Value Creation For Stakeholders Research Articles

A Composite Study of HDFC Bank Financial Performance

This composite study delves into the financial performance of HDFC Bank, a cornerstone of India's banking sector renowned for its innovation and customer-centric approach. Established in 1994, HDFC Bank has ascended to become one of India's largest private sector banks, epitomizing operational excellence and financial prudence. The study underscores the importance of analyzing financial performance in the dynamic banking landscape, serving as a linchpin for strategic decision-making, risk management, and stakeholder engagement. Through a comprehensive analysis of HDFC Bank's financial metrics, the study aims to unravel underlying performance drivers, elucidate emerging trends, and delineate strategic imperatives for future growth and value creation. Methodologically, the study employs a structured approach encompassing primary and secondary data sources, financial ratio analysis, qualitative assessments, and interpretive synthesis. Primary data sources include HDFC Bank's annual reports and regulatory filings, while secondary sources encompass scholarly literature and industry reports. Financial ratio analysis encompasses liquidity, profitability, efficiency, and asset quality metrics, providing multifaceted insights into HDFC Bank's performance dynamics. Interpreting key financial ratios offers valuable insights into HDFC Bank's performance trends. Notably, the bank demonstrates robust profitability metrics, operational efficiency improvements, and healthy asset quality. However, challenges such as declining CASA ratio and net interest margin warrant strategic attention. The study offers actionable suggestions for HDFC Bank to enhance its financial performance. Strategies include optimizing capital utilization, diversifying revenue streams, strengthening asset quality, improving cost efficiency, fostering strategic partnerships, and prioritizing customer-centricity and risk management. In conclusion, HDFC Bank's financial performance underscores its resilience, innovation, and commitment to stakeholder value creation. By leveraging insights from this study and adopting strategic initiatives, HDFC Bank can navigate challenges, capitalize on opportunities, and sustain its position as a leading player in the dynamic banking landscape.

Stakeholder value creation system: understanding the process

Purpose Understanding how firms manage multiple stakeholders is an academic and business call. This paper aims to describe a firm’s processes to implement a stakeholder value creation system, defined as the firm’s processes to create appropriate value with multiple stakeholders. Design/methodology/approach The authors based their investigation on a conceptual framework extracted from a previous literature review. From there, the authors conducted qualitative empirical research designed as a multiple-case study. In-depth interviews with 47 people from 11 different firms are the key source of this study. Findings This paper proposes a framework demonstrating how a firm can implement a stakeholder value creation system. Results pointed to three processes: value creation, distribution and capture. Value distribution mechanisms are drivers for both value creation and capture processes. The system is a set of multiple flow relationships between the firm and its stakeholders. Research limitations/implications This research is limited to the Brazilian context. Practical implications The stakeholder value creation system is composed of seven elements: walk-the-talk organizational behavior, stakeholder business model, societal non-attended need, stakeholder preference matrix, stakeholder bargaining power, retention of rents and governance mechanism. Managers may design their firm’s unique processes using these elements as drivers. Social implications The present investigation demonstrates that societal issues matter for firms to formulate strategies that positively impact their economic, social and environmental results. Originality/value The authors investigated competitive strategy concepts of value creation and appropriation from a combination of resource-based and stakeholder theories and a system perspective. The framework of this study consolidated both theories’ ideas from a complementary perspective. The authors suggest managers and academics should adopt the power of the “AND” position instead of the “OR” trade-off position.

Value Creation with Project Risk Management: A Holistic Framework

The conceptual shift, from a traditional task perspective and a managerial approach to project risks toward a value-centric view, underlines the challenge of creating different forms of value for multiple project stakeholders. This emerging theme arises the need for a new holistic framework for value creation through Project Risk Management (PRM). With this purpose, the paper aims at deepening the knowledge about PRM for value creation. A systematic literature review has been conducted, extracting a database of 116 papers. To address the research questions, a descriptive and a content analysis have been performed. The results of a systematic literature review reveal that the value created through PRM includes both economic and intangible (not monetary) benefits. Moreover, even if international standards are giving greater relevance to value creation and protection, considering also the potential positive effects of risks, empirical results show significant discrepancies. From the analysis of the results, a new theoretical framework emerges that integrates fundamental aspects not fully considered so far, incorporating the concepts of economic, ecological, and social impacts into the notion of value creation through PRM. This work extends the current research in this field and sets forth the definition of a holistic framework to promote the creation of value for project stakeholders in practice, through the management of negative and positive risks, providing a perspective on the sustainability orientation of projects.

Analysis of business models for delivering energy efficiency through smart energy services to the European commercial rented sector.

In this paper, we perform a comparative analysis of business models used by Energy Service Companies (ESCOs), suitable for the deployment of energy efficiency measures in the commercial rented sector across Europe. These models can effectively contribute to solving the split-incentive issue that arises in the rented building scenario. Some of them are obtained from their "traditional" counterparts, which do not consider the rented scenario, but just a bipartite agreement between an Energy Service Company and its client. The EU Horizon 2020 project SmartSPIN (Smart energy services to solve the SPlit INcentive problem in the commercial rented sector) targets delivery of enhanced energy services for commercial rented sector. These enhanced energy services (a) combine demand management services and energy efficiency interventions, (b) facilitate the adoption of renewables, (c) optimize the balance between demand and supply, (d) alleviate the split incentive issue. The pilot implementation of SmartSPIN is in progress in a business park in Greece, in an office building in Ireland and in two shopping centers in Spain. Key recommendations toward the implementation of such a smart energy service are provided in this paper. They have been obtained from a detailed analysis of ten interviews of key stakeholders of the energy efficiency sector and of the commercial rented sector, along with an analysis of a selection of the most relevant technical literature. This paper argues that the classical shared savings and guaranteed savings ESCOs models may be adapted to the commercial rented sector and used at SmartSPIN's demonstration sites in Spain, Greece and Ireland. The guaranteed savings model appears to be the most appropriate one to use when the building owner is funding the energy efficiency project using own funds or liaising directly with a bank or other finance provider. The validation method for the comparative analysis of business models and selection of the most appropriate one is based on both literature review and consultation of selected stakeholders' (stakeholder value creation framework).

Stakeholder Value Creation through Business Restructuring: Post Sanctions Evidence from Russian Airlines

The study is devoted to evaluating of turnaround strategies used by Russian airlines to overcome negative influence of 2022 crisis caused by sanctions pressure of West regulators in terms of ability to create value both for financial and non-financial stakeholders. To conduct a quantitative analysis of the effectiveness of turnaround strategies, evaluation methods based on traditional accounting indicators were used, as well as VBM indicators that take into account an opportunity cost. A qualitative analysis includes the estimation of management actions and decisions in terms of whether they violate interest of companies’ major stakeholders. The study was carried out on the basis of such indicators as: PBITD/CE, PBITD/TD, ROA,Gross margin, EBITDA margin, Net Debt to EBITDA, EVA, Sustainable growth index and Interests harmonized index. As a result of the study, the features of turnaround strategies used by Russian airlines, namely PJSC Utair and LLC Pobeda were studied. The accounting ratios as well as the dynamic of economic profit were evaluated. The Growth sustainability matrix was constructed. The effectiveness of turnaround strategies in terms of value creation both for financial and non-financial stakeholders was assessed and the conclusions about prospects of companies’ further development were made. The above results can be taken into account in the development of more sustainable turnaround strategies by other companies faced with challenges.

THE IMPACT OF FINANCIAL MANAGEMENT TOOLS ON TOURISM COMPANIES IN THE POST-COVID ENVIRONMENT

This research focused on the financial management of tourism companies in Moldova during the post-Covid period, highlighting its critical role in ensuring business sustainability and stakeholder value creation in times of crisis. The aim of the paper is to determine the impact of financial management practices on the development of tourism companies of Moldova in post-Covid period in terms of short- and long-term financial management. The study employed the methods of financial analysis to identify the peculiarities of financial management of tourism companies of Moldova in the post-Covid period. The methodological framework of the analysis is the method of analyzing financial ratios from four groups: ROA; Debt/Equity; Liquidity; EBITDA Margin, Profit Margin. Key financial indicators for 2022 showed improvements: ROA increased to 2.1%, the Debt/Equity ratio improved to -2.8 times, liquidity management normalized to 1.7 times, EBITDA Margin rose to 32.1%, and Profit Margin to 6.9%. Practical significance of this study lies in its provision of a direct, applicable set of short-term and long-term financial management strategies for tourism companies during the economic recovery phase post-pandemic. Prospects for further research are to study both financial and market factors influencing the practice of financial management in the post-Covid period and adaptation as part of the economic recovery after the pandemic.

In the eye of the beholder: Stakeholder perceived value in sustainable business models

The sustainability of business models is commonly determined by their value creation for a wide range of stakeholders. This value is primarily conceptualised through the aggregated macro-level Triple Bottom Line (TBL) dimensions of social, ecological and economic value. However, few business model studies provide an explanation as to why and how stakeholders see such value in a business model. A problematising review reveals a conflation of the TBL macro-level and stakeholder micro-level of analysis, causing ambiguity regarding contents and recipients of value. This paper adopts a perceived value concept based on micro-level insights from recipient-centric (strategic) management to reform the construct of ecological, social and economic value. The relationships between value perceptions, need fulfilment and need satisfiers are analysed based on the characteristics of subjectivity and heterogeneity, one-sidedness and non-linearity, situation-specificity and transience, spill-over, relationality and experientiality, idiosyncrasy, incommensurability, and interdependence. The analysis underscores a value creation theory based on stakeholder perceptions of need fulfilment. It suggests stakeholder value creation can only be understood through the stakeholders whose needs are being satisfied. The suggested distinction between needs and satisfiers remedies their conflation in previous research and enables a discussion of conditions for sustainable stakeholder value creation.

Does The Efficient Use of Visible Intellectual Capital Determine the Profitability in the Automotive Industry?

Abstract Intellectual capital (IC) is one of the core determinants of the value of companies, and value creation for stakeholders as well as improvement of the competitiveness of the companies. Effective management of all visible and invisible elements of the total IC is extremely important for business success, since the effective providing, creating, developing and efficient use of intellectual resources affects various business performances, such as income, market share, net profit, and profitability of the company quantified by various performance measures of Return on assets (ROA) and Return on equity (ROE). One part of the total IC is disclosed and visible in the assets side of the balance sheet (Intellectual assets and Goodwill - Iag), while the other, is undisclosed and invisible (Human capital - Hc and Structural and relational capital - SRc). Efficiency in the usage of all these elements of IC has an impact on profitability. The purpose of this research (based on 12 leading companies in the automotive industry from 2010 to 2019) is to examine the interdependence, as well as the influence, of the Efficiency in the use of Intangible assets and goodwill (Eiag) on various rations of ROA and ROE using the EIC (the Efficiency of Intellectual Capital) model for calculation of the Eiag indicator. Although there are numerous studies that use the VAIC methodology to research the interdependence and impact of the efficiency of certain elements of IC on business performance, as well as, in particular, on profitability, the originality of this paper is based on an investigation of the interdependence and influence of Eiag on profitability (ROA and ROE), which is not the case with the studies of other researchers so far, because Pulić’s VAIC methodology does not separate the visible IC component i.e. Iag. The outcomes of this study confirm a positive relationship between the efficiency in the use of intangible assets and goodwill (Eiag) and profitability (ROA and ROE), as well as the growing impact of Eiag on profitability indicators (ROA and ROE). The findings imply the extreme importance of effective and efficient management of all elements of intellectual assets that are visible on the assets side of the balance sheet, taking into account the evident impact on profitability.

Moving Business Models Forward for Positive Social, Environmental and Economic Outcomes: Managing Externalities (and Internalities) for Sustainability Innovation


 
 
 
 Purpose: Organisations are crafting business models to operate and be able to continue operating. While it is now common to mention the importance of the ecosystem surrounding a focal organisation, business models are often considered as internal configurations between resources, organisation and offers. Consequently, the ecosystem is only convoked as a matrix for value creation for stakeholders and value capture for a focal company. In this article, we contend that ecosystems are also the place where externalities of the focal business model operate, eventually destroying value for stakeholders. We suggest that a sustainable business model can only be designed and implemented with a complete account of externalities, and we propose that the business model is the key determinant between externalities and internalities.
 Design/Methodology/Approach: We build on the research about business models and externalities to theorise at the crossroads of this literature. We then draw consequences from our theoretical development and advance business model recommendations for managers, consultants and researchers.
 Findings: We propose to complete the concept of externalities with the symmetrical concept of “internalities” to analyse and design business models. We also offer eight policies to manage (or not) externalities and identify potential consequences of these policies for the business model of the focal organisation and its ecosystem. We conclude that business model thinking allows organisations to decide on what the externalities and internalities of their business model will be and thus induce management responsibilities.
 Originality/Value: Instead of focusing on business models as an internal configuration, we contend that organisations must make decisions on externalities and internalities generated by their business model. We make propositions to design and preserve sustainable business models. Business models’ future should focus on the management of externalities.
 
 
 

Digital transformation preparedness: an exploratory study

PurposeDigital transformation (DT) harnessing the potential of emerging technology creates opportunities and challenges for organizations worldwide. Senior executives view DT as a key initiative for future competitiveness, a view shared by academic researchers. What may challenge the organization is that the vision may be present while preparedness may be lacking. Organizational preparedness depends on managers and employees charged with implementing DT and their perceptions on preparedness are often not aligned with senior executives.Design/methodology/approachIn this research, the authors explore the perceptions of managers and employees on DT preparedness in an organization by gathering data from 579 participants. This study uses an innovative approach to qualitative data analysis using interactive topic modeling.FindingsFindings in this qualitative study provide valuable insights on the perceptions of these individuals and helps understand (a) how they view DT preparedness and (b) may behave in this context. In general DT is well understood, however managers are not keen to change work processes to take advantage of the new digital tools and there appears that generational gap is a barrier to successful DT.Originality/valueSenior executives play a central role communicating the DT vision necessary to inspire managers and employees. As organizations continue to invest large sums of money to explore value creation for customers and stakeholders by leveraging digital technologies, the information systems (IS) discipline can take the lead by asking the question, what can be done to improve the understanding of DT implementation in an organization?

Impression Management in Voluntary Narrative Disclosure through Length and Tone, Stakeholder Theory Lens

Purpose: The use of impression management in corporate reporting is mostly in pursuit of value creation for stakeholders. The study exposes the use of impression management practices in voluntary narrative disclosures. The study focused on Top 40 Johannesburg Stock Exchange (JSE) listed companies. Impression management was examined through the length of the chairperson’s statement and use of positive tone. The chairperson’s statement focuses on the future and strategic direction. Stakeholders focus on the chairperson’s statement for investment decision-making purposes.
 Approach: Quantitative content analysis is used on secondary data extracted from integrated reports.
 Findings: The study found that profitable and nonprofitable JSE-listed companies use impression management through the length of the chairperson’s statement and the use of a positive tone.
 Value: The study attempts to provides notice of the use of impression management to prospective and current investors who to some extent rely on voluntary narrative disclosure for investment decision making purposes and adds the debate on stakeholder theory in corporate reporting.

Drones in Venice: Exploring business model applications for disruptive mobility and stakeholders’ value proposition

Drones can play a significant role in the paradigm shift desired by several international entities. Although many attempts to transport through the technology have encountered regulatory barriers, drones represent disruptive mobility that can foster social and environmental sustainability. For the successful implementation of this new mobility model, the support of several stakeholders is critical. In this regard, the paper applies the theoretical lens of stakeholder theory embedded within the business 4.0 model for the creation of value propositions. Through several semi-structured interviews, the research analyses findings related to a single case study concerning the unique location of Venice, Italy. The city emerges as having international interest because of its singular transportation system. Specifically, Flying Aid, a start-up venture of the Strategy Innovation ecosystem of the Ca’ Foscari University of Venice, uses drones to transport drugs to remote areas to promote therapeutic access for patients with chronic diseases and transportation difficulties. The paper contributes to understanding how a paradigm shift through drone transportation may improve patient engagement and overcome transportation barriers. It also expands stakeholder engagement by empowering healthcare providers and promoting knowledge translation and systems integration. Moreover, the research contributes to the investigation of environmental and social sustainability by advancing knowledge toward cleaner production and decarbonized mobility. Finally, the paper provides insights into the elements of the business model 4.0, facilitating value creation for stakeholders.

Creating social value at the bottom of the pyramid: Elaborating resource orchestration via social intermediaries

Overcoming constrained resources and enabling social, environmental, and economic value creation for stakeholders remains a managerial challenge. Small enterprises in the bottom of the pyramid (BoP) context offer an opportunity to extract insights into orchestration of resources amidst such challenges. Extensive qualitative data collected via text analysis, field visits, and expert interviews with two social intermediaries and managers of eleven small enterprises operating in BoP markets were analyzed to understand how small enterprises engage with stakeholders to structure, bundle, and leverage resources, as well as how they address environmental contingencies and social challenges in poverty settings. The findings highlight that companies must move beyond an economic resource focus and engage a diverse stakeholder network, leveraging social intermediaries for resource orchestration throughout lifecycle stages. The emergent framework elaborates on Resource Orchestration Theory (ROT), with propositions related to resource management mechanisms, capabilities offered by social intermediaries, and contingencies for social value creation.

EXPLORING THE ROLE OF DYNAMIC ENVIRONMENTS ON THE FIRMS’ INNOVATION PERFORMANCE: MEDIATING ROLES OF TECHNOLOGY AND MARKET-SENSING CAPABILITY

Purpose: This study aims to analyse the influence of dynamic environments on technology and market-sensing capability. It also aims to examine the influence of technology and market-sensing capability on innovation performance. Besides, it aims to explore the influence of innovation performance on the organisation’s financial performance. It also aims to examine the influence of technology and market-sensing capability on the organisation’s financial performance. Design/methodology/approach: The research model was tested using a structural equation modelling design based on survey data from 183 Saudi companies from different sectors, used by software (SPSS v. 28 and SmartPLS v. 4). Findings: This study shows that dynamic environments strongly influence both financial and innovation performance. However, this study shows that innovation performance does not directly affect financial performance. Furthermore, this study shows that dynamic environments strongly influence both technology and market-sensing capability. Likewise, this study shows that both technology and market-sensing capability strongly influence financial performance. However, this study shows that both technology and market-sensing capability do not directly affect innovation performance. Originality/value: This study has demonstrated that dynamic environments will have a direct effect on the financial performance of companies by compelling them to allocate their resources more strategically and flexibly in order to adapt to the changing and unpredictable conditions of dynamic environments. Moreover, this study has also demonstrated that dynamic environments will have a direct effect on the technology and market-sensing capability of organisations. This will motivate organisations to gather and analyse information about customers, competitors, and market trends, and to use this information to identify and exploit opportunities for innovation, differentiation, and value creation for customers and stakeholders. In addition to the previous findings, this study has also shown that dynamic environments will improve the technology and market-sensing capability of organisations. This will inspire organisations to collect and analyse information about the needs, preferences, and behaviours of customers, the strategies, actions, and strengths of competitors, and the trends, opportunities, and threats of the market, and to use this information to recognize and leverage opportunities for innovation, differentiation, and value creation for customers and stakeholders. Furthermore, this capability allows organisations to use their dynamic capabilities to innovate with their resources and competencies, which are essential for gaining competitive advantage and superior performance in dynamic environments.

A Matter of Framing: Analyzing Value Communication in Sustainable Business Models

Sustainable business models refocus value creation beyond customers only toward value creation for various other stakeholders and the natural environment as well. Extant literature acknowledges the importance of translating this stakeholder value into consumer value. However, the frames that could support this translation through different interpretations of stakeholder value are yet to be investigated. This article examines the frames that communicate the value created for other stakeholders as functional, emotional, social, and cost-related value to consumers. Based on the analysis of 17 cases, seven coexisting frames are synthesized based on the ways through which value is translated. These frames highlight the importance of emotional and social value in sustainable business models, contributing a richer understanding of value and how stakeholder value can be translated for consumers. In this regard, the article contributes a distinction between self-related and self-transcendent translations of stakeholder value into consumer value.

The Contribution of Philosophy to Ethical Corporate Finance: Challenges and Perspectives

This article explores the synergy between philosophy, corporate finance, and corporate social responsibility (CSR), emphasizing the importance of interdisciplinarity in addressing the complex ethical, social, and environmental challenges faced by organizations today. By integrating the teachings of philosophy and ethical theories, companies can enrich their understanding and practice of ethical corporate finance and CSR, developing conceptual frameworks, critical thinking skills, and systematic approaches for ethical decision-making and problem-solving. Companies that adopt ethical and responsible practices can promote value creation for stakeholders, financial performance, and long-term sustainability, thereby contributing to the achievement of sustainable development goals and the creation of a more just, sustainable, and responsible world.

Corporate governance and management accounting to reduce agency conflicts

This paper aims to discover priority alternatives involved in decisional-making processes to reduce agency problems considering Corporate Governance (CG) and Management Accounting (MA) criteria. Using the Multi-Criteria Decision-Making (MCDM) methodology, it is possible to model the hierarchy structure to determine the ranking of decisional priorities using the Analytic Hierarchy Process (AHP) method. CG and MA are the main criteria for decision-making to reduce problems between ownership and capital control. Thus, engaging agents is the first alternative to reduce agency conflicts considering a general approach. Strategic accountability should be a priority to reduce agency problems focusing on CG and confidence is the main variable to consider from the MA standpoint. The research provides a multiple criteria system to reduce agency problems in decision-making. This work contributes to information asymmetry’s minimization and has implications on value preservation and creation for stakeholders. The decisional structure and the alternatives related to CG and MA have direct practical applications for managers and actors involved in business decisions to reduce agency conflicts. This paper provides evidence on the importance of CG and MA variables to reduce information asymmetry and agency problems and sets out the main priorities in a context of decision making for managers.

Board experiential diversity and corporate radical innovation

AbstractResearch SummaryHow does board experiential diversity affect corporate radical innovation? We find that the combined diversity of directors' educational, industrial, and organizational experiences spurs the quantity and quality of path‐breaking patents developed at a firm. Instrumental variable analysis leveraging exogenous variation in firm access to the nonlocal supply of directors with diverse experiences indicates causality, which is corroborated by difference‐in‐differences tests. Firm heterogeneity suggests experientially diverse directors spur radical innovation by better serving the firm's advisory needs rather than via improved governance. Our findings enrich theoretical insights into how corporate board leadership may affect innovation and long‐term value creation at the firm.Managerial SummaryThis study offers practical guidance on director recruitment. Board directors with diverse educational, industrial, and organizational experiences can support the invention of radical technology. This type of innovation can create substantial economic and social value. Noting the benefits of diverse experiences in the boardroom, corporate executives can search beyond the traditional director pedigree (e.g., Ivy League‐educated financiers), where female and minority individuals remain underrepresented. In doing so, the firm can find more qualified candidates to assemble a demographically and intellectually diverse board, thus cultivating an inclusive corporate culture conducive to shareholder and stakeholder value creation.

Stakeholder Requirements and Value Cocreation in Events

The festival and events sector comprises a wide range of stakeholders across the private, public, and not-for-profit sectors. In order to achieve stakeholder satisfaction, it is necessary to understand what is important to stakeholders, what they consider constitutes project success, and what the factors and measures of that success may be. Once identified and effectively managed, meaningful evaluation can then be undertaken to assess success on stakeholder's terms. This approach also provides an opportunity to consider value creation for stakeholders in relation to their measures of success. The purpose of this research is to develop a robust framework that enables success factors and measures to be identified and effectively measured as part of a holistic evaluation process that contributes to the identification of stakeholder value. Although research is regularly undertaken to assess impacts of festivals and their benefits to stakeholders, there can be competing agendas, project success can be interpreted in different ways with tensions and disagreements in relation to expected outcomes. Therefore, it is necessary to clearly understand stakeholder expectations, community dynamics, and visitors and residents' perceptions of impacts of festivals. A multimethod inductive approach was used to capture the motivations and influences of the stakeholders as social actors during the Tour de Yorkshire (TdY) event. Using this event as a longitudinal case study over an 18-month period, the methodology comprised of qualitative questionnaires and interviews to engage a wide range of stakeholders and used the conceptual Stakeholder Sandwich as the core model to produce a framework and methodology to generate richer data. Results indicated that this model, framework, and methodology proved to be effective for the understanding of stakeholder success factors and contributes towards the understanding of value cocreation for stakeholders in events and festivals. With the immense challenges currently facing the sector, such a framework could prove to be of significant value for practitioners and researchers alike.

Minimizing the sustainability knowledge-practice gap through creating shared value: The case of small accommodation firms

This paper ascertains how small accommodation firms can contribute to sustainability by creating shared value (CSV) through adapting their product. A sequential mixed methods approach was adopted including interviews with small accommodation providers and an online survey from domestic leisure tourists. Results demonstrate that adapting the accommodation product through implementing local food initiatives and messages positively influences guests’ sustainable behaviour through their willingness to purchase local food, resulting in value creation for various stakeholders including local community and businesses in the region. Adapting the product will also increase guests’ satisfaction with their stay, yielding economic profits for the accommodation providers. Nevertheless, fostering a supportive environment through institutional systems and inter-firm relations is crucial for CSV to function as an effective strategy for these small firms.