As climate change continues to be a pressing issue affecting businesses, firms are taking proactive measures by integrating carbon considerations into their overall strategic planning for environmental sustainability. Nonetheless, the question of whether it pays to be green remains inconclusively answered. Based on an analysis of the 200 largest public listed firms by market capitalisation in Malaysia, the findings indicated that most of the firms are still reactive in managing their carbon activities; however, corporate carbon strategy does, indeed, lead to (...) better financial performance. The findings reaffirmed that going green pays off, particularly for firms with higher levels of foreign ownership. Interestingly, an inverse relationship was observed among firms with higher levels of government shareholdings. Additionally, the firms have been categorised into six different groups based on their scope and level of corporate carbon strategies, ranging from “wait-and-see” to “all-round explorer” classifications. Taken together, these findings enrich corporate carbon and sustainability literature and offer insights into theoretical and policy implications, along with suggestions for future research. (shrink)

Although sustainable development is increasingly prioritised, many entrepreneurs remain skeptical about the appropriateness of sustainable practices for small and medium enterprises (SMEs), questioning the value of adopting green initiatives. Grounded in the resource-based view, this study investigates the mediating role of sustainable development practices in linking entrepreneurial and international orientations and business performance in SMEs. Data were gathered from 105 SME owners and senior managers across multiple sectors using the drop-off and pick-up method and analysed using partial least squares (PLS) (...) path modelling. The findings reveal that sustainable practices play a critical mediating role in enhancing business performance. Specifically, entrepreneurial orientation positively influences business performance indirectly through engagement in sustainable development practices, while international orientation does not produce a similar effect. This highlights the importance of aligning entrepreneurial traits, such as innovation, proactiveness, and risk-taking, with sustainability-oriented strategies. Additionally, the model’s predictive capability was assessed, and the study provides both theoretical insights into the mediating mechanisms of sustainability and practical recommendations for SMEs aiming to adopt sustainable business practices. (shrink)

Technological innovations, despite their several benefits, may have drawbacks, thus, they need a control mechanism or directional channel. Responsible innovation (RI) has gained popularity in technology-intensive countries as a way to regulate otherwise uncontrollable and radical technological innovations. However, existing RI research lacks a clear theoretical foundation and has not adequately addressed the commercial and performance aspects of innovative products and firms. The current research proposes an empirically testable model for RI by conducting a structured literature review, focusing on the (...) commercial aspect of innovative products and firms’ sustainability performance in the financial, social, and environmental dimensions. The study suggests a link between RI and the resource-based theory of the firm and proposes that RI can be seen as a distinctive competency developed through the firm’s resources and capabilities. The model would help enterprises achieve ethical and social acceptability and improve sustainability performance. Metadata examination of 98 articles yielded insights. The findings and future research directions of this study provide new insights for business strategy and policy. (shrink)