Digital Strategizing and Green Innovative Competitive Advantage: The Mediating Role of Circular Economy and Sustainability Culture

Despite increasing pressure to integrate strategy and sustainability, executing digital strategizing remains complex. Organizations often lack clarity about which resource combinations to invest in—and how to deploy them—to build a firm-wide digital strategizing capability that supports circular economy principles and enables green innovative competitive advantage. To address this issue, we developed a research model using partial least squares structural equation modeling based on survey data from 391 senior executives from firms in Brazil and France. The results show that stronger digital strategizing capability enhances green innovative competitive advantage through the mediating role of circular economy principles within a sustainability-oriented culture across both developing and developed contexts. These findings validate the proposed model and highlight pathways for improving sustainable performance by implementing circular strategies through digital strategizing.