Emmanuel A. Morrison, Douglas A. Adu, Guo Yongsheng, Danson Kimani, Vida Y. Saa
This study examines the impact of executive compensation (EC) and board sustainability integration index (BSII) on both greenhouse gas emissions (GHGE) and greenhouse gas management processes (GGMP). Additionally, it investigates the relationship between GGMP and GHGE to assess the effectiveness of process‐oriented measures in reducing actual emissions. Through the lens of legitimacy theory and incentive alignment theory, we harness an extensive dataset encompassing 15,876 firm‐year observations across 22 industrialised European countries from 2002 to 2022. First, the findings show that although EC positively correlates with enhanced GGMP, it has an insignificant effect on GHGE reduction. Second, the results suggest that although BSII independently bolster sustainability initiatives, the moderating effect of BSII on EC (EC*BSII) may lead to a legitimacy gap. This gap emerges when the relationship of EC and BSII falls short of societal expectations regarding environmental performance, potentially eroding organisational legitimacy. Third, the findings indicate that firms that engage in GGMP also tend to have higher levels of GHGE, pointing to the use of GGMP by firms as a means of symbolic legitimation.
{"title":"Assessing the Impact of Board Sustainability Committees on Greenhouse Gas Performance: Evidence From Industrialised European Countries","authors":"Emmanuel A. Morrison, Douglas A. Adu, Guo Yongsheng, Danson Kimani, Vida Y. Saa","doi":"10.1002/bse.4073","DOIUrl":"https://doi.org/10.1002/bse.4073","url":null,"abstract":"This study examines the impact of executive compensation (EC) and board sustainability integration index (BSII) on both greenhouse gas emissions (GHGE) and greenhouse gas management processes (GGMP). Additionally, it investigates the relationship between GGMP and GHGE to assess the effectiveness of process‐oriented measures in reducing actual emissions. Through the lens of legitimacy theory and incentive alignment theory, we harness an extensive dataset encompassing 15,876 firm‐year observations across 22 industrialised European countries from 2002 to 2022. First, the findings show that although EC positively correlates with enhanced GGMP, it has an insignificant effect on GHGE reduction. Second, the results suggest that although BSII independently bolster sustainability initiatives, the moderating effect of BSII on EC (EC*BSII) may lead to a legitimacy gap. This gap emerges when the relationship of EC and BSII falls short of societal expectations regarding environmental performance, potentially eroding organisational legitimacy. Third, the findings indicate that firms that engage in GGMP also tend to have higher levels of GHGE, pointing to the use of GGMP by firms as a means of symbolic legitimation.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"48 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2024-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142887415","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}
Salik Ahmed, Marco Ciro Liscio, Paolo Sospiro, Irene Voukkali, Antonis A. Zorpas
The growing importance of sustainability poses significant challenges to companies, particularly micro, small, and medium enterprises (MSMEs). Product life cycle assessment focuses on individual products, often leaving MSMEs without a complete picture of their overall environmental impact, especially within complex and long value chains. Organisational Life Cycle Assessment (OLCA) appears to be a valid approach to address these challenges by assessing all activities within an organisation. OLCA offers a comprehensive view of an organisation’s sustainability performance, overcoming the challenges often faced by MSMEs, such as resource constraints and challenges within the value chain when adopting product LCA. By integrating OLCA with product LCA, companies can gain a more holistic understanding of their environmental impacts, improving both environmental assessments and ethical business conduct. The findings of this research assess OLCA’s presence in literature and industry, exploring its content and practical applications demonstrated through case studies. It emerges that the adoption and use of the methodology have great potential especially for small and medium enterprises, as they are often left outside the comprehensive view of the life cycle of a single product, making it difficult for these companies to approach environmental performance monitoring. Therefore, the OLCA could address this gap, becoming a reference approach for companies that need to disclose about environmental impact. Due to its relatively recent nature, companies still struggle with its adoption. Scientific research on this, therefore, becomes crucial in its spread and adoption, stressing the benefits and limitations, as well as providing evidence of case studies. This paper aims to address this gap and pone itself as a cornerstone for future researchers to pursue on this path and for companies to foster a broader, offering a dual perspective with product LCA.
{"title":"Advancing Sustainable Development Through Environmental Performance Monitoring: The Organisational Life Cycle Assessment","authors":"Salik Ahmed, Marco Ciro Liscio, Paolo Sospiro, Irene Voukkali, Antonis A. Zorpas","doi":"10.1002/bse.4115","DOIUrl":"https://doi.org/10.1002/bse.4115","url":null,"abstract":"The growing importance of sustainability poses significant challenges to companies, particularly micro, small, and medium enterprises (MSMEs). Product life cycle assessment focuses on individual products, often leaving MSMEs without a complete picture of their overall environmental impact, especially within complex and long value chains. Organisational Life Cycle Assessment (OLCA) appears to be a valid approach to address these challenges by assessing all activities within an organisation. OLCA offers a comprehensive view of an organisation’s sustainability performance, overcoming the challenges often faced by MSMEs, such as resource constraints and challenges within the value chain when adopting product LCA. By integrating OLCA with product LCA, companies can gain a more holistic understanding of their environmental impacts, improving both environmental assessments and ethical business conduct. The findings of this research assess OLCA’s presence in literature and industry, exploring its content and practical applications demonstrated through case studies. It emerges that the adoption and use of the methodology have great potential especially for small and medium enterprises, as they are often left outside the comprehensive view of the life cycle of a single product, making it difficult for these companies to approach environmental performance monitoring. Therefore, the OLCA could address this gap, becoming a reference approach for companies that need to disclose about environmental impact. Due to its relatively recent nature, companies still struggle with its adoption. Scientific research on this, therefore, becomes crucial in its spread and adoption, stressing the benefits and limitations, as well as providing evidence of case studies. This paper aims to address this gap and pone itself as a cornerstone for future researchers to pursue on this path and for companies to foster a broader, offering a dual perspective with product LCA.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"63 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2024-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142887362","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":"Correction to “The Impact of Research and Development Internationalisation on Environmental, Social and Governance: Evidence From Emerging Market Multinational Enterprises”","authors":"","doi":"10.1002/bse.4113","DOIUrl":"https://doi.org/10.1002/bse.4113","url":null,"abstract":"","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"31 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2024-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142887364","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":"Correction to Supply Chain Transformative Capabilities and Their Microfoundations for Circular Economy Transition: A Qualitative Study in Made in Italy Sectors","authors":"","doi":"10.1002/bse.4127","DOIUrl":"https://doi.org/10.1002/bse.4127","url":null,"abstract":"","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"20 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2024-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142887365","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}
Despite the recent growth in research on analysing the influence of stakeholders' green pressure on firm performance, our understanding of the subject seems limited, especially regarding the positive and negative influence of many internal and external stakeholders and the mediating roles of environmental orientation and commitment. Analysing primary data from 317 Japanese SMEs, we found that environmental orientation has negative while environmental commitment positively influences firm performance. Besides, the findings also show that green pressure from regulators, competitors, non‐governmental organisations (NGOs) and employees significantly influences the market and financial performance, followed by a discussion of relevant theoretical and practical implications.
{"title":"Stakeholder Green Pressure and Enviropreneurial Marketing: Insights From Japanese SMEs","authors":"Rohit H. Trivedi, Jayesh Patel, Kyoko Fukukawa","doi":"10.1002/bse.4110","DOIUrl":"https://doi.org/10.1002/bse.4110","url":null,"abstract":"Despite the recent growth in research on analysing the influence of stakeholders' green pressure on firm performance, our understanding of the subject seems limited, especially regarding the positive and negative influence of many internal and external stakeholders and the mediating roles of environmental orientation and commitment. Analysing primary data from 317 Japanese SMEs, we found that environmental orientation has negative while environmental commitment positively influences firm performance. Besides, the findings also show that green pressure from regulators, competitors, non‐governmental organisations (NGOs) and employees significantly influences the market and financial performance, followed by a discussion of relevant theoretical and practical implications.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"210 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2024-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142886846","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 “green energy” futures advanced in recent mission‐driven (environmental) policies (MDPs) entail considerable procedural uncertainties, leaving the concrete means through which firms may achieve such futures underspecified. Exploring how incumbents address such procedural uncertainty and how this impacts their political strategies, we conducted a comparative case study of Switzerland's four leading electric utilities' interpretations and policymaking influences during the formulation phase of Switzerland's mission‐driven “EnergieStrategie 2050” policy. We inductively developed a novel cultural‐cognitive perspective, which suggests that incumbents mobilize “procedural framing” (past‐future vs. future‐present framing) for coping with procedural uncertainties of a novel MDP. If incumbents mobilize a past‐future (vs. future‐present) framing, they regard the proposed MDP as threat (rather than an opportunity) and resist (rather than support) the policy with their policymaking influences. Our study contributes to the organizational literature on MDPs, to corporate political strategies, and to the organizational literature on future‐oriented meaning‐making.
{"title":"Coping With Procedural Uncertainty: Firms' Procedural Framings and Political Strategies in the Context of Switzerland's Mission‐Driven Energy Policy","authors":"Emmanuelle Reuter, Florian Überbacher","doi":"10.1002/bse.4116","DOIUrl":"https://doi.org/10.1002/bse.4116","url":null,"abstract":"The “green energy” futures advanced in recent mission‐driven (environmental) policies (MDPs) entail considerable procedural uncertainties, leaving the concrete means through which firms may achieve such futures underspecified. Exploring how incumbents address such procedural uncertainty and how this impacts their political strategies, we conducted a comparative case study of Switzerland's four leading electric utilities' interpretations and policymaking influences during the formulation phase of Switzerland's mission‐driven “EnergieStrategie 2050” policy. We inductively developed a novel cultural‐cognitive perspective, which suggests that incumbents mobilize “procedural framing” (past‐future vs. future‐present framing) for coping with procedural uncertainties of a novel MDP. If incumbents mobilize a past‐future (vs. future‐present) framing, they regard the proposed MDP as threat (rather than an opportunity) and resist (rather than support) the policy with their policymaking influences. Our study contributes to the organizational literature on MDPs, to corporate political strategies, and to the organizational literature on future‐oriented meaning‐making.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"11 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2024-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142886848","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 pursuit of sustainable development has become a critical global objective, especially in light of increasing global challenges. The United Nations Sustainable Development Goals (SDGs), established in 2015, aim to address poverty, protect the environment, and ensure prosperity for all. Transformative innovation policies (TIPs) are emerging as vital strategies in achieving these goals by fostering systemic change rather than incremental improvements. TIPs are distinct because they seek to instigate profound transformations in sectors, societies, and economies, focusing on collaboration among diverse stakeholders. This manuscript aims to provide a comprehensive literature review and social network analysis to understand and highlights the interplay between TIPs and SDGs and elucidate business and management roles in advancing this global agenda. By analyzing existing research and visualizing the relationships within the literature, this study highlights the significant role of TIPs in advancing SDGs. The findings emphasize the necessity of innovative, inclusive, and purpose‐driven approaches to reshape society toward sustainable and equitable development.
{"title":"Mapping the Nexus: A Bibliometric Analysis and Social Network Analysis of Transformative Innovation Policies and Sustainable Development Goals","authors":"Pasquale Marcello Falcone, Ilaria Tutore","doi":"10.1002/bse.4104","DOIUrl":"https://doi.org/10.1002/bse.4104","url":null,"abstract":"The pursuit of sustainable development has become a critical global objective, especially in light of increasing global challenges. The United Nations Sustainable Development Goals (SDGs), established in 2015, aim to address poverty, protect the environment, and ensure prosperity for all. Transformative innovation policies (TIPs) are emerging as vital strategies in achieving these goals by fostering systemic change rather than incremental improvements. TIPs are distinct because they seek to instigate profound transformations in sectors, societies, and economies, focusing on collaboration among diverse stakeholders. This manuscript aims to provide a comprehensive literature review and social network analysis to understand and highlights the interplay between TIPs and SDGs and elucidate business and management roles in advancing this global agenda. By analyzing existing research and visualizing the relationships within the literature, this study highlights the significant role of TIPs in advancing SDGs. The findings emphasize the necessity of innovative, inclusive, and purpose‐driven approaches to reshape society toward sustainable and equitable development.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"33 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2024-12-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142879974","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}
Strategic green energy adoption by industrial customers could effectively address the worsening situation of the environment, which has largely impacted the well‐being of humans. To promote an understanding of the behaviour of the industrial green energy consumer and the impact of green energy strategy, this paper examines how multidimensional green perceived value (GPV) constructs relate to loyalty through customer satisfaction and perceived switching cost. The proposed conceptual model was empirically validated through data gathered from cross‐sectional responses of industrial energy consumers using green energy strategies for their business operations. Results indicated that GPV is a multidimensional formative higher‐order construct formed by social value, emotional value, functional value, and conditional value dimensions. Further, GPV impacts customer loyalty positively via the mediating effect of customer satisfaction and perceived switching costs. The current study found that an industrial consumer voluntarily uses green energy due to financial incentives alone, while social and emotional dimensions also play a major part in tactical decision‐making related to the implementation of green energy strategy.
{"title":"Industrial Consumers Switching to Green Energy? An Application of the Theory of Market Choice Behaviour and Business Strategy","authors":"Deepak Sangroya, Yatish Joshi, Reeti Agarwal, Rsha Alghafes","doi":"10.1002/bse.4093","DOIUrl":"https://doi.org/10.1002/bse.4093","url":null,"abstract":"Strategic green energy adoption by industrial customers could effectively address the worsening situation of the environment, which has largely impacted the well‐being of humans. To promote an understanding of the behaviour of the industrial green energy consumer and the impact of green energy strategy, this paper examines how multidimensional green perceived value (GPV) constructs relate to loyalty through customer satisfaction and perceived switching cost. The proposed conceptual model was empirically validated through data gathered from cross‐sectional responses of industrial energy consumers using green energy strategies for their business operations. Results indicated that GPV is a multidimensional formative higher‐order construct formed by social value, emotional value, functional value, and conditional value dimensions. Further, GPV impacts customer loyalty positively via the mediating effect of customer satisfaction and perceived switching costs. The current study found that an industrial consumer voluntarily uses green energy due to financial incentives alone, while social and emotional dimensions also play a major part in tactical decision‐making related to the implementation of green energy strategy.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"50 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2024-12-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142879978","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}
Aleksandar Petreski, Dorothea Schäfer, Andreas Stephan
This study explores the effect of frequent green‐bond issuance on a firm's financing costs. Using a sample of listed Swedish real estate companies issuing a total of 1074 bonds over the period from 2011 to 2021, difference‐in‐differences analyses and instrumental variable estimations are applied to identify the causal impact of frequent green‐bond vis‐à‐vis frequent non‐green‐bond issuance on a firm's cost of capital and credit rating. The paper argues that repetitive issuance lowers a firm's cost of capital, while the effects of first or one‐time green‐bond issuance are the opposite. In line with the reputation capital hypothesis, issuing green bonds even lowers the firm's cost of equity capital, while issuing non‐green bonds does not affect the cost of equity.
{"title":"The Reputation Effect of Repeated Green‐Bond Issuance and Its Impact on the Cost of Capital","authors":"Aleksandar Petreski, Dorothea Schäfer, Andreas Stephan","doi":"10.1002/bse.4111","DOIUrl":"https://doi.org/10.1002/bse.4111","url":null,"abstract":"This study explores the effect of frequent green‐bond issuance on a firm's financing costs. Using a sample of listed Swedish real estate companies issuing a total of 1074 bonds over the period from 2011 to 2021, difference‐in‐differences analyses and instrumental variable estimations are applied to identify the causal impact of frequent green‐bond vis‐à‐vis frequent non‐green‐bond issuance on a firm's cost of capital and credit rating. The paper argues that repetitive issuance lowers a firm's cost of capital, while the effects of first or one‐time green‐bond issuance are the opposite. In line with the reputation capital hypothesis, issuing green bonds even lowers the firm's cost of equity capital, while issuing non‐green bonds does not affect the cost of equity.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"25 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2024-12-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142879970","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}
Kimitaka Nishitani, Jin Dong Park, Mohammad Badrul Haider
The purpose of this study is to bridge the gap between conventional assumptions of legitimacy and voluntary disclosure theories and current practices of corporate nonfinancial reporting. The analysis conducts regressions using data on 244 Japanese companies in 2019 to clarify whether the triadic relationship between a company's nonfinancial reporting motivation and practices and user information satisfaction is consistent. It contributes to the literature by showing that conventional assumptions have limitations in explaining the triadic relationship and identifying the mechanism underpinning how corporate nonfinancial reporting functions. First, although companies are more motivated by financial accountability than legitimacy in nonfinancial reporting, these motivations are not directly opposing, but are instead relative. Second, even when the financial accountability and legitimacy motivations are clear, they do not consistently satisfy user information needs. Finally, companies fulfil the financial accountability role only after they fulfil the legitimacy role.
{"title":"Bridging the Gap Between Legitimacy and Voluntary Disclosure Theory and Current Corporate Nonfinancial Reporting Practices: Insights From Japanese Companies","authors":"Kimitaka Nishitani, Jin Dong Park, Mohammad Badrul Haider","doi":"10.1002/bse.4119","DOIUrl":"https://doi.org/10.1002/bse.4119","url":null,"abstract":"The purpose of this study is to bridge the gap between conventional assumptions of legitimacy and voluntary disclosure theories and current practices of corporate nonfinancial reporting. The analysis conducts regressions using data on 244 Japanese companies in 2019 to clarify whether the triadic relationship between a company's nonfinancial reporting motivation and practices and user information satisfaction is consistent. It contributes to the literature by showing that conventional assumptions have limitations in explaining the triadic relationship and identifying the mechanism underpinning how corporate nonfinancial reporting functions. First, although companies are more motivated by financial accountability than legitimacy in nonfinancial reporting, these motivations are not directly opposing, but are instead relative. Second, even when the financial accountability and legitimacy motivations are clear, they do not consistently satisfy user information needs. Finally, companies fulfil the financial accountability role only after they fulfil the legitimacy role.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"1 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2024-12-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142879971","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}