Sustainable Value Creation Research Articles

Risk identification for business blockchain-based technology adoption via an advanced fuzzy MRDM architecture

Blockchain technology holds considerable amount of potential for all types of industries by executing transactions in a verifiable, efficient, and permanent channel. It has been widely viewed as a standard requirement for making industry ready for the future, but when it comes to practical applications, it still arouses numerous risks/challenges that need to be addressed. Therefore, it is essential to address this gap and establish a comprehensive and effective practical framework to align the information technology revolution with sustainable value creation. The purpose of this research is to realize to what extent an enterprise legacy system’s transformation benefits a blockchain-based system and to minimize its specific risk through a hybrid fuzzy MRDM (multiple rule-based decision making) model that integrates data envelopment analysis with rough set theory (DEA-RST) and the fuzzy DEMATEL approach grounded on a questionnaire derived from domain experts. We aim to point out the inherent risks of blockchain-based technology adoption and to assist senior engineers in designing or adopting a suitable architecture for practical operation and planning of any future integration and development. The potential risk evaluation of business blockchain adoption reveals that the priority improvement sequence based on dimensions is smart contract risk, value transfer risk, and standard risk. Furthermore, law and regulation are the most critical criteria.

The Mediating Role of Sustainable Value Creation in the Relationship Between Information Technology and Competitive Advantage

This study aims to analyze and determine the magnitude of the influence of information technology capabilities, leadership commitment, competitive advantage and sustainable value creation. This study uses descriptive and causal-explanatory methods with a quantitative approach. The sampling method used is the probability sampling approach (the census). Data analysis used is the Structural Equation Modeling (SEM) approach using primary data. The results of the study state that IT Capability has a significant positive effect on Sustainability Value Creation (SVC) and Corporate Competitive Advantage (CCA). The Top Management Commitment variable positively and significantly affects Sustainability Value Creation but does not affect CCA. The SVC variable influences CCA. The results of the Indirect Effect test state that IT Capability influences CCA through SVC. Meanwhile, Top Management Commitment influences CCA through SVC. Additional variables may have other moderating and mediating effects on the mediating role of sustainable value creation. This research contributes to knowledge development (basic research) and applicative problem solving (applied research) by Islamic banking in Indonesia. The results of this study can be a premise for subsequent researchers and can add to the limitations of the literature. This research focused on the research locus, namely Islamic banking throughout Indonesia. It is confirmed that research topics with variables used in this research have never been studied at the locus of Islamic banking before.

Providing the EFQM Model for Improving Preschool Education in Shiraz

This research aimed to introduce a suitable EFQM (European Foundation for Quality Management) organizational excellence model for preschool education in the city of Shiraz. The research method was a mixed-method approach (qualitative-quantitative), and the statistical population included scientific, qualitative, and quantitative documents. The qualitative section comprised university experts (n = 21), while the quantitative section included a sample of 97 university experts. Non-random snowball sampling was used for the qualitative section, and cross-sectional random sampling was employed for the quantitative section. Data collection tools included coding, semi-structured interviews, and a researcher-made questionnaire. Qualitative data were analyzed using grounded theory, while a t-test was used for quantitative data analysis. The findings identified the dimensions and key components of an appropriate organizational excellence model for preschool education, which included objectives, vision and strategy, organizational culture and leadership, stakeholder engagement, sustainable value creation, performance improvement and transformation, stakeholder perspectives, and strategic and operational outcomes.

Smart Glocal Production – An Assessment Approach for the Readiness Level of Manufacturing Companies

Current challenges such as climate change, the limits of natural resources, and increasing customer-specific sustainability demands require a transformation of value creation. The aim is to move from global sourcing to more local value creation by creating synergistic energy and circular material flows and making better use of capacities while taking urban structures into account.This paper discusses an approach of Smart Glocal Production that combines spatially networked production in global enterprise networks. Based on a literature review, examples of Smart Glocal Production in Germany and Austria are presented. The core of the paper is a novel assessment approach for manufacturing companies to determine their readiness level for glocal production. On this basis, smart measures can be derived with special consideration of digitization initiatives to support manufacturing companies on their way to a more sustainable value creation in industrial areas.

Navigating the sustainability landscape: How entrepreneurial intentions and competitive strategies drive success in the exhibition industry

This study investigates the impact of entrepreneurial intentions and competitive factors on sustainable business performance in the exhibition industry. Analyzing recent literature, the research examines how strong entrepreneurial intentions drive the adoption of sustainable practices, innovation, and value creation, while considering the long-term effects of actions. The study also explores the influence of competitive factors, such as innovation capability, market orientation, networking ability, entrepreneurial orientation, and competitive strategies, on an entrepreneur's ability to achieve sustainable performance. The findings suggest that entrepreneurs committed to starting and growing their businesses are more likely to achieve superior financial and non-financial results while contributing to industry sustainability. The study emphasizes the importance of aligning strategies with sustainability goals, developing dynamic capabilities, utilizing competitive intelligence, and leveraging big data analytics to navigate challenges and create value. The research concludes that cultivating strong entrepreneurial intentions and effectively managing competitive factors are crucial for achieving long-term success and sustainable performance in the exhibition industry and beyond.

Innovation as a driving force for the creation of sustainable value derived from CSR: An integrated perspective

Coastal tourism is deep into a dichotomy between its potential to provide a wide range of social and natural benefits, and its traditional link to mass models, provoking a profound debate around the generation of negative externalities. This study examines the role of innovation and strategic corporate social responsibility orientation in the relationship between CSR and corporate performance to determine the mechanisms that underlie this main relationship. To this end, a sample of 202 hotels on the Spanish coast is analysed by applying the Partial Least Square Methodology. Useful results are derived from the empirical testing of the theoretical model, such as the existence of a positive direct effect between CSR and hotel performance. Likewise, we shed light on the mediating role of innovation and the moderating effect of a strategic CSR orientation in the main relationship, providing valid solutions for both academics and managers of coastal hotels, in terms of adopting CSR practices and promoting its integration into the core business of the hotel, and further developing innovations that will boost the benefits derived from their responsible practices, as well as their strengths to overcome the barriers traditionally faced when carrying out CSR strategies.

Sustainable Product Lifecycle Management – Implementation of a Digital Twin of a Biologically Transformed Product-Ecosystem

Biological transformation is the transfer of principles of natural systems to technical materials, processes and systems. The essential concepts of biological transformation - inspiration (learning from the observation of nature for the adaptation of technology), integration (symbiosis of technical systems based on biological principles) and interaction (interweaving of nature with technology) - can be transferred to Industry 4.0 solutions. One of these solutions is the Digital Twin, which can be used to provide transparency of an individual product’s environmental impact and to positively influence it throughout all lifecycle phases. A Digital Twin can be seen a digital ecosystem that inherits various biological principles itself, but also serves as an enabler of biologically transformed products. The application of the principles of biological transformation to Industry 4.0 helps achieve sustainable value creation. Manufacturing and operating companies, leveraging operational data with the help of Digital Twins, are equipped to better understand a product ecosystem’s performance and identify constraining resources that determine its lifecycle sustainability. This paper demonstrates the concept development of a Digital Twin for a biologically transformed product-ecosystem with integrated sustainability assessment focused on the production phase and its corresponding user interface.

Developing Digital Twins for energy efficiency in the production phase of products

The relevance of digital solutions to enable sustainable value creation, the monitoring and ultimately the reduction of the environmental footprint has increased. New information technologies and increased data availability along a product's lifecycle offer more tools to assess product sustainability than ever before. This paper presents how a Digital Twin needs to be designed to help monitor product-level energy efficiency and how such a Digital Twin can be implemented. State-of-the-art research on Digital Twins and their development, lifecycle assessment, and energy efficiency are introduced. There is a lack of evaluated implementations of methodical DT development in different scenarios, especially for the evaluation of product-level energy efficiency during production. Results of a research project with the focus on the development and implementation of Digital Twins are presented. The use case is set within the scenario of the sequential development of a product simultaneously with the development of the Digital Twin. The focus is put on the implementation of an energy consumption prediction and product carbon footprint analytics module as part of the Digital Twin. The development approach is presented and recommendations for the development of future Digital Twins are derived.

Data driven value creation in industrial services including remanufacturing

In the era of twin transition companies face complex challenges. Economical resource usage and efficiency are particularly important in the manufacturing sector. Product-service systems are seen a promising solution that can meet the expectations regarding efficiency in a sustainable way. However, there is a huge potential regarding the evaluation of sustainable value creation. The paper focuses on the value creation process in product-service systems including offers with remanufactured products.Against this background, the goal of this paper is to describe how data driven industrial services can create sustainable value in the meaning of the triple bottom line. Based on previous work, a quantitative model for the assessment and optimization of this value creation is extended to include additional remanufacturing strategies. The value optimization model integrates the different perspectives of provider, custumer and society. The numerical evaluation of this model for a specific application case shows that economic and ecological value creation can be jointly achieved and optimized, and which service arrangements lead to this optimization.

Impact of CEO Ownership on Financial Performance: Evidence from Nigerian Listed Firms

This study investigates the impact of CEO ownership on financial performance among Nigerian listed firms from 2016 to 2022. The study population encompasses all the 157 companies listed on the Nigerian Exchange Group (NGX) as of January 2023. Employing census filtering criteria, a total of 94 companies qualifies as the sample for the study, contributing 658 firm-year observations over the seven years. Secondary data is extracted from the annual reports and accounts of the selected companies, covering the period from 2016 to 2022. The study utilized descriptive, correlation, and panel corrected standard error (PCSE) analyses to examine the data collected. The findings reveal a significant positive association between CEO ownership and financial performance, indicating that higher CEO ownership levels are associated with improved firm outcomes. This underscores the importance of aligning managerial incentives with shareholder interests to drive sustainable value creation. The results highlight the critical role of robust corporate governance mechanisms in fostering accountability and enhancing shareholder wealth within the Nigerian corporate landscape. To capitalize on these findings, policymakers, regulators, and stakeholders are urged to prioritize governance frameworks that promote CEO ownership and transparency. Moreover, future research directions are outlined, emphasizing the need for deeper exploration of the mechanisms underlying CEO ownership's influence on financial performance and comparative studies across diverse emerging market contexts. Through these endeavors, this study contributes to advancing our understanding of corporate governance dynamics and informing evidence-based policy interventions tailored to the needs of evolving market environments.

Unleashing the Power of Digital Farming: Local Young Farmers’ Perspectives on Sustainable Value Creation

A new challenge has emerged: how to implement innovations in agriculture? The expansion of digital technology has created new opportunities within the agricultural sector, particularly for young farmers, enabling the integration of information and communication technology into digital farming. Employing innovation diffusion theory, this study seeks to ascertain how young farmers perceive the integration of digital technology into various aspects of farming and how these views influence the formation of sustainable value creation. The study area was determined purposively, and this research utilized the case study method by interviewing 80 respondents. The data were analyzed using structural equations and partial least squares models. Using the innovation diffusion theory, the results unveiled that knowledge, persuasion, decision, implementation, and confirmation from young farmers significantly and positively affected the sustainable value creation.

Integrated business model of sustainable development for agricultural sector

Purpose. The purpose of the article is to improve the methodology of the integration process of business model to ensure environmental, social and financial results of entrepreneurial activity taking into account the interests and needs of stakeholders and to study the possibilities of implementing sustainable practices in different segments of the business model and the sustainable value created by these transformations. Results. The study highlights a number of approaches to the methodology of creating sustainable business models, which are the Business Model Canvas, the Teece Business Model, the Ecosystem Pie Model, and the Sustainable Value Creation Model. Each of the methodologies has its advantages and disadvantages, but they all have common elements that can be combined and integrated when considering industry specifics. The author used the methodology of creating sustainable value, which is formed through the implementation of new approaches to the implementation of sustainability, in particular, the methods of ecodesign, climate-smart agriculture, organic farming, biodynamic agriculture, sustainable intensification and renewable agriculture. Sustainable value is created through activities in different segments of the business model, at the same time the Business Model Canvas (BMC) is a template for mapping the transformations in each segment. The integrative business modeling approach is able to provide a detailed qualitative overview of a specific business by combining social, environmental and economic components with stakeholder theory. Therefore, taking into account the needs of a wider range of stakeholders than is provided for in the "key partners" field of the Canvas model took place through the implementation of sustainable value in the complex Ecosystem Pie Model. Scientific novelty. The scientific novelty consists in the adaptation of the methodology of transformation of traditional business models into sustainable ones for the agricultural sector, which, unlike the existing ones, allows taking into account sustainable value through new sustainable approaches that cause changes in the fields of Business Model Canvas with the subsequent transfer of their individual elements to the Ecosystem Pie Model for a systematic visual perception of both the current situation and prospects for further development for the enterprise. Practical value. The results of the research can be used by scientists, representatives of business and state institutions dealing with the issue of introducing sustainability principles into existing traditional business models, based on the needs and interests of stakeholders.

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.

ESG criteria in green rebuilding of Ukraine

The historical retrospective of the construction industry shows a tendency to move to a qualitatively new level after crises and global upheaval. Global markets are currently being reformatted to reflect new investment priorities, where environmental, social and governance (ESG) criteria are gaining essential importance, and Ukraine is at the center of global transformations. Ukraine's post-war reconstruction plans include the use of green innovative technologies, as the formation of a green economy is the basis of the European Union Association Agreement. The concept of "green recovery" has become widespread, as investments in low-carbon technologies strengthen the country's resilience. Implementation of green building principles saves resources and energy, stimulates innovation and competitiveness, and increases the confidence of investors and increasingly conscious consumers. Current international trends are moving towards global decarbonization of the world economy and the widespread implementation of ESG non-financial reporting standards to screen and increase transparency of business. The construction sector plays a key role in achieving the Sustainable Development Goals, given the significant economic, environmental and social impacts of the construction industry. The requirements for decarbonization, safety and well-being of buildings are growing, and the increasing volume and complexity of data requires new tools and approaches. The application of ESG principles involves the creation of long-term sustainable value in the interests of the company and its stakeholders. In the construction sector, ESG factors are crucial for determining the overall value and potential of a property, which helps investors to obtain more information for decision-making and risk assessment. The use of (ESG) indicators ensures transparency, objectivity and measurability of the company's performance. Businesses that demonstrate concrete commitments to sustainable development will become undisputed leaders in their industries in the next 30 years and will gain access to investment capital. On the other hand, companies that do not take care of compliance with international standards in a timely manner risk losing business in the medium term.

Corporate climate risk disclosure: assessing materiality and stakeholder expectations for sustainable value creation

PurposeThis study aims to evaluate the adequacy of climate risk disclosure by providing empirical evidence on whether corporate disclosure meets rising stakeholders’ demand for risk disclosure concerning climate change.Design/methodology/approachDrawing on a triangulated approach for collecting data from multiple sources in a longitudinal study, we perform a panel regression analysis on a sample of multinational firms between 2007 and 2021. Inspired by the Global Reporting Initiative (GRI) principles, our innovative and inclusive model of measuring firm-level climate risks underscores the urgent need to redefine materiality from a broader value creation (rather than only financial) perspective, including the impact on sustainable development.FindingsThe findings of this study provide evidence of limited corporate climate risk disclosure, indicating that organisations have yet to accept the reality of climate-related risks. An additional finding supports the existence of a nexus between higher corporate environmental disclosure and higher corporate resilience to material financial and environmental risks, rather than pervasive sustainability risk disclosure.Practical implicationsWe argue that a mechanical process for climate-related risk disclosure can limit related disclosure variability, risk reporting priority selection, thereby broadening the short-term perspective on financial materiality assessment for disclosure.Social implicationsThis study extends recent literature on the adequacy of corporate risk disclosure, highlighting the importance of disclosing material sustainability risks from the perspectives of different stakeholder groups for long-term success. Corporate management should place climate-related risks at the centre of their disclosure strategies. We argue that reducing the systematic underestimation of climate-related risks and variations in their disclosure practices may require regulations that enhance corporate perceptions and responses to these risks.Originality/valueThis study emphasises the importance of reconceptualising materiality from a multidimensional value creation standpoint, encapsulating financial and sustainable development considerations. This novel model of assessing firm-level climate risk, based on the GRI principles, underscores the necessity of developing a more comprehensive approach to evaluating materiality.

Do pressure-sensitive institutional investors moderate CSR decisions towards value creation of Indian firms?

Purpose Research on the significance of corporate social responsibility (CSR) and value creation is nascent as compared to CSR and financial performance. The concept of value is also evolving because of changing business environments, globalization and the expanded idea of CSR. Nowadays, managers expect a more quick, pragmatic approach to satisfy valid stakeholder claims while simultaneously creating competitive advantage through reputation and investor value. The paper aims to examine the impact of CSR on the market and sustainable value creation through CSR expenditure in India and the moderating role of pressure-sensitive institutional investors (PSII). Design/methodology/approach The study used panel data regression methodology on a sample of 1,845 non-financial Indian firms from 2015 to 2021. Findings CSR creates market and sustainable value for non-financial Indian firms in line with stakeholder theory. The authors find a positive moderating role of governance represented by PSII on CSR and market value creation but not on sustainable value. Research limitations/implications The study is based on secondary data. CSR, despite being a regulatory obligation, provided long-term benefits that increased their sustainable growth rate. The results highlight the importance given by financial markets to CSR activities. Other types of institutional investors can also be examined in future research. CSR can be embedded in the core operations of the firm, which can help in fostering a culture of sustainability and responsible business practices that benefit firms and society as a whole. Tax incentives can be provided to firms investing in CSR. Practical implications CSR provides long-term benefits to the firm, which enhances the goodwill and integrity of the firm in the market. The results reveal that besides capital market investors, firms are subject to the scrutiny of consumers, communities and the government as expectations rise and information spreads faster, which can have repercussions. CSR helps in meeting such expectations and the perceived value of the firms. Managers and chief executive officers (CEOs) can pay attention to the type of institutional investors like PSII, which can be formed as a part of the firm’s CSR strategy. Social implications The positive impact of CSR on sustainable value expresses a long-term management orientation based on the improvement of stakeholder relations and the associated environmental impacts referring to cohesion and consensus, market opportunities and strengthened reputation and image. A sustainable company involves a conscious and continuing effort in the equilibrium between contrasting stakeholders’ expectations in an attempt to optimize value creation. Tax exemption can be provided for CSR activities. Originality/value The authors contribute to the scant literature on CSR and value creation, especially sustainable value, as most of the prior studies are not empirical on sustainable value in the Indian context. Managers and CEOs can pay attention to the types of institutional investors like PSII, which can be formed as a part of the firm’s strategy.

Sustainable value creation through customization for smart PSS models: a multi-industry case study

PurposeThis study is a reference for manufacturers who are promoting their product-service system (PSS) development. Currently, improvements in both digital customization and sustainability for various smart PSS categories have been considered rarely. This paper addresses this research gap by developing relevant models.Design/methodology/approachThe development trends of customization-oriented PSS are described in a literature review. An in-depth multiple-case study methodology is adopted, and seven manufacturing companies are sampled. The goal is to identify digital customization measures that can be employed on representative smart PSS models and to explore how these models can create sustainable value.FindingsThis study provides valuable insights by uncovering a synthesis framework for achieving customization of the product/use/result-oriented smart PSSs, and the relevant representative smart functions are summarized. This identifies how digital customization capabilities can improve sustainability, including direct economic value for customers as well as additional social benefits and environmental improvements during customization.Originality/valueCurrently, the influence of digitalization on customized offerings and the relevant impact on sustainability development have not been fully addressed to date. This study provides comprehensive information with a reference value for digital customization transformation among the three main types of smart PSS.

The role of resource structuring, marketing, and networking capabilities in forming DMO orchestration capability toward sustainable value creation

The role of resource structuring, marketing, and networking capabilities in forming DMO orchestration capability toward sustainable value creation

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.

Youth Participation for Sustainable Value Creation: The Role and Prioritization of SDGs

Young people play a pivotal role in instigating and driving significant changes. The impact of individuals’ involvement in environmental conservation, community development, and social change initiatives for sustainable value creation is of considerable importance in the pursuit of the sustainable development goals (SDGs). The objective of this study is to examine the contribution of youth engagement in the creation of sustainable value by analyzing their comprehension and prioritization of the 17 SDGs, with the goal of achieving sustainable development and sustainability. The researchers conducted a study on a sample of 1085 individuals between the ages of 14 and 30, who were selected from three distinct countries within the Western Balkan region—the Republic of Serbia, Bosnia and Herzegovina, and the Republic of Northern Macedonia. The data were analyzed using factor analysis in conjunction with descriptive and inferential statistics. The survey findings indicate that poverty, hunger, and access to adequate healthcare are the primary SDGs and societal challenges confronting the youth in these nations. Furthermore, it emphasizes the significance of both formal and informal education among youth as a catalyst for societal transformation for sustainable value creation.