Pathways to Sustainable Competitive Advantage: Integrating Firm‐Level Sustainability Targets, Eco‐Innovation, and Sustainable Governance for Circular Business Transformation

ABSTRACT As global industries confront escalating environmental pressures, translating corporate sustainability ambitions into measurable circular outcomes has become increasingly essential. This study investigates how firm‐level sustainability targets (FST) drive the adoption of circular business strategies (CBS) among manufacturing firms in BRICS countries, where rapid industrialization intersects with institutional diversity and sustainability constraints. Grounded in the resource‐based view and strategic fit theory, the study proposes an integrated framework in which eco‐innovation mediates, and sustainable governance moderates, the FST–CBS relationship. Using a panel dataset of 789 listed manufacturing…