ABSTRACT An increasing number of firms disclose sustainability information as part of their strategic disclosure decisions, reflecting incentives to influence stakeholders’ assessments of firm performance and legitimacy. Given the considerable discretion firms possess over the content and framing of such disclosure, economic research has increasingly adopted the reference point effect framework and impression management theory to analyze opportunistic behavior in sustainability reporting. This paper reviews the literature on reference point effect and impression management and applies these two frames to examine corporate sustainability disclosure strategies. Building on this, we integrate a conceptual model for analyzing corporate sustainability reporting behavior. In this model, decision makers compare sustainability performance with reference points and choose between symbolic disclosure and substantive disclosure depending on the outcomes. When sustainability performance falls below the reference point, firms tend to adopt symbolic disclosure strategies to influence stakeholders’ perceptions. In contrast, when performance exceeds the reference point, firms are more likely to engage in substantive disclosure to foster a favorable corporate image. We conclude by outlining directions for future research, highlighting the importance of reference point selection, the extension of impression management behaviors, and the development of explanatory frameworks to better understand the motivations underlying corporate sustainability reporting.

Investigating the impact of green transformational leadership on sustainable competitive performance: The mediating roles of green innovation and human resource management

Purpose This study aims to examine the influence of mandatory sustainability reporting on the cost stickiness of companies. Design/methodology/approach The study employs Anderson et al.’s (2003) cost stickiness model, using the difference-in-difference method, where the treatment and control groups comprise companies from 17 European Union (EU) countries and 11 non-EU Organisation for Economic Co-operation and Development countries, respectively. The time period spans from 2013 to 2022, with 2017 being the year of the EU Directive’s implementation. The study uses various approaches in addressing endogeneity issues, including propensity-score matching, the multiple specifications method, parallel trend analysis, placebo variable and control variables. Findings The results confirm a statistically significant increase in discretionary costs, i.e. selling general and administrative costs, for EU companies in the post-implementation period. The stickiness is more profound in companies demonstrating an annual improvement in sustainability performance. Stakeholder-oriented civil law countries exhibit an increase, while shareholder-oriented common law countries show a decrease in cost stickiness. Research limitations/implications The study extends the literature on the economic effects of mandatory sustainability reporting by examining the novel aspect of cost behaviour, thereby revealing managerial perceptions about costs arising from compliance. It also highlights the role of company-level and country-level pre-regulation sustainability involvement in moderating the regulatory effect. Practical implications The study provides insights for policymakers in terms of formulating future regulations. Originality/value This study is the first to analyse cost stickiness in relation to mandatory sustainability reporting, adopting a multiple-country setting and covering a significantly long time period.

Sustainable Operation Strategies and Future Challenges of Tourism and Commercial Facilities Developed in the Recovery Process

This study was conducted by examining 325 firm-year observations from 62 firms listed on the Istanbul Stock Exchange (BIST) between 2014 and 2023. The research utilized environmental, social, and governance (ESG) scores and data on board characteristics to examine the effects of corporate governance structures on sustainability performance. The data was obtained from the LSEG Workspace (formerly Refinitiv Eikon) database, which is used globally as a financial analysis and data provider. The analysis examined the impact of board characteristics such as board size, gender diversity, expertise, and external affiliations on ESG performance using a fixed effects regression model with an unbalanced panel data structure. Empirical findings show that board gender diversity and expertise have a significant and positive impact on ESG performance. In contrast, board size was found to have a significant and negative impact on ESG performance. On the other hand, no statistically significant relationship was found between the variable representing the external affiliations of board members and ESG performance.

This research explores the ways in which green procurement and carbon management practices contribute to sustainable supply chain performance in emerging markets, while also investigating how stakeholder pressure moderates these relationships. Anchored in Institutional Theory and the Natural Resource-Based View, the study treats sustainable supply chain performance as a multifaceted outcome influenced by deliberate sourcing choices, structured carbon reduction efforts, and external pressures for legitimacy. Using a quantitative cross-sectional approach, the authors gathered responses from 385 supply chain practitioners, sustainability officers, and sector specialists through an online 5-point Likert-scale survey. Data analysis, performed in SPSS, included checks for reliability, exploratory factor analysis, multiple regression models, and moderation testing via Hayes’ PROCESS macro. The results demonstrate that green procurement (β = 0.666) and carbon management practices (β = 0.688) each exert a robust, highly significant positive influence on sustainable supply chain performance. In addition, stakeholder pressure markedly enhances the effect of carbon management on performance outcomes (β = 0.565), illustrating how institutional demands can substantially reinforce internal environmental initiatives. Collectively, the evidence suggests that strong sustainability performance in emerging-market supply chains emerges not from standalone green efforts, but from the thoughtful alignment of procurement strategies, carbon-focused governance, and proactive stakeholder collaboration. By synthesizing institutional and resource-based lenses, this work enriches theoretical insights and delivers practical guidance for managers and policymakers navigating sustainability challenges in institutionally complex environments.

To enhance the sustainable operation of electricity–hydrogen coupling multi-microgrids (EHCMMG), this study proposes a multi-objective dispatch optimization framework driven by electricity price prediction. Although EHCMMG plays a vital role in renewable energy integration and multi-energy synergy, three major sustainability-related research gaps remain: insufficient consideration of cross-regional, multi-market, and multi-stakeholder interests; inadequate electricity–hydrogen demand response mechanisms; and limited investigation of uncertainty modeling that balances economy and security. To address these issues, this study first designs an EHCMMG architecture that supports electric-hydrogen interactions both within and outside the cluster. An electricity price prediction-driven multi-objective dispatch optimization model oriented toward multiple stakeholders is then proposed. This model incorporates incentive-based electricity–hydrogen demand response and constraints on carbon emissions. Moreover, operational uncertainties arising from renewable energy generation are addressed through the coordinated integration of spinning reserve capacity constraint and chance-constrained programming. The results show that the cluster cost, the market integrated operator (MIO) net revenue, user energy cost, and total carbon emissions are CNY 17.502 million, CNY 12.684 million, CNY 5.556 million, and 8168.126 tons in baseline scenario, respectively. The proposed model effectively balances economic efficiency, operational reliability, and low-carbon performance, thereby enhancing the overall sustainability of the EHCMMG.

ABSTRACT Tourism SMEs face growing pressure to contribute to sustainable development, yet many continue to struggle to achieve meaningful sustainability performance. This challenge is heightened by limited resources, organisational vulnerabilities and the rapid pace of digitalisation. Although responsible entrepreneurship has been recognised as a pathway to improved sustainability, the mechanisms through which it leads to better outcomes remain unclear. This study investigates how responsible entrepreneurship enhances sustainability performance by fostering organisational resilience, and how digital capabilities moderate this relationship. Drawing on the resource‐based view and dynamic capabilities perspective, survey data were collected in two waves from 410 Malaysian tourism SMEs and analysed using Partial Least Squares path modelling. The results reveal that responsible entrepreneurship positively influences organisational resilience, which in turn enhances sustainability performance. Notably, digital capabilities strengthen the positive link between responsible entrepreneurship and resilience. Furthermore, the cross‐validated predictive ability test (CVPAT) confirms strong model predictiveness, and tests for quadratic effects show no significant nonlinearity, supporting the robustness of the linear relationships. This study advances the understanding of SME sustainability by clarifying how and when responsible entrepreneurship contributes to sustainability performance and by offering practical recommendations for building resilient, digitally empowered tourism SMEs.

ABSTRACT This study examines the interplay between environmental performance, climate governance, and biodiversity disclosure in European firms. Using data from STOXX600 companies across 17 countries, we test hypotheses grounded in legitimacy, signaling, and stakeholder theories. The results show that firms with stronger environmental performance are more likely to disclose biodiversity‐related information, signaling a genuine commitment to stakeholders rather than symbolic communications. Climate governance is also positively associated with disclosure, highlighting its role in promoting transparency. Importantly, climate governance amplifies the link between environmental performance and biodiversity disclosure, helping ensure that reporting reflects actual practices and limiting the risk of greenwashing. These findings highlight the need for robust governance structures to support accurate and credible biodiversity‐related disclosures. By jointly examining governance quality, environmental performance outcomes, and biodiversity transparency across a large European cross‐country sample, this study provides novel empirical evidence on how biodiversity disclosure can be used as a tool to promote awareness of biodiversity's importance, thereby constraining opportunities to overstate biodiversity conservation initiatives and overall sustainability performance through extensive biodiversity disclosure. The study contributes to ongoing debates in the sustainability disclosure literature and offers practical implications for policymakers, regulators, and scholars seeking to enhance the reliability and decision‐usefulness of corporate environmental communication as a basis for informed policy formulation and decision‐making.

Green Human Resource Management, Organizational Strategy, and AI-Augmented HRM: A Resource-Based and Dynamic Capabilities Perspective on Sustainable Organizational Performance

Digital transformation is a driving force in sustainable industrial development, yet evidence on the sustainable manufacturing outcomes of digital business initiatives remains incomplete. This systematic literature review (SLR) analyzed 70 empirical studies published between 2010 and January 2026 that examined digital transformation processes resulting in economic, environmental, and innovation performance outcomes. The research combined various digital transformation processes through which organizations achieved business success, using five principal mediator pathways that follow the PRISMA 2020 guidelines. The study results showed that digital transformation does not directly enhance organizational performance; instead, it occurs through the development of organizational capabilities, the transformation of processes, the execution of innovation initiatives, and sustainability-focused activities. The research also shows that capability-based mechanisms are the most common pathways, followed by operational and innovation-mediated pathways. The research field shows a prevailing pattern of using cross-sectional survey methods, which create challenges for establishing causal relationships and evaluating enduring sustainability outcomes. The review shows that digital transformation needs to be better understood, as it plays a vital role in sustainable manufacturing transitions, according to established explanatory frameworks that link digital transformation to sustainable business results. The research study identifies three primary obstacles, which include conceptual fragmentation, measurement inconsistencies, and geographical concentration, while suggesting future research directions.

Abstract In the knowledge-driven and emotionally complex contemporary workplace, technical competence alone is insufficient to ensure organizational success. Emotional intelligence (EI), encompassing self-awareness, self-regulation, empathy, and social skills, has emerged as a critical determinant of leadership effectiveness, employee engagement, and sustainable organizational performance. This study examines the impact of emotional intelligence dimensions—self-awareness and empathy—on employee commitment, teamwork effectiveness, and organizational success. Using a structured questionnaire administered to 130 employees across diverse sectors, the study employs correlation and regression analysis to assess relationships among variables. Findings reveal that emotional intelligence significantly predicts organizational effectiveness, explaining 81% of the variance in performance outcomes. The study concludes that emotional intelligence is a strategic organizational capability that fosters sustainable success in dynamic work environments.

Purpose This study aims to introduce and empirically validate a novel moderated-mediation model to explain how integrating AI and blockchain as an intelligent information system for accounting transforms organizational knowledge into a strategic asset, ultimately enhancing sustainable value and competitive advantage within the ASEAN region. The authors propose a comprehensive framework where this technological system improves sustainability reporting quality (SRQ; a critical knowledge output), contingent upon the firm’s internal governance and the external environment. Specifically, the authors pioneer a contingent governance perspective, arguing that the amplifying role of internal governance is itself conditional on external pressures. Design/methodology/approach Adopting a quantitative approach, this study analyzes a panel data set of 3,300 firm-year observations from listed companies across major ASEAN economies. Structural equation modeling is used to test a sophisticated moderated-mediation framework. This methodology allows for a robust examination of the complex, conditional pathways linking AI and blockchain adoption to sustainable value while simultaneously assessing the contingent effects of enterprise risk management (ERM) and environmental uncertainty. Findings Results reveal that the AI and blockchain-powered system significantly improves the quality of sustainability reporting (a key knowledge output), which in turn drives sustainable value. Critically, the effectiveness of this system is amplified by robust ERM. However, the study uncovers a nuanced conditional effect: the strategic value of ERM is itself contingent on the level of external environmental uncertainty, highlighting how internal knowledge systems must adapt to external pressures to remain effective. Practical implications This research provides a practical roadmap for managers on how to build and govern information systems that translate technological investment into tangible, sustainable performance. It offers a new lens for investors to evaluate a firm’s knowledge management capabilities alongside its technological infrastructure. For policymakers, it underscores the need for policies that foster not just technology adoption but also the development of resilient organizational systems capable of navigating a highly interdependent world. Originality/value First, it is among the first study, to the best of the authors’ knowledge, to empirically model the complete pathway from a specific technological system to sustainable value via the mediating mechanism of SRQ. Second, and most significantly, it pioneers the concept of “contingent governance” by demonstrating that the moderating effect of ERM is not universal but is itself moderated by environmental uncertainty. This multi-level interaction offers a far more nuanced view than previously understood. Third, by situating this complex model within the under-researched, high-growth context of the ASEAN region, the authors provide crucial insights for emerging markets on leveraging information as a predominant asset.

Purpose The rise of green finance and sustainable investment has become increasingly popular in relation to the Sustainable Development Goals. Nonetheless, there remains a lack of research focusing on the influence of various aspects of green finance on the sustainable performance (SP) of banks, especially in developing countries like Pakistan. This study aims to address this gap by delving into the green finance dimensions and their impacts on the sustainable performance of banks within the country. Design/methodology/approach This research also investigates the extent of adoption of green finance by both banks throughout the period between 2018 and 2022. To achieve its research objectives, the study uses the structural equation modeling technique, given the nature of the data set. Findings The findings reveal that private commercial banks play a leading role in green finance, accounting for 80% of the entire green finance in Pakistan. Moreover, the study establishes a positive correlation between the green finance dimensions and the economic (EC) and social (SO) characteristics of the Sustainable Development Goals. It highlights the substantial influence of the SO and EC dimensions of green finance in enhancing the SP of banks. Significantly, an impressive 93% of bankers acknowledge the importance of green financing in shaping their short- and long-term banking strategies in Pakistan. Research limitations/implications This finding highlights the critical role of green finance in advancing the sustainable performance of financial institutions in developing economies like Pakistan. Originality/value This study makes a valuable and substantial contribution to the current understanding of green finance and its influence on the SP of financial institutions.

In the wake of rapid digital transformation, emerging technologies like FinTech, AI, and Blockchain are reimagining how countries pursue sustainable development. This study examines how FinTech adoption, Artificial Intelligence (AI) readiness, and Blockchain activity influence sustainable development performance across G20 economies over the period 2015–2023. Drawing on Innovation-Driven Growth Theory, the Technology–Organization–Environment framework, and Institutional Theory, the analysis evaluates both the direct and complementary effects of these digital technologies on Sustainable Development Goal (SDG) outcomes using cross-country panel data and key macroeconomic controls. The results show that FinTech, AI, and Blockchain each exert a positive and statistically significant impact on national sustainability performance, with AI exhibiting the strongest effect. Moreover, the findings reveal meaningful digital complementarities, indicating that coordinated adoption of these technologies amplifies sustainable development gains. Overall, the study provides robust macro-level evidence that digital transformation functions as a strategic driver of sustainability and offers policy-relevant insights for G20 governments seeking to accelerate inclusive, transparent, and environmentally responsible development.

This study presents a comprehensive sustainability assessment of power generation configurations integrating blue hydrogen combined cycles with different carbon capture technologies. Four scenarios were systematically evaluated through process simulation and multi-criteria decision analysis, encompassing technical, economic, environmental, and social indicators. The assessed configurations comprise a conventional natural gas combined cycle, representing the current carbon-based benchmark, alongside three innovative blue hydrogen combined-cycle pathways incorporating distinct carbon capture technologies. The results demonstrate pronounced trade-offs among the evaluated scenarios: although the conventional configuration exhibits superior economic performance, it presents the least favorable environmental outcome, with a carbon intensity approximately an order of magnitude higher than that of the hydrogen-based alternatives. In terms of electricity generation potential, hydrogen-fired combined cycles achieve comparable energy performance, delivering 0.103 kWh per kJ of hydrogen relative to 0.116 kWh per kJ of natural gas. For all evaluated configurations, the chemical absorption case achieved the highest overall sustainability performance, attaining a sustainability degree of 1.41, corresponding to a 25% improvement over the conventional process. The findings of the present work underscore the potential of integrating blue hydrogen combined cycles to substantially improve the sustainability of electricity generation while supporting decarbonization pathways within the energy sector.

Purpose While macro-level studies exist, firm-level evidence on the dual role of AI in driving both productivity and green innovation particularly in South Asia is scarce. The purpose of this study is to quantify the spillover effects of AI on green innovation and firm-level productivity using longitudinal firm-level panel data. Design/methodology/approach The research is founded on the application of the longitudinal firm-level panel data which was recorded in plausible databases including World Bank key Fundamentals Enterprise Survey and Pakistan Bureau of statistics and reports of the state bank of Pakistan. It applies advanced methods of estimating dynamic panel data Proximate association between AI adoption, green innovation and productivity It applies both Difference Generalized Method of Moments (GMM) and System GMM. Inequality in the diffusion of AI on an industry level is also analyzed to ensure that the industry receives appropriate policy interventions. Findings Results suggest that AI plays a powerful role in both green innovation and productivity of a firm. A two-way linkage is identified: productivity advances through AI and this advances green innovation whereas green innovation slightly advances productivity. AI adoption is more in manufacturing and energy industries than in service activities and agriculture. The strength checks support statistically the validity of these results which reinforces the duality of AI in enhancing the economic performance and outcomes of sustainability in Pakistani firms. Originality/value This paper adds novel firm-level evidence from South Asia, where such studies remain limited. The results provide feasible information to policymakers and business leaders to transform digital transformation-sustainable development objectives in emerging economies.

Background: Sustainable digital transformation requires more than technological adoption; it depends on strategic knowledge management (KM). Fourth Industrial Revolution (4IR) technologies such as artificial intelligence (AI), the Internet of Things (IoT), blockchain and big data have reshaped organisational knowledge creation, sharing and application. However, the mediating role of KM between digital capability and sustainability outcomes remains insufficiently integrated in the literature. Objectives: This review examines how KM supports sustainable digital transformation, how 4IR technologies influence KM processes, and which barriers and enablers shape knowledge-sharing ecosystems. It also develops a conceptual framework grounded in the knowledge-based view and dynamic capabilities theories to explain how KM converts digital capability into sustainable organisational performance. Method: A systematic literature review was conducted following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework. Peer-reviewed publications from 2015 to 2024 were retrieved from IEEE Xplore, Scopus, SpringerLink, Web of Science and the ACM Digital Library. Selected studies were screened and thematically analysed. Results: Five themes emerged: KM and Industry 4.0, Digital Transformation and KM, Strategic KM Frameworks, Challenges in KM Implementation, and General KM Insights. The findings of this study indicate that KM enhances innovation, organisational agility and sustainability when aligned with 4IR technologies. Cultural, infrastructural and knowledge-security barriers remain significant constraints. Conclusion: Knowledge management is central to sustainable digital transformation. Organisations must adopt adaptive and technology-aligned KM strategies to achieve long-term value. Contribution: The study synthesises dominant research themes and proposes an integrative framework positioning KM as the mediating mechanism through which 4IR technologies generate sustainable organisational outcomes.

Agri-food supply chains (AFSCs) lose approximately 1.3 billion tons of food annually, posing a major challenge to environmental sustainability. Logistics deficiencies are widely recognized as key drivers of postharvest losses. However, most studies examine isolated practices, with limited attention to their interactive effects across AFSCs stages, or to the mechanism linking operation practices, theories, and empirical research framework. This study conducts a systematic literature review following the PRISMA guidelines. Using Web of Science and Scopus, 90 empirical studies published between 2001 and August 2025 were analyzed to examine how food loss occurs and is mitigated across AFSCs. The review defines the operational boundaries of AFSCs, identifies six categories of food loss drivers, and systematically maps corresponding mitigation strategies across logistics stages. Findings indicate that logistics practices alone are insufficient to achieve effective food loss reduction. The effectiveness of logistics practices depends on organizational capabilities such as digital technology for monitoring and forecasting, collaboration for coordinated decision-making, and institutional pressures that encourage sustainable operations. Drawing on Natural Resource-based View, Dynamic Capability View, and institutional theory, this study proposes an integrated research framework to guide future empirical studies. The framework also provides practical guidance for managers and policymakers seeking to advance food loss reduction and contribute to achieving SDG 12.3.

Supply Chain Resilience (SCRES) is increasingly recognized as important for building sustainable operations; however, critical gaps remain in both research and practical application. First, there is a limited understanding of how actionable practices across supply chains can effectively foster SCRES. Second, a more comprehensive and dynamic model of SCRES is required to address today’s volatile environments. Third, the role of resilient cultures in achieving SCRES has not been sufficiently emphasized. To address these critical gaps, this study aims to develop a conceptual theory of SCRES by integrating fragmented literature into a cohesive framework. Grounded in General Systems Theory (GST), the proposed theory identifies inputs, such as human resources, socio-cultural values, institutional settings, and stakeholder requirements, leading to sustainability assumptions, value and belief subsystems, resilience mindset, sustainability practices, and ultimately SCRES as outputs. These dynamic elements are integrated into the model and elaborated through propositions. The practical and theoretical implications are discussed to guide future research and to encourage practitioners to enhance SCRES.