Projects per year
Abstract
The changing roles of the United Nations (UN) and national institutions have made addressing climate change a critical concern for many multinational enterprises’ (MNEs) survival and growth. This chapter discusses how such institutions, which vary in their nature and characteristics, shape firm strategies for climate change adaptation. Exploring different versions of institutional theory, the chapter demonstrates how and why institutional characteristics affect typical patterns of firm ownership, governance, and capabilities. These, in turn, influence companies’ internationalisation and climate-change strategies. Climate change poses challenges to how we understand firms’ strategic decisions from both an international business (IB) (HQ–subsidiary relations) and global value chains (GVC) (buyer–supplier relations) perspective. However, climate change also provides opportunities for companies to gain competitive advantages – if firms can reconfigure and adapt faster than their competitors. Existing IB and GVC research tends to downplay the importance of climate change strategies and the ways in which coherent or dysfunctional institutions affect firms’ reconfiguration and adaptation strategies in a globally dispersed network of value creation. This chapter presents a perspective on the institutional conditions that affect firms’ climate change strategies regarding ownership, location, and internalisation (OLI), and GVCs, with ‘investment’ and ‘emerging standards’ playing a significant role. The authors illustrate the discussion using several examples from the Global South (i.e. Bangladesh) and the Global North (i.e. Denmark, Sweden, and Germany) with a special emphasis on the garment industry. The aim is to encourage future research to examine how a ‘business systems’, or varieties of capitalism, institutional perspective can complement the analysis of sustainability and climate change strategies in IB and GVC studies.
Original language | English |
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Title of host publication | Progress in International Business Research : Walking the Talk? MNEs Transitioning Towards a Sustainable World |
Editors | Rob van Tulder, Birgitte Grøgaard, Randi Lunnan |
Number of pages | 30 |
Place of Publication | UK |
Publisher | Emerald Group Publishing |
Publication date | 16 May 2024 |
Pages | 265-294 |
Chapter | 14 |
ISBN (Print) | 978-1-83549-118-8 |
ISBN (Electronic) | 978-1-83549-117-1 |
DOIs | |
Publication status | Published - 16 May 2024 |
Series | Progress in International Business Research |
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Volume | 18 |
ISSN | 1745-8862 |
Bibliographical note
Publisher Copyright:© 2024 by Mohammad B. Rana and Matthew M. C. Allen.
Keywords
- Climate change
- global value chain
- institutions
- international business
- strategy
Fingerprint
Dive into the research topics of 'How Institutions Influence Firms’ Climate Change Strategies: Extending the Perspectives of International Business and Global Value Chains with Business Systems'. Together they form a unique fingerprint.Projects
- 1 Active
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Climate change and global value chains in Bangladesh
Lund-Thomsen, P. (Project Coordinator), Rana, M. B. (PI) & Riisgaard, L. (PI)
01/07/2021 → 30/06/2025
Project: Research
Activities
- 1 Conference presentations
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Home Country Institutions and MNEs’ Strategic Purpose in Least Developed Economies
Rana, M. B. (Speaker), Allen, M. (Speaker) & Liu, J. (Speaker)
13 Apr 2023 → 15 Apr 2023Activity: Talks and presentations › Conference presentations
Impacts
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AAU HELPS TO IMPROVE THE CONDITION OF THE BANGLADESHI GARMENT INDUSTRY
Rana, M. B. (Participant)
Impact: Public policy impact, Social impact, Economic impact
File -
Circular threads: What EU policies mean for sustainable textile exports from Kenya
Rana, M. B. (Participant)
Impact: Economic impact
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Policy Discussion in Television in Bangladesh on apparel Circular Economy and Challenges: রূপান্তরের অর্থনীতি | Apnar Songe | আপনার সঙ্গে | Ekhon TV
Rana, M. B. (Participant)
Impact: Public policy impact
Press/Media
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DKK 11.95M AWARDED TO STUDY THE IMPACT OF CLIMATE CHANGE ON GLOBAL APPAREL VALUE CHAIN IN BANGLADESH
14/06/2021
1 item of Media coverage
Press/Media: Press / Media
Research output
- 1 Citations
- 1 Conference abstract for conference
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Climate Change Strategies in Institutional Perspectives: A Reflection on International Business and the Global Value Chain
Rana, M. B., 1 Dec 2022.Research output: Contribution to conference without publisher/journal › Conference abstract for conference › Research › peer-review