Based on institutional theory and the dynamic capability view, Surajit Bag, a Teacher Researcher at EMLV, examines the relationship between a firm’s climate change adaptation (CCA) capability and performance, focusing on the mediating influence of business-to-business (B2B) marketing capability.
The study “Synergies of Institutional Theory and Dynamic Capability View in Firm Performance: Exploring Climate Change Adaptation and B2B Marketing Capabilities”, published at FNEGE Medias, poses two main research questions: RQ1: What role do institutional pressures play in fostering CCA capability among B2B firms in developed and developing countries? RQ2: How does the CCA capability of B2B firms impact their performance?
The impact of climate change in the word
Climate change affects every country, wreaking damage on national economies and impacting people’s lives.
Extreme weather incidents become more common as climate patterns shift and sea levels rise. Climate change and its related causes can exacerbate natural disasters and put businesses at risk.
The United Nations Secretary-General has suggested six climate-friendly actions for governments to undertake as they rebuild their economies and societies: green changeover, green work, inclusive and sustainable development, green economy, investment in sustainable solutions, and collaborations to challenge climate risk.
Business Role and Research Questions
Business-to-business (B2B) companies can act as environmental gatekeepers to ensure the long-term existence of the earth.
However, investigations into the role of institutional pressures in developing climate change adaptation (CCA) capability in developed and developing nations are lacking.
Against this backdrop, we seek to address the following research questions:
1. What is the role of institutional pressures in developing CCA capability among B2B firms in developed and developing countries?
2. How does the CCA capability of B2B firms affect their performance?
We used empirical research design to conduct this study. In study one, data were collected from B2B firms in Australia, a developed country.
In study two, the survey was conducted in South Africa, a developing country, using a scientifically designed questionnaire. Data analysis was performed using WPLS 7 software.
Study Results and Implications
Our study adds to the body of knowledge on B2B firms’ responses to climate change in three ways. First, we clarify the causal mechanisms that underpin B2B firms’ climate change actions in developed and developing countries.
Second, we present empirical evidence for the efficacy of different institutional forces by evaluating hypotheses from the perspective of institutional theory.
Third, we develop knowledge about the value of CCA capability and marketing capability for improving B2B firms’ performance by applying our dynamic capability view standpoint.
Theoretical and managerial implications include:
1. Policymakers may consider enforcing industry standards or establishing regulatory frameworks that support ethical business behavior towards CCA.
2. Policymakers should recognize that different institutions may have diverse mechanisms for influencing business behavior and adjust their strategies accordingly.
3. Corporate CC initiatives are driven equally by climate change adaptation management capability (CCMC) and climate change adaptation talent capability (CCTC). Firms and policymakers should invest in management and personal development.
4. The importance of employing successful marketing tactics to improve firm performance is highlighted by the positive association between BBMC and B2B firms’ performance. Businesses should focus on enhancing their market capabilities to boost overall performance.
5. The study reveals a positive and significant relationship between CCA capability and B2B firms’ performance. Highlighting possible financial advantages may persuade companies to adopt climate-responsive business practices.
6. The findings indicate that B2B firms’ marketing capability is a mediator, improving the link between CCA capability and B2B firms’ performance. Marketing competencies are crucial in converting CC efforts into observable business results, suggesting companies should concentrate on both CCA procedures and actively promoting these procedures to stakeholders.
