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Innovation Management, Competition Strategies and Corporate Sustainability

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: 10 January 2025 | Viewed by 7501

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Guest Editor
Centre for Governance and Sustainability & Department of Strategy and Policy, NUS Business School, National University of Singapore, 15 Kent Ridge Drive, Singapore 119245, Singapore
Interests: strategic management; innovation management; corporate sustainability; corporate governance
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Special Issue Information

Dear Colleagues,

With the development of globalization and digitalization, enterprises are facing an increasingly complex and dynamic market environment. Sustainability has rooted itself as a key underpinning for corporations seeking long-term success. Yet, the ability to generate benefits for the full spectrum of their stakeholders resides fundamentally on internal organizations, particularly in how innovation is being managed, as well as on the external market, especially in how competition is being addressed. How to realize innovation management, formulate effective competitive strategies, and realize the sustainable development of enterprises has become an important challenge for enterprise managers.

This Special Issue is seeking manuscripts on the interface of three thematic domains, namely innovation, competition and sustainability. It will be interested in conceptual, applied, and empirical research that examines a clear topic in any of the domains with linkages with any or all of the other domains. Specifically for the notion of sustainability itself, any or all of the constituent pillars of environmental, social and governance (ESG) can be considered.

In this context, this Special Issue welcomes conceptual and empirical articles, as well as reviews.

Prof. Dr. Lawrence Loh
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • innovation
  • entrepreneurship
  • competition
  • strategy
  • sustainability
  • environmental, social and governance (ESG)

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Published Papers (3 papers)

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Research

18 pages, 274 KiB  
Article
Does Innovation Sustainability Attract Retail Investors? The Clientele Effect in China
by Man Yuan, Yuru Li and Tengfei Yang
Sustainability 2024, 16(19), 8666; https://doi.org/10.3390/su16198666 - 8 Oct 2024
Viewed by 657
Abstract
Innovation sustainability is essential for businesses to maintain their competitive edge and ensure long-term growth. This not only benefits individual companies but also entire industries. Despite its importance, research on retail investors’ preferences for innovation sustainability remains limited. To address this gap, we [...] Read more.
Innovation sustainability is essential for businesses to maintain their competitive edge and ensure long-term growth. This not only benefits individual companies but also entire industries. Despite its importance, research on retail investors’ preferences for innovation sustainability remains limited. To address this gap, we analyzed unique data on shareholder numbers in listed Chinese companies from 2007 to 2020. We differentiate between institutional and retail investors to analyze the latter’s preferences. This finding indicates that retail investors prefer to invest in companies with higher innovation sustainability. This preference stems from their limitations in capabilities of information collection, analytical skills, and risk diversification. The clientele effect is more pronounced when companies face a poor innovation environment, an opaque information environment, and a weak political connection. This study contributes to the existing literature by providing empirical support for the clientele effect and shedding light on retail investors’ preferences and investment behavior. By focusing on company fundamentals, our study extends the examination of the clientele effect to the corporate governance level. These insights have significant implications for promoting sustainable development, impacting both companies and the capital market. Full article
19 pages, 263 KiB  
Article
Strategic Resource Utilization for Enhancing Corporate Value: Dynamics of Exploration and Exploitation in Korea
by Gee-Jung Kwon and Won-Il Lee
Sustainability 2024, 16(11), 4621; https://doi.org/10.3390/su16114621 - 29 May 2024
Viewed by 860
Abstract
This study examines the impact of research and development (R&D) expenditures, training expenditures, and entertainment expenditures (business promotion expenditures) on firm value in the Korean electronics and metal industry. Extending the theoretical foundation of James March’s exploration and exploitation theory, this study analyzes [...] Read more.
This study examines the impact of research and development (R&D) expenditures, training expenditures, and entertainment expenditures (business promotion expenditures) on firm value in the Korean electronics and metal industry. Extending the theoretical foundation of James March’s exploration and exploitation theory, this study analyzes the impact of R&D and training investments on firm value to explore new capabilities from a long-term perspective, and the impact of entertainment costs on firm value to achieve short-term organizational goals. Using Tobin’s Q methodology, which uses the ratio of a firm’s market value to its asset replacement cost as a proxy for firm value, this study finds the relationship between these types of expenditures and firm value. The analysis finds that R&D expenditures and training expenditures are significantly correlated with increases in firm value, suggesting that these investments play an important role in enhancing a firm’s competitiveness and performance. On the other hand, while we hypothesize that the balance of exploration and exploitation within an organization will affect firm value, we find that entertainment expenditures, which are business promotion expenditures, do not show a significant relationship with firm value. This suggests that these expenditures by companies in Korea’s electronics and metals industry contribute to the achievement of the organization’s short-term goals but do not have a significant impact on firm value. These findings suggest that resource allocation in the electronics and metal industries where technological innovation is important should be more heavily weighted toward investments in R&D and training for long-term exploration in order to increase firm value. To increase firm value, firms should prioritize investments that drive sustainable growth and enhance competitive advantage. This research allows for a deeper examination of how different types of costs contribute to firm value and underscores the need for strategic clarity in resource allocation decisions. Full article
36 pages, 690 KiB  
Article
Innovating ESG Integration as Sustainable Strategy: ESG Transparency and Firm Valuation in the Palm Oil Sector
by Tricia Chong and Lawrence Loh
Sustainability 2023, 15(22), 15943; https://doi.org/10.3390/su152215943 - 14 Nov 2023
Cited by 1 | Viewed by 5177
Abstract
Environmental, social, and governance (ESG) integration is an increasingly popular and innovative investing strategy that requires companies to be transparent about their ESG practices to facilitate investors’ decisions. In the palm oil sector, companies are addressing ESG risks by adopting and disclosing ESG [...] Read more.
Environmental, social, and governance (ESG) integration is an increasingly popular and innovative investing strategy that requires companies to be transparent about their ESG practices to facilitate investors’ decisions. In the palm oil sector, companies are addressing ESG risks by adopting and disclosing ESG efforts to improve access to financing. This study seeks to broaden existing research on ESG transparency and firms’ financial indicators by using firm valuation as a financial indicator and investigating the moderating role of firm size in the palm oil sector. It first investigates whether ESG transparency has a direct positive or negative effect on firm valuation. Transparency is measured using the Zoological Society of London’s (ZSL) Sustainability Policy Transparency Toolkit (SPOTT) 2021 assessment, which provides scores for palm oil companies’ total, environmental, social, and governance disclosures. Firm valuation is measured by the price-to-earnings ratio (P/E), a widely used ratio calculated by dividing the share price by earnings per share. The study also explores the moderating role of firm size, using accounting-based measures such as revenue and assets, in strengthening the relationship between ESG transparency and firm valuation. The results show statistically significant negative relationships between ESG transparency and firm valuation. Companies with stronger ESG transparency are valued at a discount relative to companies with weaker ESG transparency. Additionally, the results find that firm size plays a moderating role such that larger firms strengthen the negative relationships between all transparency measures and firm valuation. These findings encourage constructive action for various stakeholders and provide implications for future research to support mainstreaming sustainable palm oil. Full article
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