A relational view of climate adaptation in the private sector: How do value chain interactions shape business perceptions of climate risk and adaptive behaviours?

TY - JOUR

T1 - A relational view of climate adaptation in the private sector

T2 - How do value chain interactions shape business perceptions of climate risk and adaptive behaviours?

AU - Canevari-Luzardo, Laura M.

AU - Berkhout, Frans

AU - Pelling, Mark

PY - 2020/2

Y1 - 2020/2

N2 - Studies exploring climate change adaptation in the private sector have seldom investigated the effect of business network interactions on climate vulnerability and adaptation outcomes. This paper proposes a novel theoretical framework to explore how business–network dynamics affect risk perceptions and adaptive behaviours in business firms. The framework is empirically grounded in a comparative analysis of business–network dynamics from three agricultural value chains in Jamaica that are vulnerable to climate change impacts. The results illustrate how the exposure, sensitivity, and adaptive capacity of value chain actors are influenced by business interdependencies and interfirm relationships. We find that the level of formality of business exchanges (contractual or noncontractual), the level of resource interdependency, and the ability to diversify access channels to critical resources can influence the propagation of climate-related risks and influence actors' exposure and sensitivity to those risks. The study also offers evidence of the role played by bonding and bridging relational ties on adaptive capacity. The framework and findings provide a foundation for a new research agenda exploring a relational view of firm adaptation strategy in response to climate risks.

AB - Studies exploring climate change adaptation in the private sector have seldom investigated the effect of business network interactions on climate vulnerability and adaptation outcomes. This paper proposes a novel theoretical framework to explore how business–network dynamics affect risk perceptions and adaptive behaviours in business firms. The framework is empirically grounded in a comparative analysis of business–network dynamics from three agricultural value chains in Jamaica that are vulnerable to climate change impacts. The results illustrate how the exposure, sensitivity, and adaptive capacity of value chain actors are influenced by business interdependencies and interfirm relationships. We find that the level of formality of business exchanges (contractual or noncontractual), the level of resource interdependency, and the ability to diversify access channels to critical resources can influence the propagation of climate-related risks and influence actors' exposure and sensitivity to those risks. The study also offers evidence of the role played by bonding and bridging relational ties on adaptive capacity. The framework and findings provide a foundation for a new research agenda exploring a relational view of firm adaptation strategy in response to climate risks.

KW - Caribbean

KW - business strategy

KW - climate change impacts

KW - organizational adaptation

KW - private sector

KW - resilience

KW - value chain

UR - http://www.scopus.com/inward/record.url?scp=85072199665&partnerID=8YFLogxK

U2 - 10.1002/bse.2375

DO - 10.1002/bse.2375

M3 - Article

AN - SCOPUS:85072199665

SN - 1099-0836

VL - 29

SP - 432

EP - 444

JO - Business Strategy and The Environment

JF - Business Strategy and The Environment

IS - 2

ER -