Corporate risk-taking, which aims to maximize shareholders' profits, has raised concerns regarding potential conflicts with Environmental, social and governance (ESG) investments. We address this gap by investigating the relationship between corporate risk-taking and ESG performance using an international sample from 20 economies spanning 2000 to 2022, while carefully accounting for endogeneity based on GMM, Heckman sample selection bias and simultaneous equations. Our findings reveal a significantly negative relationship, suggesting a trade-off between the two, which aligns with the conservation of resources (COR) theory. Furthermore, the COR theory is integrated with agency theory and stakeholder theory when examining subsamples of high and low corporate governance scores. Additionally, we find that economic policy uncertainty (EPU) positively moderates this relationship, particularly in high-income economies and for large firms. This effect is evident during the post-2008 subprime crisis period but dissipates in the post-COVID-19 era. The overall findings have several important theoretical and practical implications for the literature.
{"title":"Corporate risk-taking, economic policy uncertainty and ESG performance: International evidence","authors":"Chai-Aun Ooi, Ming Pey Lu, Abdul Hadi Zulkafli","doi":"10.1002/bsd2.70028","DOIUrl":"https://doi.org/10.1002/bsd2.70028","url":null,"abstract":"<p>Corporate risk-taking, which aims to maximize shareholders' profits, has raised concerns regarding potential conflicts with Environmental, social and governance (ESG) investments. We address this gap by investigating the relationship between corporate risk-taking and ESG performance using an international sample from 20 economies spanning 2000 to 2022, while carefully accounting for endogeneity based on GMM, Heckman sample selection bias and simultaneous equations. Our findings reveal a significantly negative relationship, suggesting a trade-off between the two, which aligns with the conservation of resources (COR) theory. Furthermore, the COR theory is integrated with agency theory and stakeholder theory when examining subsamples of high and low corporate governance scores. Additionally, we find that economic policy uncertainty (EPU) positively moderates this relationship, particularly in high-income economies and for large firms. This effect is evident during the post-2008 subprime crisis period but dissipates in the post-COVID-19 era. The overall findings have several important theoretical and practical implications for the literature.</p>","PeriodicalId":36531,"journal":{"name":"Business Strategy and Development","volume":"7 4","pages":""},"PeriodicalIF":4.8,"publicationDate":"2024-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142447510","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The emergence of climate change calls for the high-intensity adoption of sustainability practices in all business actors, especially small-and-medium enterprises (SMEs). Yet the adoption of such practices remains lag far lower than developed nations. This article examines the relationship between sustainability practices, a firm's strategic movements towards co-innovation and entrepreneurial orientation, and SMEs performance. Using quantitative data from questionnaires, a total of 450 SMEs in Vietnam participated in this research. The results indicate two crucial findings. First, economic and social sustainability practices enable technological innovation and innovation outcomes through co-innovation and entrepreneurial orientation. Second, the effectiveness of technological innovation on SMEs performance is examined in a developing country context. These findings will provide empirical evidence for SMEs and corporations in developing countries to craft sustainable orientations and practices to aid the Sustainable Development Goals.
{"title":"Unveiling the role of sustainability practices, co-innovation and entrepreneurial orientation on SMEs performance: An empirical study in developing country","authors":"Hai-Ninh Do, Ngoc Bich Do, Tra My Nguyen","doi":"10.1002/bsd2.70022","DOIUrl":"https://doi.org/10.1002/bsd2.70022","url":null,"abstract":"<p>The emergence of climate change calls for the high-intensity adoption of sustainability practices in all business actors, especially small-and-medium enterprises (SMEs). Yet the adoption of such practices remains lag far lower than developed nations. This article examines the relationship between sustainability practices, a firm's strategic movements towards co-innovation and entrepreneurial orientation, and SMEs performance. Using quantitative data from questionnaires, a total of 450 SMEs in Vietnam participated in this research. The results indicate two crucial findings. First, economic and social sustainability practices enable technological innovation and innovation outcomes through co-innovation and entrepreneurial orientation. Second, the effectiveness of technological innovation on SMEs performance is examined in a developing country context. These findings will provide empirical evidence for SMEs and corporations in developing countries to craft sustainable orientations and practices to aid the Sustainable Development Goals.</p>","PeriodicalId":36531,"journal":{"name":"Business Strategy and Development","volume":"7 4","pages":""},"PeriodicalIF":4.8,"publicationDate":"2024-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142447507","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Hossain Mohammad Reyad, Momtaj Ayesha, Mohammed Masum Iqbal, Mohd Ashhari Zariyawati
Geopolitical risk (GPR) presents a profound challenge to firms, particularly in regions with persistent political instability. In Eastern Europe, where conflicts like the Russia–Ukraine war heighten uncertainty, firms face immediate financial threats and long-term strategic vulnerabilities. This study examines the impact of GPR on firm performance, focusing on the moderating role of environmental, social, and governance (ESG) practices as a resilience mechanism. Using a comprehensive dataset of 1360 publicly listed firms across Poland, Russia, and Ukraine from 2014 to 2023, the analysis employs a base panel data regression model, followed by a two-step generalized method of moments (GMM) approach to account for endogeneity and ensure robustness. The findings reveal a significant negative relationship between GPR and firm performance, measured by return on assets (ROA). Firms exposed to higher geopolitical risks exhibit weaker profitability. However, firms with stronger ESG performance demonstrate greater resilience, as the GMM results show that ESG engagement moderates the adverse effects of GPR on profitability. This suggests that ESG initiatives enhance adaptive capacity in volatile geopolitical environments. In terms of policy implications, ESG should be promoted as a key strategy for firms operating in politically unstable regions. Governments and regulatory bodies may consider mandatory ESG disclosures and incentivizing sustainability practices to help firms mitigate external risks, improve financial resilience, and attract stable investment. Aligning corporate strategies with global ESG standards is essential to ensuring business sustainability amid ongoing geopolitical threats.
{"title":"The role of ESG in enhancing firm resilience to geopolitical risks: An eastern European perspective","authors":"Hossain Mohammad Reyad, Momtaj Ayesha, Mohammed Masum Iqbal, Mohd Ashhari Zariyawati","doi":"10.1002/bsd2.70027","DOIUrl":"https://doi.org/10.1002/bsd2.70027","url":null,"abstract":"<p>Geopolitical risk (GPR) presents a profound challenge to firms, particularly in regions with persistent political instability. In Eastern Europe, where conflicts like the Russia–Ukraine war heighten uncertainty, firms face immediate financial threats and long-term strategic vulnerabilities. This study examines the impact of GPR on firm performance, focusing on the moderating role of environmental, social, and governance (ESG) practices as a resilience mechanism. Using a comprehensive dataset of 1360 publicly listed firms across Poland, Russia, and Ukraine from 2014 to 2023, the analysis employs a base panel data regression model, followed by a two-step generalized method of moments (GMM) approach to account for endogeneity and ensure robustness. The findings reveal a significant negative relationship between GPR and firm performance, measured by return on assets (ROA). Firms exposed to higher geopolitical risks exhibit weaker profitability. However, firms with stronger ESG performance demonstrate greater resilience, as the GMM results show that ESG engagement moderates the adverse effects of GPR on profitability. This suggests that ESG initiatives enhance adaptive capacity in volatile geopolitical environments. In terms of policy implications, ESG should be promoted as a key strategy for firms operating in politically unstable regions. Governments and regulatory bodies may consider mandatory ESG disclosures and incentivizing sustainability practices to help firms mitigate external risks, improve financial resilience, and attract stable investment. Aligning corporate strategies with global ESG standards is essential to ensuring business sustainability amid ongoing geopolitical threats.</p>","PeriodicalId":36531,"journal":{"name":"Business Strategy and Development","volume":"7 4","pages":""},"PeriodicalIF":4.8,"publicationDate":"2024-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142447509","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Xuan Li, Maisarah Mohamed Saat, Saleh F. A. Khatib, Yang Liu
This study is designed to conduct a systematic literature review aimed at assessing the influence of environmental, social, and governance (ESG) performance on firm value. Although previous studies have explored their relationship, a comprehensive systematic review on this topic is still lacking. We conducted a detailed literature search in the Scopus and Web of Science databases and identified 73 papers published between 2016 and 2023 as the sample, covering annual trends, country and industry distribution, theoretical frameworks, proxy variables, research methods, research results, and provided direction for future research. We found a significant increase in the number of studies over the past 3 years. Cross-country studies dominated the field, with most research adopting multi-industry analysis, while studies focusing on a single industry were relatively rare. The stakeholder theory and agency theory were the most widely applied theories. Most studies showed that ESG performance had a positive effect on firm value, reflecting the growing importance that markets and investors placed on ESG performance and its contribution to long-term firm growth. However, some studies reported negative or insignificant effects, noting that the effects of ESG performance varied by industry, region, and market environment. This study suggests that future research should explore the independent and interactive effects of each ESG dimension on firm value, focusing on dynamic relationships across industries and regions, using new methods and models, and incorporating moderating variables. This study provides practical guidance for firm managers and policymakers to optimize ESG practices, enhancing firm value and promoting sustainability.
本研究旨在进行系统的文献综述,以评估环境、社会和治理(ESG)绩效对公司价值的影响。尽管之前的研究已经探讨了它们之间的关系,但仍然缺乏对这一主题的全面系统综述。我们在 Scopus 和 Web of Science 数据库中进行了详细的文献检索,确定了 2016 年至 2023 年间发表的 73 篇论文作为样本,内容涵盖年度趋势、国家和行业分布、理论框架、替代变量、研究方法、研究成果,并为未来研究提供了方向。我们发现,在过去 3 年中,研究数量大幅增加。跨国研究在该领域占主导地位,大多数研究采用了多行业分析方法,而针对单一行业的研究相对较少。利益相关者理论和代理理论是应用最广泛的理论。大多数研究表明,环境、社会和公司治理绩效对公司价值有积极影响,这反映出市场和投资者越来越重视环境、社会和公司治理绩效及其对公司长期增长的贡献。不过,也有一些研究报告了负面影响或影响不显著,指出环境、社会和公司治理绩效的影响因行业、地区和市场环境而异。本研究建议,未来的研究应探索各环境、社会和公司治理维度对公司价值的独立和交互影响,重点关注不同行业和地区的动态关系,使用新的方法和模型,并纳入调节变量。本研究为企业管理者和政策制定者优化环境、社会和公司治理实践、提高企业价值和促进可持续发展提供了实用指导。
{"title":"Sustainable development and firm value: How ESG performance shapes corporate success—a systematic literature review","authors":"Xuan Li, Maisarah Mohamed Saat, Saleh F. A. Khatib, Yang Liu","doi":"10.1002/bsd2.70026","DOIUrl":"https://doi.org/10.1002/bsd2.70026","url":null,"abstract":"<p>This study is designed to conduct a systematic literature review aimed at assessing the influence of environmental, social, and governance (ESG) performance on firm value. Although previous studies have explored their relationship, a comprehensive systematic review on this topic is still lacking. We conducted a detailed literature search in the Scopus and Web of Science databases and identified 73 papers published between 2016 and 2023 as the sample, covering annual trends, country and industry distribution, theoretical frameworks, proxy variables, research methods, research results, and provided direction for future research. We found a significant increase in the number of studies over the past 3 years. Cross-country studies dominated the field, with most research adopting multi-industry analysis, while studies focusing on a single industry were relatively rare. The stakeholder theory and agency theory were the most widely applied theories. Most studies showed that ESG performance had a positive effect on firm value, reflecting the growing importance that markets and investors placed on ESG performance and its contribution to long-term firm growth. However, some studies reported negative or insignificant effects, noting that the effects of ESG performance varied by industry, region, and market environment. This study suggests that future research should explore the independent and interactive effects of each ESG dimension on firm value, focusing on dynamic relationships across industries and regions, using new methods and models, and incorporating moderating variables. This study provides practical guidance for firm managers and policymakers to optimize ESG practices, enhancing firm value and promoting sustainability.</p>","PeriodicalId":36531,"journal":{"name":"Business Strategy and Development","volume":"7 4","pages":""},"PeriodicalIF":4.8,"publicationDate":"2024-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142439088","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jahja Hamdani Widjaja, Joni Joni, Naomi Fani Riyanto
We examine the effect of female board members and foreign institutional investors on corporate social responsibility (sustainability) disclosure in Indonesian listed firms from 2015 to 2017. Our final sample comprised 1192 firm-year observations. We apply ordinary least squares pool regression to estimate the associations and address the endogeneity problem using the two-stage least squares model, generalized method of moments, and lagged variables. While previous studies have focused on the impact of female board members and foreign institutional investors on financial outcomes, we extend the literature by investigating the association between both female board members and foreign investors and sustainable disclosure in Indonesia, where the participation of women is nominal, especially at the top management level, and the level of foreign ownership is high. Our findings propose a proportion of women as board members for listed firms and promote attractive policies to increase the number of foreign investors investing in Indonesia. It also contributes to conflicting results regarding the relationship between corporate governance and corporate social responsibility (CSR) commitment. Our results were robust after testing for endogeneity and adding more control variables. Overall, the findings have practical implications for policymakers and investors regarding corporate disclosure and governance in Indonesia.
{"title":"Do gender diversity and foreign investor affect sustainability disclosure","authors":"Jahja Hamdani Widjaja, Joni Joni, Naomi Fani Riyanto","doi":"10.1002/bsd2.70024","DOIUrl":"https://doi.org/10.1002/bsd2.70024","url":null,"abstract":"<p>We examine the effect of female board members and foreign institutional investors on corporate social responsibility (sustainability) disclosure in Indonesian listed firms from 2015 to 2017. Our final sample comprised 1192 firm-year observations. We apply ordinary least squares pool regression to estimate the associations and address the endogeneity problem using the two-stage least squares model, generalized method of moments, and lagged variables. While previous studies have focused on the impact of female board members and foreign institutional investors on financial outcomes, we extend the literature by investigating the association between both female board members and foreign investors and sustainable disclosure in Indonesia, where the participation of women is nominal, especially at the top management level, and the level of foreign ownership is high. Our findings propose a proportion of women as board members for listed firms and promote attractive policies to increase the number of foreign investors investing in Indonesia. It also contributes to conflicting results regarding the relationship between corporate governance and corporate social responsibility (CSR) commitment. Our results were robust after testing for endogeneity and adding more control variables. Overall, the findings have practical implications for policymakers and investors regarding corporate disclosure and governance in Indonesia.</p>","PeriodicalId":36531,"journal":{"name":"Business Strategy and Development","volume":"7 4","pages":""},"PeriodicalIF":4.8,"publicationDate":"2024-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142439086","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Emilio Abad-Segura, Francisco José Castillo-Díaz, Ana Batlles-delaFuente, Luis J. Belmonte-Ureña
This study explores the integration of sustainable technological innovation (STI) and corporate social responsibility (CSR) within the Spanish agricultural sector, aiming to enhance competitiveness and sustainability. Departing from previous research that often underrepresents the unique dynamics of this sector, our analysis employs both theoretical frameworks and empirical data to assess the interplay between STI and CSR. We develop a composite CSR indicator and analyze its association with regional R&D + i investment across Spain. Findings indicate that STI adoption, particularly in precision agriculture and smart livestock management, significantly enhances CSR outcomes by optimizing resource utilization and minimizing environmental impact. However, notable regional disparities emerge, influenced by economic resources, infrastructure, and policy environments. This study contributes to the literature by elucidating the role of STI in fostering sustainable agricultural practices and underscores the necessity for targeted policy interventions to support regions lagging in CSR performance. The results advocate for integrating technological innovation with CSR strategies to ensure long-term sustainability and competitiveness in the agricultural sector.
本研究探讨了西班牙农业部门中可持续技术创新(STI)与企业社会责任(CSR)的融合,旨在提高竞争力和可持续性。以往的研究往往未能充分反映该行业的独特动态,与此不同,我们的分析采用了理论框架和经验数据来评估科技创新与企业社会责任之间的相互作用。我们制定了一个企业社会责任综合指标,并分析了它与西班牙各地研发 + i 投资的关联。研究结果表明,科技创新的采用,尤其是在精准农业和智能牲畜管理方面的采用,通过优化资源利用和最大限度地减少对环境的影响,显著提高了企业社会责任的成果。然而,受经济资源、基础设施和政策环境的影响,各地区之间存在明显差异。本研究阐明了科技创新在促进可持续农业实践中的作用,强调有必要采取有针对性的政策干预措施,以支持企业社会责任表现落后的地区,从而为相关文献做出贡献。研究结果主张将技术创新与企业社会责任战略相结合,以确保农业部门的长期可持续性和竞争力。
{"title":"Enhancing competitiveness and sustainability in Spanish agriculture: The role of technological innovation and corporate social responsibility","authors":"Emilio Abad-Segura, Francisco José Castillo-Díaz, Ana Batlles-delaFuente, Luis J. Belmonte-Ureña","doi":"10.1002/bsd2.70021","DOIUrl":"https://doi.org/10.1002/bsd2.70021","url":null,"abstract":"<p>This study explores the integration of sustainable technological innovation (STI) and corporate social responsibility (CSR) within the Spanish agricultural sector, aiming to enhance competitiveness and sustainability. Departing from previous research that often underrepresents the unique dynamics of this sector, our analysis employs both theoretical frameworks and empirical data to assess the interplay between STI and CSR. We develop a composite CSR indicator and analyze its association with regional R&D + i investment across Spain. Findings indicate that STI adoption, particularly in precision agriculture and smart livestock management, significantly enhances CSR outcomes by optimizing resource utilization and minimizing environmental impact. However, notable regional disparities emerge, influenced by economic resources, infrastructure, and policy environments. This study contributes to the literature by elucidating the role of STI in fostering sustainable agricultural practices and underscores the necessity for targeted policy interventions to support regions lagging in CSR performance. The results advocate for integrating technological innovation with CSR strategies to ensure long-term sustainability and competitiveness in the agricultural sector.</p>","PeriodicalId":36531,"journal":{"name":"Business Strategy and Development","volume":"7 4","pages":""},"PeriodicalIF":4.8,"publicationDate":"2024-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/bsd2.70021","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142404593","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Tamara Oukes, Stefanie Beninger, Milou Derks, André Nijhof
The world faces significant challenges, particularly in low-income countries, where cross-sector partnerships strive to create positive social change. Operating under severe uncertainty, these partnerships encounter various disturbances threatening their progress. Despite these challenges, our study explores the resilience strategies that these partnerships use to foster positive social change, an area previously underexplored. Our study uses a qualitative multiple-case study of four cross-sector partnerships in sub-Saharan Africa. Specifically, we collected data via interviews, workshops, and archival sources and used thematic analysis to uncover key resilience strategies. Our findings reveal a cyclical process where, when facing disturbances, cross-sector partnerships respond with resilience strategies that help them mitigate disruptions, adapt to changing conditions, and continue expanding their positive impact. In doing so, they drive positive social change through core activities within their socio-ecological system. This research expands existing theories of organizational resilience by highlighting how cross-sector partnerships in low-income contexts can not only survive, but also expand their impact of positive social change, through resilience.
{"title":"Navigating disturbances in developing countries: Resilience strategies for cross-sector partnerships","authors":"Tamara Oukes, Stefanie Beninger, Milou Derks, André Nijhof","doi":"10.1002/bsd2.70020","DOIUrl":"https://doi.org/10.1002/bsd2.70020","url":null,"abstract":"<p>The world faces significant challenges, particularly in low-income countries, where cross-sector partnerships strive to create positive social change. Operating under severe uncertainty, these partnerships encounter various disturbances threatening their progress. Despite these challenges, our study explores the resilience strategies that these partnerships use to foster positive social change, an area previously underexplored. Our study uses a qualitative multiple-case study of four cross-sector partnerships in sub-Saharan Africa. Specifically, we collected data via interviews, workshops, and archival sources and used thematic analysis to uncover key resilience strategies. Our findings reveal a cyclical process where, when facing disturbances, cross-sector partnerships respond with resilience strategies that help them mitigate disruptions, adapt to changing conditions, and continue expanding their positive impact. In doing so, they drive positive social change through core activities within their socio-ecological system. This research expands existing theories of organizational resilience by highlighting how cross-sector partnerships in low-income contexts can not only survive, but also expand their impact of positive social change, through resilience.</p>","PeriodicalId":36531,"journal":{"name":"Business Strategy and Development","volume":"7 4","pages":""},"PeriodicalIF":4.8,"publicationDate":"2024-10-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/bsd2.70020","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142404743","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Bablu Kumar Dhar, Mosharrof Hosen, Mehmet Bağış, Maria José Sousa, Kazi Masuma Khatun
This study investigates the strategic role of carbon disclosure in shaping firm performance and board heterogeneity among heavily polluting companies in Bangladesh from 2013 to 2023. Using empirical data from 150 companies listed on the Dhaka Stock Exchange, the research examines the impact of board diversity—specifically gender, tenure, and educational heterogeneity—on carbon disclosure practices. The findings reveal that board gender and tenure heterogeneity negatively affect carbon disclosure, whereas educational heterogeneity has a positive impact. Additionally, firm performance shows a negative effect on carbon disclosure but does not significantly moderate the influence of board heterogeneity. These results underscore the importance of board diversity in enhancing carbon disclosure practices, thereby contributing to improved environmental management and firm performance in heavily polluting industries in Bangladesh. This research, grounded in legitimacy theory, stakeholder theory, and corporate governance literature, provides valuable insights for academics, practitioners, and policymakers focused on business strategies for environmental sustainability.
{"title":"Diverse boards and firm performance: The strategic role of carbon disclosure in heavily polluting companies in Bangladesh","authors":"Bablu Kumar Dhar, Mosharrof Hosen, Mehmet Bağış, Maria José Sousa, Kazi Masuma Khatun","doi":"10.1002/bsd2.70017","DOIUrl":"https://doi.org/10.1002/bsd2.70017","url":null,"abstract":"<p>This study investigates the strategic role of carbon disclosure in shaping firm performance and board heterogeneity among heavily polluting companies in Bangladesh from 2013 to 2023. Using empirical data from 150 companies listed on the Dhaka Stock Exchange, the research examines the impact of board diversity—specifically gender, tenure, and educational heterogeneity—on carbon disclosure practices. The findings reveal that board gender and tenure heterogeneity negatively affect carbon disclosure, whereas educational heterogeneity has a positive impact. Additionally, firm performance shows a negative effect on carbon disclosure but does not significantly moderate the influence of board heterogeneity. These results underscore the importance of board diversity in enhancing carbon disclosure practices, thereby contributing to improved environmental management and firm performance in heavily polluting industries in Bangladesh. This research, grounded in legitimacy theory, stakeholder theory, and corporate governance literature, provides valuable insights for academics, practitioners, and policymakers focused on business strategies for environmental sustainability.</p>","PeriodicalId":36531,"journal":{"name":"Business Strategy and Development","volume":"7 4","pages":""},"PeriodicalIF":4.8,"publicationDate":"2024-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142404357","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Md. Mominur Rahman, Munshi Muhammad Abdul Kader Jilani
In recent years, the rise in the utilization of business intelligence (BI) as a pivotal tool for enhancing economic performance has spurred considerable interest. This study, anchored in resource-based theory, delves into the intricate relationships among BI, environmental performance (EP), financial performance (FP), green accounting (GA), and energy efficiency (EE) within manufacturing firms in Bangladesh. Employing a multistage stratified random sampling technique, a structured questionnaire was administered to 368 participants over 5 months starting in June 2023. The study employs a comprehensive analytical method that includes disjoint two-stage PLS-based structural equation modeling, artificial neural networks, and fuzzy set qualitative comparative analysis to ensure robust and insightful results. The findings highlight the positive and significant impact of BI on EP, FP, GA, and EE for manufacturing firms, demonstrating the efficacy of BI in driving improvements across environmental and financial metrics. Notably, the study unveils the mediating effects of EE between GA and FP, as well as between BI and FP, emphasizing the crucial role of EE in bolstering financial outcomes. Moreover, EP emerges as a mediator between BI and GA, underscoring the connectedness of these constructs within the organizational frame. Pioneering in offering a BI-integrated concepts for environmental and FP, exploring mediating effects, and applying the integrated modeling approach, this research provides theoretical insights and practical implications, offering valuable guidance for stakeholders aiming to leverage BI strategies effectively.
近年来,商业智能(BI)作为提高经济绩效的重要工具,其使用率不断上升,引起了广泛关注。本研究以基于资源的理论为基础,探讨了孟加拉国制造业企业中商业智能、环境绩效(EP)、财务绩效(FP)、绿色会计(GA)和能源效率(EE)之间错综复杂的关系。本研究采用多阶段分层随机抽样技术,从 2023 年 6 月开始对 368 名参与者进行了为期 5 个月的结构化问卷调查。研究采用了一种综合分析方法,包括基于结构方程模型的不连续两阶段 PLS、人工神经网络和模糊集定性比较分析,以确保得出稳健而有洞察力的结果。研究结果凸显了商业智能对制造业企业的 EP、FP、GA 和 EE 的积极而显著的影响,证明了商业智能在推动改善环境和财务指标方面的功效。值得注意的是,研究揭示了 EE 在 GA 和 FP 之间以及 BI 和 FP 之间的中介效应,强调了 EE 在促进财务结果方面的关键作用。此外,EP 也是 BI 和 GA 之间的中介,强调了这些概念在组织框架内的关联性。本研究开创性地提出了环境和财务自由的商业智能整合概念,探索了中介效应,并应用了整合建模方法,提供了理论见解和实践意义,为旨在有效利用商业智能战略的利益相关者提供了宝贵的指导。
{"title":"Unveiling synergies: Business intelligence nexus with environmental and financial performance in Bangladeshi manufacturing firms","authors":"Md. Mominur Rahman, Munshi Muhammad Abdul Kader Jilani","doi":"10.1002/bsd2.70013","DOIUrl":"https://doi.org/10.1002/bsd2.70013","url":null,"abstract":"<p>In recent years, the rise in the utilization of business intelligence (BI) as a pivotal tool for enhancing economic performance has spurred considerable interest. This study, anchored in resource-based theory, delves into the intricate relationships among BI, environmental performance (EP), financial performance (FP), green accounting (GA), and energy efficiency (EE) within manufacturing firms in Bangladesh. Employing a multistage stratified random sampling technique, a structured questionnaire was administered to 368 participants over 5 months starting in June 2023. The study employs a comprehensive analytical method that includes disjoint two-stage PLS-based structural equation modeling, artificial neural networks, and fuzzy set qualitative comparative analysis to ensure robust and insightful results. The findings highlight the positive and significant impact of BI on EP, FP, GA, and EE for manufacturing firms, demonstrating the efficacy of BI in driving improvements across environmental and financial metrics. Notably, the study unveils the mediating effects of EE between GA and FP, as well as between BI and FP, emphasizing the crucial role of EE in bolstering financial outcomes. Moreover, EP emerges as a mediator between BI and GA, underscoring the connectedness of these constructs within the organizational frame. Pioneering in offering a BI-integrated concepts for environmental and FP, exploring mediating effects, and applying the integrated modeling approach, this research provides theoretical insights and practical implications, offering valuable guidance for stakeholders aiming to leverage BI strategies effectively.</p>","PeriodicalId":36531,"journal":{"name":"Business Strategy and Development","volume":"7 4","pages":""},"PeriodicalIF":4.8,"publicationDate":"2024-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142404356","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The relevance of environmental sustainability has grown significantly among academics, professionals, and the general public. A variety of factors influence an economy's ability to support its environmental sustainability. Foreign direct investment (FDI), financial development (FD), green technological innovation (GTI), and green finance (GF) are pillars that hold the key to accomplishing sustainability goals. Despite extensive studies on the factors influencing green finance, there remains a gap in grasping the impact of green finance and various investment factors on environmental sustainability. The study's objective is to analyze the relationship between ecological sustainability, green financing, FDI, innovative green technologies, and FD in developing countries. The study employed a fixed effect and random effect model with robustness analysis to gain an empirical understanding of the relationship. The findings highlighted that green finance plays a crucial role in green technologies and encourages economies to embrace sustainability. It also supports the pollution haven hypothesis (PHH) and the understanding that an increase in FDI has a positive relationship with carbon emission. The study makes a significant novel contribution by analyzing the combined influence of financial and green technological development on environmental sustainability. The numerous theoretical and practical implications for addressing the constraints posed by the PHH include tightening domestic legislation, developing international cooperation, and pushing the adoption of cleaner technology throughout industries. It helps governments enact effective environmental regulations to encourage green investment and technological innovation to have a beneficial knock-on effect on cutting ecological sustainability.
{"title":"Driving environmental sustainability in emerging economies: The nexus of green finance, foreign direct investment, financial development, and green technology innovation","authors":"Ravita Kharb, Neha Saini, Dinesh Kumar","doi":"10.1002/bsd2.70008","DOIUrl":"https://doi.org/10.1002/bsd2.70008","url":null,"abstract":"<p>The relevance of environmental sustainability has grown significantly among academics, professionals, and the general public. A variety of factors influence an economy's ability to support its environmental sustainability. Foreign direct investment (FDI), financial development (FD), green technological innovation (GTI), and green finance (GF) are pillars that hold the key to accomplishing sustainability goals. Despite extensive studies on the factors influencing green finance, there remains a gap in grasping the impact of green finance and various investment factors on environmental sustainability. The study's objective is to analyze the relationship between ecological sustainability, green financing, FDI, innovative green technologies, and FD in developing countries. The study employed a fixed effect and random effect model with robustness analysis to gain an empirical understanding of the relationship. The findings highlighted that green finance plays a crucial role in green technologies and encourages economies to embrace sustainability. It also supports the pollution haven hypothesis (PHH) and the understanding that an increase in FDI has a positive relationship with carbon emission. The study makes a significant novel contribution by analyzing the combined influence of financial and green technological development on environmental sustainability. The numerous theoretical and practical implications for addressing the constraints posed by the PHH include tightening domestic legislation, developing international cooperation, and pushing the adoption of cleaner technology throughout industries. It helps governments enact effective environmental regulations to encourage green investment and technological innovation to have a beneficial knock-on effect on cutting ecological sustainability.</p>","PeriodicalId":36531,"journal":{"name":"Business Strategy and Development","volume":"7 4","pages":""},"PeriodicalIF":4.8,"publicationDate":"2024-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142404812","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}