ESG-Driven Strategic Management for Sustainable Development and Competitive Advantage
- DOI
- 10.2991/978-94-6463-940-7_24How to use a DOI?
- Keywords
- ESG strategy; sustainable development; competitive advantage; dynamic capabilities; absorptive capacity; ADC; PLS-SEM
- Abstract
This paper discusses the ways in which Environmental, and Social, Governance (ESG) practices can be effectively incorporated to produce both long-term competitive advantage and sustainable development. The study is based on the dynamic capabilities theory and focuses on the impact of absorptive and adaptive capabilities on the sustainability outcomes and the implementation of the ESG strategy as a mediating mechanism. In contrast to the previous research, which is based entirely on survey-collected data, this study presents a methodological novelty by integrating Artificial Intelligence (AI) methods into the research. In particular, to validate ESG disclosures, cross-check survey responses, and predict sustainability outcomes, Natural Language Processing (NLP) and machine learning models were used. The main analysis was based on the Partial Least Squares Structural Equation Modeling (PLS-SEM), and the auxiliary verification instrument was AI-based predictive analytics. Results have shown that absorptive capacity has a direct positive impact on sustainability performance, and adaptive capacity has an indirect positive impact on it through the implementation of ESG.
- Copyright
- © 2025 The Author(s)
- Open Access
- Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.
Cite this article
TY - CONF AU - Shravan Boini AU - Srinivas Tunguturi PY - 2025 DA - 2025/12/31 TI - ESG-Driven Strategic Management for Sustainable Development and Competitive Advantage BT - Proceedings of the Conference on Social and Sustainable Innovation in Technology & Engineering (SASI-ITE 2025) PB - Atlantis Press SP - 328 EP - 341 SN - 1951-6851 UR - https://doi.org/10.2991/978-94-6463-940-7_24 DO - 10.2991/978-94-6463-940-7_24 ID - Boini2025 ER -