Transition to sustainable business models for green economic recovery: role of financial literacy, innovation and environmental sustainability

Wenqi Luo () and Jiexian Cheng ()
Additional contact information
Wenqi Luo: Jiangxi University of Technology
Jiexian Cheng: Jianghan University

Economic Change and Restructuring, 2023, vol. 56, issue 6, No 3, 3787-3810

Abstract: Abstract Research on sustainable business models and climate change is the focus of this article, which examines the industry, business and sustainability which has attracted a lot of attention. Because of this, we are investigating the effects of implementing business sustainability capabilities using a multiple-case methodology. An original report on China's small- and medium-sized businesses provided the data for this study that examined the theoretical and empirical relationships between financial literacy, innovation and environmental conservation. We devised a conceptual model to demonstrate the impact of corporate sustainability skills and competencies on climate change. Endogeneity concerns connected to financial literacy, innovation and ecological sustainability necessitate the employment of an instrumental variable for climate change. After adjusting for individual and firm characteristics, we found that financial literacy may substantially impact a company's sustainable business model. The findings suggest that financial literacy may boost company innovations by relieving financial restrictions and enhancing corporate governance, both of which contribute to the development of sustainable businesses that assist in increasing climate change mitigation efforts. On the other hand, innovation has a more significant influence on low-leverage companies. There was also a lot of talk about climate change, greenhouse gas emissions and climate change in the business context. This research, therefore, sheds light on how business sustainability capabilities and competencies might improve a company's environmental performance.

Keywords: Business model; Financial literacy; Innovation; Climate change; Green economic recovery (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10644-022-09408-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:ecopln:v:56:y:2023:i:6:d:10.1007_s10644-022-09408-1

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10644/PS2

DOI: 10.1007/s10644-022-09408-1

Access Statistics for this article

Economic Change and Restructuring is currently edited by George Hondroyiannis

More articles in Economic Change and Restructuring from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().