This study investigates barriers to adopting circular economy ( CE ) practices, specifically recycling, within the protective clothing industry (PCI). Through a systematic literature review guided by the Preferred Reporting Items for Systematic Reviews and Meta‐Analyses (PRISMA) 2020 framework, 70 peer‐reviewed articles were analyzed, identifying 655 barriers. These were categorized into 11 thematic clusters, with technical/technology, knowledge/awareness/education, and economic/financial barriers emerging as the most prominent. The findings of this research reveal a critical tension between stringent safety performance requirements and circularity goals, which complicates the adoption of recycling practices. This study highlights interdependencies among barriers, underscoring the need for integrated strategies. It contributes insights for policymakers and managers, advocating for harmonized standards, technological innovation, and collaborative business models to advance circularity. Theoretically, this study extends CE theory by introducing safety as a fundamental condition, redefining the limits of circular business models in the PCI. By addressing these challenges, the PCI can align with Sustainable Development Goals (SDGs), particularly SDGs 9 and 12, fostering both sustainability and resilience.
{"title":"Unlocking Circular Potential: A Systematic Exploration of Barriers to Recycling in the Protective Clothing Industry and Pathways Forward","authors":"Başak Bulut, Ismail Erol","doi":"10.1002/bse.70719","DOIUrl":"https://doi.org/10.1002/bse.70719","url":null,"abstract":"This study investigates barriers to adopting circular economy ( <jats:sc>CE</jats:sc> ) practices, specifically recycling, within the protective clothing industry (PCI). Through a systematic literature review guided by the Preferred Reporting Items for Systematic Reviews and Meta‐Analyses (PRISMA) 2020 framework, 70 peer‐reviewed articles were analyzed, identifying 655 barriers. These were categorized into 11 thematic clusters, with technical/technology, knowledge/awareness/education, and economic/financial barriers emerging as the most prominent. The findings of this research reveal a critical tension between stringent safety performance requirements and circularity goals, which complicates the adoption of recycling practices. This study highlights interdependencies among barriers, underscoring the need for integrated strategies. It contributes insights for policymakers and managers, advocating for harmonized standards, technological innovation, and collaborative business models to advance circularity. Theoretically, this study extends <jats:sc>CE</jats:sc> theory by introducing safety as a fundamental condition, redefining the limits of circular business models in the PCI. By addressing these challenges, the PCI can align with Sustainable Development Goals (SDGs), particularly SDGs 9 and 12, fostering both sustainability and resilience.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"9 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147447454","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}
Josep Oriol Izquierdo‐Montfort, Yves De Rongé, James O. G. Thewissen, Sébastien Wilmet, Özgür Arslan‐Ayaydin
This study provides the first large‐scale, longitudinal evidence on how capital markets interpret circular economy (CE) strategies for US firms. Using more than 7500 ESG reports of US firms (1998–2023), we map the disclosure of CE practices in the United States and examine their valuation effects. We show that references to CE terminology surged after the Paris Agreement, whereas detailed disclosures of concrete strategies declined, suggesting a rhetorical rather than substantive turn. We further show that CE communication is, on average, negatively associated with Tobin's Q. However, disaggregating the 10R framework uncovers substantial heterogeneity: Medium‐loop strategies reduce firm value, whereas short‐ and long‐loop strategies have no significant effect. We further identify four mechanisms, such as financial slack, greenwashing, stock liquidity, and information asymmetry, that condition these relationships. By integrating granular strategy‐level evidence with theoretically grounded mechanisms, our study clarifies prior contradictory findings on the financial impact of CE on firm performance and advances understanding of when, why, and how CE strategies are valued by capital markets.
{"title":"Do Circular Economy Strategies Create Value? Evidence From the United States","authors":"Josep Oriol Izquierdo‐Montfort, Yves De Rongé, James O. G. Thewissen, Sébastien Wilmet, Özgür Arslan‐Ayaydin","doi":"10.1002/bse.70683","DOIUrl":"https://doi.org/10.1002/bse.70683","url":null,"abstract":"This study provides the first large‐scale, longitudinal evidence on how capital markets interpret circular economy (CE) strategies for US firms. Using more than 7500 ESG reports of US firms (1998–2023), we map the disclosure of CE practices in the United States and examine their valuation effects. We show that references to CE terminology surged after the Paris Agreement, whereas detailed disclosures of concrete strategies declined, suggesting a rhetorical rather than substantive turn. We further show that CE communication is, on average, negatively associated with Tobin's Q. However, disaggregating the 10R framework uncovers substantial heterogeneity: Medium‐loop strategies reduce firm value, whereas short‐ and long‐loop strategies have no significant effect. We further identify four mechanisms, such as financial slack, greenwashing, stock liquidity, and information asymmetry, that condition these relationships. By integrating granular strategy‐level evidence with theoretically grounded mechanisms, our study clarifies prior contradictory findings on the financial impact of CE on firm performance and advances understanding of when, why, and how CE strategies are valued by capital markets.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"58 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147447457","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}
This paper examines how the European Union Emissions Trading System allowance prices reshape the link between corporate environmental performance (CEP) and firms' growth expectations, measured by Tobin's Q. Using a panel of 1370 listed firms across 15 European countries from 2005 to 2024 and high‐dimensional fixed‐effects models, we first confirm a U‐shaped CEP–Q relationship: Initial emission cuts carry compliance costs, but beyond a threshold they deliver efficiency and reputational gains that boost valuation. We then show that allowance prices condition this pattern: Modest prices amplify CEP's upside, whereas very high prices erode—and, in extreme cases, reverse—its benefits through investment deferral, resource crowding out, and investor uncertainty. The erosion is economically substantial: Leakage‐exposed firms lose 65% of their CEP benefits as prices rise from low to very high levels, and high emitters lose 71%. Our findings highlight the nonlinear impact of carbon‐price stringency on investor expectations. For managers, we recommend hedging carbon‐price risk and prioritizing high‐impact abatement measures. For policymakers, establishing price corridors and providing targeted support to vulnerable firms can ensure carbon markets drive, rather than hinder, sustainable growth.
{"title":"When the Remedy Is Worse Than the Illness: Carbon Performance and Growth Opportunities Under the EU ETS","authors":"Adrián Ferreras","doi":"10.1002/bse.70733","DOIUrl":"https://doi.org/10.1002/bse.70733","url":null,"abstract":"This paper examines how the European Union Emissions Trading System allowance prices reshape the link between corporate environmental performance (CEP) and firms' growth expectations, measured by Tobin's Q. Using a panel of 1370 listed firms across 15 European countries from 2005 to 2024 and high‐dimensional fixed‐effects models, we first confirm a U‐shaped CEP–Q relationship: Initial emission cuts carry compliance costs, but beyond a threshold they deliver efficiency and reputational gains that boost valuation. We then show that allowance prices condition this pattern: Modest prices amplify CEP's upside, whereas very high prices erode—and, in extreme cases, reverse—its benefits through investment deferral, resource crowding out, and investor uncertainty. The erosion is economically substantial: Leakage‐exposed firms lose 65% of their CEP benefits as prices rise from low to very high levels, and high emitters lose 71%. Our findings highlight the nonlinear impact of carbon‐price stringency on investor expectations. For managers, we recommend hedging carbon‐price risk and prioritizing high‐impact abatement measures. For policymakers, establishing price corridors and providing targeted support to vulnerable firms can ensure carbon markets drive, rather than hinder, sustainable growth.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"34 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147447247","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}
Sonia Sánchez‐Andújar, Purificación Parrado‐Martínez, María Comino‐Jurado
The socio‐emotional wealth (SEW) perspective suggests that the specific priorities of a family business may make it more or less inclined to engage in sustainable practices. This paper examines how family business heterogeneity regarding family ownership, financial performance, and family board members affects the sustainability commitment of a sample of listed European family businesses. We estimate a partial least squares (PLS) model, the results of which indicate that a higher level of family ownership reduces sustainability commitment, whereas better financial performance increases it. Furthermore, family board members do not appear to moderate the family ownership–sustainability commitment relationship. Our findings provide novel theoretical insights into the impact of family business heterogeneity on sustainability practices and advance the debate on the factors promoting these practices in European family firms. These contributions offer valuable guidance for managers, investors, consultants, and regulators of family firms in decision‐making and policy implementation.
{"title":"Family Involvement and Financial Performance: How Do They Affect the Sustainability Commitment of Family Businesses?","authors":"Sonia Sánchez‐Andújar, Purificación Parrado‐Martínez, María Comino‐Jurado","doi":"10.1002/bse.70747","DOIUrl":"https://doi.org/10.1002/bse.70747","url":null,"abstract":"The socio‐emotional wealth (SEW) perspective suggests that the specific priorities of a family business may make it more or less inclined to engage in sustainable practices. This paper examines how family business heterogeneity regarding family ownership, financial performance, and family board members affects the sustainability commitment of a sample of listed European family businesses. We estimate a partial least squares (PLS) model, the results of which indicate that a higher level of family ownership reduces sustainability commitment, whereas better financial performance increases it. Furthermore, family board members do not appear to moderate the family ownership–sustainability commitment relationship. Our findings provide novel theoretical insights into the impact of family business heterogeneity on sustainability practices and advance the debate on the factors promoting these practices in European family firms. These contributions offer valuable guidance for managers, investors, consultants, and regulators of family firms in decision‐making and policy implementation.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"268 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147447453","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}
The agricultural supply chain (ASC), a complex network of functions, necessitates exploratory research to identify the risks encountered during the pandemic by correlating them with theoretical and practical frameworks. This domain requires a novel perspective on managing such risks. The current study analyzes risk factors within the ASC and their interactive dynamics to propose a strategic approach to risk prioritization. Employing a mixed‐methods approach, the study sequentially applied qualitative Delphi methodology and quantitative DEMATEL classification techniques to prioritize these risks. The study identified 15 significant supply chain risks, primarily concerning perishable commodities, and examined their interconnected dynamics. The primary respondents included practitioners, farmers, distributors, processing industries, and logistics providers. The findings and discussions facilitate the development of risk management techniques and support the adoption of alternative strategies for mitigating ASC risks.
{"title":"Agriculture Supply Chain Risks in Emerging Economies: Antecedents of Risk Prioritization Model","authors":"Sneha Kumari, V. G. Venkatesh, Yangyan Shi","doi":"10.1002/bse.70697","DOIUrl":"https://doi.org/10.1002/bse.70697","url":null,"abstract":"The agricultural supply chain (ASC), a complex network of functions, necessitates exploratory research to identify the risks encountered during the pandemic by correlating them with theoretical and practical frameworks. This domain requires a novel perspective on managing such risks. The current study analyzes risk factors within the ASC and their interactive dynamics to propose a strategic approach to risk prioritization. Employing a mixed‐methods approach, the study sequentially applied qualitative Delphi methodology and quantitative DEMATEL classification techniques to prioritize these risks. The study identified 15 significant supply chain risks, primarily concerning perishable commodities, and examined their interconnected dynamics. The primary respondents included practitioners, farmers, distributors, processing industries, and logistics providers. The findings and discussions facilitate the development of risk management techniques and support the adoption of alternative strategies for mitigating ASC risks.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"9 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147447456","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}
The burgeoning blue economy, crucial for sustainable development, is under pressure from human activity and climate change. This study, using a quantitative, cross‐sectional design on 600 publicly listed companies, investigates the relationship between technological advancement and firms' blue practices in water management, including the moderating role of stakeholder engagement. We find a significant positive association between technological advancement (water technology scores and patent counts) and blue practices, consistent with the idea that advanced technical capabilities may be linked to effective water‐efficiency solutions. Stakeholder engagement also shows a significant positive association with blue practices, highlighting its positive link to sustainability. However, stakeholder engagement does not significantly moderate the relationship between technology and blue practices. These findings contribute to the twin transition framework and instrumental stakeholder theory by emphasizing the independent importance of technological advancement and stakeholder collaboration for sustainable water management in the blue economy, and offer relevant managerial and policy implications.
{"title":"The Relationship Between Technological Advancement and Blue Practices: Examining the Moderating Role of Stakeholder Engagement","authors":"Edmund Imbrah, Angeloantonio Russo","doi":"10.1002/bse.70757","DOIUrl":"https://doi.org/10.1002/bse.70757","url":null,"abstract":"The burgeoning blue economy, crucial for sustainable development, is under pressure from human activity and climate change. This study, using a quantitative, cross‐sectional design on 600 publicly listed companies, investigates the relationship between technological advancement and firms' blue practices in water management, including the moderating role of stakeholder engagement. We find a significant positive association between technological advancement (water technology scores and patent counts) and blue practices, consistent with the idea that advanced technical capabilities may be linked to effective water‐efficiency solutions. Stakeholder engagement also shows a significant positive association with blue practices, highlighting its positive link to sustainability. However, stakeholder engagement does not significantly moderate the relationship between technology and blue practices. These findings contribute to the twin transition framework and instrumental stakeholder theory by emphasizing the independent importance of technological advancement and stakeholder collaboration for sustainable water management in the blue economy, and offer relevant managerial and policy implications.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"17 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147447455","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}
José Bocoya‐Maline, Salustiano Martínez‐Fierro, José Aurelio Medina‐Garrido
In a business environment characterized by technological turbulence and an increasing societal demand for greater sustainability, companies seeking to enhance their growth are compelled to foster organizational cultures that promote continuous innovation. This study examines how environmental technological turbulence and circular economy practices influence the innovation culture of high‐growth firms, taking into account the mediating role of organizational digitalization. The research is based on data collected from a sample of 183 Spanish high‐growth firms, analyzed through partial least squares structural equation modelling (PLS‐SEM). The findings reveal that both technological turbulence and circular economy practices exert a significant direct influence on innovation culture, and that digitalization partially mediates these relationships, operating as an enabling organizational capability that converts external pressures into innovation‐supportive cultural orientations. Adopting a dynamic capabilities perspective, the study reframes innovation culture as an endogenous organizational outcome, rather than a static antecedent of innovation performance, emerging from firms' adaptive responses to technological and sustainability pressures through digital capability development. The study also offers practical implications for the design of organizational strategies that align digital transformation and sustainability in high‐growth contexts.
{"title":"Technological Turbulence, Circular Economy Practices, and Digitalization as Determinants of Innovative Culture in High‐Growth Firms","authors":"José Bocoya‐Maline, Salustiano Martínez‐Fierro, José Aurelio Medina‐Garrido","doi":"10.1002/bse.70737","DOIUrl":"https://doi.org/10.1002/bse.70737","url":null,"abstract":"In a business environment characterized by technological turbulence and an increasing societal demand for greater sustainability, companies seeking to enhance their growth are compelled to foster organizational cultures that promote continuous innovation. This study examines how environmental technological turbulence and circular economy practices influence the innovation culture of high‐growth firms, taking into account the mediating role of organizational digitalization. The research is based on data collected from a sample of 183 Spanish high‐growth firms, analyzed through partial least squares structural equation modelling (PLS‐SEM). The findings reveal that both technological turbulence and circular economy practices exert a significant direct influence on innovation culture, and that digitalization partially mediates these relationships, operating as an enabling organizational capability that converts external pressures into innovation‐supportive cultural orientations. Adopting a dynamic capabilities perspective, the study reframes innovation culture as an endogenous organizational outcome, rather than a static antecedent of innovation performance, emerging from firms' adaptive responses to technological and sustainability pressures through digital capability development. The study also offers practical implications for the design of organizational strategies that align digital transformation and sustainability in high‐growth contexts.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"9 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147447458","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}
Abongeh A. Tunyi, Ali Uyar, Nejla Ould Daoud Ellili, Abdullah S. Karaman
We examine whether business complexity increases firms' exposure to negative environmental, social, and governance (ESG) outcomes, specifically ESG controversies, using a global panel of firms from 37 countries over the period 2002–2021. We further investigate the moderating roles of external monitoring by financial analysts; internal governance mechanisms, including board independence and workforce gender diversity; and international policy frameworks, with particular emphasis on the Paris Agreement as a regulatory tightening mechanism. Our results show that business complexity is strongly and positively associated with ESG controversies worldwide. Analyst scrutiny amplifies, rather than mitigates, this effect, indicating that external capital market monitoring does not effectively discipline ESG risk in complex firms. In contrast, stronger internal governance, reflected in greater board independence and a higher proportion of female employees, significantly attenuates the complexity controversy link. We also find that the positive effect of complexity on ESG controversies weakens in the post‐Paris Agreement period, consistent with heightened regulatory pressure and compliance expectations imposed on firms following the Agreement. Overall, the study provides novel cross‐country evidence on how organizational structure shapes negative ESG outcomes, integrating insights from complexity and agency theories with important implications for managers, policymakers, and investors.
{"title":"Complex Firms, Controversial Outcomes: Global Evidence on ESG Failures and Remedies","authors":"Abongeh A. Tunyi, Ali Uyar, Nejla Ould Daoud Ellili, Abdullah S. Karaman","doi":"10.1002/bse.70685","DOIUrl":"https://doi.org/10.1002/bse.70685","url":null,"abstract":"We examine whether business complexity increases firms' exposure to negative environmental, social, and governance (ESG) outcomes, specifically ESG controversies, using a global panel of firms from 37 countries over the period 2002–2021. We further investigate the moderating roles of external monitoring by financial analysts; internal governance mechanisms, including board independence and workforce gender diversity; and international policy frameworks, with particular emphasis on the Paris Agreement as a regulatory tightening mechanism. Our results show that business complexity is strongly and positively associated with ESG controversies worldwide. Analyst scrutiny amplifies, rather than mitigates, this effect, indicating that external capital market monitoring does not effectively discipline ESG risk in complex firms. In contrast, stronger internal governance, reflected in greater board independence and a higher proportion of female employees, significantly attenuates the complexity controversy link. We also find that the positive effect of complexity on ESG controversies weakens in the post‐Paris Agreement period, consistent with heightened regulatory pressure and compliance expectations imposed on firms following the Agreement. Overall, the study provides novel cross‐country evidence on how organizational structure shapes negative ESG outcomes, integrating insights from complexity and agency theories with important implications for managers, policymakers, and investors.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"52 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-03-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147447463","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}
Businesses are increasingly striving to reduce their carbon footprint, with carbon offsetting emerging as a viable pathway towards achieving carbon neutrality. Such efforts signify a demonstrated commitment to fostering environmental sustainability and contributing to a more sustainable future. Many countries have pledged to become carbon neutral in order to prevent climate change, but very little is understood about the micro‐level influences. Nevertheless, a critical question remains: To what extent can carbon neutrality be achieved without the active involvement of stakeholders? Current scholarly literature offers limited discussion on this issue, indicating a gap that warrants further exploration. Therefore, the study aims to investigate the key influence of stakeholders on businesses tending to achieve carbon neutrality via the use of green innovative practices in their pursuit of environmental sustainability. The semistructured interviews were conducted with the manufacturing industries' experts. Rigorously, a qualitative analysis was employed, and the five major drivers were identified based on 11 subthemes for carbon neutrality and green innovation, that is, ‘ customer enforcement ,’ ‘sustainable business value,’ ‘ potential benefits ,’ ‘ environmental legitimacy ’ and ‘ competitive pressure .’ Customers and competitors were the most influential external stakeholders. Shareholders and top management with intrinsic environmental values, being internal stakeholders, played pivotal roles in a proactive move to carbon neutrality and green innovation when there was limited regulatory pressure. The finding shows that the potential benefits of transitioning to carbon neutrality not only minimize waste and pollution but also lead to financial gains and a better image if implemented effectively, and the early movers/investors also believe in the long‐term economic benefits. Based on the research findings, a proposition‐based support framework was proposed by stakeholder and institutional theory to guide firms' managers in transitioning towards carbon neutrality goals or climate neutrality policies aligned with Sustainable Development Goal 13 (SDG 13).
{"title":"From Stakeholder Pressure to Strategic Advantage: A Framework of Achieving Environment Sustainability Through Pathway of Carbon Neutrality","authors":"Sanjeev Yadav, Ashutosh Samadhiya, Anil Kumar, Sunil Luthra, Krishan Kumar Pandey","doi":"10.1002/bse.70718","DOIUrl":"https://doi.org/10.1002/bse.70718","url":null,"abstract":"Businesses are increasingly striving to reduce their carbon footprint, with carbon offsetting emerging as a viable pathway towards achieving carbon neutrality. Such efforts signify a demonstrated commitment to fostering environmental sustainability and contributing to a more sustainable future. Many countries have pledged to become carbon neutral in order to prevent climate change, but very little is understood about the micro‐level influences. Nevertheless, a critical question remains: To what extent can carbon neutrality be achieved without the active involvement of stakeholders? Current scholarly literature offers limited discussion on this issue, indicating a gap that warrants further exploration. Therefore, the study aims to investigate the key influence of stakeholders on businesses tending to achieve carbon neutrality via the use of green innovative practices in their pursuit of environmental sustainability. The semistructured interviews were conducted with the manufacturing industries' experts. Rigorously, a qualitative analysis was employed, and the five major drivers were identified based on 11 subthemes for carbon neutrality and green innovation, that is, ‘ <jats:italic>customer enforcement</jats:italic> ,’ ‘sustainable business value,’ ‘ <jats:italic>potential benefits</jats:italic> ,’ ‘ <jats:italic>environmental legitimacy</jats:italic> ’ and ‘ <jats:italic>competitive pressure</jats:italic> .’ Customers and competitors were the most influential external stakeholders. Shareholders and top management with intrinsic environmental values, being internal stakeholders, played pivotal roles in a proactive move to carbon neutrality and green innovation when there was limited regulatory pressure. The finding shows that the potential benefits of transitioning to carbon neutrality not only minimize waste and pollution but also lead to financial gains and a better image if implemented effectively, and the early movers/investors also believe in the long‐term economic benefits. Based on the research findings, a proposition‐based support framework was proposed by stakeholder and institutional theory to guide firms' managers in transitioning towards carbon neutrality goals or climate neutrality policies aligned with Sustainable Development Goal 13 (SDG 13).","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"23 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-03-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147447461","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}
Carlotta Benedetti, Giuseppe Maria Bifulco, Vittoria Magrelli, Francesco Paolone
National institutions are widely assumed to foster corporate sustainability, yet their effects on ESG engagement can vary across contexts and firm types. Drawing on institutional theory and the socioemotional wealth (SEW) perspective, we examine how national institutional quality relates to ESG performance among large listed European family firms. Using ESG scores from Refinitiv and governance indicators from the Worldwide Governance Indicators, we find that higher government effectiveness, regulatory quality, and rule of law are associated with lower ESG performance, while voice and accountability, political stability, and control of corruption show no significant relationship. We interpret this pattern as a substitution mechanism: when institutions credibly enforce baseline standards and confer legitimacy, the marginal strategic value of additional voluntary ESG engagement declines—especially for family firms attentive to autonomy, control, and reputational preservation. The study contributes to institutional theory by specifying a boundary condition to institutional complementarity and to family business research by explaining how SEW‐consistent priorities shape the strategic meaning of ESG under different institutional configurations. From a policy perspective, the findings suggest that, alongside stringent reporting and compliance regimes, complementary incentive‐based instruments and targeted support may be needed to sustain proactive ESG strategies beyond compliance among European family firms.
{"title":"ESG Performance and Institutional Quality: Can Virtuous Institutional Leadership Lead to a More Sustainable Economic Environment? An Exploratory Study of the Most Capitalized European Family–Listed Companies","authors":"Carlotta Benedetti, Giuseppe Maria Bifulco, Vittoria Magrelli, Francesco Paolone","doi":"10.1002/bse.70739","DOIUrl":"https://doi.org/10.1002/bse.70739","url":null,"abstract":"National institutions are widely assumed to foster corporate sustainability, yet their effects on ESG engagement can vary across contexts and firm types. Drawing on institutional theory and the socioemotional wealth (SEW) perspective, we examine how national institutional quality relates to ESG performance among large listed European family firms. Using ESG scores from Refinitiv and governance indicators from the Worldwide Governance Indicators, we find that higher government effectiveness, regulatory quality, and rule of law are associated with lower ESG performance, while voice and accountability, political stability, and control of corruption show no significant relationship. We interpret this pattern as a substitution mechanism: when institutions credibly enforce baseline standards and confer legitimacy, the marginal strategic value of additional voluntary ESG engagement declines—especially for family firms attentive to autonomy, control, and reputational preservation. The study contributes to institutional theory by specifying a boundary condition to institutional complementarity and to family business research by explaining how SEW‐consistent priorities shape the strategic meaning of ESG under different institutional configurations. From a policy perspective, the findings suggest that, alongside stringent reporting and compliance regimes, complementary incentive‐based instruments and targeted support may be needed to sustain proactive ESG strategies beyond compliance among European family firms.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"21 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-03-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147448355","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}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：