{"title":"Towards Green Growth Capability Development: A Knowledge‐Based Perspective","authors":"Polina Baranova, Hassam Waheed, Fred Paterson","doi":"10.1002/bse.4284","DOIUrl":"https://doi.org/10.1002/bse.4284","url":null,"abstract":"Green growth, which balances a firm's growth aspirations with environmental stewardship, is gaining traction in the literature. However, the notion of <jats:italic>green growth capability</jats:italic> (GGC) as a foundation for firm‐level green growth strategy remains underexplored. Multifaceted and multi‐skills nature of organisational capabilities is brought into focus to advance a knowledge‐based view and to develop a new GGC scale. A robust scale development process was employed, including expert insights and a scoping review to establish content and face validity. A primary survey of 280 firms in the UK Midlands green market niches was undertaken. Exploratory and confirmatory factor analysis demonstrated construct validity and reliability revealing three main skill groupings necessary for GGC development: <jats:italic>environmental impact minimisation, business development</jats:italic> and <jats:italic>green growth stewardship skills</jats:italic>. A two‐step structural equation modelling (SEM) approach confirmed the scale's nomological and predictive validity. This study advocates for a <jats:italic>GGC development approach</jats:italic> to the design and implementation of policy mixes, which support capacity building for sustainable regional development.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"43 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143875846","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Tracing the Paths to Sustainable Production and Consumption Through Indigenous Directors, Environmental Innovation, and Sustainability Committees","authors":"Dejun Zhou, Ummar Faruk Saeed, Angelina Kissiwaa Twum, Rahmatu Chibsah","doi":"10.1002/bse.4307","DOIUrl":"https://doi.org/10.1002/bse.4307","url":null,"abstract":"This study investigates the influence of indigenous directors on sustainable production and consumption in the energy sector of Latin America and the Caribbean (LAC) countries, while considering the moderating roles of environmental innovation and sustainability committees. Using panel data from 378 firms across the LAC region from 2012 to 2023, the study employs robust econometric methods, including quantile regression, IV‐GMM, and IV‐2SLS, to address potential endogeneity issues and ensure reliable results. The findings reveal that indigenous directors significantly promote SPC initiatives across lower, middle, and upper quantiles. Also, environmental innovation not only directly impact SPC but also enhances the positive influence of indigenous leadership on sustainable practices, particularly at higher quantiles. Additionally, the presence of a sustainability committee amplifies the link between indigenous directors and SPC, across all quantiles. The analysis also uncovers substantial heterogeneity effects driven by regional, policy, industry, and stratification dynamics. This study contributes to the growing literature on corporate governance and sustainability strategy, offering actionable insights for policymakers, corporate leaders, and practitioners seeking to foster sustainable business practices in emerging markets.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"20 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143867017","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Raffaela Casciello, Marco Maffei, Annamaria Zampella
{"title":"Does National Culture Drive the Value Relevance of Nonfinancial Disclosure?","authors":"Raffaela Casciello, Marco Maffei, Annamaria Zampella","doi":"10.1002/bse.4306","DOIUrl":"https://doi.org/10.1002/bse.4306","url":null,"abstract":"The aim of this paper is to investigate the association between national culture and the value relevance of nonfinancial disclosure provided by listed firms in Germany, Spain, France, and Italy from 2018 to 2023. The results of Hierarchical Linear Model regressions show that, in countries where the national culture is characterized by greater power distance, individualism, masculinity, and indulgence, nonfinancial disclosure is less value‐relevant for market investors. Instead, in countries where the national culture is characterized by greater uncertainty avoidance and long‐term orientation, nonfinancial disclosure is more value‐relevant for market investors. This study will be helpful to standard‐setters, regulators, investors, and academics interested in knowing potential country‐based incentives or constraints to the market valorization of corporate nonfinancial disclosure during a unique historical period, especially considering the introduction of the proposed Corporate Sustainability Reporting Directive and the current geopolitical setting.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"7 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143867015","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Impact of National Cultural Dimensions on Corporate Environmental, Social and Governance Disclosure: Evidence From Social Media Practices","authors":"Giuseppe Nicolo, Lukasz Bryl, Diana Ferullo","doi":"10.1002/bse.4304","DOIUrl":"https://doi.org/10.1002/bse.4304","url":null,"abstract":"This study intends to bridge an important research gap in the existing literature by extending academic knowledge on the relationship between national cultural dimensions and corporate environmental, social and governance (ESG) disclosure practices via social media. To this end, this study relies upon a sample of 96 of the world's largest companies from the Fortune Global 500 list over the 2018–2020 period. A dictionary‐based content analysis was conducted on a total of 122,739 tweets extracted from the official Twitter accounts of sampled companies to identify and codify those containing ESG themes according to a glossary created on the basis of the Bloomberg ESG Index. Accordingly, several panel regression models were estimated to examine the influence of national culture represented by the six Hofstede's cultural dimensions, namely, power distance (PD), individualism (IDV), masculinity (MAS), uncertainty avoidance (UA), long‐term orientation (LTO) and indulgence (IND), and the level of ESG disclosure provided by sampled companies via Twitter. The study's findings reveal that companies operating in countries with less power distance are more likely to disclose ESG information via Twitter. Also, companies from countries with individualist and masculine cultures tend to provide more ESG disclosure via Twitter.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"15 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143857748","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Corporate Governance and Impact on Eco‐Efficiency: A Comparative Empirical Analysis on European Union and United States Listed Companies","authors":"Pasquale Latella, Donato Morea, Giovanni Baldissarro, Gianpaolo Iazzolino, Stefania Veltri, Elisa Farinelli","doi":"10.1002/bse.4308","DOIUrl":"https://doi.org/10.1002/bse.4308","url":null,"abstract":"This study investigates the governance drivers of a firm's eco‐efficiency. We measure eco‐efficiency using data envelopment analysis (DEA), emphasizing efficiency measures aimed at minimizing inputs and ensuring constant returns to scale (CRS model). The governance variables considered within the study include board size, board independence, frequency of board meetings, and board gender diversity. Specifically, we examine the impact of board effectiveness, as determined by its size, level of independence, and frequency of its meetings, as well as sustainable governance, as proxied with board gender diversity. Our analysis covers two geographical contexts, Europe and the USA, to identify potential disparities between the environmentally regulated (Europe) and non‐regulated (USA) environments. Employing a beta regression model, we show that board effectiveness positively affects European firms' eco‐efficiency, while no impact is found on the sample of US firms. For what concerns board gender diversity, we provide evidence of a positive impact on eco‐efficiency for both samples. As for practical implications, our results identify the factors, which allow to achieve environmental efficiency while maintaining economic efficiency. Our results suggest that in highly regulated contexts, specific board characteristics improve board effectiveness and drive impactful, sustainable outcomes in their environmental efforts. Instead, within less‐regulated contexts, strengthening director responsibilities for environmental outcomes could lead boards to proactively engage in sustainability issues.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"7 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143862171","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jesko Schulte, Emma Bäckman, Vincenzo Giunta, Monica Salirwe
{"title":"Credit Risk Assessment From a Strategic Sustainability Perspective: The Case of the Nordic Banking Sector","authors":"Jesko Schulte, Emma Bäckman, Vincenzo Giunta, Monica Salirwe","doi":"10.1002/bse.4310","DOIUrl":"https://doi.org/10.1002/bse.4310","url":null,"abstract":"The financial sector plays an important yet ambivalent role in society's sustainability transition. Credit decisions have a substantial impact as they determine the allocation of large amounts of financial resources. This study applies the Framework for Strategic Sustainable Development as a lens to review literature and investigate practices in Nordic banks on sustainability considerations in corporate credit risk assessment. Three gaps and recommendations are presented: (i) banks should apply a systems perspective that goes beyond a narrow focus on climate change to avoid sub‐optimisation; (ii) strategies like inclusion and exclusion should be informed by backcasting from basic sustainability principles to foresee the long‐term direction of change and to assess whether solutions are scalable towards sustainability; and (iii) instead of asking whether it ‘pays to be sustainable’, research and practice should focus on ‘how’ companies can work strategically with sustainability, finding the optimal timing between being too passive and too proactive.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"12 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143862177","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Sustainable Decision‐Making in SMEs of the Textile Industry: Integrating Methodologies, Practices, and Barriers","authors":"Israel Naranjo, Rocío de la Torre, Andres Boza","doi":"10.1002/bse.4295","DOIUrl":"https://doi.org/10.1002/bse.4295","url":null,"abstract":"Despite its economic importance, the textile industry is one of the most polluting sectors. This study addresses the critical gap in understanding sustainable decision‐making in textile SMEs, where decision processes often remain informal and lack structured frameworks. It seeks to identify the decisions made in productive environments that incorporate environmental, economic, and social sustainability, while also exploring those that overlook these dimensions. Through a systematic literature review, the research examines key themes such as (i) decision‐making for sustainable development in SMEs; (ii) sustainable supply chain management in the textile industry; (iii) sustainable practices to achieve the SDGs; and (iv) environmental, social, and economic sustainability in textile SMEs. The analysis (i) explores the most commonly used sustainability pillars and practices related to products, processes, and organizations; (ii) categorizes aspects, strategies, indicators, and barriers faced by textile SMEs; and (iii) identifies types of decisions, methodologies, and criteria that can guide these companies toward sustainability. The findings highlight the predominance of the environmental dimension, with life cycle assessment, circular economy, and sustainable business models being the most well‐defined practices. Decision‐making methodologies often rely on multiattribute decision‐making (MADM), particularly the analytic hierarchy process (AHP). However, the use of mathematical programming models remains limited. This paper provides a valuable resource for improving sustainability initiatives in textile SMEs by connecting categorized elements with production environments and sustainability dimensions.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"27 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143862172","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Circular Economy Balance Scorecard Framework for Agrifood Companies in Emerging Economies","authors":"María Laura Rabasedas, José Mariano Moneva Abadía","doi":"10.1002/bse.4293","DOIUrl":"https://doi.org/10.1002/bse.4293","url":null,"abstract":"The agrifood sector provides several opportunities to promote circular economy (<jats:sc>CE</jats:sc>) mitigating and preventing its adverse environmental impacts. To evaluate the effects of <jats:sc>CE</jats:sc> in practices and to ensure consistency with business strategies, the implementation of circularity principles requires the adaptation of current performance management systems. The objective of this research is to contribute to the successful implementation of corporate strategies for circularity through the development of a circular balanced scorecard (CBSC) including the construction of data set of specific <jats:sc>CE</jats:sc> strategies and indicators for agrifood companies in emerging economies. To this end, a systematic review of the literature was carried out to construct the data set and develop the CBSC. The framework offers a theoretical and practical PMS that could help agrifood companies in emerging economies start their circular journey, providing guidance for the definition of <jats:sc>CE</jats:sc> strategies and the selection of proper indicators to monitor success.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"47 32 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143862173","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pablo Mac Clay, Guillermo Bort, Roberto Feeney, Jorge Sellare
{"title":"Industrial Dynamics and Business Strategies in the Emergence of Agricultural Biological Inputs","authors":"Pablo Mac Clay, Guillermo Bort, Roberto Feeney, Jorge Sellare","doi":"10.1002/bse.4314","DOIUrl":"https://doi.org/10.1002/bse.4314","url":null,"abstract":"Biological products present a sustainable alternative to synthetic agricultural inputs, yet the industrial dynamics triggered by these solutions remain unexplored. This study examines the strategic responses of dominant agricultural input firms to the rise of biological solutions. Through qualitative textual analysis of press releases, company reports, and other public sources, we identify five key strategies followed by incumbents: portfolio expansion, marketing and distribution, technological complementarities, product development, and window of technology. These exploration strategies are pivotal in shaping the technological and market trajectories of sustainable innovations, particularly in a sector characterized by market concentration. While synergies exist between chemical and biological products, incumbents face challenges adapting to the distinct rationale of these products. This study offers practical insights for firms operating in this emerging market while underscoring how incumbents play a dual role in navigating adaptation challenges while influencing the scalability and commercialization of these emerging sustainable technologies.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"18 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143862174","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Viput Ongsakul, Pattanaporn Chatjuthamard, Pornsit Jiraporn, Sang Mook Lee
{"title":"Climate Change, Innovation Efficiency, and Shareholder Wealth: Insights From the Paris Agreement","authors":"Viput Ongsakul, Pattanaporn Chatjuthamard, Pornsit Jiraporn, Sang Mook Lee","doi":"10.1002/bse.4272","DOIUrl":"https://doi.org/10.1002/bse.4272","url":null,"abstract":"We examine the impact of innovation efficiency on shareholder value in the context of climate change, using the novel research quotient (RQ) metric. The adoption of the Paris Agreement provides a unique setting to assess the effect of R&D productivity on stock market reactions. Our findings reveal that lower innovation efficiency, as measured by RQ, positively impacts cumulative abnormal returns (CARs) around the Paris Agreement's adoption. This suggests that firms starting from a lower baseline of innovation efficiency have greater potential for improvement and stand to gain significantly more from the Paris Agreement's climate‐related incentives and support. In particular, a decline in innovation efficiency by one standard deviation improves the stock market reactions by 8.7%–9.9%. Also, we find that firms with stronger governance and higher profitability can further leverage these benefits, enhancing the positive market reactions to the Paris Agreement.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"28 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143853394","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}