{"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}
Esben Rahbek Gjerdrum Pedersen, Luigi Tiburzi, Francesco Rosati, Roberta Costa, Armando Calabrese
{"title":"Silos and Sustainability: How the Permeability of Organizational Boundaries Shapes Corporate Sustainability Integration","authors":"Esben Rahbek Gjerdrum Pedersen, Luigi Tiburzi, Francesco Rosati, Roberta Costa, Armando Calabrese","doi":"10.1002/bse.4302","DOIUrl":"https://doi.org/10.1002/bse.4302","url":null,"abstract":"The aim of this study is to examine how the permeability of organizational boundaries shapes corporate sustainability (CS) integration. The literature suggests that CS should be integrated throughout the organization and in its relationships with key, external stakeholders, but limited knowledge exists on the relationship between CS integration and the characteristics of the multiple, co‐existing boundaries which define the organization (hierarchies, functions, professions, etc.). Based on a partial least squares structural equation modeling (PLS‐SEM) analysis of survey responses from over 7000 organization members in three Nordic countries (Denmark, Norway, and Sweden), this study demonstrates that the permeability of organizational boundaries increases the level of CS integration and reduces the level of organizational tensions. Moreover, the findings show that boundary permeability becomes increasingly important for understanding CS integration as the size of the organization increases. The findings deepen our knowledge of organizational boundaries and show how these “sites of difference” influence the level of CS integration.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"108 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143853395","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 Environmental Policy and the Circular Economy Adoption: An Empirical Study of Manufacturing Companies","authors":"Marek Ćwiklicki, Barbara Pawełek","doi":"10.1002/bse.4299","DOIUrl":"https://doi.org/10.1002/bse.4299","url":null,"abstract":"This study investigates the relationship between the environmental policy and manufacturing companies' adoption of a circular economy (<jats:sc>CE</jats:sc>). By examining environmental policy through the lens of <jats:sc>CE</jats:sc> strategies and environmental management systems (EMSs), the research highlights their correlation with the intensity of realised <jats:sc>CE</jats:sc> practices, positioning them as key antecedents of the circular transition. Based on a representative sample of 1200 manufacturing firms in Poland's Malopolska region, the analysis uses measures of association strength, significance testing, residual analysis and variable aggregation. Our findings reveal that possessing a strategy and EMS correlates with a higher number of <jats:sc>CE</jats:sc> practices. EMS is also related to the minimisation of industrial waste and energy‐savings. This paper provides novel insights into the role of environmental policies in enabling the successful adoption of <jats:sc>CE</jats:sc> principles among small‐ and medium‐sized enterprises (SMEs), addressing critical gaps in the literature, driving sustainable industrial transformation and offering actionable insights for practitioners.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"108 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143849673","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 Energy Provision at the Bottom of the Pyramid: Blueprint for Early Repurposing Business Models Using Second‐Life Batteries","authors":"Arne Jeppe, Heike Proff","doi":"10.1002/bse.4305","DOIUrl":"https://doi.org/10.1002/bse.4305","url":null,"abstract":"This study presents a blueprint for an early‐stage business model focused on repurposing second‐life electric vehicle (EV) batteries for solar‐energy storage in Bottom of the Pyramid (BoP) markets. Addressing the critical need for affordable and sustainable energy solutions there, the research integrates principles of strategic and innovation management, international management at the BoP, and management for the circular economy. The proposed framework of an early repurposing business model highlights four key design themes: novelty, efficiency, complementarity, and lock‐in, tailored to the unique challenges and opportunities in these markets. A case study on two remote villages in the Brazilian Amazon deepens our blueprint for an early repurposing business model at the BoP.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"10 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143849674","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}
Krayyem Al‐Hajaya, Eba'a Amjed Almahameed, Nedal Sawan, Mohammad Saleh Altarawneh, Ahmed Eltweri, Rami Salem
{"title":"Audit Committees and the Quality of Standalone Sustainability Reporting, Considering the Moderating Role of External Assurance: Evidence From the Global Chemical Industry","authors":"Krayyem Al‐Hajaya, Eba'a Amjed Almahameed, Nedal Sawan, Mohammad Saleh Altarawneh, Ahmed Eltweri, Rami Salem","doi":"10.1002/bse.4297","DOIUrl":"https://doi.org/10.1002/bse.4297","url":null,"abstract":"Sustainability reporting and its assurance are increasingly becoming globally mandatory, alongside the issuance of international standards for sustainability assurance aimed at boosting the confidence and trust of investors, regulators and other stakeholders in sustainability‐related disclosures. The objective of this paper is to investigate how the interplay between external assurance and an effective audit committee (AC) might influence the quality of GRI standalone sustainability reporting. Using the GRI Standards (2016), a disclosure index with 32 items referring to six quality indicators was developed to assess the quality of the sustainability reports of 104 chemical firms from 36 countries for the years 2020, 2021 and 2022. Our panel regression showed that increased numbers of AC members, along with their higher levels of independence, directly improve the quality of sustainability reporting. However, when external assurance is involved as a moderating variable, sustainability reporting quality is further enhanced by smaller AC size, greater sustainability expertise and a higher proportion of female AC members. This study makes an original contribution by addressing a gap in the literature regarding the impact of AC sustainability expertise, as well as the moderating role of external assurance on the relationship between AC characteristics and the quality of sustainability reports. The research provides a valuable assessment tool for chemical firms to benchmark the quality of their sustainability reporting and offers insights for shaping sustainable business strategies. The findings will help raise awareness among regulators, policymakers and industry stakeholders about the need to incorporate sustainability experts, achieve better gender balance in AC and engage external auditors in the sustainability reporting process.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"108 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143836985","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":"Utilising Artificial Intelligence to Enhance Firm Circular Economy Maturity: A Thematic Review via Machine Learning","authors":"Donghao Huang, Yuanzhu Zhan, Chris Lonsdale","doi":"10.1002/bse.4291","DOIUrl":"https://doi.org/10.1002/bse.4291","url":null,"abstract":"Despite the environmental imperative of a transition to a circular economy (<jats:sc>CE</jats:sc>), the current literature finds that globally firms are being slow to engage with such a transition. In this context, our thematic review explores how artificial intelligence (AI) might accelerate firm <jats:sc>CE</jats:sc> transition. In a departure from the dominant approach that adopts the product life cycle as the unit of analysis, the authors contribute to the literature by framing the potential of AI in terms of how it might accelerate greater <jats:sc>CE</jats:sc> maturity on the part of firms. A maturity model is advanced, identifying four stages of firm <jats:sc>CE</jats:sc> maturity, and then, different AI techniques are applied to each of the stages, providing guidance to adopting the correct AI technique for each stage in the maturity journey. The paper makes a further contribution to the literature by utilising a novel literature review method, whereby the authors themselves utilise AI in the form of a machine learning algorithm that optimises manual classification outcomes. This method provides greater objectivity to a review of 601 papers and reveals its future research potential.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"238 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143832463","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":"Transforming Organizational Readiness Into Green Innovation: The Crucial Roles of Green Knowledge Management and Environmental Culture","authors":"Asier Baquero","doi":"10.1002/bse.4289","DOIUrl":"https://doi.org/10.1002/bse.4289","url":null,"abstract":"Grounded in the resource‐based view and dynamic capabilities theory, this study investigates the interplay between organizational readiness (OR), green knowledge management (GKM) and environmental organizational culture (EOC) in fostering green innovation (GI). This study uses data collected from 340 respondents across 159 UAE SMEs and employs a quantitative approach using partial least squares structural equation modeling and moderated mediation analysis. The findings revealed that OR significantly influenced both radical and incremental GI. Additionally, GKM mediates the relationship between OR and both GI types. EOC was found to strengthen the positive effect of GKM on radical GI but not on incremental GI. Furthermore, the conditional indirect effects show that the mediating effect of GKM on the relationship between OR and radical GI is more pronounced when EOC is high, whereas this effect does not hold for incremental GI. These results provide critical insights for practitioners and policymakers. Organizations are encouraged to enhance readiness, implement robust GKM practices and foster a strong environmental culture to drive sustainable innovation. This study contributes to the theoretical framework of RBV and dynamic capabilities by elucidating the interconnected roles of OR, GKM and EOC in driving GI.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"27 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143827259","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}