The Relationship Between Technological Advancement and Blue Practices: Examining the Moderating Role of Stakeholder Engagement

The burgeoning blue economy, crucial for sustainable development, is under pressure from human activity and climate change. This study, using a quantitative, cross-sectional design on 600 publicly listed companies, investigates the relationship between technological advancement and firms' blue practices in water management, including the moderating role of stakeholder engagement. We find a significant positive association between technological advancement (water technology scores and patent counts) and blue practices, consistent with the idea that advanced technical capabilities may be linked to effective water-efficiency solutions. Stakeholder engagement also shows a significant positive association with blue practices, highlighting its positive link to sustainability. However, stakeholder engagement does not significantly moderate the relationship between technology and blue practices. These findings contribute to the twin transition framework and instrumental stakeholder theory by emphasizing the independent importance of technological advancement and stakeholder collaboration for sustainable water management in the blue economy, and offer relevant managerial and policy implications.