision and sustainability as they interact with external stakeholders. In order to explore employee perceptions of CSR communication, a two‐phase mixed‐method study was undertaken, including semi‐structured interviews with 20 CSR managers in NZ organizations to provide content to inform an online questionnaire survey to seek feedback from employees in these same organizations. This paper contributes to research on internal stakeholders in revealing the influence of the perceived value congruence between managers and employees in influencing internal stakeholder perceptions of CSR and sustainability initiatives. The findings have implications for public policy, enhancing organizational communication, the need for authenticity and managerial recognition of their role in facilitating employee commitment to CSR initiatives. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  May 18, 2015   doi: 10.1002/bse.1889   open full text
• Firms’ Response to Climate Change: The Interplay of Business Uncertainty and Organizational Capabilities.
  Su‐Yol Lee, Robert D. Klassen.
  Business Strategy and the Environment. May 09, 2015
  With climate change emerging as one of the most important issues increasing uncertainty in the business circle, firms have shown different reactions. Why do firms differ in adopting and implementing carbon management practices (CMPs) in response to the global warming issue? This paper attempts to explore this question with particular attention to two factors: external business uncertainty and internal organizational capabilities. This study investigated whether business uncertainty, organizational learning and lean production capabilities influenced the adoption and implementation of CMPs as well as examining how organizational capabilities moderate the relationships between business uncertainty and the level of CMPs. The results of a cross‐sectional survey and hierarchical regression analyses indicate that perceived business uncertainty decreases the adoption of CMPs, organizational learning and lean production capabilities strongly facilitate the adoption and implementation of CMPs, and lean production capability positively moderates the impacts of business uncertainty on the adoption of CMPs. This study provides guidance for managers and academics considering how to identify, design and manage the dimensions of a firm's practices in response to the global warming issue within the organization as well as with other organizations. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  May 09, 2015   doi: 10.1002/bse.1890   open full text
• Sustainability Targets in Executive Remuneration: Targets, Time Frame, Country and Sector Specification.
  Karen Maas, Sanne Rosendaal.
  Business Strategy and the Environment. March 28, 2015
  Existing remuneration plans for CEOs still mainly focus on financial performance and do not necessarily promote sustainable value creation for their firms. By way of reaction to this, a growing number of academics and practitioners are acknowledging the need for the inclusion of sustainability targets in executive remuneration. This study examines the current status of the use of sustainability targets in executive remuneration specified by country, sector and targets. Based on a sample of 490 listed firms from 11 countries and different sectors, the use of targets related to sustainability in executive remuneration is assessed. The targets are specified by kind of target (short term and long term) and content of target (environmental, social or a combination of both). The results of this study show that (a) in 2010 on average 33% of the firms used sustainability targets in remuneration, (b) mainly the ‘dirty’ industries use targets, (c) the targets used are mainly short‐term targets and (d) they focus on social issues. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  March 28, 2015   doi: 10.1002/bse.1880   open full text
• A Comparison of Regulatory Awareness and Green Supply Chain Management Practices Among Chinese and Japanese Manufacturers.
  Qinghua Zhu, Ying Qu, Yong Geng, Tsuyoshi Fujita.
  Business Strategy and the Environment. March 23, 2015
  Leading manufacturers in developed countries generally have high environmental awareness and implement proactive environmental management practices such as green supply chain management (GSCM). However, it is uncertain if smaller manufacturers in developed countries are more proactive than all manufacturers in developing countries. To understand this situation, we carried out surveys among small and medium‐sized Japanese manufacturers, leading Chinese manufacturers and traditional Chinese manufacturers. Statistical results show that leading Chinese manufacturers have the highest awareness of both domestic and international environmental regulations/policies, and implement all GSCM practices at the highest level. Leading Chinese manufacturers and Japanese manufacturers are aware of international environmental regulations/policies, but such awareness only motivates them to implement eco‐design practices. Traditional Chinese manufacturers have limited awareness of international environmental regulations/policies, but such awareness brings all types of GSCM practice. Such results can be helpful for different manufacturers in both developed and developing countries to develop suitable environmental strategies. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  March 23, 2015   doi: 10.1002/bse.1888   open full text
• The Influence of Technology Differences on Corporate Environmental Patents: A Resource‐Based Versus an Institutional View of Green Innovations.
  Juan Alberto Aragon‐Correa, Dante I. Leyva‐de la Hiz.
  Business Strategy and the Environment. March 23, 2015
  This paper proposes that both the resource‐based view and institutional theory predict a positive relationship between the number of patented environmental innovations and non‐environmental innovations held by a firm, because they both are subject to the influence of similar factors. However, while the resource‐based view predicts that technological differences between the patented environmental innovations owned by a firm and those in the industry as a whole will positively affect the firm's environmental innovations, the institutional perspective predicts a negative relationship. Our results derive from a sample of 5537 environmental patents from 59 large companies in the electrical components and equipment industry worldwide, and show a positive relationship between patented environmental and non‐environmental innovations in a firm, but a negative influence on the number of the firm's patented environmental innovations resulting from differences between the firm's environmental technologies and those generally prevalent in the industry. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  March 23, 2015   doi: 10.1002/bse.1885   open full text
• Green Product Innovation: Where we are and Where we are Going.
  Rosa Maria Dangelico.
  Business Strategy and the Environment. March 13, 2015
  Green product innovation (GPI) is becoming more and more relevant for policy makers, companies and society as a whole. As a result, over the last few years the number of studies on GPI development has increased substantially, thus prompting the need to analyse and synthesize the results of these studies. With this aim, this study reviews the body of knowledge on the topic. In particular, a systematic review of the literature is conducted, guided by three main research questions. Specifically, this paper identifies the antecedents, the outcomes and the success factors for GPI development. 63 studies are included in the review. Results show that many factors drive the development of GPI, both internal and external to the firm. Among internal factors, the most important are the prospect of competitive advantage, cost reduction, market benefits, improved reputation and opportunities for innovation. Among external factors, the most important are environmental regulations – current and/or expected – and market demand. In terms of outcomes, this study provides evidence that the most relevant ones are cost savings, achievement of competitive advantage, increased market share, increased sales, increased turnover, higher profits, better reputation, increased exports and higher productivity. Finally, this study highlights that many factors can influence the successful development of GPI, such as top management commitment, building networks of collaborations as well as enhancing knowledge flows, both within and outside the firm, cross‐functional integration and development of resources and capabilities. This study provides important implications for companies, policy makers and scholars. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  March 13, 2015   doi: 10.1002/bse.1886   open full text
• Do Women Leaders Promote Sustainability? Analyzing the Effect of Corporate Governance Composition on Environmental Performance.
  Christy Glass, Alison Cook, Alicia R. Ingersoll.
  Business Strategy and the Environment. March 13, 2015
  In this study, we investigate the impact women leaders have on the corporate environmental strategies of organizations. Using a dataset of all Fortune 500 CEOs and boards of directors for a ten‐year period, we examine several aspects of gender in leadership on environmental strategy. Specifically, we test the impact of women CEOs, the proportion of women on the BOD, the number of interlinks women board members hold, and the interactive and cumulative effects of women CEOs and gender diverse boards. Findings suggest that firms characterized by gender diverse leadership teams are more effective than other firms at pursuing environmentally friendly strategies. This study contributes to research on corporate governance and environmental performance by showing how the gender composition of leaders affects corporate practice. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  March 13, 2015   doi: 10.1002/bse.1879   open full text
• Customer Environmental Values and Their Contribution to Loyalty in Industrial Markets.
  Nora Mustonen, Heikki Karjaluoto, Chanaka Jayawardhena.
  Business Strategy and the Environment. March 13, 2015
  Concern over the effect of industries on the natural environment is growing on a multitude of levels. This study examines the effects of how perceptions of (a) environmental values, (b) green image and (c) perceived value of industrial customers influence their loyalty towards suppliers in existing relationships, and how the length of B2B relationships may moderate these linkages. A conceptual framework is developed and data are collected from a global sample (N =121) of B2B customers. We find that both green image and perceived value have a direct positive link with customer loyalty and that environmental values are positively linked to the green image of the supplier. Moreover, the effect of green image on loyalty is mediated by perceived value, with environmental values only indirectly linked with perceived value of the supplier. As the length of relationship increases, on one hand the positive relationship between green image and customer loyalty is strengthened, while on the other the positive relationship between environmental value and green image is weakened. Regardless of how environmentally aware the customer is, green image is a strong predictor of both perceived value and loyalty. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  March 13, 2015   doi: 10.1002/bse.1882   open full text
• Forest Certification and ISO 14001: Current State and Motivation in Forest Companies.
  Anni Tuppura, Anne Toppinen, Kaisu Puumalainen.
  Business Strategy and the Environment. March 13, 2015
  In this study, we explore the current state of specific corporate responsibility practices in the global forest sector. We compare the motivations for the leading forest industry companies to invest in certification from the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC), and in the ISO 14001 environmental management system. For the empirical investigation, we use quantitative survey data collected from 60 of the world's leading forestry companies. This study's empirical results indicate that incentives for adopting forest certification are more often external rather than internal, and more market driven than regulation driven, which would suggest the dominance of extrinsic motivation. The results also indicate that the adoption of ISO 14001 certification represents a reactive strategic approach, emphasizing customer satisfaction as a key motivation. Motivations differ depending on the firm's business sector and the geographical location of its headquarters. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  March 13, 2015   doi: 10.1002/bse.1878   open full text
• The Wicked Character of Sustainable Supply Chain Management: Evidence from Sustainability Reports.
  Johann Meckenstock, Ana Paula Barbosa‐Póvoa, Ana Carvalho.
  Business Strategy and the Environment. March 13, 2015
  Supply chains are changing their business paradigm as they strive for sustainability and not just for increasing profits. Sustainability, however, is a concept that is open to interpretation since it is based on societal and organizational values. Little is known about what companies actually mean when referring to sustainability, and how this contrasts with the understanding at different echelons of the supply chain. Diverging interpretations and translations of sustainability among stakeholders, termed wicked problems, affect the progress of sustainable supply chain management. This paper aims to contribute to closing the gap between our common sense expectations and the actual evidence from sustainability reports of how sustainability evolves from abstract ideas to operational practices across the supply chain. To this end, this study employs a computer‐aided content analysis of 142 corporate sustainability reports across 12 industries. Building on the findings, and using the lens of wicked problems, this paper provides guidance to practitioners on how to develop strategies that are effective across the whole supply chain. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  March 13, 2015   doi: 10.1002/bse.1872   open full text
• Planned or Emergent Strategy Making? Exploring the Formation of Corporate Sustainability Strategies.
  Friederike Neugebauer, Frank Figge, Tobias Hahn.
  Business Strategy and the Environment. March 13, 2015
  In strategy research, there is a consensus that strategy making resides on a continuum from planned to emergent where most strategies are made in a mixed way. Different contingency factors have been suggested to explain the factors that influence strategy making. Sustainability research seems to overlook most of this development and assumes instead that sustainability strategies are made in a purely planned way. We contribute to a better understanding of the role of different strategy making modes for sustainability in three ways. First, we point to the bias towards planned strategy formation in sustainability research. Second, we propose a new contingency factor to help explain sustainability strategy making based on the nature of the problem addressed. Third, we discuss strategy making for different types of sustainability problems. We argue that planned strategy making is expected for salient and non‐wicked problems while emergent strategy making is likely for non‐salient and wicked problems. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  March 13, 2015   doi: 10.1002/bse.1875   open full text
• Green Practices and Organizational Design as Sources of Strategic Flexibility and Performance.
  Miguel Perez‐Valls, Jose Cespedes‐Lorente, Juan Moreno‐Garcia.
  Business Strategy and the Environment. March 04, 2015
  Green competences are dynamic capabilities based on practices (green practices), routines and structures that can be used to detect opportunities, make the most of them and use them to transform organizations. With this in mind, we explore the relationships between environmental management, organizational performance, and organizational processes and practices. We identify three key constructs related to green competences: (1) hybrid structures, (2) environmental best practices and (3) strategic flexibility, a key variable connecting structural design and green practices to organizational performance. We propose that the implementation of specific organizational structures characterized by the inclusion of market‐driven control practices within hierarchies (internal hybrids) could enhance firms' environmental responsiveness and deployment of green best practices. In addition, we suggest that green practices and structures are positively related to the development of strategic flexibility, driving above‐average returns in dynamic environments. To test these hypotheses, we use data from the European aviation industry. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  March 04, 2015   doi: 10.1002/bse.1881   open full text
• Outcomes of Environmental Management Systems: the Role of Motivations and Firms’ Characteristics.
  Iñaki Heras‐Saizarbitoria, German Arana, Olivier Boiral.
  Business Strategy and the Environment. February 25, 2015
  This article analyzes the influence of the sources of motivation that lead companies to adopt environmental management systems (EMSs) on the outcomes of these systems. A set of hypotheses derived from an extensive review of the literature is analyzed using cluster analysis – in order to identify groups of companies – as well as correlation and regression analyses, with data obtained from a survey of 361 Spanish organizations that have environmental certification. The results reveal that, for the groups identified, companies from the holistic cluster (with high levels of both internal and external drivers) and from the internal focus cluster (with more intensive internal sources of motivation) secure greater benefits from the process of adopting an EMS. This article also sheds light on the influence on the outcomes of some variables that have been under‐researched, such as the economic resources invested in an EMS and whether or not the certified companies belong to a sector with high environmental pressure. The findings help to characterize the firms with environmental certification and may also help managers, policy makers and other stakeholders to anticipate the potential benefits of EMSs. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  February 25, 2015   doi: 10.1002/bse.1884   open full text
• Sustainable Entrepreneurship: A Convergent Process Model.
  Frank Martin Belz, Julia Katharina Binder.
  Business Strategy and the Environment. February 25, 2015
  Sustainable entrepreneurship pursues a triple bottom line approach of economic, social and ecological goals. The main aim of this paper is to add to our understanding of the process of sustainable entrepreneurship. Since the field of sustainable entrepreneurship is in a nascent stage, we conduct a qualitative study. We employ a multiple case study design to build theory. Based on four case studies we develop a model, which describes the process of sustainable entrepreneurship, including six phases: 1) recognizing a social or ecological problem; 2) recognizing a social or ecological opportunity; 3) developing a double bottom line solution; 4) developing a triple bottom line solution; 5) funding and forming of a sustainable enterprise; 6) creating or entering a sustainable market. By developing a convergent process model with two pathways, we make theoretical contributions to the emerging fields of sustainable entrepreneurship and social entrepreneurship. A key finding is that the triple bottom line of ecological, social and economic goals is integrated sequentially, not simultaneously. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment.

  February 25, 2015   doi: 10.1002/bse.1887   open full text
• Impact of Environmental Performance on Firm Value for Sustainable Investment: Evidence from Large US Firms.
  Prayag Lal Yadav, Seung Hun Han, Jae Jeung Rho.
  Business Strategy and the Environment. February 25, 2015
  This research examines the impact of environmental performance on firm value, applying the event study methodology to Newsweek’s ‘Green Rankings’ announcement of 2012 for large US firms. Specifically, it analyzes the impact of the absolute green score and green rank of firms on their performance in the stock market. We found that investors perceive the announcement as positive news, leading to significant positive standardized cumulative abnormal returns (SCARs). After controlling for industry‐ and firm‐specific effects, we observed that firms with repeated green rankings for enhancing environmental performance showed significantly higher SCARs than those with either reduced or unchanged environmental performance. In addition, the environmental impact score measuring environmental damage from a firm's operational activities was found to be the most influential factor in improving the firm's value. Our findings are beneficial to managers in allocating resources to different types of environmental initiative, and provide valuable insight for sustainable environmental investment. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  February 25, 2015   doi: 10.1002/bse.1883   open full text
• Sustainability Management within Supply Chains – A Resource Dependence View.
  Nicole Luisa Schnittfeld, Timo Busch.
  Business Strategy and the Environment. February 12, 2015
  Proceeding from three basic concepts of resource dependence theory – organizational effectiveness, interdependence and external control – we conducted a multiple‐case study to investigate factors that facilitate and hinder sustainability management within supply chains. Our empirical observations highlight that focal firms do not necessarily transfer their own corporate sustainability agendas into control mechanisms for managing the sustainability of their suppliers. Based on this insight, we develop a new theory that explains how intra‐ and interorganizational sustainability management is affected by a firm's business case for promoting sustainability, control mechanisms, trade‐offs, trust and market liberalization. The theory offers new insights into drivers and barriers for effective interorganizational sustainability management, whereas previous theories could not fully explain the reasons for diverging sustainability management practices in supply chains. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  February 12, 2015   doi: 10.1002/bse.1876   open full text
• Sustainable Purchasing in Food Retailing: Interorganizational Relationship Management to Green Product Supply.
  Olga Chkanikova.
  Business Strategy and the Environment. February 12, 2015
  Stakeholders’ demands for product sustainability redefine the focus of corporate purchasing strategies from the traditional concern with financial performance to considerations of ‘triple bottom line’ viability. This adds to the complexity of managing interorganizational relationships and poses a question regarding corporate ability to effectively leverage suppliers over environmental and social performance of supplied goods. Since it is not clear what type of purchasing relationship is more favorable for greening a product supply, the current paper aims to investigate how food retailers manage their relationships with suppliers in order to influence the environmental and social performance of procured goods and improve the availability of sustainably produced supply. The research is based on two case studies of Swedish supermarkets and supplementary semi‐structured interviews with Swedish, British and Danish supermarkets. The results of the study contribute to the existing body of academic knowledge in the field of sustainable supply chain management by developing a typology of sustainable purchasing relationships with detailed insights into the nature of collaborative practices, structure of incentives, sustainability ambition, and approaches to verification of compliance. The study has also revealed the dependence of sustainable purchasing relationships on the characteristics of the procurement context, namely the presence of well‐established sustainability certification schemes, perceived by purchaser's situation with availability of sustainability certified supply and purchaser's interpretation of the state of power dependence in relationships with suppliers. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

  February 12, 2015   doi: 10.1002/bse.1877   open full text
• Sustainable Development in Supply Chain Management: The Role of Organizational Learning for Policy Implementation.
  Nelly Oelze, Stefan Ulstrup Hoejmose, Andre Habisch, Andrew Millington.
  Business Strategy and the Environment. December 29, 2014
  Implementing sustainable policies in supply chains is a significant challenge for businesses. Recent evidence has shown that failure to manage supply chains responsibly can have significant impacts on firms' reputation and financial performance. In this paper, we develop a conceptual framework, which focuses on organizational learning, and outline specific channels through which firms can generate learning processes and build appropriate capabilities to successfully implement social and environmental supply chain policies. Drawing on 57 in‐depth interviews from a cross‐sectional sample of seven UK and nine German companies, we empirically assess our conceptual framework in accordance with a grounded, in‐depth case study analysis approach. We find compelling evidence to suggest that organizational learning is an important factor for a successful implementation of sustainable supply chain management. Organizational learning is often established as a result of training, knowledge acquisition, stakeholder engagement and collaboration between intra‐organizational and inter‐organizational partners, including suppliers and NGOs. Nonetheless, our results also emphasize that firms often have few systematic processes through which organizational learning is developed, and that such learning processes are often ad hoc at best, which in turn has significant implications for the responsible supply chain practices. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  December 29, 2014   doi: 10.1002/bse.1869   open full text
• Supply Chain Management as Private Sector Regulation: What does it Mean for Business Strategy and Public Policy?
  Daniel J. Fiorino, Manjyot Bhan.
  Business Strategy and the Environment. December 10, 2014
  The growing practice of environmental supply chain management by firms constitutes private sector regulation that is analogous in many ways to public sector regulation. Similarly to their public counterparts, private sector regulators set standards, apply standards, monitor for compliance, apply sanctions and require corrective action. Private sector regulation differs, however, in the source of authority, external oversight, analytical requirements, public participation and available sanctions. This article argues that supply chain management by firms goes beyond business objectives by creating positive environmental externalities for society, and that more systematic study of the similarities and contrasts between the two forms of regulation may provide valuable lessons for both. Further, it may be possible to increase the effectiveness of private sector regulation to achieve both public societal and private business goals. From a business perspective, supply chain management enables firms to strategically redefine their relationships with government, reduce uncertainty and promote goal‐oriented collaboration. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  December 10, 2014   doi: 10.1002/bse.1871   open full text
• Analysis of Shared and Sustainable Value Creation of Companies Providing Energy Solutions at the Base of the Pyramid (BoP).
  Virgilio Panapanaan, Tytti Bruce, Terhi Virkki‐Hatakka, Lassi Linnanen.
  Business Strategy and the Environment. October 31, 2014
  This study was conducted to analyze the shared and sustainable value creation (SSVC) of 33 energy companies selling energy solutions at the base of the pyramid (BoP) markets. SSVC by selling energy technology solutions directed to address the cooking and lighting needs of BoP consumers were the main focus of analysis. Result showed that achieving profitability and affordability is affected by the kind of energy solution that is offered as well as the investment and level of commitment required. However, companies that fulfilled the profitable and affordable solutions were also able to deliver social and environmental sustainability benefits. Social sustainability benefits point to the ability of alleviating poverty by improving productivity or offering cost‐savings. Environmental sustainability benefits point to the energy savings. The findings show that inclusive business strategy is not necessarily required to reach the poor people profitably but a suitable business strategy depends on the type of energy solution. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  October 31, 2014   doi: 10.1002/bse.1866   open full text
• Corporate Ownership and Environmental Proactivity.
  Francesco Calza, Giorgia Profumo, Ilaria Tutore.
  Business Strategy and the Environment. October 31, 2014
  The present paper advances knowledge of the drivers of firms' proactive environmental strategies. In particular, it explores the relationship between different corporate ownership structures and firms' green proactivity, in order to see whether some types of shareholder act as a stimulating driver for firms' proactive environmental behaviors. The study examines the explanatory power of corporate governance issues, such as a firm's ownership structure, as potential determinants of companies' environmental proactivity. Attention is focused on the European firms included into the Carbon Disclosure Project questionnaire 2012. The results show that ownership structure matters in firms' environmental proactivity. In particular, firms with a higher percentage of state ownership present superior green proactivity, while ownership concentration appears negatively related to proactive environmental strategy. The paper offers theoretical and practical implications. It focuses attention on a still underdeveloped research area, namely organizations and their relationship with the natural environment, including corporate ownership as a driver of a company's proactive environmental strategy. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  October 31, 2014   doi: 10.1002/bse.1873   open full text
• Two are Better Than One: The Link Between Management Systems and Business Performance.
  Vera Ferrón Vílchez, Nicole Darnall.
  Business Strategy and the Environment. October 31, 2014
  Little is known about the complementary performance benefits associated with facilities’ combined use of both quality management systems (QMSs) and environmental management systems (EMSs), and how these performance benefits might differ from those associated with facilities’ use of only one of these management systems (or neither). We suggest that complementarities arise because each management system fosters the development of internal capabilities that facilitates the adoption and routine operationalization of the other, while maintaining differentiated goals that enhance strategic value. We examine these relationships using a sample of 2619 manufacturing facilities operating within six OECD countries, while controlling for self‐selection issues. Our findings support the idea of complementarity, in that facilities that adopt both QMS and EMS are more associated with positive business performance than facilities that adopt either a QMS or an EMS on its own, or no management system. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  October 31, 2014   doi: 10.1002/bse.1864   open full text
• Implementation of responsible Procurement Management: An Institutional Perspective.
  Laura Maria Ferri, Nelly Oelze, André Habisch, Mario Molteni.
  Business Strategy and the Environment. October 31, 2014
  The role of the institutional context in the pattern of the implementation of responsible procurement management (RPM) has been object of very limited previous research, although it has been found that it affects the approach to both CSR and supply chain management. The article presents the results of an in‐depth comparative study drawing on 47 interviews with managers of 13 companies in Italy and Germany, which have been previously related to different national institutional settings. The analysis demonstrates that the perception of factors influencing RPM implementation differs between Italian and German companies, and suggests that the institutional context affects not only the overall CSR behavior of the company, but also its institutionalization into a specific function. Results show that the institutional context mainly determines the boundaries within which practitioners are able to operate, whereas the ability to effectively bring about changes in their activity mainly depends upon organizational environment. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  October 31, 2014   doi: 10.1002/bse.1870   open full text
• How Do Strengths and Weaknesses in Corporate Social Performance Across Different Stakeholder Domains Affect Company Performance?
  Kamalesh Kumar, Giacomo Boesso, Giovanna Michelon.
  Business Strategy and the Environment. October 31, 2014
  The existing research on corporate social responsibility (CSR) has largely focused on the positive aspect of corporate social performance (CSP) and company performance (CP) and ignored the relationship between actions that would qualify as negative CSP (or weakness in CSP) towards a stakeholder group and company performance. Using data from the KLD collected over a three‐year period, this study examines the relationship between both CSP weaknesses and strengths and CP across individual stakeholder domains. Results of the study suggest that strengths in CSP related to primary stakeholder domains are associated with superior company performance. However, this relationship is tenuous, at best, in the case of the secondary stakeholder domain. As for weaknesses in CSP, the results suggest that if a firm performs poorly in meeting the expectations of one or more stakeholders it is penalized in the form of poor performance. This finding generally holds true for both primary and secondary stakeholders. Implications of these findings for public policy and businesses planning to address social issues are discussed. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  October 31, 2014   doi: 10.1002/bse.1874   open full text
• How Do Environmental Violation Events Harm Corporate Reputation?
  H. L. Zou, R. C. Zeng, S. X. Zeng, Jonathan J. Shi.
  Business Strategy and the Environment. May 19, 2014
  This study, based on attribution theory, provides empirical evidence for how environmental violation events (EVEs) damage corporate reputation, using media reputation as a proxy. Hypotheses are developed to address the influences of violating firms’ past environmental behaviors and ownership on the reputational effect of EVEs. The results show that firms with a history of unfavorable behaviors (precedent environmental violation) are deemed by the media to be more culpable for adverse environmental events and consequently suffer more damage to their reputation, while for firms with a favorable environmental record (environmental awards and honors gained) the reputational harm of an EVE is alleviated to some extent. EVEs cause more reputational damage to foreign‐owned enterprises than to domestic‐owned firms. These findings reveal that certain company behaviors could exert an indirect effect on a firm's reputation by influencing public perception of later relevant behaviors, and imply a discriminatory treatment in a host country for foreign‐owned enterprises. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  May 19, 2014   doi: 10.1002/bse.1849   open full text
• Do Customers Affect the Value Relevance of Sustainability Reporting? Empirical Evidence on Stakeholder Interdependence.
  Max Goettsche, Tobias Steindl, Simon Gietl.
  Business Strategy and the Environment. May 19, 2014
  In spite of the strategic importance of sustainability reporting in current business practice and the resulting increase in research on its value relevance, studies accounting for stakeholder interdependence are scarce. On the basis of the instrumental stakeholder theory, we investigate whether customers have an impact on the value relevance of sustainability reporting. Using a sample of US listed firms, we show that the value relevance of sustainability reporting is affected by customer profile differences, thereby confirming customer–shareholder interdependence. However, customer profile effects are only predominant if firms' profitability levels are low and disappear as profitability increases. Overall, our findings provide a more nuanced understanding of the value relevance of sustainability reporting. Therefore, we offer managers fine‐grained guidance for value relevant sustainability reporting. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  May 19, 2014   doi: 10.1002/bse.1856   open full text
• Environmental Responsibility and Firm Performance: The Application of an Environmental, Social and Governance Model.
  Ki‐Hoon Lee, Beom Cheol Cin, Eui Young Lee.
  Business Strategy and the Environment. May 19, 2014
  This paper investigates the way in which environmental responsibility impacts on corporate financial performance, measured by return on equity (ROE) and return on assets (ROA). Using a sample of Korean firms covering the period 2011–2012, and employing two different test methods, namely the OLS and 2SLS methods, we show that the relationships between environmental responsibility performance and firms’ ROE and ROA are positive and statistically significant. However, we show that research and development (R&D) intensity (expenditure) does not affect either environmental responsibility or corporate financial performance. The results of this analysis encourage further empirical analysis of the industries, as well as the use of more than one estimation method to determine environmental responsibility and corporate financial performance within firms. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  May 19, 2014   doi: 10.1002/bse.1855   open full text
• Leaders and Laggards in Environmental Innovation: An Empirical Analysis of SMEs in Europe.
  Angela Triguero, Lourdes Moreno‐Mondéjar, María A. Davia.
  Business Strategy and the Environment. May 09, 2014
  The main purpose of this article is studying the factors influencing eco‐innovative intensity in the European SMEs. Building upon the 'innovation triangle model', business competences, environmental orientation and network involvement are considered as the main determinants of 'greenness' of innovation in a sample of 3852 SMEs. Four categories of eco‐innovators (leaders, followers, loungers and laggards) are identified, and their profiles/driving factors are described using a generalized ordinal logistic model. Our results confirm that the increasing demand for green products and the adoption of eco‐organizational innovation affect positively the level of environmental innovation, while technological lock‐ins have the opposite effect across all categories. Neither leaders nor laggards are influenced by environmental policies. Small firms and those who give importance to financial constraints tend not to achieve upper categories, while valuing technological capabilities, market power and networks are crucial determinants of being in upper categories of eco‐innovation intensity. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  May 09, 2014   doi: 10.1002/bse.1854   open full text
• Environmental Policy in the Nordic Wood Product Industry: Insights Into Firms’ Strategies and Communication.
  Tarmo Räty, Anne Toppinen, Anders Roos, Maria Riala, Anders Q. Nyrud.
  Business Strategy and the Environment. May 05, 2014
  The purpose of our study is to explore how companies operating in the Nordic wood products value chains currently use environmental performance measures in their environmental policy and communication with stakeholders. Apart from the regularly‐used environmental management certificates, the ability of wood material to store carbon and the use of sustainable forest management certificates open up interesting strategic options for firms in the implementation of their environmental policy. The primary was collected through thematic managerial interviews in 2011 from 37 companies in Finland, Sweden and Norway, of varying size, roles in the value chain, conditions for green business practices and exports. Forest certification and environmental management systems were frequently used, but managers did not always perceive them to be useful, particularly for raising environmental awareness at the final consumer level. Nevertheless, the general attitude towards using environmental performance measures was seen as positive. Companies with a business‐to‐business orientation were the most proactive in terms of environmental communication, whereas companies in consumer markets were more reactive. The key stakeholders targeted for environmental communication were value chain partners and the authorities, and only to a lesser degree employees and environmental non‐governmental organisations. The key strategic role of environmental management and communication appeared to be securing the firms against negative environmental claims. The Nordic wood industry could improve their communication if the strategic orientation is shifted from the forest certification to the use of generic eco‐labels, and most of all, to the adoption of quantitative measures like carbon footprints and environmental product declarations. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment.

  May 05, 2014   doi: 10.1002/bse.1853   open full text
• Integrating Strategic Carbon Management into Formal Evaluation of Environmental Supplier Development Programs.
  Yijie Dou, Qinghua Zhu, Joseph Sarkis.
  Business Strategy and the Environment. April 04, 2014
  Increasing global environmental pressures from regulators, markets and communities have caused focal companies in supply chains to recognize the significance of environmentally conscious management. Greener supply chains are part of this recognition. Environmental supplier development is a valuable and viable strategy for greening supply chains. However, low carbon management is rarely explored in supplier development. Further, formal tools and models for focal companies to evaluate environmental supplier development programs (ESDPs) considering low carbon management and their effect on supplier performance improvement are limited. To help address these gaps in the literature, this paper proposes a portfolio evaluation model for ESDPs that consider three types of supplier performance: traditional operational factors, traditional environmental factors and low carbon management factors. This model applies the fuzzy scoring method to measure the effect of ESDPs on supplier performance, and uses fuzzy DEMATEL to examine the cause–effect interrelationships among the ESDPs. Subsequently, a real world example is used to demonstrate the application of the portfolio model and provide insights into environmental supplier development evaluation, followed by discussions of case application results. This paper concludes with directions for further research. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  April 04, 2014   doi: 10.1002/bse.1851   open full text
• Corporate Environmental Strategies Towards Sustainable Development.
  Kjell Mårtensson, Karin Westerberg.
  Business Strategy and the Environment. April 04, 2014
  Many companies have adopted some form of environmental programme to manage their relationship with nature. However, a company's environmental achievements tend to be disconnected from its general operations; consequently, these achievements are ineffective. The purpose of this article is to employ a conceptual approach to explore ways to compose effective corporate environmental strategies. From a resource perspective, the flow of material, knowledge and experiences, relationships, communication, and cooperation and control are discussed as strategy aspects central to an effective environmental strategy. Using these five strategy aspects we show how three different strategies with different contents and directions can be assembled. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  April 04, 2014   doi: 10.1002/bse.1852   open full text
• A Fresh Approach to Context Influence, Development and Performance in Environmental Management.
  Josep Llach, Maria Del Mar Alonso‐Almeida, Antoni García‐Castellví, Llorenç Bagur‐Femenias.
  Business Strategy and the Environment. April 04, 2014
  Respect for the environment has rapidly gained importance in the context of firms, regardless of their pollution levels. Most of the existing research has related to the most polluting sectors and has been limited to the effect that the adoption of cleaner practices has on performance, primarily in terms of operations, financial performance and competitiveness. This paper expands the research towards a more complete picture of environmental management by examining context, development and performance to understand how other factors can influence the development of cleaner practices. In addition, we focus our research on the service sector. In our analysis, we differentiated between the affiliation and size of the studied companies to better understand their specificities. Based on a sample of 374 restaurants, the results show the importance of the influence of institutions and the limited influence of competitors in encouraging firms to adopt a strategic, clean approach, especially for the smallest firms. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  April 04, 2014   doi: 10.1002/bse.1850   open full text
• Environmental Innovations and Internationalization: Theory and Practices.
  Maria Chiarvesio, Valentina De Marchi, Eleonora Di Maria.
  Business Strategy and the Environment. April 04, 2014
  Based on original data on Italian firms specializing in medium‐ and low‐tech industries, we study the relationship between firms’ upstream and downstream internationalization and their propensity to introduce products or processes that reduce environmental impact. Preliminary evidence suggests that geography plays an important role in green firms’ activities and supply chains. More precisely, results suggest that firms that outsource to and rely on non‐local suppliers are less likely to engage in environmental innovations. Moreover, we verify that firms engaged in export activities play a similar and negative role, regardless of the export intensity and typology of foreign markets (i.e. developed versus emerging). Tapping global flows of knowledge by being a part of a multinational group positively spurs the development of green innovations, as for FDIs. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  April 04, 2014   doi: 10.1002/bse.1846   open full text
• Implementation of Sustainability Management and Company Size: A Knowledge‐Based View.
  Jacob Hörisch, Matthew P. Johnson, Stefan Schaltegger.
  Business Strategy and the Environment. March 14, 2014
  Implementing corporate sustainability strategies requires knowledge and application of sustainability management tools. While much progress has been made in developing such tools in both small and medium‐sized enterprises (SMEs) and large companies, the literature claims company size positively affects application. However, the role of knowledge as a mediating factor has not yet been investigated. Using the knowledge‐based view as a theoretical underpinning, this paper draws on empirical survey data from SMEs and large companies in Germany. It analyzes how company size affects the degree of knowledge and application of sustainability management tools. Even though the results reaffirm that SMEs know and apply significantly less tools, company size does not influence the share of tools applied once they are known. Thus, knowledge is identified as a key difference between SMEs and large companies as well as an important mediator to promote sustainability management. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  March 14, 2014   doi: 10.1002/bse.1844   open full text
• Relationship between Corporate Climate Change Disclosures and Firm Factors.
  Iordanis M. Eleftheriadis, Evgenia G. Anagnostopoulou.
  Business Strategy and the Environment. March 14, 2014
  As carbon regulation evolves and becomes specialized in addressing carbon reduction issues, stakeholders will demand that firms provide increased information regarding corporate climate change practices. This paper contributes to the international research that examines the relationship between environmental information disclosures and additional firm factors. To do so, we have conducted an empirical analysis of the relationship between the corporate climate change disclosure practices of firms listed in the Athens Stock Exchange and firm factors, such as size, profitability, leverage and activity sector. Our results indicate there is a significant positive relationship between size and increased corporate disclosures regarding climate change practices. However, no significant relationship is detected between profitability or leverage and corporate climate change disclosures. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  March 14, 2014   doi: 10.1002/bse.1845   open full text
• Has the CSR engagement of electrical companies had an effect on their performance? A closer look at the environment.
  María del Mar Miras‐Rodríguez, Amalia Carrasco‐Gallego, Bernabé Escobar‐Pérez.
  Business Strategy and the Environment. March 14, 2014
  Even though electrical companies attain a top ranking in the publication of CSR reports, they are often accused of 'green‐washing' due to their bad environmental reputation. The current economic crisis is testing their real CSR commitment more than ever, especially when this goes beyond its economic consequences. Based on a worldwide sample of electrical companies, we are going to study why companies are being socially responsible. We wish to know if it is due to the impact on the firms' performance or whether there are other motives (legitimation, improving their reputation) that lead companies to carry out these practices. We will also consider if it changes across the kind of CSR action considered. The results show that there is an economic justification beyond the socially responsible behaviour of the electrical companies. Additionally, most kinds of CSR action (community, diversity, corporate governance, product responsibility) are also carried out looking for economic rewards. However, the CSR actions oriented to the environment are mainly motivated by their need to improve their image and reverse their negative impact. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  March 14, 2014   doi: 10.1002/bse.1848   open full text
• Environmental Policies for Sustainable Development: An Analysis of the Drivers of Proactive Environmental Strategies in the Service Sector.
  Adolfo Carballo‐Penela, Juan Luis Castromán‐Diz.
  Business Strategy and the Environment. March 14, 2014
  This article examines the drivers of environmental proactivity in the service sector. Hypotheses were tested using multiple hierarchical regression analysis with data from a sample of 41 managers in Spanish environmental consulting companies. Results show statistically significant relationships between (1) managers’ attitude towards sustainable development, (2) positive short‐term firm performance and (3) the strategic attitude of environmental consulting firms and the adoption of proactive environmental strategies by the studied companies. This article is pioneering in the analysis of drivers of corporate proactive environmental strategies in the consultancy sector. The findings have practical implications for policy‐makers, investors and other agents interested in a better management of the environment. Economic incentives such as subsidies to environmental training programmes for managers can induce changes in cognitive components of managers’ attitudes. Education policies could also affect managers’ attitudes towards the environment. Companies may also encourage attitude change by providing their managers with financial assistance to receive environmental training. External assistance to develop a strategic attitude could be an interesting policy to encourage voluntary environmental initiatives. Finally, fiscal deductions, tax breaks or subsidies to those companies interested in managing the environment can be effective incentives for those firms facing a weak short‐term financial situation. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  March 14, 2014   doi: 10.1002/bse.1847   open full text
• Environmentally Sustainable Development through Stakeholder Engagement in Developed and Emerging Countries.
  Corinna Dögl, Michael Behnam.
  Business Strategy and the Environment. March 04, 2014
  This cross‐country study investigates the antecedents and outcomes of corporate environmental responsibility (CER) practices in developed and emerging countries. Based on stakeholder and institutional theory, we conducted an empirical study among firms in Germany, USA, India and China. We found support for a significant positive relationship between regulatory, market and social stakeholder influences, CER practices and business outcomes in the total and individual country samples. Regarding country differences, our data reveal significant similarities and differences between developed and emerging countries. Market stakeholder influences are stronger in developed countries, whereas regulatory and social stakeholder influences do not differ significantly between the two country groups. The relationship between CER practices and positive business outcomes is stronger in emerging than in developed countries. Implications for institutional theory and organizations are outlined. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  March 04, 2014   doi: 10.1002/bse.1839   open full text
• A Cognitive Perspective on the Business Case for Corporate Sustainability.
  Kai Hockerts.
  Business Strategy and the Environment. March 04, 2014
  This paper proposes that a cognitive perspective on corporate sustainability and competitiveness might allow new insights into the question of the business case. The paper explores how respondents from 12 firms make sense of their firm's investments in corporate sustainability activities by analyzing the mental models evoked. The interviews showed that a business case perspective emerged as the dominant logic. A subsequent analysis of the content of the knowledge schemas that were elicited surfaced four dimensions of corporate sustainability induced competitive advantages: risk reduction, efficiency gains, brand building and new market creation. An analysis of the structure of these knowledge schemas revealed that respondents from firms with lower perceived sustainability performance drew on less differentiated and less integrated cognitive frameworks (focusing on risk and efficiency). Respondents from firms with higher perceived performance drew on more complex mental models to represent the links between corporate sustainability and competitiveness. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  March 04, 2014   doi: 10.1002/bse.1813   open full text
• SMEs and the Potential for A Collaborative Path to Environmental Responsibility.
  Kate V. Lewis, Sue Cassells, Hernan Roxas.
  Business Strategy and the Environment. March 04, 2014
  Globally, the potential for small and medium‐sized enterprises (SMEs) to collectively impact negatively on the environment is great. Therefore, the adoption, and maintenance, of environmentally responsible practices by this group of firms is especially critical. Studies of environmental practices successfully implemented by small firms have revealed that relationships with other firms, or other organizations, can contribute to greater awareness of the benefits of such activities and, therefore, enhance the possibility of environmental engagement. Collaborative relationships may provide opportunities for SMEs to overcome some of the barriers to implementing environmental initiatives associated with their size, and/or associated characteristics. This paper focuses on attitudes of SME owner‐managers to a variety of environmental issues (including regulation and voluntary standards), and to collaborating with other firms (in either a formal or informal sense). The data this paper draws upon are from two waves of an ongoing longitudinal survey of New Zealand SMEs. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  March 04, 2014   doi: 10.1002/bse.1843   open full text
• Board Effectiveness and the Voluntary Disclosure of Climate Change Information.
  Walid Ben‐Amar, Philip McIlkenny.
  Business Strategy and the Environment. January 24, 2014
  This paper examines the relationship between board of directors' effectiveness and voluntary climate change disclosures. Since risk management and reporting fall under the board's responsibility, we relate board effectiveness to the firm's decision to voluntarily respond to the Carbon Disclosure Project (CDP) annual questionnaire as well as the quality of disclosures about climate‐change‐related risks and strategies to mitigate them. Our results show a positive association between board effectiveness and the firm's decision to answer the CDP questionnaire as well as its carbon disclosure quality. The paper contributes to the ongoing debate on the determinants of voluntary climate change disclosures. Our findings highlight the importance of the board of directors' role in enhancing the transparency and relevance of voluntary disclosures of climate change business impacts. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  January 24, 2014   doi: 10.1002/bse.1840   open full text
• Improving Firm Environmental Performance and Reputation: The Role of Employee Green Teams.
  Rosa Maria Dangelico.
  Business Strategy and the Environment. January 24, 2014
  This paper examines the link between a firm's organization environmental management capability, represented by the development of green teams made up of employees, and its performance. In particular, two categories of firm performance will be analysed: environmental performance and environmental reputation. This link has been investigated in a sample made of the largest publicly traded US companies. Data about green teams have been collected through the content analysis of firm environmental/sustainability/corporate social responsibility reports and/or their websites, whereas data about environmental performance and reputation are those reported in the US 500 Newsweek's 2010 Green Ranking. Regression analysis results show that the creation of employee green teams positively affects both environmental performance and environmental reputation. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  January 24, 2014   doi: 10.1002/bse.1842   open full text
• Through Thick and Thin? How Self‐determination Drives the Corporate Sustainability Initiatives of Multinational Subsidiaries.
  Kalim U. Shah, Surendra Arjoon.
  Business Strategy and the Environment. January 24, 2014
  Multinational corporation (MNC) subsidiaries implement corporate sustainability initiatives (CSIs) if they are self‐determined to do so (based on intrinsic motivation) or when urged on by circumstances and pressures (based on extrinsic motivation). Such differences in self‐determination are derived from underlying corporate psychological needs for competence, autonomy and relatedness, and are manifested in the governance choices of making, allying or buying CSIs. In this study of oil and gas MNC subsidiaries in the developing country context of Trinidad and Tobago, four distinct types of firm are identified based on their levels of self‐determination and corporate governance tendencies. These groups are identified as trail blazers, marching soldiers, sharp shooters and fire fighters, and their distinctive characteristics are described. These findings are useful to corporate sustainability strategists seeking to select, design and implement CSIs that satisfy MNC headquarter directives but balance subsidiary objectives of maintaining good relations and access to operate in developing countries. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

  January 24, 2014   doi: 10.1002/bse.1838   open full text
• The Impact of Business Strategies on Online Sustainability Disclosures.
  Azlan Amran, Say Keat Ooi, Riduan Toani Mydin, S. Susela Devi.
  Business Strategy and the Environment. December 28, 2013
  With increasing attention being paid to corporate sustainability, pressure from stakeholders, especially customers, is forcing companies to implement sustainability strategies and practices that express their commitment to sustainable development, and engage with stakeholders through voluntary sustainability disclosure. To better understand the sustainability disclosure mechanisms from a business strategy perspective, this study investigates the influence of business strategy, formulated by customer groups, on online sustainability disclosure. It provides empirical observation of Malaysian public‐listed companies based on the combined lens of stakeholder and legitimacy theory. Despite the comparatively low level of corporate sustainability disclosure in Malaysia, this content analysis of online sustainability information disclosure reveals that the companies with more diversified product lines disclose more sustainability information, and that the corporate sustainability effort is significantly related to brand name. Hence, companies should be encouraged to proactively improve their sustainability performance and disclose more sustainability information in order to strengthen their brand names. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  December 28, 2013   doi: 10.1002/bse.1837   open full text
• Impact of Green Innovation on Labor Productivity and its Determinants: an Analysis of the Korean Manufacturing Industry.
  Chungwon Woo, Yanghon Chung, Dongphil Chun, Seunghun Han, Dukhee Lee.
  Business Strategy and the Environment. July 26, 2013
  Due to worsening environmental conditions around the globe, firms have been investing a great deal of money in green technologies as a way of coping with the environmental crisis. This paper uses a unique data set based on the Korea Innovation Survey to examine the impact of green innovation on labor productivity, and the determinants of environmental activities in 2010. The empirical results show that green innovation intended for both firm and customer benefits has a positive effect on labor productivity. This finding means that firms need to implement firm‐oriented green innovation as well as customer‐oriented green innovation in order to increase their performance. Our findings also show that there are significant differences in aggregate green innovations depending on different firm sizes and industries. Specifically, large firms implement environmental activities more than small ones, and pollution‐intensive industries tend to invest more in activities related to environmental technology. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  July 26, 2013   doi: 10.1002/bse.1807   open full text
• Responsible Innovation Toward Sustainable Development in Small and Medium‐Sized Enterprises: a Resource Perspective.
  Minna Halme, Maria Korpela.
  Business Strategy and the Environment. July 22, 2013
  What resources do small enterprises need to develop responsible innovations that enhance sustainable development? Does lack of resources prevent innovation toward sustainability in small and medium‐sized enterprises (SMEs) or can innovations be created with scarce resources? This study investigates environmentally and socially responsible innovations of SMEs from a resource perspective, based on empirical data from 13 Nordic SMEs. The findings indicate that SMEs can create responsible innovations with very different resource combinations. The most common resource combination comprises equity, research and development cooperation, networks, industry knowledge and reputation. Except for financial capital in the form of equity, which appears a necessary condition for responsible innovation from SMEs, resource needs vary between technological and business model innovations. Creating business model innovations appears to be possible with scarce resources, at the very least with equity and social capital. Environmental technology innovations call for more abundant resource combinations. In particular industry knowledge appears to be a key resource for such innovations. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 22, 2013   doi: 10.1002/bse.1801   open full text
• Recipes for Successful Sustainability: Empirical Organizational Configurations for Strong Corporate Environmental Performance.
  Kent Walker, Na Ni, Bruno Dyck.
  Business Strategy and the Environment. July 22, 2013
  We examine 45 existing case studies of firms with strong corporate environmental performance (CEP) to empirically identify four organizational configurations for successful sustainability. These four configurations represent different combinations of variables describing a firm's external environment, organizational structure, and its strategy‐related activities. More specifically, these configurations vary in having a benign or challenging external environment, a mechanistic or organic structure, a low‐cost or differentiation strategy, hands‐on or hands‐off participation by the top management team, high or low consideration given to stakeholders, and a short‐ or long‐term time orientation. Taken together the four organizational configurations introduce an understanding of equifinality for achieving CEP. In other words, given an adequate variety of ingredients, there are multiple recipes for successful sustainability. Implications for scholars, practitioners and policy‐makers and other stakeholders are discussed. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  July 22, 2013   doi: 10.1002/bse.1805   open full text
• Relationship Between Sustainable Development and Financial Performance: International Empirical Research.
  Jennifer Martínez‐Ferrero, José Valeriano Frías‐Aceituno.
  Business Strategy and the Environment. July 22, 2013
  The aim of this paper is to clarify the relationship between companies' sustainable behavior and their financial performance (FP), which has been studied for several years without reaching a consensus on the effect and the direction of it. Hypotheses are tested for an unbalanced sample of 1960 multinational non‐financial listed companies from 25 countries and one administrative region for the period between 2002 and 2010. Due to the use of an international database and the differences among countries, it is possible to observe divergence between institutional settings. For this reason, a corporate governance system (Anglo‐Saxon, Germanic, Latin and Asian) is used as characteristic of the macro‐environment. Results obtained via the generalized method of moments estimator allow us to support the existence of a positive bidirectional relationship between corporate social responsibility and FP, evidencing the existence of a synergistic circle. The use of market value indicated that investors are able to identify economic, social and environmental practices generating a positive effect on FP. These relationships differ between corporate governance systems, due to the specific characteristics of each system. Findings are robust for each sustainable sub‐index (society, human rights, environmental and board). Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 22, 2013   doi: 10.1002/bse.1803   open full text
• The Impact of Climate Change on the Pattern of Demand for Bottled Water and Non‐Alcoholic Beverages.
  S. Mirasgedis, E. Georgopoulou, Y. Sarafidis, K. Papagiannaki, D. P. Lalas.
  Business Strategy and the Environment. July 22, 2013
  To date, the majority of the research literature on the impacts of climate change has addressed the negative aspect, i.e. the risks associated with a future permanent modification of climate. Potential opportunities have received much less attention and are rarely transformed into monetary values. Furthermore, manufacturing is one of the economic sectors where the influence of climate change remains practically unknown, although the economic performance of some industrial activities depends directly on climatic conditions – bottled water and non‐alcoholic beverages (i.e. soft drinks and fruit juices) are among these. This paper aims to explore the link between weather and product sales in these sectors, and estimate in quantitative terms the potential impact of future climate change on their revenues. Historic data were explored through statistical analysis and appropriate regression models were developed. Models were applied for the historic (1961–90) and future climate (2021–50) and the difference in sales forms the expected quantified impact of climate change. The results indicate that significant opportunities may arise for some sectors from modifications in climate, provided their production infrastructure can meet the expected demand and their management strategies can successfully adapt to altered climatic conditions. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  July 22, 2013   doi: 10.1002/bse.1782   open full text
• Input, Output, and Environmental Management Productivity: Effects on Firm Performance.
  Gustavo Lannelongue, Javier Gonzalez‐Benito, Oscar Gonzalez‐Benito.
  Business Strategy and the Environment. July 21, 2013
  Firms invest considerable resources to control any of their operations that may have environmental impacts in an attempt to reduce such impacts but also generate economic value. Various studies of the basic creation or destruction of monetary value through environmental performance offer contradictory evidence. Therefore, the present study proposes a new definition of environmental management as the transformation of inputs (resources assigned) into outputs (valuable results). Both inputs and outputs should be taken into account to explain financial outcomes; further consideration should also include a third aspect, namely, ‘environmental management productivity’, which describes the relationship between the outputs and inputs of environmental management. Empirical analyses of Spanish firms with a certified environmental management system subject to the European Union's CO2 emissions trading system provide evidence that all three aspects must be considered in combination to achieve a more comprehensive view of the impact of environmental management on financial performance. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 21, 2013   doi: 10.1002/bse.1806   open full text
• Corporate Environmental Reporting and News Coverage of Environmental Issues: an Agenda‐Setting Perspective.
  Irene Pollach.
  Business Strategy and the Environment. July 19, 2013
  Departing from agenda‐setting theory, this paper explores whether environmental content in newspapers is related to corporate environmental agendas presented in corporate environmental reports and annual reports. Based on a sample of 1668 corporate reports published between 1997 and 2008, this paper compares corporate reporting against environmental news content over the same period with time lags of one and two years as well as without time lags. The results suggest that the media agenda and the corporate environmental agenda mirror each other. The results further suggest that, for some issues, there may be an impact of the news media agenda on corporate environmental agendas, but not vice versa. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  July 19, 2013   doi: 10.1002/bse.1792   open full text
• Sustainability‐Related Supply Chain Risks: Conceptualization and Management.
  Hannes Hofmann, Christian Busse, Christoph Bode, Michael Henke.
  Business Strategy and the Environment. July 19, 2013
  There is ample anecdotal evidence suggesting that firms can experience serious losses from social, ecological or ethical problems that exist in their supply chains. So far, however, research on supply chain risk management has largely neglected these sustainability issues. Most importantly, little is known about how sustainability issues manifest themselves as risks and how they create losses for focal firms. Without an in‐depth understanding of this materialization process, conceptualizations of sustainability risks will remain vague and effective management frameworks cannot be developed. We address this important research gap by means of a transdisciplinary approach and provide a concise description of how sustainability issues in supply chains materialize as risks for focal firms. Building on this mechanism and drawing on stakeholder theory, we develop a conceptualization of sustainability risks which lays the basis for future investigations in this respective field. In addition, we devise a viable management concept for sustainability‐related supply chain risks. The proposed concept can help firms to mitigate sustainability issues in global supply chains, thus making them less vulnerable to losses resulting from these risks. Its application will also foster sustainability standards within supply chains. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  July 19, 2013   doi: 10.1002/bse.1778   open full text
• Influencing Clean Energy Laws: an Analysis of Business Stakeholder Engagement.
  Nigel James Martin, John Lewis Rice.
  Business Strategy and the Environment. July 19, 2013
  On 1 July 2012, Australia commenced operation of its clean energy legislation (CEL) with the introduction of a carbon price of A$23 per tonne. Prior to the commencement of CEL, the government engaged with business stakeholders in a round of structured consultations. This engagement process elicited various responses to the proposed laws from stakeholder firms and non‐governmental organizations (NGOs). Accordingly, in this paper we have used environmental management theories to examine the responses of firms and NGOs and identify critical ‘pressure points’ associated with the new laws. The results from our analysis showed that, during the consultations, stakeholders predominantly used pre‐emptive responses and communications to shape and change the CEL. In addition, the critical legislative pressure point for business stakeholders was the capacity to manage carbon pricing liabilities in order to maintain sound ongoing financial and investment performance. The study also showed that the use of highly defensive and aggressive responses were ineffectual and did not materially impact the introduction of the new laws. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 19, 2013   doi: 10.1002/bse.1795   open full text
• Sustainable Development Strategies for Product Innovation and Energy Efficiency.
  Wolfgang Gerstlberger, Mette Præst Knudsen, Ian Stampe.
  Business Strategy and the Environment. July 11, 2013
  The interaction between product innovation and companies’ activities aimed at improving the energy efficiency of production facilities has been relatively little studied, but is of great relevance to society and companies given the strong focus of governments on grand challenges like climate change, green innovation technologies, and environmental problems in general. This paper utilizes the 2009 European Manufacturing Survey for the Danish sub‐sample including 335 manufacturing firms. Through factor analysis, this paper confirms three main areas of focus of new product development: efficiency considerations, market attention, and greening of innovation. Logistic regression analysis demonstrates that while market attention is important for the development of new products, green aspects of innovation and efficiency considerations are important for production companies wanting to improve their energy efficiency. When these models are combined, the results highlight that energy efficiency moderates the effect of market attention to new product development. This paper therefore finds that aligning product innovation and energy efficiency is a complex and intertwined process – focusing on one may have indirect detrimental effects on the other. These results point to the conclusion that researchers and practitioners in innovation management have to consider more carefully the specificities and interactions of different types of products and process innovations and their environmental implications, and must formulate new, more sustainable managerial practices combining energy efficiency and product innovation. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 11, 2013   doi: 10.1002/bse.1777   open full text
• Strategies for Developing an Environmentally Sustainable Supply Chain: Differences Between Manufacturing and Service Sectors.
  Andrea Chiarini.
  Business Strategy and the Environment. July 04, 2013
  This research illuminates the debate on whether there are differences between the manufacturing and service sectors in the matter of developing a sustainable environmental supply chain. Over the past 5 years a survey has been conducted with 800 large European companies, of which half are in the manufacturing sector and half in the service sector. The hypotheses within the survey are related to strategies for developing an environmental supply chain. They were derived from a literature review and were tested by means of a chi‐square test. The survey questionnaire enabled the respondents to give some viewpoints about the hypotheses. In this way, strategies for developing the supply chain such as ISO 14001, the Eco‐Management and Audit Scheme (EMAS), Life Cycle Assessment (LCA), auditing, waste management systems, reverse logistics, environmental indicators, remanufacturing and reuse have been investigated. Results show interesting and unexpected differences between manufacturing and service sectors that can lead to further research, practical implications and even suggestions for the surveyed companies. For instance, the viewpoints of manufacturing and service industries differ over ISO 14001 and EMAS implementation in the supply chain. In addition, service industries approach the implementation of auditing, reverse logistics, reuse and remanufacturing in a way different from that of manufacturing. Other strategies are considered essential by both sectors. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  July 04, 2013   doi: 10.1002/bse.1799   open full text
• Modeling and Assessing Sustainable Enterprise Excellence.
  Rick Edgeman, Jacob Eskildsen.
  Business Strategy and the Environment. July 01, 2013
  The enterprise excellence and modern sustainability movements have developed along near parallel timelines. Skilled use of enterprise excellence systems has been documented to significantly boost performance across an array of key domains, including financial, human capital, operations and supply chain, and other areas. Notably absent are social and environmental performance, with their absence attributable to the inadequate emphasis on enterprise excellence of these domains. Similarly, although the triple bottom line is core to the sustainability movement, many adherents of sustainability approach its people and planet domains with ardor, yet virtually neglect its profit domain. A simple model of sustainable enterprise excellence and accompanying maturity assessment regimen are introduced and advanced as a means of merging these movements to drive an equity, ecology and economy triple top line strategy to produce triple bottom line people, planet and profit performance with innovation and organizational design playing pivotal roles in both the model and its assessment. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 01, 2013   doi: 10.1002/bse.1779   open full text
• The Effect of Family Ownership on Different Dimensions of Corporate Social Responsibility: Evidence from Large US Firms.
  Joern H. Block, Marcus Wagner.
  Business Strategy and the Environment. July 01, 2013
  Previous research has shown that family firms differ from non‐family firms with regard to aggregate measures of corporate social responsibility (CSR). We argue that CSR is a multidimensional concept that comprises several aspects, which range from employee relations to ecological concerns and product issues. Based on an organizational and family identity perspective, we argue that the effect of family ownership can differ across various CSR dimensions. Family firms can be responsible and irresponsible regarding CSR at the same time. We use a dataset of large US firms to test our hypotheses. Our Bayesian regressions show that family ownership is negatively associated with community‐related CSR performance and positively associated with diversity‐, employee‐, environment‐ and product‐related aspects of CSR. The largest positive effect of family ownership on CSR performance exists with regard to product‐related aspects of CSR. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 01, 2013   doi: 10.1002/bse.1798   open full text
• Environmental, Sustainable Behaviors and Innovation of Firms During the Financial Crisis.
  Yunhee Kim.
  Business Strategy and the Environment. July 01, 2013
  In this paper, we analyze the relation between sustainable and environmental behaviors and performance and innovation. Altogether, 1032 observations are divided into specific groups according to the Carbon Disclosure Project (CDP) Global 500 report and the Dow Jones Sustainability Index (DJSI) for 2008 and 2009. Based on legitimation theory and stakeholder theory, we regard the voluntary activities of firms as having long‐run effective characteristics that can be applied to industry in general. The environmental behavior of firms is represented by CDP activity, while the DJSI represents their sustainable activities. Based on the assumption that corporate environmentalism is a bilateral agreement between policymakers and firms, we answer four specific research questions. (i) What is the relation between voluntary activities and performance of firms? (ii) Do firms' voluntary activities in environmental and sustainable implementations induce innovation? (iii) How does the nature of innovation depend on voluntary type of the firms? (iv) What is the link between firm characteristics and innovation according to voluntary types? From the presented empirical analysis, we find positive relations between corporate environmentalism and innovative activities. We then classify environmental and sustainable issues and propose an empirical model of the links between environmental and sustainable behaviors and innovation activities. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  July 01, 2013   doi: 10.1002/bse.1811   open full text
• Benefits of Cross‐sector Partnerships in Markets at the Base of the Pyramid.
  Tassilo Schuster, Dirk Holtbrügge.
  Business Strategy and the Environment. July 01, 2013
  In this paper we analyze whether cross‐sector partnerships enable companies to respond to the specific conditions at the base of the pyramid (BOP). We develop three hypotheses in which we argue how cross‐sector partnerships support companies to face unfamiliar conditions in these markets. We test the developed hypotheses against the data of 103 companies operating in BOP‐markets. The results show that companies rely on organizations from the civil society sector in order to meet customer needs. Partners from the business sector are supportive when responding to restrictive market conditions. Institutional partnerships should be considered when companies aim at responding to the regulatory environment. We outline theoretical and managerial implications and reflect some limitations of the study. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  July 01, 2013   doi: 10.1002/bse.1780   open full text
• Keeping sustainable innovation on a leash? Exploring incumbents’ institutional strategies.
  Magda M. Smink, Marko P. Hekkert, Simona O. Negro.
  Business Strategy and the Environment. July 01, 2013
  This research aims to identify the institutional strategies of incumbent firms with regard to sustainable energy innovations that threaten their interests. This exploratory study contributes to the multi‐level perspective by providing new insights into niche–regime interaction. The focus on actor behavior in transitions is informed by literature from institutional theory and strategic management. Based on semi‐structured interviews with actors and on documents related to LED lighting and biofuels in the Netherlands, this study identified a preliminary set of empirical strategies: providing information and arguments to policy makers and the general public, as well as strategically setting technical standards. Incumbents are in a position to significantly influence the innovation's development by employing these strategies; thus temporarily keeping sustainable innovation on a leash. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 01, 2013   doi: 10.1002/bse.1808   open full text
• Green Materialities: Marketing and the Socio‐material Construction of Green Products.
  Christian Fuentes.
  Business Strategy and the Environment. July 01, 2013
  Green products are becoming part of contemporary consumer cultures and part of everyday life. But how are green products constructed? What kind of green products are constructed? And what happens as these green products are constructed? The aim of this paper is to contribute a socio‐cultural and critical understanding of green marketing by exploring and illustrating how marketing practices work to construct green products as meaningful material‐symbolic artefacts in practice. Departing from an understanding of marketing as practice I analyse how a green outdoor product ‐ a t‐shirt ‐ was constructed as green through the marketing practices of the Nordic Nature Shops. Focusing on this retail corporation and examining the practices of trail making, attending and selling, it is suggested that these t‐shirts become green through a process of socio‐material inscription. Through marketing practices green moral is generated and linked to the t‐shirts potentially making them desirable consumption objects to be used in the construction of consumers green identities. However, this process of green making is a difficult accomplishment with ambiguous outcomes. While the tendency to inscribe commercial products with morality can be interpreted as an indication of the development of a more ethically reflective consumer culture, it can also be argued to lead to the commercialization of morality. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  July 01, 2013   doi: 10.1002/bse.1768   open full text
• An Examination of Corporate Social Responsibility Implementation and Stakeholder Engagement: A Case Study in the Australian Mining Industry.
  Angela R. Dobele, Kate Westberg, Marion Steel, Kris Flowers.
  Business Strategy and the Environment. July 01, 2013
  This case study explores the experience of a company in a controversial industry sector and its efforts to act in a socially responsible manner when establishing a presence in a regional market. We examine the management of stakeholder relationships and communication, and identify the challenges associated with implementing corporate social responsibility (CSR) initiatives. Our findings highlight the importance of ongoing and broad stakeholder identification, prioritization and management. This case study demonstrates the key role of commitment from senior management and front‐line employees and the importance of a CSR champion. Commitment must be demonstrated at a local level to facilitate community engagement, feedback and monitoring. Finally, the findings highlight the externality of stakeholder networks and their non‐centric relationship with the company. Thus, a company is not the centre of the stakeholder network; the network has a life of its own, regardless of a company's involvement or non‐involvement. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  July 01, 2013   doi: 10.1002/bse.1775   open full text
• A Business Sustainability Model for Government Corporations. A Belgian Case Study.
  Tim Benijts.
  Business Strategy and the Environment. July 01, 2013
  A government's decision to tackle societal non‐sustainability problems by setting up a government corporation also necessitates the choice of a business model. This article seeks to contribute to this debate through an analysis of the (linkages between the key elements of the) business model of the Kringloopfonds (TKF), a Belgian government corporation set up in order to provide finance to sustainable companies. Based on documentary information and semi‐structured interviews with stakeholders TKF's business model is reconstructed which next is evaluated by means of program theory. It was found that TKF's portfolio allocation rule did not foresee in sufficient flexibility in order to cope with the shortage in financeable companies TKF was confronted with. This case thereby advocates for more business model flexibility in terms of portfolio allocation rules, time and asset requirements as well as for thorough sensitivity analyses testing business model's resistance to an initial and temporary shortage of sustainable companies. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  July 01, 2013   doi: 10.1002/bse.1784   open full text
• Corporate Sustainability and Economic Performance: an Empirical Analysis of a Voluntary Environmental Program in the USA.
  Seong‐gin Moon, Suho Bae, Moon‐Gi Jeong.
  Business Strategy and the Environment. July 01, 2013
  Voluntary environmental programs (VEPs) are designed based on a win–win approach to environmental protection that reconciles environmental protection and economic performance. Despite the claims about VEPs, there has been an ongoing debate over their efficacy with regard to whether environmental goals are balanced by economic interests on both theoretical and empirical grounds. To resolve this controversy, this paper empirically investigates a public VEP by the US Environmental Protection Agency: Green Lights (GL). For this, the paper constructs a treatment effects regression model to account for the effects of non‐random assignment for GL participants and non‐participants. The proposed model can simultaneously estimate probit models that predict corporate participation in the GL program and linear models that test the extent to which this participation contributes to economic performance. The results indicate significant positive effects of corporate participation in the GL program on economic performance, providing support for the win–win perspective. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 01, 2013   doi: 10.1002/bse.1800   open full text
• Stakeholder Engagement and Sustainable Corporate Community Investment.
  Anna Lee Rowe, Margaret Nowak, Mohammed Quaddus, Marita Naude.
  Business Strategy and the Environment. July 01, 2013
  This paper presents the findings of research exploring the value and impacts of corporate community investment (CCI) through community partnerships. The research considered the community partners' perceptions of the value and impact of CCI. We adopted an inquiry paradigm utilising constructivist ontology, interpretivist epistemology and a case study method. In dialogue with Wesfarmers Ltd's community partners, the ‘realities’ presented by these beneficiary stakeholders were interpreted and understood (verstehen). While the CCI programmes with each of the not‐for‐profit organisations had different objectives, we were able to classify, under broad headings, the nature of the benefits to the community. One question highlighted is whether all corporate investing is the same? We found two aspects to this: the strategic fit for the community organisation of proposed investment and whether the corporate partner sought a relational as opposed to transactional approach to funding provision. Recommendations can be made for the funding structure deemed to be most effective from the community partners' perspectives. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 01, 2013   doi: 10.1002/bse.1796   open full text
• Sustainable Tuna – Can the Marketplace Improve Fishery Management?
  Duncan Leadbitter, Rene Benguerel.
  Business Strategy and the Environment. July 01, 2013
  Tuna is a major global seafood commodity and thus of significance to retailers in most countries, but especially in countries consuming large quantities of canned tuna such as the United Kingdom, United States and many European countries. Some key species are under heavy fishing pressure, and companies realize that without conservation oriented management their future supplies may be in jeopardy. Sustainable sourcing policies are becoming an integral part of supply chains for seafood products. Under the influence of public opinion bodies such as the media and environmental NGOs, many retailers have adopted seafood sourcing policies in the past decade. The business strategy of any particular company in seeking to support sustainable fishing can vary, but may include the pursuit of market opportunities, protection from damaging publicity and corporate social responsibility commitments. Companies that seek to involve themselves in fishery sustainability issues need to be committed to broad based partnerships with other companies and NGOs, and transparency about all aspects of their decision making, intentions and progress. The sustainable seafood movement has proven persistent and adaptable, and this is increasing the number of retailers seeking sustainable tuna. In a demand driven market economy this growth will surely be influential. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 01, 2013   doi: 10.1002/bse.1794   open full text
• Environmental, Social and Governance Reporting in China.
  Olaf Weber.
  Business Strategy and the Environment. July 01, 2013
  What is the current state of environmental, social and governance (ESG) reporting and what is the relation between ESG reporting and the financial performance of Chinese companies? This study analyses corporate ESG disclosure in China between 2005 and 2012 by analysing the members of the main indexes of the biggest Chinese stock exchanges. After discussing theories that explain the ESG performance of firms such as institutional theory, accountability and stakeholder theory we present uni‐ and multivariate statistical analyses of ESG reporting and its relation to environmental and financial performance. Our results suggest that ownership status and membership of certain stock exchanges influence the frequency of ESG disclosure. In turn, ESG reporting influences both environmental and financial performance. We conclude that the main driver for ESG disclosure is accountability and that Chinese corporations are catching up with respect to the frequency of ESG reporting as well as with respect to the quality. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 01, 2013   doi: 10.1002/bse.1785   open full text
• Revising the Corporate Social Performance Model – Towards Knowledge Creation for Sustainable Development.
  Marjo Elisa Siltaoja.
  Business Strategy and the Environment. July 01, 2013
  The objective of this paper is to offer a revision of the corporate social performance (CSP) model. CSP exemplifies how corporate social responsibility translates into an organization's practice by focusing on three key features of performance: principles, processes and outcomes. However, the development of the model has not kept pace with the literature on social and environmental responsibility. This study builds on an argument that if corporate social responsibility in general – in which CSP plays an important role – is to respond to the challenges of sustainable development, the CSP of businesses could be more profoundly planned in order to design knowledge outcomes that contribute to meeting those challenges. The paper thus answers the recent call for the development of a CSP model by revising some of the key elements in the existing model and also by adding a knowledge creation dimension. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 01, 2013   doi: 10.1002/bse.1783   open full text
• Uncovering the Value of Green Advertising for Environmental Management Practices.
  Christina W.Y. Wong, Kee‐Hung Lai, Kuo‐Chung Shang, Chin‐Shan Lu.
  Business Strategy and the Environment. July 01, 2013
  This paper extends previous environmental management research by building and empirically testing a model of the contingency effects of green advertising on the relationships between environmental management practices in terms of environmentally conscious manufacturing and product stewardship, environmental reputation and financial performance. We examine the value of green advertising in sharing and publicizing information about organizational achievements in environmental preservation in a business‐to business context with the Taiwanese electronics manufacturing industry. The theoretical propositions are largely confirmed by structural path analyses of survey responses collected from 122 Taiwanese electronics manufacturers. Green advertising delivers financial benefits only for those manufacturers that do not have an established environmental reputation. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 01, 2013   doi: 10.1002/bse.1776   open full text
• The Road to Sustainability: Exploring the Process of Corporate Environmental Strategy Over Time.
  Giorgos Papagiannakis, Irini Voudouris, Spyros Lioukas.
  Business Strategy and the Environment. July 01, 2013
  We explore corporate environmental strategy over time, investigating the patterns of evolving environmental investment decisions. Longitudinal case studies provide evidence that environmental strategy evolves through a feedback process, wherein outcomes of earlier decisions have an impact on subsequent decisions. Specifically, positive feedback from outcomes like innovation triggers higher goals, enhancing the undertaking of advanced investments, whereas negative feedback from outcomes, such as increased costs, decelerates the adoption of further investments. The study points to an emergent view of environmental strategy, where capabilities that are gradually developed in concomitance with environmental outcomes lead to an upgrading of environmental goals, thus triggering the feedback process. The process eventually culminates in higher levels of environmental conduct, being more and more integrated with business strategy and competitive advantage. Managers' values and environmental attitudes influence environmental decisions and actions, affecting the acceleration of the feedback process and the magnitude of responses. Managerial implications are discussed. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  July 01, 2013   doi: 10.1002/bse.1781   open full text
• The Influence of Governance Structure and Strategic Corporate Social Responsibility Toward Sustainability Reporting Quality.
  Azlan Amran, Shiau Ping Lee, S. Susela Devi.
  Business Strategy and the Environment. June 28, 2013
  Increased business complexities coupled with enhanced global transformation have propelled corporations to behave as responsible citizens to drive the sustainability agenda. Many corporations incorporate their affirmative commitment to sustainable business practices into their corporate identities and give evidence for this in their sustainability reports. This paper examines the role of the board of directors in sustainability reporting quality (SRQ) in the Asia‐Pacific region. Based on a cross‐sectional study of 113 companies from 12 countries in the region, we find that the SRQ in the region leaves much room for improvement. However, we find that the institutionalization of the concept of corporate social responsibility (CSR) in an organization provides a sound foundation for enhancing SRQ. We find that the value of CSR anchored in the vision and/ or mission statement and strategic alliances fostered with non‐governmental organizations are positively associated with SRQ.This study contributes to strengthening the understanding, promoting discussion on the state of sustainability reporting in the Asia‐Pacific context and laying a solid foundation for more aggressive efforts to enhance SRQ. The study identifies the significant drivers currently associated with SRQ. The weak role of the board of directors in upholding the sustainable development agenda through the reporting process is highlighted. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  June 28, 2013   doi: 10.1002/bse.1767   open full text
• Sustainability in the Transport and Logistics Sector: Lacking Environmental Measures.
  Peter Oberhofer, Maria Dieplinger.
  Business Strategy and the Environment. April 01, 2013
  Sustainability as part of the development of companies' business strategies is gaining in importance. Due to its impact on the environment, this is particularly essential for companies of the transport and logistics sector. This paper explores several factors that influence the environmental behaviour of transport and logistics companies in Austria. It discusses the importance of the economic impact on environmental management decision in detail and analyses the sector's specific characteristics in terms of environmental behavior. A case‐based approach involving multiple field studies with face‐to‐face expert interviews and secondary data analysis was used to evaluate environmental performance and specific practices. Using selected cases, we will demonstrate how environmental measures contribute to overall business performance and draw general conclusions regarding the transport and logistics sector. Furthermore, suggestions are given as to how the government can further support transport and logistics companies in this regard. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  April 01, 2013   doi: 10.1002/bse.1769   open full text
• Environmental Innovations and Strategies for the Development of New Production Technologies: Empirical Evidence from Europe.
  Werner Bönte, Christian Dienes.
  Business Strategy and the Environment. February 22, 2013
  This study empirically investigates whether firms' improvements in energy and material efficiency are related to the extent to which external partners are involved in the development of process innovations. In particular, we distinguish three different process innovation strategies: firms may follow an ‘in‐house strategy’ and develop their innovations mainly within the firm, they may opt for an ‘external strategy’ and let mainly external partners develop innovations, or they may opt for a ‘cooperation strategy’ and develop innovations jointly with external partners. Using data of manufacturing firms obtained from the fourth Community Innovation Survey covering 14 European countries, we conduct total sample as well as industry‐ and country‐specific regressions. Our results indicate that firms following the ‘external strategy’ tend to have a lower probability of introducing process innovations leading to a marked increase in energy and material efficiency. Moreover, in contrast to extant literature, none of our results suggests that companies following a ‘cooperation strategy’ experience greater environmental innovation performance.

  February 22, 2013   doi: 10.1002/bse.1753   open full text
• Conformance and Deviance: Company Responses to Institutional Pressures for Corporate Social Responsibility Reporting.
  Esben Rahbek Gjerdrum Pedersen, Peter Neergaard, Janni Thusgaard Pedersen, Wencke Gwozdz.
  Business Strategy and the Environment. February 22, 2013
  This paper analyses how large Danish companies are responding to new governmental regulation which requires them to report on corporate social responsibility (CSR). The paper is based on an analysis of 142 company annual reports required by the new Danish regulation regarding CSR reporting, plus 10 interviews with first‐time reporting companies and six interviews with companies that failed to comply with the new law. It is concluded that coercive pressures from government have an impact on CSR reporting practices. Further, the analysis finds traces of mimetic isomorphism which inspires a homogenisation in CSR reporting practices. Finally, it is argued that non‐conformance with the new regulatory requirements is not solely about conscious resistance but may also be caused by, for example, lack of awareness, resource limitations, misinterpretations, and practical difficulties. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

  February 22, 2013   doi: 10.1002/bse.1743   open full text
• Environmental Innovations as a Source of Competitive Advantage or Vice Versa?
  Helena Forsman.
  Business Strategy and the Environment. February 22, 2013
  The aim of this paper is to examine the links between developed environmental innovations and the competitiveness of firms. It seeks answers to the question: Are the developed environmental innovations associated with the improved or impaired competitiveness of firms? In addition, it explores how competitive advantage is created along the innovation process. This will be done by comparing the successful and unsuccessful green innovators. The empirical evidence is based on the longitudinal dataset gathered from 128 Finnish firms which have developed one or more environmental innovations. The data covers nine years from 2002 to 2010. This study provides two contributions to academic literature. First, it deepens the existing knowledge of how environmental innovations are associated with competitive advantage. It identifies the types of competitive advantages as well as potential disadvantages along the innovation process. Second, this study demonstrates how the competitive advantage was enhanced along the successful innovation process. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

  February 22, 2013   doi: 10.1002/bse.1742   open full text
• Price Fairness in the Case of Green Products: Enterprises' Policies and Consumers' Perceptions.
  Sihem Dekhili, Mohamed Akli Achabou.
  Business Strategy and the Environment. December 10, 2012
  This study investigates the extent to which prices of ecological products are fair. In particular, it explores the gap that can exist between the pricing policies adopted by enterprises and the consumers' price expectations in terms of fairness. The existing academic literature on sustainable consumption neglects this question. Findings from a qualitative investigation combining a consumer study and enterprise case studies show that managers' behaviors vary. While some enterprises take into account consumers' expectations and purchasing power to propose a fair price based on the value of the green product, others continue to adopt a pricing policy that is exclusively based on profitability and competition. The authors draw some business and academic implications. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  December 10, 2012   doi: 10.1002/bse.1763   open full text
• Commitment Strategies for Sustainability: How Business Firms Can Transform Trade‐Offs Into Win–Win Outcomes.
  Markus Beckmann, Stefan Hielscher, Ingo Pies.
  Business Strategy and the Environment. December 10, 2012
  This paper addresses a fundamental problem in corporate sustainability: How can corporations transform trade‐offs through win–win‐oriented governance strategies aimed at creating value? Drawing on new strands of research in business ethics, we employ an ‘ordonomic’ perspective and proceed in four steps. First, we sketch how sustainability semantics has evolved historically from a societal searchlight to a heuristics for business practice. Second, we discuss how business firms can make strategic use of moral commitments as governance contributions by deploying individual or collective self‐commitments as well as commitment services in their stakeholder relations. Third, we combine these four governance strategies with the three ESG (‘ecological, social and governance’) criteria of sustainability. We derive and illustrate with real‐life examples a 12‐box matrix as a tool for the strategic management of corporate sustainability. Fourth, we discuss the specific contribution of our ordonomic approach to the literature. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment

  December 10, 2012   doi: 10.1002/bse.1758   open full text
• Environmental Management Evolution: Empirical Evidence from Spain and Italy.
  M. Ormazabal, J.M. Sarriegi.
  Business Strategy and the Environment. December 10, 2012
  This research is focused on a survey conducted among Spanish and Italian companies in order to define the environmental management evolution within firms. Through this survey, a number of maturity stages were defined and validated, and the identification of the relevant factors for each of the maturity stages was made. Survey results show that companies start with environmental management issues due to legislation requirements. Afterwards, firms go through a training phase, continuing with the systematization stage, then look for economic benefits through ecological improvements (ECO2 stage) and finish with the eco‐innovation and leading green company stages. The survey has shown that the maturity stages have application in all types of industrial sector. These are useful for those firms that want to make progress in environmental matters, as it helps them to identify at which maturity stage they are and what are the factors that they need to take into account to move forward. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  December 10, 2012   doi: 10.1002/bse.1761   open full text
• Explanatory Factors of Integrated Sustainability and Financial Reporting.
  José V. Frias‐Aceituno, Lázaro Rodríguez‐Ariza, Isabel M. Garcia‐Sánchez.
  Business Strategy and the Environment. December 10, 2012
  The complexity of the business world has led to growing demands being made of companies regarding the information provided on their financial performance, corporate governance and contribution to developing sustainability. In response, some leading companies have begun to publish integrated reporting, in the form of a document providing a coherent summary of this information, thus facilitating stakeholder engagement. This paper examines the validity of the hypotheses of the theories of agency and of signalling, and analyses the political costs and those borne by owners in voluntarily developing this new type of business document. More specifically, in order to determine their prevalence among the suggested reasons for these paradigms, we analyse the effect of industry concentration, together with other factors, in the development of integrated reporting. The analysis of a non‐balanced sample of 1590 international companies for the years 2008–2010, in which a logistic regression methodology is applied to panel data, reveals the negative impact of industry concentration on the development of a more pluralist report, simultaneously taking into account stakeholders, sustainability and the long‐term viewpoint, as well as questions of responsible investment, business ethics and transparency. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment

  December 10, 2012   doi: 10.1002/bse.1765   open full text
• Sustainability Development and the Quality of Assurance Reports: Empirical Evidence.
  Ana Zorio, Maria A. García‐Benau, Laura Sierra.
  Business Strategy and the Environment. December 07, 2012
  There is a rising trend among companies to publish their sustainability or corporate social responsibility (CSR) reports. Assurance of these reports is a valuable voluntary tool to provide them with higher credibility. Nonetheless, the quality of assurance reports differs in practice and the objective of this paper is to provide evidence in this new area of research. Indeed, we are pioneers in developing an index to measure the quality of assurance reports. We choose the Spanish setting because it is the worldwide leading country as regards CSR reporting (KPMG, ; Sierra et al., ). We have found evidence on the determinants for CSR reporting posited by existing literature that have an impact on (a) the decision of companies to publish their CSR reports, (b) the decision to assure the CSR report or not and (c) the decision to hire the assurance services from an auditor or a consultant and the subsequent quality of the assurance report. Last but not least, our results from a sample of 161 CSR assurance reports evidence that assurance reports are of fairly acceptable quality, according to the index proposed. Furthermore, the value of the quality index is significantly higher if the assurance services are provided by an auditor (as opposed to a consultant) and if the CSR reporting company is larger. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  December 07, 2012   doi: 10.1002/bse.1764   open full text
• Climate Change Response: Evidence from the Margaret River Wine Region of Australia.
  Jeremy Galbreath.
  Business Strategy and the Environment. December 07, 2012
  This study explores the relevancy of climate change to business using a sample of wine firms operating in Margaret River, Western Australia, one of the premier wine regions of the world. Using a qualitative approach based on thematic analysis, the results challenge the extent to which climate change is a salient stakeholder, while demonstrating that the phenomenon may, in fact, be beneficial. Response actions towards climate change demonstrate both mitigative and adaptive actions, although differences in their level and rate of implementation appear to be attributable to a mix of normative and instrumental trade‐offs. Implications of the findings are discussed, with a particular focus on location theory and economic barriers as a key driver of trade‐offs between the choice of mitigative or adaptive response to climate change. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  December 07, 2012   doi: 10.1002/bse.1762   open full text
• Environmental Management of End‐of‐Life Products: Nine Factors of Sustainability in Collaborative Networks.
  Francesco Rizzi, Irene Bartolozzi, Alessandra Borghini, Marco Frey.
  Business Strategy and the Environment. November 21, 2012
  The paradigm of the green economy has contributed to raising the attention paid to developing sustainability‐oriented strategies for supply chain (SC) management. The responsibility of producers to extend and reverse SCs is a critical and timely topic that captures increasing concerns over the way firms can adapt their business models to interlinking technical, socio‐economic and environmental frameworks. This is particularly true when producers are not also reuse/recycle actors. By performing a critical review of the scientific literature on this field, this article develops nine elemental factors that can be considered for assessing the impacts of collaborative strategies as a means to implement extended producer responsibility (EPR) in open‐loop SCs. The resulting conceptual framework provides EPR implementation guidance under different market conditions. Inter‐organizational relationships are found to present both opportunities and threats that can be profitably managed under a systemic perspective. Implications for management and needs for further research are discussed. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  November 21, 2012   doi: 10.1002/bse.1766   open full text
• Pollution prevention and service stewardship strategies in the third‐party logistics industry: effects on firm differentiation and the moderating role of environmental communication.
  Steffen Maas, Tassilo Schuster, Evi Hartmann.
  Business Strategy and the Environment. November 12, 2012
  A growing number of firms are considering the incorporation of environmental thinking into their business strategies, hoping to improve their competitiveness. In this paper, we analyze the effects of pollution prevention and service stewardship capabilities on firm differentiation advantage in the third‐party logistics industry. Since prior research claims that complementary assets play an important role in fully understanding the environmental‐management‐competitiveness link, we furthermore examine the moderating role of environmental communication on the pollution‐prevention‐differentiation and the service‐stewardship‐differentiation linkages. We theoretically base our research in natural‐resource‐based thinking. Drawing on survey data, we apply multivariate regression and moderation analysis. The results highlight that pollution prevention and service stewardship capabilities can help third‐party logistics providers to achieve a differentiation advantage. Also, the results show that environmental communication moderates the effect of pollution prevention on differentiation advantage and can hence be considered a valuable complementary asset.

  November 12, 2012   doi: 10.1002/bse.1759   open full text
• Strategizing Environmental Policy and Compliance for Firm Economic Sustainability: Evidence from Taiwanese Electronics Firms.
  Chin‐jung Luan, Chengli Tien, Pei‐hua Wu.
  Business Strategy and the Environment. November 12, 2012
  This study aims to examine whether the compliance of environmental policies can sustain firm economic performance, and whether a timing issue is relevant to firm economic sustainability in pursuit of eco‐friendly efforts. Offering models predominantly based on the institutional theory, this study tests hypotheses using data from 284 companies in the electronics sector in Taiwan during the period from 1997 to 2010. The findings reveal that the execution of environment policies mostly improves firm economic sustainability and some joint green efforts can even strengthen such sustainability; however, firms aiming to sustain their economic performance should not hasten to undertake eco‐friendly efforts, implying that first movers may not be guaranteed firm economic performance. Thus, managers should carefully strategize their green efforts to comply with environmental policies, and execute them in due course to prevent disadvantages, such as market uncertainty and complexity of green practices, while conquering organizational inertia. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment

  November 12, 2012   doi: 10.1002/bse.1760   open full text
• Why Do Companies Not Produce Sustainability Reports?
  Wendy Stubbs, Colin Higgins, Markus Milne.
  Business Strategy and the Environment. November 12, 2012
  Sustainability reporting emerged on the corporate scene nearly 30 years ago as a key mechanism through which business organisations would manage a transition to a new business landscape dominated by greater concern and consciousness about sustainability. While it has become something of a feature on the corporate agenda in some parts of the world, the majority of business organisations do not undertake this type of reporting. This paper explores why 23 of Australia's top 200 companies do not undertake sustainability reporting. The study is situated in the context of a considerable literature that promised numerous benefits to be derived from this type of reporting. The paper uncovers various social and organisational factors that raise some new questions about legitimacy theory, corporate accountability and the spread and uptake of this organisational practice. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  November 12, 2012   doi: 10.1002/bse.1756   open full text
• Sustainable Development and the Financial System: Society's Perceptions About Socially Responsible Investing.
  Elena Escrig‐Olmedo, María Jesús Muñoz‐Torres, María Ángeles Fernández‐Izquierdo.
  Business Strategy and the Environment. November 08, 2012
  The debate surrounding the financial needs of investors and the impact on society of investment is considered to be an important research topic due to the growth of socially responsible financial markets. The main objective of this research is to study society's perception about socially responsible investing (SRI) and to identify investor's preferences regarding environmental, social and governance criteria, their real‐life investment needs and the most relevant sustainable financial products. To examine society's perception of SRI, we conducted a field survey among Spanish investors. The results show that SRI is at an early stage and Spanish investors need more exact information regarding social, environmental, and governance criteria in order to invest in socially responsible companies and products. This paper offers some guidelines that could be used by Spanish institutions, managers and investors and by foreign managers when approaching the Spanish market, in order to promote the growth of socially responsible financial products. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  November 08, 2012   doi: 10.1002/bse.1755   open full text
• Sustainable Development in the Transport Sector: Influencing Environmental Behaviour and Performance.
  Peter Oberhofer, Elmar Fürst.
  Business Strategy and the Environment. October 23, 2012
  Sustainable Development and Environmental Policy are becoming increasingly important in the development of business strategies. Consequently, corporate road freight transport comes under particular scrutiny due to its substantial impact on the environment. This paper explores the implementation of environmental management in the Austrian road freight transport sector. A model based on an extensive literature review is developed and adapted to show the impact of attitude, company size and sector affiliation. It is tested using data from a quantitative survey. Based on an extensive literature review a model of influencing factors is developed and tested using data from a quantitative survey. According to our findings, we adopted the model with respect to the impact of attitude, company size and sector affiliation. Although decision‐makers' attitudes have a significant influence on the companies' actual environmental performance, firm size and sector affiliation are shown to have a far greater influence. It is therefore necessary to offer external incentives and support in order to improve environmental behaviour, especially among smaller and transport companies. Such instruments, however, need to be aligned on an international basis and across industries to prevent friction and competitive disadvantage. In addition to policy intervention (legal restrictions and incentives) and improvements on a corporate level, consumer awareness should be raised in order to create public pressure for companies to implement environmental management. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  October 23, 2012   doi: 10.1002/bse.1750   open full text
• Corporate Social Responsibility in China: a Preferential Stakeholder Model and Effects.
  Jiyao Xun.
  Business Strategy and the Environment. October 22, 2012
  Research interest in examining corporate social responsibility (CSR) in developing economies is on the rise; however, our knowledge of the role of government in CSR remains limited. The aim of this paper is therefore to bridge this gap with an investigation into the specific CSR strategies that global firms have developed in the world's largest emerging economy and a nominally communist country, namely China. Drawing on institutional theory and a relational governance perspective, we posit that rather than adopting a canonical holistic CSR stakeholder model as typically observed in Western countries, these firms adopt a preferential stakeholder model using government‐aimed and consumer‐aimed CSR strategically. Our empirical study sampled 17 global retailers operating in China, with a dataset compiled to include their CSR web announcement data and firm performance data. The results of partial least squares modelling suggest that only government‐aimed CSR plays a salient role in enhancing retailers' performance. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment

  October 22, 2012   doi: 10.1002/bse.1757   open full text
• Motivations and Barriers to Corporate Environmental Management.
  David Ervin, JunJie Wu, Madhu Khanna, Cody Jones, Teresa Wirkkala.
  Business Strategy and the Environment. September 24, 2012
  This paper integrates two conceptual frameworks, utility maximization and institutional theory, to analyze voluntary corporate environmental management. The utility maximization or economic approach centers on motivations to decrease cost, increase revenue and improve manager utility. Institutional theory emphasizes how external pressures from market and non‐market constituents shape the firm's environmental efforts. We view the two frameworks as complementary and postulate a model that includes both types of influences. Survey data from six major industries consisting of a diverse set of facilities are used to estimate the effects of economic and institutional factors on a facility's use of environmental practices and pollution‐prevention activities. Our results support the hypothesized model, and show that cost barriers, management attitudes toward environmental stewardship, company ownership and external institutional forces, including competitiveness, investor and regulatory pressures, all affect a facility's environmental practices and pollution prevention activities. Findings suggest that a multifaceted policy strategy is needed to advance corporate environmental management across diverse firms. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment

  September 24, 2012   doi: 10.1002/bse.1752   open full text
• Environmental Requirements, Knowledge Sharing and Green Innovation: Empirical Evidence from the Electronics Industry in China.
  Stanley Kam Sing Wong.
  Business Strategy and the Environment. September 18, 2012
  Building on the Porter hypothesis, which posits that regulatory stringency triggers innovation and thereby allows firms to achieve the dual purpose of environment protection and enhanced business performance, the present research develops an integrative model that explores the determinants of green innovation with a focus being placed on knowledge sharing. Data were collected from 203 green innovation project leaders from electronics manufacturers operating in China. The results indicate that knowledge sharing mediates the relationship between green requirements and new green product success as well as that between green requirements and green product and process innovations. Interestingly, the empirical analysis rejects the hypothesized positive influence of green requirements on green product and process innovations as well as that on new green product success, while confirming that there exists a direct and positive association between green requirements and knowledge sharing. The direct positive impact of knowledge sharing is the strongest on green process innovation. This study provides a theoretical basis for investigating the possible determinants in the causal links between green requirements and green innovation success and establishes that knowledge sharing and green process innovation may be the points where leverage can be applied to best secure innovation success. Implications of the findings on environmental policy and law design are also discussed to see how the regulatory role of the government can be better positioned to facilitate compliance and innovation. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  September 18, 2012   doi: 10.1002/bse.1746   open full text
• Environmental Performance, Environmental Risk and Risk Management.
  Michael Dobler, Kaouthar Lajili, Daniel Zéghal.
  Business Strategy and the Environment. September 13, 2012
  Environmental performance, environmental risk and risk management are of contemporary interest, but to date there is limited evidence on their relationships. This paper is the first to provide detailed insights by adopting a content analysis approach and disaggregating firm‐level environmental risk into types related to regulations, operations and nature. For a sample of US firms in polluting sectors, descriptive findings show that the level of risk and the likelihood of active risk management differ in the type considered. Environmental performance, risk and the likelihood of risk management all differ across firms and industries. Multiple regressions reveal a negative association between environmental performance and environmental risk, the extent of which depends on the type of risk. Results hold when controlling for active risk management, which is not found to contribute significantly to environmental performance. Our findings have implications for public policy and suggest that linkages to environmental risk and risk management are worth exploring in more differential ways and beyond industry‐level assessments in environmental studies. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  September 13, 2012   doi: 10.1002/bse.1754   open full text
• ISO 26000 and the Standardization of Strategic Management Processes for Sustainability and Corporate Social Responsibility.
  Rüdiger Hahn.
  Business Strategy and the Environment. September 13, 2012
  The standard ISO 26000 aims to provide guidance on social responsibility and help all types of organizations contribute to sustainable development. Such guidance is important since there is still no consistent understanding of what corporate sustainability and social responsibility (CSSR) encompass. Many companies lack a strategic approach to CSSR and instead follow unsystematic procedures; thus, formal strategic planning could improve operational efficiency. Against this background, this article critically examines the contribution of ISO 26000 to the strategic management processes of different types of companies. This allows the potential of ISO 26000 for guiding companies on their path to sustainability to be identified. The analysis shows that the standard is most useful for beginners in CSSR. However, ISO 26000 does not cover the entire range of strategic management processes. Instead, the standard is especially helpful for internal and external analyses and in providing starting points for implementing sustainability strategies. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  September 13, 2012   doi: 10.1002/bse.1751   open full text
• Convergence in Environmental Reporting: Assessing the Carbon Disclosure Project.
  Daniel C. Matisoff, Douglas S. Noonan, John J. O'Brien.
  Business Strategy and the Environment. September 13, 2012
  We perform content analysis on Carbon Disclosure Project (CDP) responses from 2003 to 2010, focusing on the extent to which firms account for indirect emissions and have exhibited convergence in carbon reporting. We also examine standardization in reporting and the variation of reporting behavior across industry and country. We find that the CDP has produced a mixed record of improved transparency. In some areas, such as Scope 2 emissions, the CDP has demonstrated an increase in transparency in later years. However, the transparency and quality of direct emissions and Scope 3 emissions have not improved over time. Japanese and European Union firms have increased transparency, while American firms have decreased transparency. Energy‐intensive industries have either increased transparency or remained the same, while less energy‐intensive industries have become less transparent. We demonstrate some evidence of a learning effect among firms after participating in the CDP survey. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  September 13, 2012   doi: 10.1002/bse.1741   open full text
• Assessing the Comprehensiveness of Supply Chain Environmental Strategies.
  Joana M. Comas Martí, Ralf W. Seifert.
  Business Strategy and the Environment. September 13, 2012
  As environmental awareness grows, firms are expected to expand the scope of their environmental strategies beyond organisational boundaries and to address more comprehensively environmental issues in their supply chains and product life cycles. Drawing on different literature streams, international standards and corporate disclosure, this paper presents a conceptual framework for the quantitative assessment of the comprehensiveness of firms' environmental strategies. This framework allows us to capture: (i) the environmental inputs and outputs addressed, (ii) the firm versus supply chain orientation of environmental strategies, and (iii) the environmental management practices adopted by companies. We illustrate the application of this framework with a content analysis of corporate sustainability reports for a cross‐sectoral sample of sustainability leaders. Our results indicate that there is a need for greater specificity in environmental reporting and that, overall, companies remain firm‐oriented. It is also observed that supply chain orientation can generally be associated with stakeholder pressure. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  September 13, 2012   doi: 10.1002/bse.1749   open full text
• Sustainability and Earth Resources: Life Cycle Assessment Modeling.
  T. O'Shea, J. S. Golden, L. Olander.
  Business Strategy and the Environment. July 10, 2012
  Corporations are facing increasing risks associated with ecosystems from both natural drivers, such as climate change, as well as institutional drivers resulting from retailers and brands, increasingly making supplier decisions based on life cycle reporting and indexing. These efforts reflect a transition from traditional firm sustainability to a more quantitative product focus, within which the importance and weight of earth resources and ecosystems is dramatically increasing. This paper provides an overview of the limitations traditional life cycle assessment (LCA) methods and presents emerging developments to improve on LCA for resources and ecosystems. This includes LCA efforts to account for spatial relevance, indices of stress, stocks and flows and integrated valuation of services and trade‐offs. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

  July 10, 2012   doi: 10.1002/bse.1745   open full text