Performance Assessment of Sustainable Leadership of Enterprise’s Circular Economy-Driven Innovative Activities

Iryna Bashynska (), Yuliia Malynovska, Nataliia Kolinko, Taliat Bielialov, Marina Järvis, Krystyna Kovalska and Mariia Saiensus
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Iryna Bashynska: Department of Enterprise Management, AGH University of Krakow, 30-059 Krakow, Poland
Yuliia Malynovska: Department of Foreign Trade and Customs, Lviv Polytechnic National University, 79-013 Lviv, Ukraine
Nataliia Kolinko: Department of Management and International Entrepreneurship, Lviv Polytechnic National University, 79-013 Lviv, Ukraine
Taliat Bielialov: Department of Entrepreneurship and Business, Kyiv National University of Technologies and Design, 01-001 Kyiv, Ukraine
Marina Järvis: Department of Business Administration, Tallinn University of Technology, 12616 Tallinn, Estonia
Krystyna Kovalska: Liverpool Hope Business School, Liverpool Hope University, Liverpool L16 9JD, UK
Mariia Saiensus: Department of Marketing and International Logistics, Odessa National Economics University, 65-000 Odesa, Ukraine

Sustainability, 2024, vol. 16, issue 2, 1-26

Abstract: There is a need to explore and comprehend the performance of sustainable leadership in enterprises’ circular economy-driven innovative activities. Firstly, there is a pressing necessity for businesses to remain agile and responsive to change, utilizing innovation not just as a buzzword but as a strategic tool for adaptation and growth. Secondly, the ethical dimension demands that innovation be pursued responsibly, considering its effects on communities, environments, and future generations. Lastly, the economic imperative underscores that sustainable innovation management can lead to efficiencies, cost savings, and new avenues for revenue generation. An improved comprehensive approach to evaluating the effectiveness of managing enterprises’ innovative activities is proposed. This approach is based on the evaluation of 14 partial indicators, each reflecting a specific vector orientation. This assessment allows for the combination of indicators that essentially reflect the personal characteristics of the manager and the combination of formative and resultant factors of the management’s influence on the state and results of innovative activity (the above-proposed factor approach). Consequently, it provides an opportunity to obtain a multifaceted, comprehensive, and most complete assessment of the sustainable management of innovative activity based on valid vector orientation within the scope of the subject and the object of research. Based on the proposed improved assessment, indicators of the effectiveness of managing innovative activities were calculated for the seven researched innovatively active industrial enterprises. Thus, the following were calculated: (1) the personal component (Pp) of the evaluation of the effectiveness of leadership in innovative activities using the expert assessment toolkit, (2) the managerial component (Plm), and (3) the innovatively sustainable component (Pis) of the evaluation of the effectiveness of sustainable management of innovative activities based on the internal reporting of the enterprise. This balances the partial subjectivity of the expert method with real data from specific enterprises. Consequently, based on the values of the three assessment components, a comprehensive integral indicator of the effectiveness of managing the innovative activity of the enterprise (Pef) was calculated. The proposed methodology’s validation proved its effectiveness and efficiency. The authors forecast the degree of influence of external and internal factors, taking into account the results of a comprehensive, integrated assessment of the effectiveness of sustainable management (Pef) on the economic development and indicators of the enterprise’s circular economy-driven innovative activities. This enables a significant strengthening of the resultant factors of managing innovative activities and predicting specific final results of all innovative activities.

Keywords: circular economy; economy-driven innovative activity; leadership; management; sustainable leadership; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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