Abstract for: Accelerating the Adoption of True Sustainability - Why Firms Are Delaying Adoption and How We Can Help Them

The study addresses the slow adoption of true sustainability among industrial SMEs, where firms prioritize short-term compensatory actions over fundamental business model changes. Existing research mainly focuses on incremental improvements rather than systemic transformation. By identifying the key barriers—such as perceived risk, uncertainty, and stakeholder pressure—the study aims to improve understanding of the mechanisms delaying sustainability adoption and how they can be overcome. To analyze this problem, the study employs system dynamics modelling, combining causal loop diagrams to map feedback mechanisms and quantitative simulations to test policy interventions. The model is validated through structure and sensitivity tests, drawing on literature on sustainable business models, corporate decision-making, and stakeholder influence. This ensures a rigorous approach to understanding long-term sustainability transitions. Findings reveal that firms delay sustainability adoption due to the temporary effectiveness of compensatory actions and uncertainty about true sustainability’s risks and benefits. The study highlights reinforcing and balancing feedback loops influencing adoption, demonstrating that policies combining stakeholder pressure with risk-reducing incentives—such as government subsidies and awareness campaigns—can significantly accelerate the transition to inherently sustainable business models. Ultimately, the study contributes by integrating system dynamics into sustainability research, offering a dynamic perspective on corporate decision-making and identifying high-leverage interventions. Future research could incorporate empirical validation, refine industry-specific dynamics, and explore the long-term effects of combined policy measures to further accelerate the adoption of true sustainability. AI used for rewriting sentences for clarity