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Sustainable Strategic Management: Integrating Environmental, Social and Governance (ESG) Factors

A special issue of Sustainability (ISSN 2071-1050).

Deadline for manuscript submissions: 30 June 2026 | Viewed by 2779

Special Issue Editor


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Guest Editor
School of Management, Huazhong University of Science and Technology, Wuhan 430074, China
Interests: commentary on theory and methods; innovation and strategic management; financial risk management

Special Issue Information

Dear Colleagues,

In an era marked by escalating environmental crises, profound social inequalities, and heightened demands for corporate accountability, the integration of environmental, social, and governance (ESG) factors into strategic management has become a central pillar of sustainable business practice. This paradigm shift is driven by two dynamics. On the one hand, mounting stakeholder expectations, stringent regulatory pressures, and a clear recognition of the long-term business risks associated with unsustainable practices are compelling firms to move beyond mere compliance and fundamentally rethink their value creation models. On the other hand, there is a growing understanding that a proactive and authentic integration of ESG factors can unlock new opportunities, enhance brand reputation, attract and retain top talent, secure investment, and ultimately contribute to more resilient and adaptive business models.

Despite the increasing attention being paid to ESG, the path to effective ESG integration is fraught with practical challenges, and significant research gaps remain. Organizations grapple with issues such as the risk of "greenwashing," the complexities of measuring and reporting non-financial performance, managing the trade-offs between short-term financial goals and long-term sustainability investments, and embedding ESG principles throughout complex global supply chains. The linkages between specific strategic actions, measurable ESG outcomes, and long-term financial performance need further theoretical development. Therefore, this Special Issue aims to advance our theoretical and empirical understanding of how organizations strategically integrate ESG factors into their core management processes.

In this Special Issue, original research articles and reviews are welcome. Their research areas may include (but are not limited to) the following:

  • The role of ESG in shaping corporate mission, vision, and strategic planning;
  • The integration of ESG factors into strategic decision-making processes (e.g., mergers and acquisitions, R&D, market entry strategies);
  • Developing and implementing ESG-centric business models;
  • The relationship between ESG integration, competitive advantages, and firm performance;
  • Innovations in measuring, monitoring, and verifying ESG performance;
  • The role of digital technologies in enhancing ESG management and implementation;
  • ESG performance and strategy in global supply chain management;
  • The relationship between ESG strategy and organizational innovation;
  • The impact of ESG rating discrepancies on corporate strategy and stakeholder decision-making.

We look forward to receiving your contributions.

Prof. Dr. Zongjun Wang
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 250 words) can be sent to the Editorial Office for assessment.

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

  • ESG
  • sustainable strategy
  • sustainability
  • long-term value creation
  • environmental strategy

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Published Papers (2 papers)

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Research

23 pages, 591 KB  
Article
From ESG Signals to Sustainable Relationships: A Strategic Perspective on Perceived Sustainability Awareness, Dual-Path Value, and Long-Term Trust
by Yoon Joo Park
Sustainability 2026, 18(5), 2179; https://doi.org/10.3390/su18052179 - 24 Feb 2026
Viewed by 616
Abstract
This study examines how consumers’ perceptions of corporate environmental, social, and governance (ESG) performance are statistically associated with sustainable relational outcomes within a structured cognitive and relational framework. Drawing on signaling theory and perceived value theory, we propose and empirically test a sequential [...] Read more.
This study examines how consumers’ perceptions of corporate environmental, social, and governance (ESG) performance are statistically associated with sustainable relational outcomes within a structured cognitive and relational framework. Drawing on signaling theory and perceived value theory, we propose and empirically test a sequential mediation model in which perceived ESG performance is positively associated with perceived sustainability awareness (PSA), PSA subsequently is associated with dual-path value perceptions (cognitive and socio-emotional value), and these value perceptions are positively related to long-term trust (LTT) and value co-creation (VCC). In addition, the moderating role of signal credibility on the ESG–PSA relationship is examined. Using survey data from 278 South Korean consumers and structural equation modeling, the results indicate that perceived ESG performance is significantly positively associated with PSA, which in turn is positively associated with both cognitive and socio-emotional value. These value dimensions independently and positively relate to long-term trust, which is in turn associated with value co-creation. Contrary to expectations derived from signaling theory, signal credibility does not significantly moderate the ESG–PSA relationship, suggesting that ESG signals may function as baseline legitimacy cues within the South Korean institutional context, where sustainability norms are relatively institutionalized. Overall, the findings suggest that ESG effectiveness does not operate through direct persuasion but is consistent with a multi-stage cognitive and relational framework. By distinguishing sustainability awareness from ESG perception and decomposing value perceptions into dual paths, this study advances theoretical understanding of how ESG signals may be internalized and statistically linked to sustainable firm–consumer relationships. From a managerial perspective, the results highlight the strategic importance of designing ESG initiatives and communications that enhance sustainability awareness and support long-term trust as foundations for engagement and co-creation. Given the cross-sectional design, the proposed sequential structure should be interpreted as associative rather than definitive causal evidence. Full article
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23 pages, 538 KB  
Article
Green Knowledge Management and Green Technology Innovation: Roles of Green Organizational Identity and Incentive Environmental Regulation
by Zongjun Wang, Mengmeng Hou and Wenyi Luo
Sustainability 2025, 17(23), 10781; https://doi.org/10.3390/su172310781 - 2 Dec 2025
Cited by 2 | Viewed by 1395
Abstract
Green knowledge management represents a critical strategic resource for firms, enabling the acquisition, integration, and application of environmentally relevant knowledge to support green technological advancement. However, the mechanisms by which green knowledge management fosters green technology innovation remain underexplored. Grounded in the dynamic [...] Read more.
Green knowledge management represents a critical strategic resource for firms, enabling the acquisition, integration, and application of environmentally relevant knowledge to support green technological advancement. However, the mechanisms by which green knowledge management fosters green technology innovation remain underexplored. Grounded in the dynamic capabilities theory perspective, this research develops a moderated mediation framework to investigate how green knowledge management, through dynamic capabilities, impacts green technology innovation, particularly considering the moderating effects of green organizational identity and incentive environmental regulation. Using responses collected from 358 enterprises in China, the proposed framework was validated through hierarchical regression analysis, combined with the PROCESS procedure. The empirical findings demonstrate that green knowledge management strengthens firms’ dynamic capabilities, which in turn promote green technology innovation. Specifically, absorptive and transformative capability serve as partial mediators in the relationship between green knowledge management and green technology innovation. Furthermore, green organizational identity strengthens the positive effect of green knowledge management on dynamic capabilities, while incentive environmental regulation enhances the impact of dynamic capabilities on green technology innovation. These findings advance understanding of how green knowledge management promotes firms’ green technological development by activating and leveraging dynamic capabilities, thereby yielding important contributions to theoretical research and managerial practice. Full article
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