{"title":"How Can Digital Platforms Resolve Market Failures to Foster a Circular Economy?","authors":"Ässia Boukhatmi, Wim Van Opstal","doi":"10.1002/bse.70190","DOIUrl":"https://doi.org/10.1002/bse.70190","url":null,"abstract":"Market failures—such as asymmetric information, incomplete markets, externalities, and market power—present major barriers to a circular economy (<jats:sc>CE</jats:sc>) transition. Although government intervention is traditionally proposed, this paper examines the potential of digital platforms, particularly software‐as‐a‐service (SaaS) business‐to‐business (B2B) models, to address such failures. Drawing on semistructured interviews with platform users, owners, and policy experts across Europe, this study develops and validates a conceptual framework that explains how platforms may resolve, moderate, or generate market failures. The findings show that SaaS platforms can improve transparency, reduce transaction costs, and help internalize externalities but may also introduce new risks, including data asymmetries, user lock‐in, and market concentration. The analysis examines how platform ownership and design features influence strategic interactions among ecosystem actors and affect platform outcomes in <jats:sc>CE</jats:sc> contexts. This paper contributes to <jats:sc>CE</jats:sc> and platform governance theory and offers practical insights for EU policy and practice on enabling circular ecosystems.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"314 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145072551","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":"Shades of Green Labeling: A Bibliometric Analysis","authors":"Roopali Bhatnagar, Malgorzata Krzywonos, Agnieszka Piekara, Efthymios Altsitsiadis","doi":"10.1002/bse.70198","DOIUrl":"https://doi.org/10.1002/bse.70198","url":null,"abstract":"Sustainability labels are a signal of firms' commitment to environmental, social, and governance (ESG) related goals and can be driven by firms' ESG strategy. There is a multitude of labeling schemes leading to calls for either a simplified, overarching sustainability label or greater harmonization across the existing labels. Research has examined diverse issues related to sustainability labeling over the years, but primarily with a consumer focus. The present bibliometric study aims to address this imbalance and take stock of the literature on sustainability labeling from a business perspective during 2000–2023, using both Scopus and Web of Science. Our systematic search strategy results in 419 research articles, which are analyzed using bibliometric measures like thematic mapping, document co‐citation analysis, and bibliographic coupling analysis. Findings reveal five themes in the literature—overall impact of sustainability labels; labels influencing firms' sustainability strategy and product innovation; labels and greenwashing; sector‐specific research; and governance of sustainability standards and credibility‐related concerns. We conclude with a discussion and avenues for future research.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"52 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145072552","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}
Albahlol Mohamed Alayat, Alhashmi Aboubaker Lasyoud, Ajab Khan, Irsyadillah Irsyadillah
{"title":"Corporate Governance and Sustainability Disclosure: Challenges and Opportunities for the Libyan Audit Bureau in the Oil Sector","authors":"Albahlol Mohamed Alayat, Alhashmi Aboubaker Lasyoud, Ajab Khan, Irsyadillah Irsyadillah","doi":"10.1002/bse.70211","DOIUrl":"https://doi.org/10.1002/bse.70211","url":null,"abstract":"This study identifies challenges faced by Libyan Audit Bureau (LAB) members in monitoring governance practices and sustainability disclosure in Libya's oil sector. Using quantitative data from 231 distributed questionnaires (88% response rate), the research reveals that LAB oversight remains in early stages due to persistent challenges including regulatory gaps, weak enforcement, insufficient professional standards, and cultural‐institutional barriers. While international benchmarks such as IFRS S1 and S2 gain worldwide adoption, Libya's implementation remains limited. Enhanced LAB effectiveness requires policies addressing stakeholder rights, Islamic principles integration, transparency mechanisms, conflict management, and external factors including professional development, legal system strengthening, enforcement improvement, cultural considerations, and awareness building for governance and sustainability reporting.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"74 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145072555","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":"Balancing Efficiency and Culture: How Individualism Shapes the Environmental, Social, and Governance–Performance Nexus in Industrial Manufacturing Multinational Enterprises","authors":"Wen‐Min Lu, Jui‐Cheng Chen, Hsiu‐Fei Wang, Irene Wei Kiong Ting","doi":"10.1002/bse.70209","DOIUrl":"https://doi.org/10.1002/bse.70209","url":null,"abstract":"This study examines the influence of environmental, social, and governance (ESG) pillars on sustainable efficiency and profitability efficiency in multinational enterprises within the industrial manufacturing sector, while incorporating the moderating role of individualism. Our hierarchical regression findings from 46 MNEs as samples from 2017 to 2023 reveal that the environmental pillar negatively impacts sustainable efficiency and profitability efficiency, suggesting that environmental initiatives reduce operational and financial efficiency, especially when not well integrated with core business strategies. In contrast, the social and governance pillars (GPs) demonstrate positive effects, highlighting the role of socially responsible practices and sound governance in enhancing stakeholder trust, employee productivity, and managerial effectiveness. Further analysis reveals that individualism significantly moderates the relationship between ESG pillars and efficiency outcomes. Specifically, higher levels of individualism intensify the negative effects of environmental and social initiatives on profitability, indicating that cultural context can hinder the translation of ESG investments into profitable efficiency. These findings offer important implications for policymakers, managers, and investors by emphasizing the need to align ESG strategies with local cultural norms. This study contributes to the literature by offering a complex, context‐aware understanding of ESG and efficiency linkages and by integrating cultural dimensions into ESG‐performance models, an area previously underexplored in cross‐border efficiency studies.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"159 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145072553","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}
Christopher Galgo, Gohar Isakhanyan, Jos Bijman, Verena Otter, Marilena Gemtou
{"title":"Harvesting Value! Exploring How Climate‐Smart Agriculture Practices Change Farm Business Models in Europe","authors":"Christopher Galgo, Gohar Isakhanyan, Jos Bijman, Verena Otter, Marilena Gemtou","doi":"10.1002/bse.70205","DOIUrl":"https://doi.org/10.1002/bse.70205","url":null,"abstract":"Climate‐smart agriculture (CSA) is essential for sustainable farming. However, the adaptation of farm business models (BM) for widespread CSA implementation in Europe remains underexplored. This article investigates how CSA practices change or innovate farm BMs. Applying a multiple case study design based on 30 semistructured interviews with farmers across five European countries, we implement a BM value framework and BM change typologies to uncover the underlying management mechanisms. Findings reveal that CSA practices trigger incremental BM changes rather than radical BM innovations, improving operational efficiency and environmental benefits. Although value creation and delivery are enhanced, value capture faces unresolved challenges. Effective BM changes require improved value propositions and better capture mechanisms. The study contributes to the CSA literature by providing empirical evidence on the pathways of BM change, clarifies the BM change and BM innovation distinction, and broadens the scope from technological improvements to business strategies needed for sustainable farming practices.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"24 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145072554","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}
Aaron Maltais, Nella Canales, Rasmus Kløcker Larsen
{"title":"Challenges in Balancing Sustainability, Competitiveness and Geopolitics in Critical Mineral Supply Chains","authors":"Aaron Maltais, Nella Canales, Rasmus Kløcker Larsen","doi":"10.1002/bse.70213","DOIUrl":"https://doi.org/10.1002/bse.70213","url":null,"abstract":"The energy transition is driving demand for critical raw materials (CRMs), creating complex challenges for companies in CRM supply chains. This study examines how firms in Europe navigate the intersecting pressures of sustainability, competitiveness and geopolitical risk, based on interviews with industry representatives. We investigate what motivates sustainable supply chain management (SSCM) practices, the barriers companies encounter, and how evolving regulatory and geopolitical contexts shape their strategies. While companies increasingly see a business case for sustainability and report structured SSCM efforts, they face persistent constraints such as limited supplier leverage, price competition and import dependencies. Regulatory initiatives like the Corporate Sustainability Due Diligence Directive are driving change, but governance gaps and uncertainty hinder impact. Industry responses reveal that policy goals aiming to reconcile sustainability, competitiveness and geopolitical resilience are difficult to achieve in practice, highlighting the need for more coherent, cross‐regional frameworks to support secure and responsible CRM supply chains.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"82 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145072556","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}
Mira Holopainen, Minna Saunila, Tero Rantala, Juhani Ukko
{"title":"Striving for Sustainability Performance Through Digital Platforms and Advanced Collaboration in Digital Transformation","authors":"Mira Holopainen, Minna Saunila, Tero Rantala, Juhani Ukko","doi":"10.1002/bse.70201","DOIUrl":"https://doi.org/10.1002/bse.70201","url":null,"abstract":"Digital platforms, as key drivers of digital transformation, expand opportunities for business development—particularly for small and medium‐sized enterprises (SMEs)—by enabling value‐creating activities through digital resources. As infrastructures that mediate interactions and tasks, they have become increasingly central to management research, yet their impact on organizational performance remains underexplored. This study addresses this gap by investigating how external digital platforms influence collaboration, from bilateral collaboration on supply chain platforms to multidirectional ecosystem collaboration on industrial platforms, and their impact on sustainability performance. Drawing on survey data from Finnish B2B manufacturing and service firms, the findings reveal that while both bilateral and ecosystem collaboration are strengthened by digital platforms, only ecosystem collaboration improves sustainability performance. These results highlight the importance of broad cross‐organizational collaboration and suggest that SMEs transition from supply chain‐focused to ecosystem‐oriented models. This study contributes to the digitalization‐sustainability nexus and offers insights for collaborative management in SMEs.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"52 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145072655","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}
Roger Nyffenegger, Brian Baldassarre, Nancy Bocken, Stefan N. Groesser
{"title":"Circular Economy Policies and Business Models in the EU Renewable Energy Sector: The Case of Solar Photovoltaic Industry","authors":"Roger Nyffenegger, Brian Baldassarre, Nancy Bocken, Stefan N. Groesser","doi":"10.1002/bse.70188","DOIUrl":"https://doi.org/10.1002/bse.70188","url":null,"abstract":"The circular economy is an approach to decouple economic growth from environmental impacts. In Europe, its development is driven by policies that guide market dynamics through regulations and by businesses innovating with new circular models. However, top‐down policies and bottom‐up business efforts are often misaligned, and their interplay remains poorly understood. This study addresses this knowledge gap through a case study in the renewable energy sector. We investigate to what extent circular economy policies influence the emergence, diffusion, and scaling of circular business models in the solar industry. We identify four archetypes of business models, explaining how they function, interact, and whether they align with intended policy goals. As a result, we propose six industrial and policy interventions to improve circularity, thus waste management and resource security in the sector. Conceptually, we outline three key circular business model patterns: policy‐gap‐exploiter, policy‐follower, and policy‐pioneering. These insights contribute to bridging the gap between policymaking and business innovation.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"170 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145056713","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":"Toward Sustainable Development: Gender Diversity in Leadership, Green Innovation, and ESG Disclosure","authors":"Ahmad Yuosef Alodat, Siwei Dong","doi":"10.1002/bse.70181","DOIUrl":"https://doi.org/10.1002/bse.70181","url":null,"abstract":"This study examines the mediating role of green innovation on the link between gender diversity in leadership (GDL) and ESG disclosure in European countries. This study analyzes data from 2013 to 2022 from nonfinancial firms listed on European markets. The indirect impact of the green innovation mediating role was tested, and the direct effect of GDL on ESG disclosure was also examined. The findings indicated that GDL positively and significantly affects ESG disclosure. Additionally, the findings showed that green innovation mediates the association between GDL and ESG disclosure. This study is one of the early studies examining the indirect effect of GDL on ESG. It discusses the mediation relationship using green innovation in GDL on ESG disclosure, drawing from upper stakeholder theory and resource dependence theory.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"72 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145059283","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 Synergy Among Digitalization, Economic Competitiveness, and Sustainability in Business: An Integrative Approach for the European Union","authors":"Melinda Timea Fülöp, Javier Cifuentes‐Faura","doi":"10.1002/bse.70171","DOIUrl":"https://doi.org/10.1002/bse.70171","url":null,"abstract":"Digital transformation is an important driver of economic development and sustainability in the European Union (EU). This study examined the impact of digitization on economic performance and the achievement of the Sustainable Development Goals (SDGs) in EU countries. The research applied quantitative methods such as structural equation modeling against data from the ICT Development Index, Global Competitiveness Index, and SDG Index Score. The results revealed a significant positive correlation among digitization, economic competitiveness, and sustainability. The countries employing advanced digital infrastructure showed better economic performance and progress in implementing sustainable practices than nations with limited digital capacities. The results highlight the need for integrated strategies combining digital transformation and sustainability to maximize economic and environmental benefits. The concept is based on the Triple Bottom Line model and stakeholder theory, and the practical implications can effectively guide policymakers and companies in adopting sustainable digital solutions. Future research should explore long‐term effects and cross‐sectoral differences to expand on these relationships.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"53 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145056714","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}