Organizational Capabilities in ESG Strategy: Mapping the Black Box of Performance Translation

The current state of organizational capabilities within the field of environmental, social, and governance (ESG) strategy is specified in this scoping review, in order to fuel the process of identifying significant gaps in the area of knowledge. The literature focus is observed to be grounded on five kinds of capabilities (innovation, dynamic, digital, governance and stakeholder) and their positive correlation with the ESG performance after conducting a review of 105 articles (2015-2025). Such capabilities operate in the ways of utilization of resources more efficiently and the coordination of stakeholders in a better way. Three major gaps were identified, such as limited knowledge regarding the development of capabilities and processes, excessive dependence on the Chinese context (41.9% of papers) that limits inter-institutional comparison, and no focus on the failures in implementation. The role of asking the complex question of how and why of capability building in the field is shrouded in the focus on quantifiable, correlation studies. This review recommends longitudinal, cross-national comparative and process-oriented studies on such neglected areas. It aims at charting a path towards the demystification of the black box of the ability in ESG practice.