Carbon emission reduction: Understanding the micro‐foundations of dynamic capabilities in companies with a strategic orientation for sustainability performance

Abstract

This article aims to identify the micro‐foundations of dynamic capabilities that underpin a strategic orientation for sustainability performance in order to reduce carbon emissions. These micro‐foundations are examined in relation to two types of strategic orientation for sustainability performance: instrumental and stewardship. A qualitative research design is used to investigate four Dutch stock‐listed companies with either an instrumental or a stewardship strategic orientation. The research shows that certain micro‐foundations of dynamic capabilities achieve carbon emission reductions. Sensing, through measuring carbon emissions, supports a transparent raising of awareness on this issue. Seizing is based on a collaborative and carbon‐driven capturing of value enabled by clear financial incentives linked to reducing carbon emissions. Transforming is supported by an ambidextrous organizational structure and the active diffusion of knowledge concerning carbon emission reduction. Top management can deliver a significant impulse to achieve the desired level of influence related to carbon emission reduction. Our analysis reveals five dimensions (level of influence, level of transparency, level of responsibility, logic of value creation, and logic of embeddedness) that explain the relation between a strategic orientation for sustainability performance and the associated sustainable performance achieved in carbon emission reduction.

The relationship between information processing capabilities, Net-Zero capability and supply chain performance

“…NZC will help them transform their Net-Zero-related approaches to meet the sustainable development goals (SDGs). Dynamic capabilities such as NZC can help organisations sense and measure carbon emissions and transform the organisational structure to achieve sustainability (Chevrollier et al , 2023). Net-Zero carbon practices have been critical for organisations in global warming.…”

“…through measuring carbon emission data, seizing, i.e. integration and collaboration of data through SCI and SCV, and transforming through the development of information processing capability such as NZC to reduce carbon emission across the sub-tier suppliers and channel partners (Chevrollier et al , 2023). Leading organisations like Apple, Samsung, BMW and Sony leverage SC data to optimise their SCs and achieve Net-Zero targets (Liu et al , 2022).…”

“…Net-Zero will be a high priority for organisations to meet the SDGs (Govindan, 2023). The timely reporting of carbon emission data helps top management of organisations to smartly align their resources, strategies and approaches to reduce emissions (Scope 3) across the SC (Chevrollier et al , 2023; Zhang et al , 2022a), which will eventually result in the form of sustainable performance (Patil et al , 2023).…”