IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i2p558-d1315689.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    Estonian Entrepreneurship University of Applied Sciences, 11415 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)

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.

Suggested Citation

  • Iryna Bashynska & Yuliia Malynovska & Nataliia Kolinko & Taliat Bielialov & Marina Järvis & Krystyna Kovalska & Mariia Saiensus, 2024. "Performance Assessment of Sustainable Leadership of Enterprise’s Circular Economy-Driven Innovative Activities," Sustainability, MDPI, vol. 16(2), pages 1-26, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:2:p:558-:d:1315689
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/2/558/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/2/558/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dariusz Sala & Kostiantyn Pavlov & Olena Pavlova & Anton Demchuk & Liubomur Matiichuk & Dariusz Cichoń, 2023. "Determining of the Bankrupt Contingency as the Level Estimation Method of Western Ukraine Gas Distribution Enterprises’ Competence Capacity," Energies, MDPI, vol. 16(4), pages 1-13, February.
    2. Ariana Chang & Tian-Shyug Lee & Hsiu-Mei Lee & Jing Wang, 2023. "The Influence of Responsible Leadership on Strategic Agility: Cases from the Taiwan Hospitality Industry," Sustainability, MDPI, vol. 15(3), pages 1-15, February.
    3. Justyna Berniak-Woźny & Małgorzata Rataj, 2023. "Towards Green and Sustainable Healthcare: A Literature Review and Research Agenda for Green Leadership in the Healthcare Sector," IJERPH, MDPI, vol. 20(2), pages 1-18, January.
    4. Székely, Francisco & Knirsch, Marianna, 2005. "Responsible Leadership and Corporate Social Responsibility:: Metrics for Sustainable Performance," European Management Journal, Elsevier, vol. 23(6), pages 628-647, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elena Cizmaș & Emőke-Szidónia Feder & Mădălina-Dumitrița Maticiuc & Silvia Vlad-Anghel, 2020. "Team Management, Diversity, and Performance as Key Influencing Factors of Organizational Sustainable Performance," Sustainability, MDPI, vol. 12(18), pages 1-33, September.
    2. Md. Ahashan Habib & Md. Rezaul Karim & Marzia Dulal & Mohammad Shayekh Munir, 2022. "Impact of Institutional Pressure on Cleaner Production and Sustainable Firm Performance," Sustainability, MDPI, vol. 14(24), pages 1-25, December.
    3. Bartosz Sawik, 2024. "Optimizing Last-Mile Delivery: A Multi-Criteria Approach with Automated Smart Lockers, Capillary Distribution and Crowdshipping," Logistics, MDPI, vol. 8(2), pages 1-29, May.
    4. Viju Raghupathi & Jie Ren & Wullianallur Raghupathi, 2020. "Identifying Corporate Sustainability Issues by Analyzing Shareholder Resolutions: A Machine-Learning Text Analytics Approach," Sustainability, MDPI, vol. 12(11), pages 1-24, June.
    5. Nadine Székely & Jan vom Brocke, 2017. "What can we learn from corporate sustainability reporting? Deriving propositions for research and practice from over 9,500 corporate sustainability reports published between 1999 and 2015 using topic ," PLOS ONE, Public Library of Science, vol. 12(4), pages 1-27, April.
    6. Jacob D Rendtorff, 2019. "Sustainable Development Goals and progressive business models for economic transformation," Local Economy, London South Bank University, vol. 34(6), pages 510-524, September.
    7. María Luisa Pajuelo Moreno & Teresa Duarte-Atoche, 2019. "Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model," Sustainability, MDPI, vol. 11(16), pages 1-33, August.
    8. Jorge A. Arevalo & Deepa Aravind, 2017. "Strategic Outcomes in Voluntary CSR: Reporting Economic and Reputational Benefits in Principles-Based Initiatives," Journal of Business Ethics, Springer, vol. 144(1), pages 201-217, August.
    9. Muhammad Zahid & Haseeb Ur Rahman & Musa Khan & Wajahat Ali & Fazaila Shad, 2020. "Addressing endogeneity by proposing novel instrumental variables in the nexus of sustainability reporting and firm financial performance: A step‐by‐step procedure for non‐experts," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3086-3103, December.
    10. Hazal Koray Alay & Abdulkadir Keskin & Meri Taksi Deveciyan & Gülaçtı Şen & Didem Kayalıdereden & Şayan Berber, 2024. "The Impact of Green Business Ethics and Green Financing on Sustainable Business Performance of Industries in Türkiye: The Mediating Role of Corporate Social Responsibility," Sustainability, MDPI, vol. 16(17), pages 1-21, September.
    11. Angel Sevil & Alfonso Cruz & Tomas Reyes & Roberto Vassolo, 2022. "When Being Large Is Not an Advantage: How Innovation Impacts the Sustainability of Firm Performance in Natural Resource Industries," Sustainability, MDPI, vol. 14(23), pages 1-20, December.
    12. Prasanta Kumar Dey & Chrisovaladis Malesios & Debashree De & Pawan Budhwar & Soumyadeb Chowdhury & Walid Cheffi, 2020. "Circular economy to enhance sustainability of small and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2145-2169, September.
    13. Tze San Ong & Boon Heng Teh & Ah Suat Lee, 2019. "Contingent Factors and Sustainable Performance Measurement (SPM) Practices of Malaysian Electronics and Electrical Companies," Sustainability, MDPI, vol. 11(4), pages 1-33, February.
    14. Mina Nasiri & Tero Rantala & Minna Saunila & Juhani Ukko & Hannu Rantanen, 2018. "Transition towards Sustainable Solutions: Product, Service, Technology, and Business Model," Sustainability, MDPI, vol. 10(2), pages 1-18, January.
    15. Gupta, Suraksha & Czinkota, Michael & Melewar, T.C., 2013. "Embedding knowledge and value of a brand into sustainability for differentiation," Journal of World Business, Elsevier, vol. 48(3), pages 287-296.
    16. Muhammad Ishtiaq Ishaq & Eleonora Di Maria, 2020. "Sustainability countenance in brand equity: a critical review and future research directions," Journal of Brand Management, Palgrave Macmillan, vol. 27(1), pages 15-34, January.
    17. Francesco Calza & Giorgia Profumo & Ilaria Tutore, 2016. "Corporate Ownership and Environmental Proactivity," Business Strategy and the Environment, Wiley Blackwell, vol. 25(6), pages 369-389, September.
    18. Rubén Martínez-Alonso & María J. Martínez-Romero & Alfonso A. Rojo-Ramírez, 2019. "Examining the Impact of Innovation Forms on Sustainable Economic Performance: The Influence of Family Management," Sustainability, MDPI, vol. 11(21), pages 1-22, November.
    19. Camélia Radu & Nadia Smaili, 2021. "Corporate performance patterns of Canadian listed firms: Balancing financial and corporate social responsibility outcomes," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3344-3359, November.
    20. Ming‐Lang Tseng & Ming K. Lim & Kuo‐Jui Wu, 2018. "Corporate sustainability performance improvement using an interrelationship hierarchical model approach," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1334-1346, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:2:p:558-:d:1315689. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.