Zhang Ruixin, Abid Noor, Rohail Hassan, Shahzad Ali
This study examines the relationship between sustainability reporting and earnings quality management (EQM) in Pakistan's listed financial firms, with a focus on the moderating effect of board independence on the Pakistan Stock Exchange (PSX). The data are analyzed using multiple regression analysis alongside robust standard error (RSE) and the panel‐corrected standard error (PCSE) technique to affirm robustness. The data were based on 960 firm‐year observations of PSX's listed financial companies from 2015 to 2024, collected from the annual audited reports available at PSX, Open Doors, and the D‐space repository. The findings reveal significant negative results for sustainability reporting and EQM in the absence of independent directors. Board independence acts as a moderator, yielding significant and positive results regarding sustainability reporting, EQM, and interacting terms. The “RSE” and PCSE affirm the robustness of the results. This study is of concern from the viewpoint of direct, indirect, and connected stakeholders. Prospective investors should be aware of the risks associated with investing in Pakistan's financial sector, particularly when the role of independent directors is limited. Regulatory authorities of Pakistan, like the Securities and Exchange Commission of Pakistan (SECP) and PSX, should devise a governance mechanism where the reporting is not confined to books only, but is also practiced, and sustainability reporting should not be taken as a cushion for EQM. The study sheds light on the importance of independent directors in the Pakistani financial sector in overcoming the issue of EQM. The research has contributed to the existing literature on sustainability reporting and EQM by examining the moderating role of board independence in the financial listed sector of Pakistan. The use of the income smoothing ratio, “discretionary LLC,” is taken as a gap for the study, which is replenished.
{"title":"The Double‐Edged Sword of Sustainability Reporting: The Role of Board Independence","authors":"Zhang Ruixin, Abid Noor, Rohail Hassan, Shahzad Ali","doi":"10.1002/bse.70460","DOIUrl":"https://doi.org/10.1002/bse.70460","url":null,"abstract":"This study examines the relationship between sustainability reporting and earnings quality management (EQM) in Pakistan's listed financial firms, with a focus on the moderating effect of board independence on the Pakistan Stock Exchange (PSX). The data are analyzed using multiple regression analysis alongside robust standard error (RSE) and the panel‐corrected standard error (PCSE) technique to affirm robustness. The data were based on 960 firm‐year observations of PSX's listed financial companies from 2015 to 2024, collected from the annual audited reports available at PSX, Open Doors, and the D‐space repository. The findings reveal significant negative results for sustainability reporting and EQM in the absence of independent directors. Board independence acts as a moderator, yielding significant and positive results regarding sustainability reporting, EQM, and interacting terms. The “RSE” and PCSE affirm the robustness of the results. This study is of concern from the viewpoint of direct, indirect, and connected stakeholders. Prospective investors should be aware of the risks associated with investing in Pakistan's financial sector, particularly when the role of independent directors is limited. Regulatory authorities of Pakistan, like the Securities and Exchange Commission of Pakistan (SECP) and PSX, should devise a governance mechanism where the reporting is not confined to books only, but is also practiced, and sustainability reporting should not be taken as a cushion for EQM. The study sheds light on the importance of independent directors in the Pakistani financial sector in overcoming the issue of EQM. The research has contributed to the existing literature on sustainability reporting and EQM by examining the moderating role of board independence in the financial listed sector of Pakistan. The use of the income smoothing ratio, “discretionary LLC,” is taken as a gap for the study, which is replenished.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"20 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145731646","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}
Francesco Tajani, Giuseppe Cerullo, Federico Stara, Francesco Sica
The increasing urgency to reduce greenhouse gas emissions has positioned the decarbonization of the existing building stock as a pivotal strategy. It plays a crucial role in the global transition towards forms of low‐carbon economies. This research proposes an integrated and replicable methodological framework designed to steer strategic investment decisions across the energy retrofitting initiatives field by harmonizing economic, environmental and technical dimensions. The methodology integrates established instruments from scientific literature, such as the Carbon Risk Real Estate Monitor (CRREM) for environmental risk evaluation, two‐dimensional scatter plots for exploratory analysis of trade‐offs and multiobjective optimization models based on goal programming principles. It has been applied to a diversified portfolio of 13 buildings located in the city of Rome (Italy). The results highlight the framework's capacity to identify optimal retrofit scenarios that balance investment expenses, payback periods and the alleviation of asset‐stranding issues. Furthermore, the sensitivity analysis outlines the adaptability of the method to different priority weightings, facilitating decision makers in effectively managing complex multicriteria trade‐offs. The study underscores the relevance of integrating environmental and economic criteria to foster investment strategies aligned with ESG standards, supporting both public administrations and private investors in achieving climate objectives.
{"title":"Multidimensional Models for Building Decarbonization Pathways","authors":"Francesco Tajani, Giuseppe Cerullo, Federico Stara, Francesco Sica","doi":"10.1002/bse.70455","DOIUrl":"https://doi.org/10.1002/bse.70455","url":null,"abstract":"The increasing urgency to reduce greenhouse gas emissions has positioned the decarbonization of the existing building stock as a pivotal strategy. It plays a crucial role in the global transition towards forms of low‐carbon economies. This research proposes an integrated and replicable methodological framework designed to steer strategic investment decisions across the energy retrofitting initiatives field by harmonizing economic, environmental and technical dimensions. The methodology integrates established instruments from scientific literature, such as the Carbon Risk Real Estate Monitor (CRREM) for environmental risk evaluation, two‐dimensional scatter plots for exploratory analysis of trade‐offs and multiobjective optimization models based on goal programming principles. It has been applied to a diversified portfolio of 13 buildings located in the city of Rome (Italy). The results highlight the framework's capacity to identify optimal retrofit scenarios that balance investment expenses, payback periods and the alleviation of asset‐stranding issues. Furthermore, the sensitivity analysis outlines the adaptability of the method to different priority weightings, facilitating decision makers in effectively managing complex multicriteria trade‐offs. The study underscores the relevance of integrating environmental and economic criteria to foster investment strategies aligned with ESG standards, supporting both public administrations and private investors in achieving climate objectives.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"42 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145730952","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}
Laura Hartung‐Geyer, Sascha P. Klein, Patrick Spieth
Organizations increasingly innovate their business models (BMs) toward sustainability to maintain competitiveness and comply with regulations. Sustainable business model innovation (SBMI) requires decision‐makers to identify ecological and social opportunities while balancing economic goals. However, BMs as mental models are guided by experiences and cognitive biases, influencing the recognition of SBMI opportunities. Research on how mental models affect opportunity recognition for SBMI in incumbent firms remains limited. We examine how boundary objects enhance opportunity recognition in SBMI. Through a single case study in the industrial automation sector, we identify significant variations in decision‐makers' mental models and demonstrate how boundary objects mitigate cognitive barriers. Findings highlight differences between managers with diverse professional backgrounds and propose measures to foster the identification of suitable opportunities in SBMI. This study contributes to SBMI research by identifying micro‐level cognitive constraints and offers practical recommendations to improve strategic decision‐making in contexts of sustainability innovation.
{"title":"Turning Mental Models Around: Boundary Objects as Enablers of Sustainable Business Model Innovation","authors":"Laura Hartung‐Geyer, Sascha P. Klein, Patrick Spieth","doi":"10.1002/bse.70441","DOIUrl":"https://doi.org/10.1002/bse.70441","url":null,"abstract":"Organizations increasingly innovate their business models (BMs) toward sustainability to maintain competitiveness and comply with regulations. Sustainable business model innovation (SBMI) requires decision‐makers to identify ecological and social opportunities while balancing economic goals. However, BMs as mental models are guided by experiences and cognitive biases, influencing the recognition of SBMI opportunities. Research on how mental models affect opportunity recognition for SBMI in incumbent firms remains limited. We examine how boundary objects enhance opportunity recognition in SBMI. Through a single case study in the industrial automation sector, we identify significant variations in decision‐makers' mental models and demonstrate how boundary objects mitigate cognitive barriers. Findings highlight differences between managers with diverse professional backgrounds and propose measures to foster the identification of suitable opportunities in SBMI. This study contributes to SBMI research by identifying micro‐level cognitive constraints and offers practical recommendations to improve strategic decision‐making in contexts of sustainability innovation.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"15 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145731645","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 Sustainable Development Goals (SDGs) represent an emerging institutional logic that nonprofits must navigate alongside existing sector‐specific frameworks. Drawing on institutional logics and organizational hybridity theories, we examine how nonprofits incorporate SDGs into their missions and what this reveals about managing institutional complexity. Using a large language model to analyze nearly 50,000 US nonprofit mission statements, we develop an SDG‐based typology that captures mission hybridity—a key dimension existing classification systems obscure. We find that nonprofits embedded in strong professional logics (e.g., healthcare, education) show concentrated SDG alignment, while those spanning multiple institutional spheres demonstrate diverse engagement patterns. Mission statements relate to an average of 1.94 SDGs, with modest intergoal correlations suggesting context‐specific rather than template‐driven implementation strategies. Our study advances understanding of how organizations translate global frameworks through existing institutional arrangements, provides a quantitative measure of mission complexity, and offers practical insights for nonprofit alignment with global sustainability priorities.
{"title":"Toward an SDG‐Based Typology for US Nonprofits","authors":"Dominik S. Meier, Elizabeth Searing","doi":"10.1002/bse.70419","DOIUrl":"https://doi.org/10.1002/bse.70419","url":null,"abstract":"The Sustainable Development Goals (SDGs) represent an emerging institutional logic that nonprofits must navigate alongside existing sector‐specific frameworks. Drawing on institutional logics and organizational hybridity theories, we examine how nonprofits incorporate SDGs into their missions and what this reveals about managing institutional complexity. Using a large language model to analyze nearly 50,000 US nonprofit mission statements, we develop an SDG‐based typology that captures mission hybridity—a key dimension existing classification systems obscure. We find that nonprofits embedded in strong professional logics (e.g., healthcare, education) show concentrated SDG alignment, while those spanning multiple institutional spheres demonstrate diverse engagement patterns. Mission statements relate to an average of 1.94 SDGs, with modest intergoal correlations suggesting context‐specific rather than template‐driven implementation strategies. Our study advances understanding of how organizations translate global frameworks through existing institutional arrangements, provides a quantitative measure of mission complexity, and offers practical insights for nonprofit alignment with global sustainability priorities.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"1 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145710948","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 the role of geographic location in the relationship between external collaboration and eco‐innovation by drawing on eco‐innovation and the geography of innovation literature. Analyzing data from 3518 Norwegian firms in the service sector, we find that geographic location shapes how firms collaborate with external partners on eco‐innovation. Despite finding that collaboration with partners at all geographic scales is positively associated with eco‐innovation in both core and peripheral regions, we find a positive relation between firms located in peripheral regions and collaboration with international partners. Moreover, the geographic breadth of partners holds a more pronounced association for firms in peripheral regions than for those in core regions. Our findings highlight the need for firms to take account of location when formulating collaboration strategies and emphasize the importance of diverse partnerships for advancing eco‐innovation development in peripheral regions.
{"title":"Does Geography Matter for Eco‐Innovation? A Comparison of Collaborative Eco‐Innovation Between Core and Peripheral Regions","authors":"Xiangyu Quan, Andra Riandita, Marte C. W. Solheim","doi":"10.1002/bse.70423","DOIUrl":"https://doi.org/10.1002/bse.70423","url":null,"abstract":"This paper examines the role of geographic location in the relationship between external collaboration and eco‐innovation by drawing on eco‐innovation and the geography of innovation literature. Analyzing data from 3518 Norwegian firms in the service sector, we find that geographic location shapes how firms collaborate with external partners on eco‐innovation. Despite finding that collaboration with partners at all geographic scales is positively associated with eco‐innovation in both core and peripheral regions, we find a positive relation between firms located in peripheral regions and collaboration with international partners. Moreover, the geographic breadth of partners holds a more pronounced association for firms in peripheral regions than for those in core regions. Our findings highlight the need for firms to take account of location when formulating collaboration strategies and emphasize the importance of diverse partnerships for advancing eco‐innovation development in peripheral regions.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"4 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145711312","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}
Renato Passaro, Ivana Quinto, Giuseppe Scandurra, Antonio Thomas
Energy transition (ET) is the core of sustainable development. Therefore, ET is a growing operational imperative for all types of businesses. Until now, the majority of studies focus on the presence of specific factors that should encourage the adoption of ET practices, while little attention has been paid to the factors supporting the emergence of the intention of companies to follow ET practices. Intention is a stage that is upstream of the decision to perform a certain behaviour. This knowledge gap is more evident for small businesses (SBs), although they are the major responsible for pollution and GHG emissions. Hence, while most research focuses on identifying the factors that may encourage SBs to invest in ET without certainty that investments will materialise, this study investigates the process through which the intention to invest in ET emerges among SBs. For this purpose, the theory of planned behaviour (TPB) is applied to a specific population of SBs with a high propensity toward innovative investments. The findings show that the TPB can effectively help to explain investment choices of SBs. Specifically, economic and financial expectations seem to be the best factors that push SBs to invest in ET, even if great importance can be devoted to external requests for sustainability practices that cannot be ignored by any company. Even managers/owners' environmental sensitivity plays a relevant role and is somewhat shaped by the new environmental culture that is widespread around the EU. From this evidence, various implications occur.
{"title":"Applying the Theory of Planned Behaviour to Predict Investment Intention in Energy Transition by Small Businesses' Owners","authors":"Renato Passaro, Ivana Quinto, Giuseppe Scandurra, Antonio Thomas","doi":"10.1002/bse.70444","DOIUrl":"https://doi.org/10.1002/bse.70444","url":null,"abstract":"Energy transition (ET) is the core of sustainable development. Therefore, ET is a growing operational imperative for all types of businesses. Until now, the majority of studies focus on the presence of specific factors that should encourage the adoption of ET practices, while little attention has been paid to the factors supporting the emergence of the intention of companies to follow ET practices. Intention is a stage that is upstream of the decision to perform a certain behaviour. This knowledge gap is more evident for small businesses (SBs), although they are the major responsible for pollution and GHG emissions. Hence, while most research focuses on identifying the factors that may encourage SBs to invest in ET without certainty that investments will materialise, this study investigates the process through which the intention to invest in ET emerges among SBs. For this purpose, the theory of planned behaviour (TPB) is applied to a specific population of SBs with a high propensity toward innovative investments. The findings show that the TPB can effectively help to explain investment choices of SBs. Specifically, economic and financial expectations seem to be the best factors that push SBs to invest in ET, even if great importance can be devoted to external requests for sustainability practices that cannot be ignored by any company. Even managers/owners' environmental sensitivity plays a relevant role and is somewhat shaped by the new environmental culture that is widespread around the EU. From this evidence, various implications occur.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"240 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145711068","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}
Sustainability labels and certifications are widely promoted as tools for guiding markets toward fair and environmentally responsible practices. However, research shows that they often fall short of their transformative ambitions, becoming fragmented, confusing, or vulnerable to being captured by powerful actors. Existing studies focus mainly on credibility, consumer behavior, or firm performance, leaving underexplored the ethical processes through which certifications translate, reshape, or dilute sustainability ideals. This paper addresses this gap by introducing a syncretic ethics perspective—an approach that examines how heterogeneous values are blended and negotiated within certification systems. Drawing on insights from sustainability governance and syncretism studies, the paper identifies four mechanisms through which certification schemes may sustain incremental change rather than systemic transformation: (1) translating broad ideals into narrow metrics, (2) normalizing compromise to facilitate adoption, (3) providing reassurance that stabilizes legitimacy, and (4) governance arrangements that privilege dominant actors. Illustrations from Fairtrade, Rainforest Alliance, carbon‐neutral labels, and B‐Corp clarify how these mechanisms operate in practice. The paper advances the literature by conceptualizing certifications as normative infrastructures rather than neutral signals, and by specifying the conditions—transparent translation, participatory governance, and rigorous accountability—under which certification can support more ambitious sustainability transitions. This framework enriches debates on sustainability strategy by clarifying how the ethical design and governance of labels shape their capacity to drive meaningful change.
{"title":"Drifting Ideals: Sustainability Labels and the Syncretic Ethics of Certification","authors":"Fabien Martinez","doi":"10.1002/bse.70447","DOIUrl":"https://doi.org/10.1002/bse.70447","url":null,"abstract":"Sustainability labels and certifications are widely promoted as tools for guiding markets toward fair and environmentally responsible practices. However, research shows that they often fall short of their transformative ambitions, becoming fragmented, confusing, or vulnerable to being captured by powerful actors. Existing studies focus mainly on credibility, consumer behavior, or firm performance, leaving underexplored the ethical processes through which certifications translate, reshape, or dilute sustainability ideals. This paper addresses this gap by introducing a syncretic ethics perspective—an approach that examines how heterogeneous values are blended and negotiated within certification systems. Drawing on insights from sustainability governance and syncretism studies, the paper identifies four mechanisms through which certification schemes may sustain incremental change rather than systemic transformation: (1) translating broad ideals into narrow metrics, (2) normalizing compromise to facilitate adoption, (3) providing reassurance that stabilizes legitimacy, and (4) governance arrangements that privilege dominant actors. Illustrations from Fairtrade, Rainforest Alliance, carbon‐neutral labels, and B‐Corp clarify how these mechanisms operate in practice. The paper advances the literature by conceptualizing certifications as normative infrastructures rather than neutral signals, and by specifying the conditions—transparent translation, participatory governance, and rigorous accountability—under which certification can support more ambitious sustainability transitions. This framework enriches debates on sustainability strategy by clarifying how the ethical design and governance of labels shape their capacity to drive meaningful change.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"34 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145711313","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}
Although recent literature on the circular economy ( CE ) has highlighted the important role of ecosystems, there is still limited understanding of the main themes that characterize circular ecosystems. This study addresses this gap by combining a comprehensive topic modeling analysis employing latent Dirichlet allocation (LDA) with a systematic literature review of 66 articles focused on circular ecosystems. The main results reveal that circular ecosystems have often been analyzed through the lens of (i) circular business models and ecosystem innovation, (ii) CE policies and stakeholder governance, and (iii) implementation and transition to CE . Furthermore, based on this study's findings, topics that have not yet been explored in this area are identified, and a research agenda is suggested. The results of this study also underscore key themes in the relationship between CE and ecosystems and provide managers with guidance on better integrating their businesses into ecosystems aligned with circularity objectives.
{"title":"Are Ecosystems the Missing Link in Circular Transitions? Insights From a Comprehensive Literature Analysis","authors":"Aline Gabriela Ferrari, Fabiano Armellini, Daniel Jugend, Davide Pulizzotto, Catherine Beaudry","doi":"10.1002/bse.70387","DOIUrl":"https://doi.org/10.1002/bse.70387","url":null,"abstract":"Although recent literature on the circular economy ( <jats:sc>CE</jats:sc> ) has highlighted the important role of ecosystems, there is still limited understanding of the main themes that characterize circular ecosystems. This study addresses this gap by combining a comprehensive topic modeling analysis employing latent Dirichlet allocation (LDA) with a systematic literature review of 66 articles focused on circular ecosystems. The main results reveal that circular ecosystems have often been analyzed through the lens of (i) circular business models and ecosystem innovation, (ii) <jats:sc>CE</jats:sc> policies and stakeholder governance, and (iii) implementation and transition to <jats:sc>CE</jats:sc> . Furthermore, based on this study's findings, topics that have not yet been explored in this area are identified, and a research agenda is suggested. The results of this study also underscore key themes in the relationship between <jats:sc>CE</jats:sc> and ecosystems and provide managers with guidance on better integrating their businesses into ecosystems aligned with circularity objectives.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"31 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145711087","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 the relationship between environmental, social, and governance (ESG) practices and firm value in South Africa. Drawing on the upper echelons theory, the study further highlights how CEO traits influence the ESG–firm value relationship and explores the moderating role of CEO narcissism. Utilizing a balanced panel dataset of listed firms on the Johannesburg Stock Exchange from 2014 to 2022, findings reveal that effective investment in ESG practices enhances firm value. However, CEO narcissism weakens the positive relationship between ESG performance and firm value. Robustness analyses using the two‐stage least squares, the Heckman two‐stage model, and entropy balancing validate our findings. By focusing on an emerging market that places value on responsible investing, the study offers insights for firms seeking to maximize ESG returns while mitigating potential leadership risks.
{"title":"The Moderating Effect of CEO Narcissism on ESG Performance and Firm Value: An Emerging Market Analysis","authors":"Nana Adwoa Anokye Effah, Kun Su, Miriam Arthur","doi":"10.1002/bse.70448","DOIUrl":"https://doi.org/10.1002/bse.70448","url":null,"abstract":"This paper examines the relationship between environmental, social, and governance (ESG) practices and firm value in South Africa. Drawing on the upper echelons theory, the study further highlights how CEO traits influence the ESG–firm value relationship and explores the moderating role of CEO narcissism. Utilizing a balanced panel dataset of listed firms on the Johannesburg Stock Exchange from 2014 to 2022, findings reveal that effective investment in ESG practices enhances firm value. However, CEO narcissism weakens the positive relationship between ESG performance and firm value. Robustness analyses using the two‐stage least squares, the Heckman two‐stage model, and entropy balancing validate our findings. By focusing on an emerging market that places value on responsible investing, the study offers insights for firms seeking to maximize ESG returns while mitigating potential leadership risks.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"93 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-12-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145711088","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}
Although R&D outsourcing has become a common strategy for strengthening firms' innovation capabilities, limited attention has been given to how outsourcing shapes responsible innovation or the conditions under which this relationship is amplified or constrained. This study investigates how R&D outsourcing influences responsible innovation and how this effect is moderated by competitive intensity and speed to market. Drawing on institutional theory and responsible innovation literature, we argue that outsourcing enables firms to access diverse knowledge and stakeholder perspectives, helping them anticipate risks, reflect on societal values, and design environmentally and socially responsible innovations. We further propose that competitive intensity enhances the positive effect of outsourcing on responsible innovation, as firms facing stronger rivalry experience greater pressure to differentiate through responsible practices. However, this moderating effect depends on firms' speed‐to‐market orientation. When speed to market is low, firms have greater opportunity to integrate stakeholder input and reflexive practices, strengthening the outsourcing–responsible innovation link. Conversely, high speed‐to‐market pressures may reduce deliberation and weaken this effect. Using survey data from 236 entrepreneurial ventures in Vietnam, the findings support all hypotheses and advance understanding of when and how outsourcing promotes responsible innovation.
{"title":"Bridging R&D Outsourcing and Innovation: the Role of Competitive Intensity and Speed to Market in Responsible Innovation","authors":"Samuel Adomako, Nguyen Phong Nguyen","doi":"10.1002/bse.70470","DOIUrl":"https://doi.org/10.1002/bse.70470","url":null,"abstract":"Although R&D outsourcing has become a common strategy for strengthening firms' innovation capabilities, limited attention has been given to how outsourcing shapes responsible innovation or the conditions under which this relationship is amplified or constrained. This study investigates how R&D outsourcing influences responsible innovation and how this effect is moderated by competitive intensity and speed to market. Drawing on institutional theory and responsible innovation literature, we argue that outsourcing enables firms to access diverse knowledge and stakeholder perspectives, helping them anticipate risks, reflect on societal values, and design environmentally and socially responsible innovations. We further propose that competitive intensity enhances the positive effect of outsourcing on responsible innovation, as firms facing stronger rivalry experience greater pressure to differentiate through responsible practices. However, this moderating effect depends on firms' speed‐to‐market orientation. When speed to market is low, firms have greater opportunity to integrate stakeholder input and reflexive practices, strengthening the outsourcing–responsible innovation link. Conversely, high speed‐to‐market pressures may reduce deliberation and weaken this effect. Using survey data from 236 entrepreneurial ventures in Vietnam, the findings support all hypotheses and advance understanding of when and how outsourcing promotes responsible innovation.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"3 1","pages":""},"PeriodicalIF":13.4,"publicationDate":"2025-12-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145704027","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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