Mainframe modernization challenges organizations to balance the reliability, in addition to the capacity to process transactions with legacy applications, along with the agility and innovation that the cloud enables. Challenges exist. One must assess the existing application portfolio. One must select from various migration strategies, such as rehosting versus complete refactoring. One must manage the difficulties of migrating data from legacy to modern data models. Another reason is a security component, as organizations are transitioning to defence-in-depth to address the larger attack surface posed by APIs and integration with the cloud, as well as the need to comply with applicable regulations. Finally, the organizational aspect of modernization can be addressed by ensuring knowledge transfer when retiring employees and adopting agile ways of working, and change management and capability development. Those modernization programs that focus on technology excellence and alignment to corporate strategy by leveraging AI-based automation, a hybrid cloud architecture, and cross-functional team structures experience measurable business value beyond implementation by achieving improved operational efficiency and differentiation via optimised technology capabilities that improve their organization's services.

Purpose Generative Artificial Intelligence (GenAI) is rapidly transforming business strategy, innovation processes and governance practices. While prior research has focused primarily on technological implementation and performance outcomes, limited attention has been paid to how senior executives interpret, frame and adapt to GenAI as a strategic and ethical phenomenon. This study aims to explore executives’ sensemaking and adaptive responses to GenAI and to develop a conceptual model that captures this process. Design/methodology/approach The study adopts a qualitative exploratory design based on semi-structured interviews with 15 senior executives from diverse industries in Greece. Data were analyzed using thematic analysis to identify recurring patterns in executives’ perceptions, decision rationales and ethical considerations related to GenAI adoption and integration. Findings The analysis reveals four interrelated dimensions shaping executive adaptation: strategic integration and decision-making, business value and innovation, human–AI collaboration and workforce transformation and ethics, governance and adoption barriers. Cross-thematic synthesis indicates that executives perceive GenAI as a decision-support and innovation amplifier rather than an autonomous decision-maker. These findings inform an Emergent Integrative Model of Executive Adaptation to GenAI, conceptualized as a dynamic cycle comprising strategic sensemaking (Curate), operational experimentation (Create) and ethical consolidation (Consolidate). Research limitations/implications Several executives cited technical and resource limitations as obstacles to effective GenAI implementation. Challenges include legacy systems, lack of skilled artificial intelligence (AI) engineers and limited integration between AI platforms and enterprise software. Practical implications This model advances understanding of executive cognition and adaptive intelligence in the AI era, positioning leadership as a process of continuous learning, sensemaking and ethical stewardship. Practically, the research offers a roadmap for organizations and policymakers for aligning GenAI-driven innovation with responsible governance and leadership development. Social implications By highlighting the role of executive stewardship, the study underscores how ethical leadership in GenAI adoption influences public trust, workforce well-being and organizational legitimacy. Originality/value Existing research on AI in business has predominantly focused on technological implementation, efficiency gains and economic outcomes. Studies emphasize measurable benefits such as productivity enhancement, improved decision-making speed and customer experience optimization. However, fewer studies explore how executive cognition and strategic reasoning shape the trajectory of AI adoption – particularly regarding GenAI technologies that introduce new forms of creative automation. The study advances leadership and sensemaking research by shifting the focus from GenAI adoption outcomes to executive cognition and ethical stewardship. It offers a novel integrative model that explains how strategy, innovation and governance co-evolve in the GenAI era.

Changes in the business landscape due to digital transformation encourage the urgency of understanding the role of dynamic capabilities (sensing, seizing, reconfiguring capabilities) and sustainable differentiation strategies in value creation. This research aims to compare these two concepts, analyze the mediating or moderating role of dynamic capabilities, and develop an effective differentiation strategy model. Through a literature study method with content analysis, this research offers novelty in the form of a comparative-integrative study that produces a strategic model for sustainable competitive advantage. The result research show that Dynamic Capabilities strengthen the effectiveness Sustainable Differentiation Strategy by increasing organizational, adaptability, innovation, and agility. The integration of these two concepts produces a strategic model capable of enhancing business value creation in the era of digital transformation

The security profession is increasingly required to address complex, high-consequence risks that span people, operations, information and organisational reputation. These challenges often exceed the experience and resources of individual practitioners. To be effective, chief security officers (CSOs) must operate fluently across functional boundaries to ensure organisational resilience and effective recovery. Many security professionals enter the field from foundational careers without structured pathways for development, and the sector lacks clear hierarchies, competency expectations and organisational positioning. At the same time, security work now includes a range of specialist subdisciplines dealing with diverse and interconnected risks. CSOs and their teams must demonstrate business value and develop multidimensional, transdisciplinary competence, addressing skills gaps by drawing on methods and practices from adjacent fields. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.

Safety-critical sectors such as power transmission and autonomous mobility are not replacing their deterministic controllers; they are adding artificial intelligence (AI) layers to existing systems to gain additional, sustainable business value. This approach increases the socio-technical complexity, creating pressure for a structured means to compare benefits, oversight effort, and risk over time. In this descriptive study, we introduce Epistemic Gain G, a scalar derived from the Δ–η–ζ model that links foresight gains to human oversight and system friction. Within this framework, G > 0 is treated as a necessary condition for epistemically sustainable scaling. We then formulate a conjectured governance-level Law of Diminishing Returns that holds up to a Scaling Failure Threshold, beyond which marginal upgrades begin to destroy value. Drawing on recent empirical studies, we further sketch the Δ–η–ζ model and show how G can be displayed in software development lifecycle dashboards. This article extends the earlier IEEE AIxB 2025 conference paper in three main directions: (i) provide the theoretical foundation of the M-vector and formalize it as the explicit epistemic state M(t) underpinning the Δ–η–ζ model; (ii) introducing semantic instability φ and epistemic drift ξ as properties inspired by causal representation learning, used here as an AI-safety and governance lens; and (iii) identifying canonical regions of M-space for deterministic, vital, symbolic, sub-symbolic, and generative AI systems. The overarching aim is to formalize the theoretical basis of G and its timevariant machine form, enabling it to serve as a governance indicator for when to scale, optimize, or pause AI deployments.

Organizations continue to invest heavily in knowledge management (KM), yet many fail to realize measurable business value. The primary cause is not technological immaturity but a persistent mismatch between how knowledge is managed and how work is actually performed. This article argues that meaningful cost reduction and operational durability emerge only when three elements are combined: (1) AI-enabled knowledge management platforms, (2) Radical Knowledge Management (Radical KM) principles that give precedence to workflow and decision logic over documentation volume, and (3) Knowledge Retention Boards (KRBs) as a structured mechanism for capturing institutional knowledge. Drawing on applied KM practice within the broader information management tradition, the article reframes knowledge not as static content but as operational infrastructure, capable of reducing training costs by 20–40%, mitigating risk, and preserving expertise at scale.

Digitalisation is the most significant shaping factor of today's economy, creating new opportunities and challenges, especially for small and medium-sized enterprises (SMEs). This study aims to explore the extent and structural differences in how SMEs in the European Union use cloud computing and artificial intelligence (AI) services, and how these two technologies are interconnected in terms of digital maturity and competitiveness. The research is based on Eurostat data from 2018 to 2024, applying a descriptive statistical approach. According to the results, cloud computing is the foundation for the digitalisation of SMEs: in 2024, 41.7% of small companies, 59% of medium-sized companies, and 77.6% of large companies utilised cloud services. However, the use of AI is more limited, with 11.2% of small companies, 21% of medium-sized companies, and 41.2% of large companies having adopted AI-based solutions. The data indicate a strong complementary relationship between the two technologies: cloud infrastructure provides the data and computational conditions necessary for AI to operate. At the same time, AI enhances the business value of cloud use by evaluating and automating data. At the sectoral level, the information and communication technology (ICT) sector, along with other knowledge-intensive services, is at the forefront of both technologies. At the same time, the manufacturing and construction industries continue to lag significantly. At the regional level, the high adoption rates in Northern and Western European countries stand in stark contrast to those in Eastern and Southern Europe, where technological infrastructure, digital competencies, and investment opportunities are more limited. The study concludes that cloud and AI technologies are not only complementary but also form the basis of digital development for SMEs. The success of digitalisation is also a result of organisational and cultural adaptation. The long-term competitiveness of SMEs depends on their ability to integrate these technologies into their operations with a strategic approach and conscious innovation.

Using the PROPER rating as a moderating variable, this research examines the effects of environmental, social, and governance (ESG) performance on firm value using panel data from non-financial corporations listed on the Indonesia Stock Exchange (IDX) between 2019 and 2023. The model was chosen using the The Chow, Breusch-Pagan, and Hausman tests, and the findings demonstrated that the pooled ordinary least squares (OLS) model is the most accurate specification. According to the results, neither ESG performance nor PROPER ratings have a big impact on a firm value. Nevertheless, the link between ESG and PROPER is significantly and adversely impacted, demonstrating that the impact of ESG on business value diminishes with increasing levels of verified environmental performance. The model's explanatory capacity is enhanced by including the interaction variable. According to these findings, the alignment of ESG disclosures with actual environmental performance has a greater impact on firm value in Indonesia than either PROPER or ESG alone. In order to ensure that ESG reporting and accredited environmental practices are consistent, businesses are urged to improve the integration of ESG reporting with the PROPER assessment system, while authorities are urged to do the same.

The article examines organizational changes as a system-forming tool for transforming the management architecture of an enterprise in conditions of growing turbulence, uncertainty, and increasing demands for sustainable development. It is argued that the modern management paradigm is shifting from static models to the concept of dynamic equilibrium, within which organizational changes are viewed not as a situational response to external challenges, but as a permanent process of development integrated into the strategic logic of an enterprise's functioning. It is proven that the effectiveness of the transformation of the management system is determined by the level of the formed potential for change, which covers managerial, personnel, innovative, and cultural components and ensures adaptability, resilience, and long-term competitiveness.A systematic approach to identifying the object of transformation by decomposing the management system into interrelated subsystems is proposed, which allows achieving coherence of changes and minimizing the risks of fragmentary modernization. An algorithm for transforming the management system has been developed, based on the principles of cyclicality, proactivity, and integration of strategic and operational levels of management. Particular attention is paid to the role of managerial leadership, organizational culture, and communications in the process of institutionalizing change.It is substantiated that organizational changes are the instrumental basis for the implementation of the concept of sustainable development, ensuring the coordination of economic, social, and environmental goals within a single management system. It has been established that the integration of ESG principles into management processes contributes to the formation of long-term business value, increases the legitimacy of the enterprise in the eyes of stakeholders, and strengthens its strategic sustainability. The practical significance of the results lies in the possibility of using the proposed approaches in the development of programs for organizational transformation, strategic development, and corporate governance.

ABSTRACT Micro, Small, and Medium Enterprises (MSMEs) increasingly rely on information technology to support operational efficiency and innovation in the Industry 4.0 environment. However, existing IT governance frameworks have largely been developed for large organizations and often exceed the structural capacity and resource availability of MSMEs. This study examines how IT governance mechanisms contribute to IT value and business value in MSMEs by proposing and empirically validating a simplified IT governance framework tailored to resource-constrained organizational contexts. Using a quantitative approach, data were collected from 289 MSME owners and managers in Indonesia and analyzed using Structural Equation Modeling (SEM). The proposed framework conceptualizes IT governance as a set of interrelated components encompassing leadership engagement, workplace management, and operational governance practices. The results indicate that leadership engagement and workplace management play a central role in enabling IT value creation, which in turn exerts a significant influence on business value. These findings suggest that IT governance effectiveness in MSMEs is shaped less by formalized structures and more by contextual and behavioral factors embedded in daily organizational practices.This study contributes to IT governance and information systems research by extending governance theory beyond large-enterprise assumptions and providing empirical evidence from an emerging economy context. From a practical perspective, the findings offer guidance for MSME owners and policymakers by demonstrating that incremental and value-oriented governance practices can support sustainable digital transformation without requiring comprehensive adoption of complex governance frameworks.

The development of the creative industry has encouraged the emergence of various creative marketing agencies that rely on creativity and design strategies as competitive advantages in entrepreneurial activities. Design is not merely positioned as a visual element, but also as a strategic approach that shapes business value, strengthens brand identity, and enhances corporate competitiveness. This study aims to analyze design-based entrepreneurship strategies in the business development of a creative marketing agency through a case study of KAMAR ATAS. The research employs a qualitative approach using a case study method, with secondary data derived from company profiles, business documentation, and relevant literature. The findings indicate that the implementation of design as an entrepreneurship strategy at KAMAR ATAS is manifested through the integration of creative services, the utilization of integrated media, and the strengthening of brand identity across various marketing activities. These strategies contribute to increasing business value and ensuring business sustainability amid competition in the creative industry. This study is expected to provide a conceptual contribution to the discourse on design-based entrepreneurship, particularly in the development of creative marketing agencies. Key Words: Entrepreneurship, Strategic Design, Creative Industry, Creative Marketing Agency

To determine whether neurorehabilitation can be enhanced through regional implementation of group-based telerehabilitation, we implemented the NeuroRehabilitation OnLine (NROL) innovation regionally and evaluated scale-up from a systems perspective. Observational, exploratory service evaluation using a mixed-methods convergent parallel design. Stroke and neurological rehabilitation services from four organisations across a regional healthcare system in the UK. Therapy staff from community-based services and patients with a stroke or neurological condition receiving active community rehabilitation including NROL from April 2022 to March 2024. A regional multidisciplinary group-based neurological telerehabilitation innovation (NROL). Selected Proctor's implementation outcomes, to establish system-level adoption, acceptability and sustainability of the regional NROL innovation. NROL was adopted by all intended organisations and continues as part of usual care with participation growing. It was acceptable to therapy staff and patients across the region, well-used, valued and supported increased therapy provision. For sustainability, staffing and travel efficiencies were identified through effective collaborative regional systems working. The importance of continued wide stakeholder engagement, robust evaluation and alignment was highlighted. NROL was successfully embedded into real-world practice at a system level and enhanced neurorehabilitation. Looking forward, longer-term sustainment of this innovation will require a compelling business case and value proposition for decision-makers, addressing economic, equality and operational efficiency considerations.

It has remained a challenge for staring a new business venture for an entrepreneur. It is highly essential to prepare a blue print for successful set up of a new business enterprise. There are number of aspects need to be taken care of in this process. The first step taken in the procedure of setting up an enterprise is selecting the nature and type of business. it is essential for an entrepreneur to identify valuable business opportunities and select the correct one best suited his or her business objectives. This may be considered as the preliminary stage which needs to be further screened and analysed before taking the final decisions by the entrepreneur. Ideas are usually generated for the purpose of getting creative or best possible solutions to a specific business problem identified by the entrepreneur. There are different sources from where these innovative ideas coming from. These may come from friends, relatives, customers, suppliers, and even from competitors. In this chapter, an attempt has made to provide a conceptual briefing of planning or starting a new venture addressing challenges and identifying opportunities coming in the journey of building a successful venture.

This study examines the role of strategic IS/IT analysis as the foundation for formulating effective and sustainable information technology strategies. Using a systematic literature review of publications from 2023–2025, the study analyzes strategic frameworks, implementation challenges, and best practices for integrating IS/IT with business objectives. Data analysis is conducted thematically through coding, categorization, synthesis, and interpretation to identify the implications of findings. Research quality is maintained through source triangulation, data transparency, structured review protocols, and systematic documentation. The findings indicate that organizations aligning IS/IT strategy with business strategy achieve 20–30% improvements in operational efficiency, competitive advantage, and better adaptation to market changes. The main frameworks identified include the Strategic Alignment Model (SAM), SWOT Analysis, Porter’s Five Forces, and Value Chain Analysis. Implementation challenges include traditional perceptions of IT as a utility, system complexity, skill gaps, and organizational resistance. Recommended best practices include cross-functional collaboration, data-driven decision-making, adoption of agile operating models, and proactive partnerships between CIOs and CEOs. This study provides practical recommendations for practitioners and academics in designing IS/IT strategies oriented toward business value in the digital era

Subject. The study of methods for assessing the investment attractiveness of public companies, the modeling of market capitalization is considered as the main method. Objectives. Development and testing of a methodology for assessing the investment attractiveness of a company based on modeling its market capitalization. Methods. The methodological basis is based on general scientific principles and research methods: abstraction, generalization of approaches to assessing the investment attractiveness of a company and modeling market capitalization. The methods of analysis, synthesis, statistical modeling, systematization and generalization of the obtained results are used. Results. The main approaches to assessing the investment attractiveness of public companies are investigated: calculating the business value, analyzing financial coefficients, estimating multipliers, and modeling market capitalization. A methodology for assessing the investment attractiveness of a company based on market capitalization modeling has been developed, which includes three stages. At the first stage, the company's financial model is specified and the main factors of the external and internal environment that determine capitalization and dividends are identified. At the second stage, capitalization and dividends are modeled based on one-factor regression models, which are then combined into an ensemble of models. At the third stage, the projected total return on shareholders is determined, the return on risk is calculated using the Monte Carlo method, and on this basis, the conclusion about the investment attractiveness of the company is substantiated. Conclusions. Testing the methodology on the data of PAO PhosАgro, one of the most effective representatives of the Russian chemical industry, allowed us to draw conclusions about the high investment attractiveness of the company due to its efficiency and protected competitive advantages, as well as an acceptable level of risk of investing in the company.

This study conducts a comprehensive bibliometric analysis of research at the intersection of circular economy principles and organizational sustainability to map the intellectual structure and evolution of this interdisciplinary field. We employed a multi-method bibliometric approach analyzing 411 publications from the Scopus database. The methodology combined performance analysis (publication trends, influential authors, journals, and countries) with science mapping techniques to reveal the conceptual structure and development of the field. The analysis reveals exponential growth in publications since 2016, with European institutions dominating research contributions. Five major thematic areas emerge: (1) conceptual integration of circular economy and sustainability paradigms, (2) circular business models and value creation, (3) supply chain and operations management for circularity, (4) organizational transformation and change management, and (5) performance measurement and impact assessment. The field has evolved from conceptual foundations toward implementation-focused research, with increasing attention to digital technologies as enablers. Social dimensions remain relatively underdeveloped compared to economic and environmental aspects. Our findings highlight theoretical contributions to understanding how circular economy principles can advance organizational sustainability across the triple bottom line. We identify significant limitations in current research, including geographic imbalance, methodological constraints, limited longitudinal studies, and underdeveloped social dimensions. The study outlines eight promising directions for future research: expanding geographic diversity, advancing methodological approaches, strengthening social dimension research, exploring digital transformation, investigating organizational capabilities, examining resilience connections, developing integrated theoretical frameworks, and exploring policy-practice interactions.

In the digital era, parasocial interactions and fan engagement have become important phenomena in marketing because they have the potential to increase consumer participation and business value. This study aims to answer two main questions: how parasocial relationships encourage customer participation in value co-creation, and what marketing mechanisms transform fan engagement into sustainable brand communities. The research was conducted through a systematic literature review in the fields of marketing and consumer behavior, synthesizing findings from various studies related to parasocial interactions and fan engagement. The analysis results show that emotional connectivity is a catalyst for consumer-led marketing activities, including user-generated content, brand advocacy, and community-based innovation. Digitally mediated parasocial relationships can reduce marketing costs while increasing customer lifetime value through organic engagement. This study provides a strategic framework for brand community management, emphasizing the importance of cultivating parasocial relationships to increase loyalty, word-of-mouth promotion, and premium pricing appeal, thereby creating an emotionally connected consumer ecosystem and generating measurable business value.

Enterprise architecture plays an important role in aligning business strategy and information technology. However, comprehensive frameworks such as TOGAF 10 are often perceived as complex due to extensive artifact requirements and high resource demands, which create challenges for organizations with limited resources. Therefore, this study aims to examine the role of lean and agile principles in simplifying enterprise architecture through the Mini-TOGAF approach to improve implementation efficiency and adaptability. This research adopts a design science research approach, focusing on the design and development of the Mini-TOGAF framework as a conceptual artifact. To establish a solid theoretical foundation and systematically define the components of Mini-TOGAF, a systematic literature review was conducted. The findings indicate that lean principles simplify enterprise architecture by eliminating waste through “just enough” documentation and by consolidating and prioritizing artifacts based on core business value. In addition, Agile principles ensure that the resulting architecture remains flexible and outcome-oriented through iterative development, rapid adaptation to change, and continuous stakeholder involvement. This study concludes that Mini-TOGAF represents a pragmatic and effective adaptation of TOGAF 10, enabling more efficient, agile, and strategically aligned enterprise architecture implementation for resource-constrained organizations.

IT-Business Alignment and IT-Business Value are vital for the effective implementation of information technology, especially in large-scale food processing manufacturing. Misalignment between IT and business strategies can have long-term negative effects. IT Leadership, particularly from the Chief Information Officer (CIO), plays a decisive role in achieving alignment, delivering business value, and managing organizational change. This study examines the rel Faculty of Social and Political Sciences, Yudharta University Pasuruanationships among four variables: IT Leadership, Organizational Change Management, IT-Business Alignment, and IT-Business Value This study employs the Structural Equation Modeling (SEM), method based on Partial Least Squares (PLS) using SmartPLS software to analyze the relationships among latent variables. This method was chosen for its ability to simultaneously assess measurement and structural models and its suitability for medium-sized samples with non-normal data distribution.The population of this study consists of 377 food processing manufacturing companies large scale industry in East Java, with a sample size of 194 respondents. The sampling technique employed was purposive sampling from the total population of 377 companies, covering five Regional Coordination Agency (Bakorwil) areas: Madiun, Bojonegoro, Malang, Pamekasan, and Jember. The findings of this study indicate significant relationships among the variables as follows: 1) IT Leadership has a significant effect on Organizational Change Management. 2) IT Leadership has a significant effect on IT-Business Alignment. 3) Organizational Change Management has a significant effect on IT-Business Alignment. 4) Organizational Change Management has a significant effect on IT-Business Value. 5) IT-Business Alignment has a significant effect on IT-Business Value. This study found that IT leadership drives organizational change management and IT-business alignment, which in turn enhances IT business value through efficiency, innovation, and the competitiveness of food processing manufacturing companies in East Java. The novelty of this study lies in its integrated examination of the influence of IT Leadership, Organizational Change Management, IT-Business Alignment, and IT-Business Value in the food processing manufacturing industry across five Bakorwil regions in East Java, a topic rarely addressed previously, thus providing contextual insights for IT strategy in the sector.

Currently, the competition in technological capabilities among countries is becoming exceptionally intense, and the societal demand for corporate responsibility is rising accordingly. Corporate social responsibility is key to building competitive advantages. This research framework adopts the Diamond Model to explore the effectiveness, existing issues, and underlying reasons of Huawei's social responsibility practices, thereby designing targeted improvement paths. Leveraging its technological accumulation and talent endowment, Huawei has formed a multi-dimensional responsibility layout, but faces challenges in resource coordination efficiency, industrial collaboration depth, and international institutional alignment. If the improved Diamond Model approach is adopted, it can help Huawei find the optimal balance between social responsibility practices and business value creation, providing valuable insights for the strategic planning of corporate social responsibility in tech enterprises.