Sustainable Business Research Articles

Wired for change: Sustainable business models in the transition towards electrified road freight transport

The transition to battery electric vehicles (BEVs) challenges current logistics systems and actors’ business models, especially logistics service providers (LSP). In response, the purpose of this study is to increase the understanding of the characteristics of critical factors in business models for LSPs when adapting electrified freight. A structured interview study targeting LSPs that are operating BEVs has been carried out. Eleven factors deemed as critical were identified in business model components, pointing to a need to take a holistic view when designing business models for electrified freight. Furthermore, four themes are identified that address how characteristics of logistics systems change when BEVs are adopted. This includes changes in uncertainty and complexity. To comply with the increased dynamic, the paper proposes a conceptual framework which captures the evolvement of the critical factors when the market matures by classifying them as constant, fading, adopting, and emerging. The critical factors and their evolvement can be used as guidelines for practitioners and researchers in their development of sustainable business models in the transfer towards electrified freight.

Charting the digital route to net-zero: A framework for sustainable industry practices

This study investigates the application of a comprehensive framework for implementing digital strategies towards achieving net-zero emissions in Spanish manufacturing firms. It explores the adoption of digitally enabled and digital-first strategies in 354 medium-sized companies, utilizing Internet of Things (IoT) and Artificial Intelligence (AI) technologies to augment and reinvent environmental management practices. Digitally enabled strategies are found to be prevalent, optimizing existing processes through IoT for resource conservation and predictive maintenance. A modest yet growing number of firms adopt digital-first strategies, integrating AI to create innovative pathways for energy use optimization and waste reduction. However, a subset of firms remains reliant on traditional methods, indicating significant potential for digital integration. The paper highlights the strategic importance of digital tools in enhancing operational efficiencies and developing new, inherently sustainable business models. It emphasizes the need for an integrated approach that combines the strengths of digital innovation with traditional management to drive the industry towards a sustainable and net-zero future. The framework provides a nuanced classification of digital strategies and their contribution to net-zero objectives, offering insights into the effectiveness of these practices across various industrial sectors

Data-driven financial models for sustainable SME growth: Integrating green finance into small and medium enterprise strategies

In recent years, the increasing urgency to address climate change and environmental degradation has prompted a shift towards sustainable business practices, particularly within the realm of small and medium enterprises (SMEs). This paper explores the integration of green finance into the strategic frameworks of SMEs, examining how financial instruments and funding mechanisms can support environmentally sustainable practices while fostering economic growth. By assessing the current landscape of green finance, including green loans, bonds, and impact investing, the study identifies barriers SMEs face in accessing these resources. It highlights successful case studies where SMEs have effectively utilized green finance to implement energy-efficient technologies, sustainable supply chains, and eco-friendly product innovations. Furthermore, the paper proposes a strategic model for SMEs to incorporate green finance into their operations, emphasizing the importance of aligning with sustainability goals, enhancing stakeholder engagement, and leveraging partnerships with financial institutions. The findings underscore that integrating green finance not only contributes to environmental sustainability but also enhances the competitive advantage and resilience of SMEs in an evolving market landscape.

Sustainable Entrepreneurship Development Training for Sindangheula Community in Utilizing Village Potential

Sindangheula Village is one of the villages in Indonesia that has great local economic potential, especially as a center for producing broomsticks. However, although broomstick production in Sindangheula Village has great market potential, business management and development still face various challenges, especially in terms of product innovation, business management, and effective marketing strategies. Based on these potentials and challenges, this study aims to measure the extent to which this training has an impact on improving the economic and social welfare of the village community. The community service method used in sustainable entrepreneurship training in Sindangheula Village consists of initial observation, theory and practice training, business mentoring, and evaluation. The implementation of the community service program in the form of sustainable entrepreneurship training for the Sindangheula Village community has had a positive impact, namely increasing community understanding of entrepreneurship, technical skills, product innovation, and digital marketing strategies. With the formation of business groups, collaboration occurs between community members in the production process, distribution, and product marketing.

Role of Startups in Economic Growth: Evaluating How New Business Ventures Contribute to Job Creation, Innovation, and Regional Development

Entrepreneurship has become an engine of economic growth, playing a significant role in job creation, innovation and regional development. Startups contribute to business dynamism and adaptability by introducing disruptive technologies, challenging traditional businesses and stimulating competition. Their ability to quickly measure and respond to changing business needs allows them to solve important social problems while creating new jobs. This article explores the various roles of new businesses in driving economic growth by focusing on three key contributions: job creation, technological development and economic transformation in the region. It also highlights the unique characteristics of new businesses compared to traditional businesses, such as risk recovery and dependence on the business ecosystem. Through empirical research and data analysis, we explore how start-ups can foster innovation through partnerships, attract investment in underdeveloped areas, and support greater economic development. Despite their significant contributions, start-ups face many challenges, including high failure rates, limited access to capital, and regulatory challenges that can impact their development. By addressing these challenges through strategic initiatives and supporting business ecosystems, governments and stakeholders can increase the impact of new business opportunities on local, national, and international economies. The review highlights the importance of new businesses to ensure strong, resilient, and sustainable business in a rapidly changing world.

Integrating circular economy, digital economy, and social protection policies to drive green business innovation: Insights from Indonesia’s culinary SMEs

Global concern over environmental pollution has sparked the adoption of green business practices, which are essential for the sustainability of SMEs through green economy initiatives and renewable resources. This study aims to analyze the integration of circular and digital economy policies along with social protection policies in supporting green business innovation among culinary SMEs. By emphasizing the significance of government roles and innovation capabilities, the paper proposes that policies promoting environmentally friendly practices and social security can enhance sustainable performance in alignment with SDG principles. The study employs a quantitative approach, surveying 200 culinary SMEs in Surabaya City in Indonesia, a city known for its vibrant SME sector and commitment to sustainable practices. The data analysis, conducted using PLS-SEM through SmartPLS 4, reveals that circular economy policies (t-test = 6.503; p-value = 0.000) and social security (t-test = 3.848; p-value = 0.000) significantly enhance green business innovation, while digital economy policies are not significant (t-test = 0.725; p-value = 0.468). Furthermore, green business innovation positively impacts sustainable performance (t-test = 24.418; p-value = 0.000). However, internal innovation capabilities do not moderate the relationship between integrative policies and green business innovation. The findings indicate that government policies significantly influence green business innovation in MSMEs, particularly through circular economy regulations. Regulatory support and incentives are crucial for driving environmental sustainability and enhancing competitiveness. Strengthening digital economy policies through improved technology access and digital literacy will further support green innovation, while investments in internal innovation and human resources are vital for sustainable growth. AcknowledgmentThis study is funded by the Riset Kolaborasi Indonesia (Grant No. B/43869/UN38.III.1/LK.04.00/2024) by LPPM Universitas Negeri Surabaya.

From kitchen to climate: multimedia interventions on social media as science tools for sustainability communication among food business actors

Purpose The purpose of this study is to hypothesize that tailored multimedia interventions using the Elaboration Likelihood Model and Behavior Change Techniques via social media platforms have the potential to effectively disseminate scientific information regarding food sustainability to food professionals. The objective is to evaluate the extent of the influence of these interventions on social media in enhancing the knowledge, attitudes and behaviors of food professionals about food sustainability, with a specific focus on next-generation professional chefs. Design/methodology/approach A total of 121 students majoring in gastronomy and culinary arts volunteered to participate in the study. A 5-min multimedia intervention was explicitly tailored for their backgrounds and designed for social media platforms. It covered food sustainability topics and related factors using a diverse range of multimedia elements, such as video, still images, text and audio narration. Furthermore, researchers developed a validated questionnaire that covered the same topics as the multimedia intervention. In a quasi-experimental design, participants were administered the questionnaire both before and after watching the tailored multimedia intervention. Findings The results of this study revealed significant improvements in participants’ knowledge and attitudes of key concepts, including greenhouse gases and their relation to climate change, climate change and meat-based menu items relation, inequality in the distribution of natural resources, primary sources of food loss, the significance of implementing new technology in agricultural activities and the role of the next generation. The multimedia shifted participants’ attitudes, prioritizing climate change as the most critical and strengthening the perception of local food production as the least critical factors. Moreover, it strengthened participants’ attitudes toward the Ministry of Agriculture and Forestry as the primary actor in sustainability. Research limitations/implications Although culinary students may be seen as a subset of a targeted food professional group, they are the future leaders of the global food system. Chefs have substantial influences in a broad range of settings and sectors, including institutional food service, chain restaurants, the food and beverage industry and home cooking via books and television programs, among others. Chefs increasingly adopt sustainable menus and business practices to promote sustainable food systems and reduce climate change associated with the food sector. In addition, they use their community power to advocate for legislation that promotes the long-term sustainability of food systems. Practical implications Chefs and restaurant owners can use the results to tailor multimedia about food sustainability topics for their staff training programs and daily sharing on their social media platforms. Government organizations and policymakers can use the results to develop effective communication plans with food professionals. Non-governmental organizations dedicated to the environment and food sustainability can tailor multimedia campaigns on social media that address the food professionals directly to encourage them to adopt sustainable practices. Professional teams producing content on social media platforms can use the results to create engaging and informative scientific multimedia interventions targeting food professionals. Social implications In a broader societal context, enhancing the scientific knowledge, attitudes and behavior of the professional chefs toward food sustainability will, in turn, lead to widespread adaptation of sustainable practices, not only within their professional domains but also in wider community settings. This will significantly contribute to the major goal of advancing food sustainability and addressing global challenges like food inequality and food insecurity. Originality/value The impact of various variables and the roles of different food sectors and their actors in food sustainability have been extensively studied. Furthermore, a wide range of research has examined diverse consumer groups’ food sustainability knowledge, attitudes and behaviors. However, developing an effective method for communicating and advocating scientific facts about food sustainability-related topics has been a challenge. Traditional environmental education is insufficient for fostering sustainable change. As social media are the fastest-growing science communication tool, this pioneering research suggests multimedia interventions on social media to improve food professionals’ food sustainability knowledge, attitudes and behaviors to fill the literature gap.

The nexus between green HRM and environmental performance for sustainable business excellence: the role of employees’ environmental passion and pro-environmental behavior

Leveraging intellectual capital as a component of an extant sustainable business excellence model and using the theoretical lens of Ability-Motivation-Opportunity (AMO) theory, this paper investigates the impact of Green Human Resource Management (GHRM) practices on the hotel environmental performance by indirect effects of employees’ environmental passion and employees’ pro-environmental behavior. We utilized multi-time survey data collected from employees working in the hotel industry to test hypothesized relationships. Data have been analyzed through Partial Least Square Structural Equation Modelling (PLS-SEM). The findings reveal that green human resource management practices positively influence hotel environmental performance via single mediation of environmental passion and pro-environmental behavior and serial mediation of environmental passion and pro-environmental behavior. Furthermore, the moderating effects of environmental passion were also statistically significant. Our research contributed to offering implications for both scholars and practitioners generally in the tourism and hospitality sector and particularly in hotels on the need to implement effective HR systems integrated with the environmental goals of the organization to provoke a sense of environmental responsibility and nurture green values to achieve environmental objectives.

Exploring the barriers and drivers of ESG in the German Mittelstand: A qualitative analysis of mechanical and plant engineering companies

AbstractThis qualitative study investigates the adoption of Environmental, Social, and Governance (ESG) among German Mittelstand mechanical and plant engineering firms. Through semi‐structured interviews, the research identifies key barriers to ESG implementation, including human resource challenges, conceptual ambiguity, legal complexities, standardization gaps and rapid implementation pressures. Simultaneously, it uncovers driving forces such as customer demands, talent attraction, rating agency influence, intrinsic motivation, executive commitment, and regulatory compliance. Notably, profit and loss (P&L) impact emerge as a dual force, influencing both barriers and drivers. The study proposes a best practice model featuring clear responsibilities, centralization, and ESG integration in processes. Additional recommendations include developing a business case for ESG, engaging in industry‐specific networks, and aligning with prominent rating agencies. This research offers strategic insights for sustainable business practices within the Mittelstand context. It presents implications for governments and businesses, suggesting targeted policies to mitigate barriers and reinforce drivers of ESG adoption.

Enhancing Strategic Performance Through Sustainable Practices: The Nexus of Social Responsibility Practice and Competitive Advantage—Moderating Role of Business Ownership Type

ABSTRACTIntegrating sustainable business practices is crucial for long‐term strategic success in today's ever‐changing corporate environment. This research examines the relationship between social responsibility practices and competitive advantage in the banking industry, with the focus on how these activities might improve a bank's strategic performance. Furthermore, the study investigates the moderating role of business ownership type in the relationship between social responsibility and competitive advantage. This study employed a quantitative research design. The survey questionnaire was used to collect data. Data were collected from 385 customers of selected commercial banks in Ethiopia. The study used Partial Least Square Modeling (PLS‐SEM) to test relationships between variables. Social responsibility practice is measured from the perspectives of banks' philanthropic, economic, legal, and ethical activities. Bank ownership type was considered a moderating variable. The study findings show that social responsibility practices significantly influence the bank's competitive advantage. Similarly, including the moderating variable, bank ownership type, did not significantly change the relationship between social responsibility practices and competitive advantage. The results provide useful insights for business executives and practitioners who want to include sustainability into their strategy frameworks, fostering economic, social, and environmental well‐being. This study emphasizes the need to use sustainable business practices to gain a competitive edge and achieve sustainable business performance. It shows that responsible corporate behavior may result in greater strategic performance.

An Optimized Method for BMI in Environmental Projects Based on the Value-Oriented AHP

Effective rural solid waste management (RSWM) is crucial for sustainable rural development, particularly in developing countries, which face dual challenges from economic growth and environmental protection. To build a more sustainable business model for RSWM, this study employs a value proposition analysis approach to systematically analyze the multi-level requirements of various stakeholders involved in the current models of RSWM. It then proposes a novel optimizing approach for RSWM models from the perspective of business model innovation (BMI) by integrating the value proposition (VP) theory with the algorithm of the Analytic Hierarchy Process (AHP) to fill the research gap. In this study, an AHP-based evaluating algorithm is firstly proposed based on the viewpoints of multiple stakeholders’ value propositions. Using this method, four typical pilot RSWM models across China are assessed and ranked, followed by a comprehensive analysis of the results and the incorporation of hierarchical criteria from multiple value dimensions. Building on the analysis of the results, optimization strategies for a novel RSWM model are proposed by constructing a conceptual framework of the business model. In addition, the analysis also indicates that both phases of sorting and collection and transportation are the main factors for fulfilling the overall satisfaction of the RSWM models. Lastly, this paper concludes by summarizing the relevant theoretical and managerial implementations of the proposed approach, providing a foundation for the scientific development of appropriate RSWM models by providing a new idea for BMI especially for environmental management projects that include multiple stakeholders.

Integrating Digitalization and Asset Health Index for Strategic Life Cycle Cost Analysis of Power Converters

In the context of energy storage systems, optimizing the life cycle of power converters is crucial for reducing costs, making informed decisions, and ensuring sustainability. This study presents a comprehensive methodology for calculating the life cycle cost (LCC) of power converters, employing a nine-step process that integrates digitalization, Internet of Things (IoT) technologies, and the Asset Health Index (AHI). The methodology adapts the Woodward model to provide a detailed cost analysis, encompassing the acquisition, operation, maintenance, and end-of-life phases. Our findings reveal significant insights into asset management, highlighting the importance of preventive and major maintenance in controlling failure rates and extending asset life. This study concludes that adopting sustainable business models and leveraging advanced technologies can enhance the reliability and maintainability of power converters, ultimately leading to more competitive and environmentally friendly energy storage solutions.

Empowering entrepreneurial success through the development of interpersonal skills and business plans in women entrepreneurs

Women's entrepreneurial success can be achieved through the development of soft skills and the development of business plans to enhance business management skills. The study evaluated the impact of an entrepreneurial program focused on soft skills and business plan development through a pre-experimental methodology; a pre-and post-test was conducted on 28 women participants of the "Emprende Mujer" group over eight sessions. The main findings revealed a significant improvement in the soft skills of the women, as well as overcoming the lack of knowledge about the structure of a business plan, with a value of (p ≤ 0.05). In conclusion, the business program proved to be effective for women entrepreneurs in search of business sustainability. This study highlights the importance of acquiring soft skills through experience. At the same time, the creation and development of business plans require educational intervention by specialists, as a lack of knowledge in key areas such as marketing and operations can hinder the growth of ventures.

THE INFLUENCE OF INNOVATION AND FINANCIAL TECHNOLOGY ON BUSINESS SUSTAINABILITY: BUSINESS STRATEGY AS A MODERATOR

THE INFLUENCE OF INNOVATION AND FINANCIAL TECHNOLOGY ON BUSINESS SUSTAINABILITY: BUSINESS STRATEGY AS A MODERATOR

Creating a Sustainable Entrepreneurship Ecosystem Through Innovation in Education

People increasingly recognize entrepreneurship as a critical strategy for driving economic growth, reducing unemployment, and fostering innovation across sectors. However, entrepreneurship's sustainability relies heavily on supporting a robust ecosystem, with education serving as its foundation. Innovations in education, such as project-based learning (PBL), business simulations, and collaborations between educational institutions, industry, and government, are essential for shaping resilient, innovative, and sustainable entrepreneurs. Research has demonstrated that ecosystem-based entrepreneurship education enhances critical thinking skills, creativity, adaptability, and entrepreneurial readiness to tackle global challenges. Multi-stakeholder collaborations between education, industry, and government strengthen this ecosystem by providing resources, networks, and knowledge that support business sustainability. Additionally, challenge-based learning approaches such as Challenge-Based Learning (CBL) and the integration of business simulations effectively increase entrepreneurial confidence and learning performance through real-world experiences. This strategy has the potential to significantly and sustainably influence economic development through the ecosystem of entrepreneurship education. This study takes a qualitative approach, analyzing books, policy papers, case studies, and scientific articles on entrepreneurship education from different higher education institutions using a literature review method. We perform the analysis using a descriptive methodology to find trends, themes, and successful tactics in entrepreneurship education. Building a healthy entrepreneurial ecosystem requires innovation in entrepreneurship education. Approaches such as project-based learning and business simulations provide students with relevant practical experiences, helping them develop skills such as decision-making, risk management, and innovation needed to navigate the dynamics of modern business. Furthermore, collaboration between the education sector, industry, and government is critical in creating an ecosystem that supports innovative and resilient entrepreneurs. Studies show that innovation-based education, supported by multi-stakeholder collaboration, improves students' readiness for business challenges and contributes to sustainable economic and social growth.

Supply Chain Finance pada Pelaku SMEs: Kasus di Kota Pontianak

Liquidity is a crucial word in the success of both large and small-scale businesses. Generally, MSMEs run their businesses with their capital, so they easily experience financial constraints in their operational cycles. Therefore, efforts to optimize liquidity are a major concern. Research in the field of supply chain focuses more on the physical flow of products/services and the flow of information. Meanwhile, the financial aspects and their sustainability in the supply chain have only received more attention after the financial crisis. Uncertainty in the economy increases business pressure on the supply chain of micro and medium enterprises (Supply Chain Finance). Given the role of the SCF concept and its potential, this study explores the understanding of SCF in MSMEs based in Pontianak and access to financial resources for sustainable business stability. This study is qualitative, using a questionnaire, and the results show that the relationship between buyers and suppliers still needs to be stronger because they do not invest much in infrastructure or production lines to create similarities with the business characteristics of the product. In addition, this paper suggests some implications for the development of local MSMEs in general and their supply chains in particular.

Assessment the Antecedent of Sustainable National Economy Growth (Green, Blue, Brown & Orange Economy) through Green Business Management Practices in Developing Countries: Evidences from Indonesia

Current research investigates the impact of green, blue, brown and orange economy on National Economy Growth. Putting forward the sustainability in the global context, these economies become crucial paradigm to leverage inclusive and sustainable economy development. GE focused on carbon emission reduction, increase resources efficiency, ecosystem protection, BE emphasized on the marine sustainable resources to push growth. Brown referred on traditional economy model that dependable on natural resources (unrenewable) and produced high greenhouse gas emissions, while OE is dealing with economy creative covered industries (art, culture, entertainment and innovation). Deploying quantitative method approach with secondary data from multi resources, such as government report, national data statistics and also Indonesia large scale enterprises. The analysis conducted to measure the contribution of related economy on national economy development through Green Business Management Practices as intervening variable. Research findings showed the economy categories had huge potency to increase national economy performance. The findings also highlighted the integration of four economies into national strategy development as pivotal step to maintain long term sustainability. Policy recommendation suggested to increase investment, environmental technology, human capacity development, strengthening cooperation within sectors and collaboration among countries and natural resource management.

Integrating SDGs into Human Resource Management: Pathways to Sustainable Workforce Development

Objectives: The study aims to explore the significance of Human Resources Sustainability (HRS) and the advantages of transitioning to a Sustainable Workforce (SWF) system. It highlights the growing importance of integrating sustainability into HR practices as a key component of business strategies to improve employee engagement, environmental conservation, cost efficiency, and competitive advantage. Methods: The research focuses on identifying the critical components of HRS development and the optimal strategies for transitioning to an SWF. It evaluates the interplay between natural resources, financial assets, and human capital to determine the most effective practices for sustainable HR management. Results: The findings underscore the vital role of HRS in helping businesses maintain a competitive edge in dynamic markets. It emphasizes the value of achieving a triple bottom line, which includes financial performance, ecological stewardship, and social responsibility, as a cornerstone of sustainable business success. Conclusion: Prioritizing sustainability in HR practices is essential for modern organizations. By adopting HRS strategies and transitioning to an SWF system, companies can not only enhance employee engagement and environmental conservation but also achieve cost efficiency and long-term competitiveness, aligning with the triple bottom line approach.

Legal Design: A Catalyst for Environmental Social and Governance (ESG) and Sustainable Business Practices

Legal Design: A Catalyst for Environmental Social and Governance (ESG) and Sustainable Business Practices

Supply Chain Analysis Based on Community Detection of Multi-Layer Weighted Networks

As the economic environment becomes more complex, improving supply chain resilience is critical for the effective operation and long-term sustainability of businesses. Real-world supply chains, which consist of various components such as goods, warehouses, and plants, often feature intricate network structures that pose challenges for resilience analysis. This paper addresses these challenges by proposing a framework for studying supply chains using multi-layer network community detection. The complex multi-mode supply chain network is transformed into single-mode, multi-layer weighted networks. A multi-layer weighted community detection method is proposed for identifying local clusters within these networks, revealing interconnected groups that highlight flexibility and redundancy in production capabilities across different plants and goods. An empirical study utilizing real data demonstrates that this clustering method effectively detects indirect capacity links between plants and goods. The insights derived from this method are useful for strategic capacity management, allowing businesses to respond more effectively to supply shortages and unexpected increases in demand.