EXPRESS: Integrating Operations and Finance for Sustainable Development: Theory, Practice, and Opportunities

Sustainable development demands addressing two core challenges: mobilizing financial resources and aligning stakeholder incentives. This paper surveys the operations-finance interface literature through the lens of “Mobilizing Resources” and “Aligning Incentives” framework. We highlight how the literature advances our knowledge of mitigating SME financing constraints and crafting operationally-informed financial contracts to internalize externalities. We identify a critical gap: while theoretical models for incentive alignment are well-established, empirical evidence remains limited due to the difficulty of analyzing unstructured data. To bridge this gap, we present Large Language Models (LLMs) as a rigorous methodological toolkit for empirical operations management research. We outline a four-step framework—Problem Definition, Model Selection, Prompt Engineering, and Validation—and illustrate its application via a case study that extracts novel data on supplier finance programs from corporate 10-K filings. We conclude by proposing a unified research agenda to advance future research at the intersection of operations, finance, and sustainability.

Authors

Publication Details

Journal
Production and Operations Management
Published
2026-05-16
DOI
https://doi.org/10.1177/10591478261454786
Primary Topic
Supply Chain Resilience and Risk Management
Type
article
Field-Weighted Citation Impact
0.00

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article

EXPRESS: Integrating Operations and Finance for Sustainable Development: Theory, Practice, and Opportunities

Yuxuan Zhang, Boya Peng, Jing Wu
Production and Operations Management
Supply Chain Resilience and Risk Management
article

EXPRESS: Integrating Operations and Finance for Sustainable Development: Theory, Practice, and Opportunities

Yuxuan Zhang, Boya Peng, Jing Wu
article en

Abstract

Sustainable development demands addressing two core challenges: mobilizing financial resources and aligning stakeholder incentives. This paper surveys the operations-finance interface literature through the lens of “Mobilizing Resources” and “Aligning Incentives” framework. We highlight how the literature advances our knowledge of mitigating SME financing constraints and crafting operationally-informed financial contracts to internalize externalities. We identify a critical gap: while theoretical models for incentive alignment are well-established, empirical evidence remains limited due to the difficulty of analyzing unstructured data. To bridge this gap, we present Large Language Models (LLMs) as a rigorous methodological toolkit for empirical operations management research. We outline a four-step framework—Problem Definition, Model Selection, Prompt Engineering, and Validation—and illustrate its application via a case study that extracts novel data on supplier finance programs from corporate 10-K filings. We conclude by proposing a unified research agenda to advance future research at the intersection of operations, finance, and sustainability.

Production and Operations Management
National Natural Science Foundation of China
Openalex Percentile: Top 4%
Supply Chain Resilience and Risk Management
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