Sustainability As a Strategic Innovation and Its Effect on Investor Attitudes in The Next Generation: Fuzzy Optimization Model

Abstract

In India rapidly evolving business environment, sustainability has transitioned from a peripheral concept to a central element of strategic innovation that shapes corporate competitiveness, value creation, and stakeholder engagement. This paper examines the transformative potential of sustainability as a strategic innovation and its impact on next-generation investor attitudes. Drawing from interdisciplinary literature and empirical research, it highlights how sustainability-oriented practices—such as circular economy adoption, green technology integration, and ethical governance—are redefining long-term business success. The study emphasizes that Millennials and Gen Z investors increasingly prioritize environmental, social, and governance (ESG) principles, demanding transparency, accountability, and sustainable impact over short-term financial returns. Consequently, organizations embedding sustainability into their core strategy are not only improving operational efficiency and brand credibility but also strengthening their appeal to ethically conscious investors. Moreover, the research explores the role of digital technologies and fintech platforms in democratizing ESG data, empowering young investors to make data-driven, responsible investment decisions. Using qualitative insights and fuzzy modeling, the paper demonstrates that transparency, technological innovation, and governance are key determinants of positive investor sentiment. Ultimately, the convergence of sustainability and strategic innovation is fostering a paradigm shift where responsible business practices and financial performance reinforce each other, creating an inclusive, resilient, and future-ready investment ecosystem.