Leveraging Financial Networks for Sustainable Outcomes: An Integrative Literature Review

Abstract

Purpose - The study aims to explore the integration of financial networks with sustainability goals and examine the challenges and potential of this relationship. It seeks to understand the historical trajectories of financial networks and decipher how they can be leveraged for sustainable development. Research metod - An integrative literature review of peer-reviewed journals from the past decade was employed. The research was conducted in two stages: first, examining the evolution of financial networks; second, interpreting these findings in the context of sustainable development, with sustainability as a primary filter in the review. Results - The outcomes highlight the complexity, vulnerability to instability and contagion, globalisation, centralisation, and the impact of technology on financial networks as the main features of their modern development. The findings emphasise the recent convergence of financial systems with sustainability imperatives, reflecting businesses’ multifaceted responses to these pressures. Financial networks navigate between traditional economic practices and emerging sustainability requirements. Originality / value / implications / recommendations - The study offers insights into integrating sustainability within financial frameworks to address the urgent need to reconfigure financial systems’ practices to mitigate their adverse impacts on sustainable development. The research underscores the importance of resilient, transparent, and adaptable financial networks amid global interconnectivity, dependencies, and associated risks.