Supply chain management (SCM) increasingly needs to address both climate change mitigation and ad... more Supply chain management (SCM) increasingly needs to address both climate change mitigation and adaptation issues. While mitigation aims at sustainability by reducing the environmental impact of supply chains (SCs), adaptation entails improving resilience by increasing the ability to cope with climate-induced disruptions. Although sustainable SCM (SSCM) and resilient SCM (RSCM) are of increasing importance, there has been little effort to conceptually connect SSCM and RSCM. Our study explores the interconnections between both concepts by outlining theoretical elements and conducting a case study of four companies in the automotive SC based on company documents and interviews. Results show that SSCM is prioritised
So far, research has insufficiently addressed the long-term effectiveness of business responses t... more So far, research has insufficiently addressed the long-term effectiveness of business responses to climate change in delivering actual outcomes. The aim of this article is therefore to analyze the determinants of such strategies and their influence on firms' financial and carbon performance over time. It is argued that corporate carbon strategies have three main objectives: carbon governance, carbon reduction and carbon competitiveness. To assess the complex interactions between these strategic objectives, their determinants and outcomes, an integrative structural equation model is developed and empirically tested. Data are sourced from a global sample of 45 leading enterprises from the steel, cement and automotive sector, including some of the largest GHG emitters in the world. In order to account for the long-term impacts of strategies, the firm-level change in financial and carbon performance is calculated by comparing two different points in time, namely 2008 and 2013. The results provide empirical evidence for the positive effect of institutional and stakeholder pressure on emission reduction activities. Proof for a positive impact of carbon pressure on organizational capabilities and corporate competitiveness in the context of climate change cannot be established. Surprisingly, the results also indicate no relationship between carbon reduction activities and long-term improvements in carbon performance. However, such measures are linked to long-term financial gains. Advancements in carbon performance, in turn, are not found to be associated with economic benefits.
Companies are increasingly challenged for action on climate change. Most studies on business resp... more Companies are increasingly challenged for action on climate change. Most studies on business responses to climate change focus on cross-sector comparisons and neglect intra-sectoral dynamics. This paper investigates the influence of supply chain position and regional affiliation on climate change strategies within a particular industry. We present a generic framework integrating both market and non-market responses to climate change. We argue that climate change strategies comprise several corporate activities that have different foci of interaction and four main objectives: governance, innovation, compensation and legitimation. Using a global sample of 116 automotive companies, we conduct a cluster analysis and identify four types of strategy. We find that the sophistication of automobile manufacturers' strategies significantly differs from that of suppliers. Regional affiliation and firm size prove to be determinants of the strategy type pursued. We cannot find evidence for a relationship between financial performance and a company's strategic approach to climate change.
To prevent adverse effects from climate change, it is vital to involve the private sector in miti... more To prevent adverse effects from climate change, it is vital to involve the private sector in mitigation efforts. So far, however, research has insufficiently addressed the determinants of corporate action in specific industries. Our paper aims at bridging this gap by empirically analyzing the global automotive industry's response to climate change mitigation issues. We use publicly available information from 105 sector leaders to investigate the role of external institutional pressures and intra-organizational governance in the extent of corporate action. Based on a multiple regression analysis, we find that organizational involvement and the integration of climate change into risk management exhibit the greatest influence. Moreover, companies with business activities that necessitate interaction with the end consumer tend to be most active. Our analysis furthermore indicates that neither the stringency of a firm's home country's climate policy regime nor the degree of internationalization is associated with a higher implementation level of response strategies.
Supply chain management (SCM) increasingly needs to address both climate change mitigation and ad... more Supply chain management (SCM) increasingly needs to address both climate change mitigation and adaptation issues. While mitigation aims at sustainability by reducing the environmental impact of supply chains (SCs), adaptation entails improving resilience by increasing the ability to cope with climate-induced disruptions. Although sustainable SCM (SSCM) and resilient SCM (RSCM) are of increasing importance, there has been little effort to conceptually connect SSCM and RSCM. Our study explores the interconnections between both concepts by outlining theoretical elements and conducting a case study of four companies in the automotive SC based on company documents and interviews. Results show that SSCM is prioritised
So far, research has insufficiently addressed the long-term effectiveness of business responses t... more So far, research has insufficiently addressed the long-term effectiveness of business responses to climate change in delivering actual outcomes. The aim of this article is therefore to analyze the determinants of such strategies and their influence on firms' financial and carbon performance over time. It is argued that corporate carbon strategies have three main objectives: carbon governance, carbon reduction and carbon competitiveness. To assess the complex interactions between these strategic objectives, their determinants and outcomes, an integrative structural equation model is developed and empirically tested. Data are sourced from a global sample of 45 leading enterprises from the steel, cement and automotive sector, including some of the largest GHG emitters in the world. In order to account for the long-term impacts of strategies, the firm-level change in financial and carbon performance is calculated by comparing two different points in time, namely 2008 and 2013. The results provide empirical evidence for the positive effect of institutional and stakeholder pressure on emission reduction activities. Proof for a positive impact of carbon pressure on organizational capabilities and corporate competitiveness in the context of climate change cannot be established. Surprisingly, the results also indicate no relationship between carbon reduction activities and long-term improvements in carbon performance. However, such measures are linked to long-term financial gains. Advancements in carbon performance, in turn, are not found to be associated with economic benefits.
Companies are increasingly challenged for action on climate change. Most studies on business resp... more Companies are increasingly challenged for action on climate change. Most studies on business responses to climate change focus on cross-sector comparisons and neglect intra-sectoral dynamics. This paper investigates the influence of supply chain position and regional affiliation on climate change strategies within a particular industry. We present a generic framework integrating both market and non-market responses to climate change. We argue that climate change strategies comprise several corporate activities that have different foci of interaction and four main objectives: governance, innovation, compensation and legitimation. Using a global sample of 116 automotive companies, we conduct a cluster analysis and identify four types of strategy. We find that the sophistication of automobile manufacturers' strategies significantly differs from that of suppliers. Regional affiliation and firm size prove to be determinants of the strategy type pursued. We cannot find evidence for a relationship between financial performance and a company's strategic approach to climate change.
To prevent adverse effects from climate change, it is vital to involve the private sector in miti... more To prevent adverse effects from climate change, it is vital to involve the private sector in mitigation efforts. So far, however, research has insufficiently addressed the determinants of corporate action in specific industries. Our paper aims at bridging this gap by empirically analyzing the global automotive industry's response to climate change mitigation issues. We use publicly available information from 105 sector leaders to investigate the role of external institutional pressures and intra-organizational governance in the extent of corporate action. Based on a multiple regression analysis, we find that organizational involvement and the integration of climate change into risk management exhibit the greatest influence. Moreover, companies with business activities that necessitate interaction with the end consumer tend to be most active. Our analysis furthermore indicates that neither the stringency of a firm's home country's climate policy regime nor the degree of internationalization is associated with a higher implementation level of response strategies.
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