Sustainable and Resilient Global Practices: Advances in Responsiveness and Adaptation

We operate in a complex dynamic world where human activities interfere with the environment in ways that may cause unpredictable extreme outcomes that reflect exposure to uncertainty and unknown factors as opposed to identifiable risk events. As humans, we tend to downplay the effects of uncertainty and create a false sense of security by adopting formal control-based management practices where we in truth face more uncertainties than we realize. Hence, we attempt to assess extreme disaster events to mitigate adverse effects but fail to address the underlying causes for the exposures rooted in the way we have organized global economic activities. Exposures partially derive from the way enterprises govern their economic assets while systemic exposures derive from the way we conduct our global business practices. Identified exposures are typically local whereas the systemic causes are global with collective societal effects. Therefore, mitigating enterprise exposures will not address the global systemic causes for the extreme societal effects. To reach more sustainable solutions we must involve businesses that operate the global economy as well as the societies they operate in around the world. Given the extreme uncertainty of systemic risks, grand solutions cannot be derived from computational analytics but require experimentation among engaged public and private organizations and open collaborative learning to identify viable solutions from diverse insights. We must embrace uncertainty to explore innovative opportunities for proposed solutions and implement them in gradual co-evolving progression to develop viable sustainable economic outcomes.

Although adaptation to climate change is a well-researched topic at the individual level and in highly vulnerable industries, its integration into business strategies is poorly researched. In this chapter, we conduct bibliometric analyses on a sample of 368 relevant papers published in business journals to derive descriptive statistics and map the conceptual and intellectual structure of the field. We find an increased interest in adaptation and confirm a strong representation of industry-specific research. We complement the bibliometric analyses with a content analysis focused on emergent themes in the adaptation scholarship. We discuss systemic influences, individual effects, regulations and stakeholders, and exposure as areas likely to attract further scrutiny in future scholarship. For each theme, we derive practical implications for practitioners and policymakers.

Natural disasters represent an increasing threat to businesses, putting at risk their continuity in light of sustainable performance conditions. The present chapter explores the role of organizational resilience and of human capital in manufacturing companies hit by a natural disaster, an earthquake in the current study, by considering performance in the long run. In doing so, a survey has been performed on a sample of 131 manufacturing companies hit by the Emilia earthquake (Italy) in 2012, considering both perceptual data and balance sheet data. This represents a key contribution of this chapter, as extant literature on the impact of resilience on business performance has mainly used perceptual data; conversely, our study, considering balance sheet data, enables a more comprehensive and realistic view of the phenomenon. The sample was selected from the AIDA database, as it includes revenue data that we could add to the perceptual measures obtained by administering a structured questionnaire. Partial least squares structural equation modeling (PLS-SEM) was then employed. The results show the importance of developing adaptive processes that leverage on the organization’s human capital and resilience to respond to adverse exogenous events. More specifically, it has been found that human capital and organizational resilience are profitable to post-disaster economic performance in the long run, supporting the economic sustainability of affected businesses. The implications are related to reinforcing new business solutions and adaptive strategies, looking at both organizational resilience and human capital investment to reach a stable economic business performance in the long-run after a detrimental event.

Environmental sustainability orientation has emerged to drive firms into eco-friendly production. Yet, the consequence of this new strategic thinking on firms’ green innovations, especially small- and medium-scale enterprises (SMEs), remains unresolved. Recognizing that the connection between environmental sustainability orientation and green innovation may not always be direct, the study theorizes that dynamic capability and entrepreneurial orientation may form part of the boundary conditions that strengthen its effect on small enterprises’ green innovation. The study adjoins the dynamic capability theory with the entrepreneurial orientation theory to test this relationship among small businesses within a developing economy. Results from the partial least squares–structural equation modeling (PLS-SEM) suggest that environmental sustainability orientation will result in green innovation when the SME’s dynamic capability can develop a creative reconfiguration of knowledge and new distinctive resources to support this new strategic direction. Similarly, findings from the study suggest that environmental sustainability orientation will translate into better green innovation outcomes when the SME entrepreneurial orientation has a solid attraction to protect the ecosystem and does not perceive green innovation as a risky enterprise.

The study analyzes a survey of 372 businesses operating in the East Midlands and reveals the trends of engagement with green growth, demand for green skills development and pro-environmental business support. The findings confirm major differences in how large and small businesses engage with green growth and the challenges they face. Sectorial characteristics are of significance in growth trends and confirm manufacturing companies derive more turnover from the green products when compared to services. Manufacturing companies are also more proactive than services in integrating the green growth ambitions with the business strategy. Green skills and information gaps are major obstacles to business engagement with green growth. Business support agencies are urged to broaden the scope and availability of the pro-environmental enterprise support. Policy community is advised to develop support mechanisms that reduce skills and information gaps. A transformative approach to enterprise support is advocated in order to catalyze the contribution of the business community to sustainable regional development.

Published in June 2020, the European Union (EU) Taxonomy Regulation is an important tool for the reorientation of capital flows toward sustainability, establishing a classification system that enables investors to identify green economic activities. Confronted by the reporting demands of this regulation, companies are caught in a sustainability economic revolution. This study seeks primarily to understand firms’ responses to the EU taxonomy, and whether they recognize value creation opportunities by aligning market and nonmarket strategies with the taxonomy goals. For that, we conducted expert interviews and adopted a conceptual framework based on institutional theory, dynamic capabilities view and nonmarket strategy research. Our findings indicate that most firms respond reactively, while firms with sustainability-driven business models tend to respond in an anticipatory way, and firms with high greenhouse gas (GHG) emissions and low taxonomy eligibility in a defensive way. We also find evidence for mimetic isomorphism related to the influence of consulting and auditing services. Further, high levels of uncertainty, ambiguity and lack of clarity has a great impact on firms’ responses and motives. Finally, this study highlights the EU taxonomy considering a paradigmatic shift toward sustainability, which is not recognized by most firms. To this end, we find that most companies have not identified opportunities arising from nonmarket integration and, rather, see the taxonomy only as an extra regulation to be compliant with. Hence, we argue that it is crucial that firms contextualize the taxonomy within its larger institutional paradigmatic shift to capture the importance of going beyond mere compliance.

This chapter explores the strategic responsiveness of commodity multinationals operating in developing countries to the uncertainties raised by the emergent European Union (EU) sustainability regulation. The study applies deductive theory triangulation to derive five response propositions, subsequently contrasted with inductive insights from an exploratory single-case study. The research involves in-depth interviews with a mix of senior and middle management and numerous external stakeholders. Empirical findings are discussed through storytelling and retrospective sensemaking and cross-checked against corporate documents, archive material, and online articles for added validation. This chapter concludes that an authentic commitment to corporate social responsibility and creating shared value can enhance the multinational enterprise (MNE)’s resilience and responsiveness to regulatory uncertainty, especially when combined with early signal scanning and real options reasoning. Through varied, first-hand insights, the case study demonstrates the role of reputation, core values, and ethical leadership in support of effective stakeholder engagement capabilities and the MNE’s ability to develop viable collaborative solutions to uncertainties implied by evolving sustainability regulation and stakeholder expectations. Taking an evolutionary view, this chapter introduces a process perspective on sustainability transition, relevant to firms seeking a shift in focus from mere compliance toward strategic responsiveness founded on adaptability and renewal.

Interest in the intersection of sustainability and supply chain resiliency has grown in recent years by managers and scholars. However, examples of how sustainability can improve resiliency are rare. The purpose of this article is to address this dearth of evidence by investigating how sustainable strategies and practices can create more robust supply chains that are resilient to global disruptions. A strategic model of resiliency is introduced based on the supply chain management practices at Dr. Bronner’s, a rapidly growing personal care product company. The case study data explores the relationship between sustainability and resiliency and reveals a potential pathway for companies to merge the two.

Justice appears as an important strategic concept for promoting sustainability. Among the sustainable development goals established by the United Nations (UN), Goal 16 is about providing access to justice for all and building effective, accountable, and inclusive institutions. In the stakeholder theory perspective, the perception of fair treatment in the stakeholder management allows the organization to value fairness, impartiality, and morality among all stakeholders. The purpose of this chapter is to analyze the influence of justice in the organizational processes of a network of solidarity economy cooperatives. We used semi-structured interviews and desk research on documents made available by the network. The results point to a series of values and processes based on justice throughout the production and managerial chain, providing relationships understood as fair, which can be replicated in organizations that pursue the same ideals.