Are We Vulnerable? Climate Risk Perception and Vulnerability of Small and Medium Size Agricultural Enterprises in China

Abstract

As management is critical in a company’s strategic development and operation, managers are the main decision-making body of small and medium size agricultural enterprises in response to climate change, it is essential to understand and improve the level of climate risk perception as well as perceived climate vulnerability of corporate directors. Climate risk perception stresses risk identification while perceived vulnerability highlights risk management. Through literature review, the research proposes a measurement method for climate risk perception and perceived vulnerability of corporate management, constructs their influencing factors index system, and employs an online questionnaire to collect data for quantitative analysis. The study finds influencing factors of climate risk perception of managers include individual education level, environmental values, environmental concern, enterprise operation capability, and exposure to media. Contrary to research findings of objective vulnerability, objective adaptability of enterprises exerts no significant impact on enterprise vulnerability; whereas climate risk perception and perceived adaptability of managers impact on enterprise vulnerability negatively. To reduce the vulnerability of agricultural SMEs under climate change, this research urges to improve climate risk perception of managers by tailored climate information dissemination through diversified media channels and improve the efficiency of environmental laws and regulations. Keywords: Risk perception, Perceived vulnerability, Climate change, Management personnel, Agricultural enterprises