Muhammad Waheed Akhtar, Qingyu Zhang, Fauzia Syed, Jongwook Pak, Muhammad Usman
This study examines the impact of responsible leadership (RL) on employee outcomes, specifically customer stewardship behavior (CSB) and service sabotage, within the hospitality sector. Grounded in conservation of resources (COR) theory, we propose that RL, as a key contextual resource, fosters organizational virtuousness (OV), which serves as a resource passageway that transmits the positive effects of RL to employees. Furthermore, we explore the moderating role of role clarity in these relationships, focusing on how it influences the indirect effects of RL on employee outcomes through OV. A field study conducted in Morocco, involving employees and their supervisors in the hospitality industry, validated the hypothesized model. The findings reveal that RL positively influences CSB and reduces service sabotage, both directly and indirectly through OV. Role clarity moderates these relationships, amplifying the positive effects of OV on CSB when role clarity is high, and strengthening the negative relationship between OV and service sabotage when role clarity is low. This research highlights RL's role in promoting positive employee behaviors and reducing negative ones through OV, with role clarity enhancing these effects. Practical implications include adopting RL training programs, fostering OV, and ensuring high role clarity to improve employee engagement, customer satisfaction, and organizational performance, especially in service industries like hospitality.
{"title":"Responsible Leadership as a Strategic Sustainability Resource: Explaining Employee Stewardship and Sabotage","authors":"Muhammad Waheed Akhtar, Qingyu Zhang, Fauzia Syed, Jongwook Pak, Muhammad Usman","doi":"10.1002/bse.70558","DOIUrl":"https://doi.org/10.1002/bse.70558","url":null,"abstract":"This study examines the impact of responsible leadership (RL) on employee outcomes, specifically customer stewardship behavior (CSB) and service sabotage, within the hospitality sector. Grounded in conservation of resources (COR) theory, we propose that RL, as a key contextual resource, fosters organizational virtuousness (OV), which serves as a resource passageway that transmits the positive effects of RL to employees. Furthermore, we explore the moderating role of role clarity in these relationships, focusing on how it influences the indirect effects of RL on employee outcomes through OV. A field study conducted in Morocco, involving employees and their supervisors in the hospitality industry, validated the hypothesized model. The findings reveal that RL positively influences CSB and reduces service sabotage, both directly and indirectly through OV. Role clarity moderates these relationships, amplifying the positive effects of OV on CSB when role clarity is high, and strengthening the negative relationship between OV and service sabotage when role clarity is low. This research highlights RL's role in promoting positive employee behaviors and reducing negative ones through OV, with role clarity enhancing these effects. Practical implications include adopting RL training programs, fostering OV, and ensuring high role clarity to improve employee engagement, customer satisfaction, and organizational performance, especially in service industries like hospitality.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"5 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146042607","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 study explores the interrelationships among environmental policy stringency (EPS), environmental technology, and research and development expenditure (R&D) in advancing sustainable development (SD) within G20 economies. G20 nations, as key contributors to global GDP and CO 2 emissions, confront the challenge of balancing economic growth with environmental stewardship. We find that stringent environmental policies and enhanced R&D investments are strong positive predictors of sustainable economic development, while environmental technology negatively predicts the SD in the short‐term. Our study also demonstrates that EPS, ET, R&D, natural resource rent (NRR), trade (TR), GDP, and SD are interconnected. The results emphasize the impact of shocks within one economy on others and underscore the necessity of accounting for heterogeneity in economic models. The relationships among these variables remain stable over the long term, despite potential short‐term deviations. It suggests that these policies and investments gain long‐term benefits, which enables the separation of economic growth from environmental degradation. Overall, this study provides valuable insights for policymakers by emphasizing the need for stringent environmental strategies and integration practices to navigate the complexities of fostering sustainable development in the G20 economies.
{"title":"Environmental Policy Stringency and Innovation: Unlocking Sustainable Growth in G20 Economies","authors":"Ahmed H. Elsayed, Rabeh Khalfaoui, You Zhou","doi":"10.1002/bse.70579","DOIUrl":"https://doi.org/10.1002/bse.70579","url":null,"abstract":"This study explores the interrelationships among environmental policy stringency (EPS), environmental technology, and research and development expenditure (R&D) in advancing sustainable development (SD) within G20 economies. G20 nations, as key contributors to global GDP and CO <jats:sub>2</jats:sub> emissions, confront the challenge of balancing economic growth with environmental stewardship. We find that stringent environmental policies and enhanced R&D investments are strong positive predictors of sustainable economic development, while environmental technology negatively predicts the SD in the short‐term. Our study also demonstrates that EPS, ET, R&D, natural resource rent (NRR), trade (TR), GDP, and SD are interconnected. The results emphasize the impact of shocks within one economy on others and underscore the necessity of accounting for heterogeneity in economic models. The relationships among these variables remain stable over the long term, despite potential short‐term deviations. It suggests that these policies and investments gain long‐term benefits, which enables the separation of economic growth from environmental degradation. Overall, this study provides valuable insights for policymakers by emphasizing the need for stringent environmental strategies and integration practices to navigate the complexities of fostering sustainable development in the G20 economies.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"268 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146032735","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}
Ina Säumel, Stephanie Ligan, Alice Bischof, Edi Emilov Ivanov, Laura Martinez‐Izquierdo, Sara Noémie Plassnig, Marisa Pettit
In response to growing global challenges, this study explores how social entrepreneurship within the Edible City movement contributes to building resilient, sustainable, and equitable urban food systems. Drawing on semistructured interviews with over 70 stakeholders across five cities—Berlin, Andernach, Oslo, Rotterdam, and Havana—we investigate the motivations, business models, challenges, and scaling strategies of diverse urban food initiatives. We define the scaling strategies as follows: improving existing activities for existing target groups (scaling deep); reaching more people with the same activity (scaling up); replicating activities in new geographic areas (scaling wide); starting activities in new domains (scaling across); and influencing political agendas, mindsets and cultural norms (scaling soft). Each of these strategies connects to specific adaptations in business models: enhancing operational efficiency, expanding capacity, tailoring to local contexts, developing diversified revenue streams, or promoting value‐based change. Our findings reveal both strong commitments to social and ecological goals and also persistent challenges, such as economic fragility, self‐exploitation, and overreliance on precarious funding. Applying Business Model Theory, we identify hybrid models that balance revenue generation with social and environmental impact, and call for policy support and organizational innovation—such as sustainable work structures and mission‐aligned income strategies—to enable long‐term viability and resilience in the urban food sector.
{"title":"Rising Strong: Cultivating Resilience in Edible City Entrepreneurship. Insights Into the Landscape of Urban Food Initiatives","authors":"Ina Säumel, Stephanie Ligan, Alice Bischof, Edi Emilov Ivanov, Laura Martinez‐Izquierdo, Sara Noémie Plassnig, Marisa Pettit","doi":"10.1002/bse.70564","DOIUrl":"https://doi.org/10.1002/bse.70564","url":null,"abstract":"In response to growing global challenges, this study explores how social entrepreneurship within the Edible City movement contributes to building resilient, sustainable, and equitable urban food systems. Drawing on semistructured interviews with over 70 stakeholders across five cities—Berlin, Andernach, Oslo, Rotterdam, and Havana—we investigate the motivations, business models, challenges, and scaling strategies of diverse urban food initiatives. We define the scaling strategies as follows: improving existing activities for existing target groups (scaling deep); reaching more people with the same activity (scaling up); replicating activities in new geographic areas (scaling wide); starting activities in new domains (scaling across); and influencing political agendas, mindsets and cultural norms (scaling soft). Each of these strategies connects to specific adaptations in business models: enhancing operational efficiency, expanding capacity, tailoring to local contexts, developing diversified revenue streams, or promoting value‐based change. Our findings reveal both strong commitments to social and ecological goals and also persistent challenges, such as economic fragility, self‐exploitation, and overreliance on precarious funding. Applying Business Model Theory, we identify hybrid models that balance revenue generation with social and environmental impact, and call for policy support and organizational innovation—such as sustainable work structures and mission‐aligned income strategies—to enable long‐term viability and resilience in the urban food sector.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"7 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146032739","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}
Syed Hussain Murtaza, Syed Muhammad Mustafa, Ahmed Bostani, Muhammad Zahid Nawaz
In an era where sustainability has become a key competitive advantage in the hospitality industry, this study examines the factors that influence hotel environmental performance (HEP). Specifically, it examines how environmental transformational leadership (ETL) affects HEP, focusing on the mediating role of green psychological climate (GPC) and the moderating role of green creativity (GC). Based on the Conservation of Resources (COR) theory, this research employs a quantitative design. Data were gathered through a structured questionnaire from employees chosen via purposive sampling across various hotels. A combination of partial least squares structural equation modeling (PLS‐SEM) and artificial neural network (ANN) approaches was used to analyze the data and test the hypotheses. Results show that ETL significantly enhances GPC and GC, which in turn contribute to HEP. The PLS‐SEM analysis confirms that GC moderates HEP, highlighting its vital role in achieving environmental goals. Additionally, ANN results identify GC as the most influential predictor of HEP. The consistency of findings across both methods emphasizes the importance of fostering GC to enhance environmental performance in the hospitality field. This study emphasizes the roles of ETL and GC in advancing both environmental and social outcomes within the hospitality industry. It also enhances the theoretical understanding of ETL, GPC, and GC within the context of sustainability, offering a methodological advancement.
{"title":"Channeling the Interplay of Environmental Transformational Leadership, Green Psychological Climate, Green Creativity, and Hotel Environmental Performance: Using PLS‐SEM and ANN Analyses","authors":"Syed Hussain Murtaza, Syed Muhammad Mustafa, Ahmed Bostani, Muhammad Zahid Nawaz","doi":"10.1002/bse.70509","DOIUrl":"https://doi.org/10.1002/bse.70509","url":null,"abstract":"In an era where sustainability has become a key competitive advantage in the hospitality industry, this study examines the factors that influence hotel environmental performance (HEP). Specifically, it examines how environmental transformational leadership (ETL) affects HEP, focusing on the mediating role of green psychological climate (GPC) and the moderating role of green creativity (GC). Based on the Conservation of Resources (COR) theory, this research employs a quantitative design. Data were gathered through a structured questionnaire from employees chosen via purposive sampling across various hotels. A combination of partial least squares structural equation modeling (PLS‐SEM) and artificial neural network (ANN) approaches was used to analyze the data and test the hypotheses. Results show that ETL significantly enhances GPC and GC, which in turn contribute to HEP. The PLS‐SEM analysis confirms that GC moderates HEP, highlighting its vital role in achieving environmental goals. Additionally, ANN results identify GC as the most influential predictor of HEP. The consistency of findings across both methods emphasizes the importance of fostering GC to enhance environmental performance in the hospitality field. This study emphasizes the roles of ETL and GC in advancing both environmental and social outcomes within the hospitality industry. It also enhances the theoretical understanding of ETL, GPC, and GC within the context of sustainability, offering a methodological advancement.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"28 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146032733","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}
Rapid technological change, shorter lifecycles and rising demand for electrical and electronic equipment (EEE) are increasing waste electrical and electronic equipment (WEEE) and emphasise the need for a circular economy. This paper identifies barriers and enablers of the circular transition in EEE and outlines interventions. Following Preferred Reporting Items for Systematic Reviews and Meta‐Analyses (PRISMA), 161 papers (2015–2024) were systematically reviewed and thematically coded. Five themes emerged: policy and regulation, sustainable design, consumer knowledge and awareness, infrastructure and technology and economic and financial factors. Implications include harmonised and eco‐modulated extended producer responsibility (EPR) with value‐retention metrics; right to repair with access to parts and repair information; design rules for durability and disassembly; digital product passports with standardised data; and economic instruments such as reduced VAT and deposit–refunds. Future research should build product‐specific evidence, compare across income contexts and examine tensions and trade‐offs across value chain stages and recovery flows.
{"title":"Barriers and Enablers of Circular Economy in Electrical and Electronic Equipment: A Systematic Literature Review","authors":"Aya Abdelmeguid, Lucia Corsini","doi":"10.1002/bse.70559","DOIUrl":"https://doi.org/10.1002/bse.70559","url":null,"abstract":"Rapid technological change, shorter lifecycles and rising demand for electrical and electronic equipment (EEE) are increasing waste electrical and electronic equipment (WEEE) and emphasise the need for a circular economy. This paper identifies barriers and enablers of the circular transition in EEE and outlines interventions. Following Preferred Reporting Items for Systematic Reviews and Meta‐Analyses (PRISMA), 161 papers (2015–2024) were systematically reviewed and thematically coded. Five themes emerged: policy and regulation, sustainable design, consumer knowledge and awareness, infrastructure and technology and economic and financial factors. Implications include harmonised and eco‐modulated extended producer responsibility (EPR) with value‐retention metrics; right to repair with access to parts and repair information; design rules for durability and disassembly; digital product passports with standardised data; and economic instruments such as reduced VAT and deposit–refunds. Future research should build product‐specific evidence, compare across income contexts and examine tensions and trade‐offs across value chain stages and recovery flows.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"2 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146032730","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 presents a systematic literature review of 55 articles on scalability in the context of sustainable entrepreneurship. Based on our analysis, we identify nine influential factors for scalability, which we organize into a conceptual model comprising three interrelated levels of analysis: the system level, venture level, and entrepreneur level. In addition, we specify each factor's enabling and disabling effects. Building on these insights, we propose a research agenda that highlights unexplored but promising factors at each level to further improve our understanding of the specific challenges and opportunities of scalability in sustainable entrepreneurship.
{"title":"Scalability in Sustainable Entrepreneurship: A Review and Research Agenda","authors":"Simon Rudat, Dries Faems","doi":"10.1002/bse.70536","DOIUrl":"https://doi.org/10.1002/bse.70536","url":null,"abstract":"This paper presents a systematic literature review of 55 articles on scalability in the context of sustainable entrepreneurship. Based on our analysis, we identify nine influential factors for scalability, which we organize into a conceptual model comprising three interrelated levels of analysis: the system level, venture level, and entrepreneur level. In addition, we specify each factor's enabling and disabling effects. Building on these insights, we propose a research agenda that highlights unexplored but promising factors at each level to further improve our understanding of the specific challenges and opportunities of scalability in sustainable entrepreneurship.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"2 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146032736","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}
Melik Ertuğrul, Eylül Özdarak, Ayşenur Parlakkaya Diken
Pressures to reconcile both sustainability commitments and financial targets exert inherent trade‐offs for firms, especially under financial constraints. The environmental, social, and governance performance (ESGP) and financial performance (FP) link is multifaceted and cannot be sufficiently captured by unidirectional and linear models. To explore how the overall ESG scores and individual ESG scores, alongside firm size, impact FP, we employ the Fuzzy‐Set Qualitative Comparative Analysis (fsQCA), a structured methodology designed to uncover conjunctural pathways and causal relationships between ESGP and FP. Based on a sample consisting of nonfinancial firms listed in Borsa Istanbul over 2019–2021, our outcomes reveal four distinct configurations that commonly demonstrate that each ESG pillar and firm size have conditional and asymmetric effects. We contribute a holistic approach for understanding ESGP–FP dynamics and offer strategic insights for several stakeholders to allocate resources more effectively.
{"title":"Rethinking ESG‐Financial Performance Nexus Beyond Linearity: A Configurational Analysis","authors":"Melik Ertuğrul, Eylül Özdarak, Ayşenur Parlakkaya Diken","doi":"10.1002/bse.70489","DOIUrl":"https://doi.org/10.1002/bse.70489","url":null,"abstract":"Pressures to reconcile both sustainability commitments and financial targets exert inherent trade‐offs for firms, especially under financial constraints. The environmental, social, and governance performance (ESGP) and financial performance (FP) link is multifaceted and cannot be sufficiently captured by unidirectional and linear models. To explore how the overall ESG scores and individual ESG scores, alongside firm size, impact FP, we employ the Fuzzy‐Set Qualitative Comparative Analysis (fsQCA), a structured methodology designed to uncover conjunctural pathways and causal relationships between ESGP and FP. Based on a sample consisting of nonfinancial firms listed in Borsa Istanbul over 2019–2021, our outcomes reveal four distinct configurations that commonly demonstrate that each ESG pillar and firm size have conditional and asymmetric effects. We contribute a holistic approach for understanding ESGP–FP dynamics and offer strategic insights for several stakeholders to allocate resources more effectively.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"49 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146032732","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}
Alfonso Hernandez‐Vivanco, Jonathan Calleja‐Blanco, Merce Bernardo
Environmental challenges demand urgent and strategic responses from firms. Eco‐product innovation (EPI) is a key approach to reducing environmental impact while preserving competitiveness. This research analyses the relationship between EPI and the internalization of management system (MS) certifications, focusing on ISO 9001, ISO 14001, and ISO 45001, whether adopted individually or in combination. Using secondary panel data from 2769 firms in Europe and Asia from 2006‐2019, a panel logit analysis was conducted, supported by multiple robustness checks. The results reveal that only ISO 14001, individually and in combination, is positively related to EPI, while ISO 9001 and ISO 45001 show no direct effect unless combined with ISO 14001. Furthermore, certification duration shows an inverted U‐shaped relationship with EPI, highlighting the dynamic nature of EPI capability development linked to the internalization of MSs and the risk of erosion over time. Grounded in the dynamic resource‐based view, this paper emphasizes the dynamic nature of capabilities associated with the internalization of MSs and its consequences for EPI and as such has several implications for academia and practitioners.
{"title":"Internalization of Management Systems and Eco‐Product Innovation: The More the Better?","authors":"Alfonso Hernandez‐Vivanco, Jonathan Calleja‐Blanco, Merce Bernardo","doi":"10.1002/bse.70538","DOIUrl":"https://doi.org/10.1002/bse.70538","url":null,"abstract":"Environmental challenges demand urgent and strategic responses from firms. Eco‐product innovation (EPI) is a key approach to reducing environmental impact while preserving competitiveness. This research analyses the relationship between EPI and the internalization of management system (MS) certifications, focusing on ISO 9001, ISO 14001, and ISO 45001, whether adopted individually or in combination. Using secondary panel data from 2769 firms in Europe and Asia from 2006‐2019, a panel logit analysis was conducted, supported by multiple robustness checks. The results reveal that only ISO 14001, individually and in combination, is positively related to EPI, while ISO 9001 and ISO 45001 show no direct effect unless combined with ISO 14001. Furthermore, certification duration shows an inverted U‐shaped relationship with EPI, highlighting the dynamic nature of EPI capability development linked to the internalization of MSs and the risk of erosion over time. Grounded in the dynamic resource‐based view, this paper emphasizes the dynamic nature of capabilities associated with the internalization of MSs and its consequences for EPI and as such has several implications for academia and practitioners.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"185 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146014315","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 critical role of small and medium‐sized enterprises (SMEs) in driving economic growth through employment generation and innovation cannot go unseen, especially the efforts of small firms in promoting sustainable entrepreneurship. With more market and consumer focus on sustainability and the shift toward eco‐friendly products, SMEs can successfully navigate these changes through digital transformation (DT). Therefore, this study systematically reviews how DT enables SMEs to achieve sustainable entrepreneurship through resource optimization. Grounded in dynamic capability theory (DCT), the review investigates how DT tools and techniques influence SMEs' capability building processes. Technologies such as artificial intelligence, the Internet of things, blockchain technology, big data analytics, and cloud computing reshape how SMEs sense opportunities, seize digital solutions, and reconfigure their resources to pursue sustainability objectives. Using two leading databases, the study synthesizes 80 peer‐reviewed articles published between 2010 and 2025. The findings reveal that DT enhances five key resource domains: organizational, human, financial, technological, and social by transforming them into dynamic capabilities (DCs) that drive environmental, social, and economic sustainability. Building on these insights, the paper introduces the Resource‐Centered Transformation Path (RCTP) framework. A framework conceptualizes how DT enables SMEs to optimize static resources into adaptive and sustainability‐oriented capabilities. The framework extends DCT by integrating digitalization mechanisms within its foundations and by identifying digital technologies as key enablers of resource optimization, leading to transformative sustainable outcomes. Overall, the study contributes to advancing theoretical and practical understanding of how DT empowers SMEs to evolve from resource‐constrained enterprises into sustainability‐driven organizations.
{"title":"Resource‐Centered Transformation Paths: The Role of Digital Transformation in Optimizing SME Resources for Sustainable Entrepreneurship","authors":"Nasser Hadi Alajmi","doi":"10.1002/bse.70535","DOIUrl":"https://doi.org/10.1002/bse.70535","url":null,"abstract":"The critical role of small and medium‐sized enterprises (SMEs) in driving economic growth through employment generation and innovation cannot go unseen, especially the efforts of small firms in promoting sustainable entrepreneurship. With more market and consumer focus on sustainability and the shift toward eco‐friendly products, SMEs can successfully navigate these changes through digital transformation (DT). Therefore, this study systematically reviews how DT enables SMEs to achieve sustainable entrepreneurship through resource optimization. Grounded in dynamic capability theory (DCT), the review investigates how DT tools and techniques influence SMEs' capability building processes. Technologies such as artificial intelligence, the Internet of things, blockchain technology, big data analytics, and cloud computing reshape how SMEs sense opportunities, seize digital solutions, and reconfigure their resources to pursue sustainability objectives. Using two leading databases, the study synthesizes 80 peer‐reviewed articles published between 2010 and 2025. The findings reveal that DT enhances five key resource domains: organizational, human, financial, technological, and social by transforming them into dynamic capabilities (DCs) that drive environmental, social, and economic sustainability. Building on these insights, the paper introduces the Resource‐Centered Transformation Path (RCTP) framework. A framework conceptualizes how DT enables SMEs to optimize static resources into adaptive and sustainability‐oriented capabilities. The framework extends DCT by integrating digitalization mechanisms within its foundations and by identifying digital technologies as key enablers of resource optimization, leading to transformative sustainable outcomes. Overall, the study contributes to advancing theoretical and practical understanding of how DT empowers SMEs to evolve from resource‐constrained enterprises into sustainability‐driven organizations.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"49 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146014314","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}
Drawing on comparative institutional theory, we study the nature and magnitude of the effects of national environmental policies on corporate green innovation in developed versus emerging markets. Using a sample of 1831 listed firms in 34 countries from 2002 to 2020, we find that national environmental policies increase corporate green innovation in emerging markets but not in developed markets. Our results further suggest that in emerging markets, market environmental policies act as a substitute for weak formal institutions, and nonmarket environmental policies mirror informal institutions. With our findings, we underline and clarify the strong role of national environmental policies on firm‐level green innovation and the crucial role of national institutions in this process.
{"title":"National Environmental Policies and Corporate Green Innovation: The Mirroring Versus Substitution Hypotheses","authors":"Ivan Miroshnychenko, Knut Haanaes, Julia Binder","doi":"10.1002/bse.70435","DOIUrl":"https://doi.org/10.1002/bse.70435","url":null,"abstract":"Drawing on comparative institutional theory, we study the nature and magnitude of the effects of national environmental policies on corporate green innovation in developed versus emerging markets. Using a sample of 1831 listed firms in 34 countries from 2002 to 2020, we find that national environmental policies increase corporate green innovation in emerging markets but not in developed markets. Our results further suggest that in emerging markets, market environmental policies act as a substitute for weak formal institutions, and nonmarket environmental policies mirror informal institutions. With our findings, we underline and clarify the strong role of national environmental policies on firm‐level green innovation and the crucial role of national institutions in this process.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"185 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2026-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146014339","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}
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