Developing a measure of climate strategy proactivity displayed to attain competitive advantage

Abstract

Purpose This paper aims to develop a scale to measure climate strategy proactivity (CSP) displayed by corporate in developing countries to attain competitive advantage (CA) and sustain it through sources of sustained competitive advantage (SOSCA). It attempts to derive sound operational definitions of CSP, CA and SOSCA through horizontal analysis of previous studies and discussions with experts and practitioners to construct a measurement scale. Design/methodology/approach Research design includes broad stages, namely, item generation, scale development and assessment of psychometric properties of the scale starting with review of literature and discussions with experts and practitioners, which were followed by a pilot and full study carried out through a cross-sectional, self-administered online survey questionnaire and assessment using suitable tools and techniques. Findings Findings of the study comprise development of sound operational definitions and construction of a valid and reliable measurement scale of CSP displayed by corporate to attain CA with strong psychometric properties, which is expected to be useful in developing countries not only for researchers and academics but also for the practitioners and organizations. Research limitations/implications The information was self-reported by respondents through climate strategy proactivity questionnaire (CSPQ) and consequently can be at risk to have been influenced by bias. Nonetheless, this CSPQ scale devoid of conceptual problems can be used in developing countries in future empirical studies with the caution that its reliability and validity require further tests. Practical implications Using the CSPQ scale will help managers in developing countries in enhancing their awareness with the provision of these conceptually clear comprehensive operational definitions of CSP, CA and SOSCA with respect to the conceptual nature and the latent expressions, and draw an extensively enhanced scope of climate-conscious strategy to bring about CA. Originality/value With the data collected from a sample representing different stakeholders of Indian companies from across the country, CSPQ scale possesses significant robustness and implicative potential which can contribute to the evolution of the strategic management field by providing a valid and reliable measure of CSP in developing countries applicable under any major theoretical perspective in strategic management serving the needs of not only the empirical research but also of the management practices intended to attain CA.

Primary validation of climate strategy proactivity questionnaire scale measuring relationship of climate strategy proactivity with competitive advantage

“…CSP is defined by Kant and Agrawal (2020) as strategic behavior that a company demonstrates for the purpose of meeting the expectations of its stakeholders with the voluntary adoption of those climate-conscious preventive practices which are not mandatorily required to be complied with as per regulations. Traditional business strategies affect climate negatively, threatening the very existence of humans (Michalisin and Stinchfield, 2010), which suggests that companies need to take up proactively this challenge of treating climate appropriately.…”

“…The first version of the scale measuring CSP displayed by companies to attain CA and sustain it through sources of sustained competitive advantage (SOSCA) was built following the guidelines established by reliable previous studies, with the 42 items developed through review of literature (Kant, 2020b;Kant and Agrawal, 2020) experts and practitioners. These items were preceded by a sentence: "The Indian companies I prefer."…”

“…This comprehensive mixed approach was adopted to nullify the effect of limitations enshrined in following any single method. Review of literature helped in concluding that any widely acceptable measurement scale for CSP displayed by companies in developing countries was not available (Kant, 2020b;Kant and Agrawal, 2020). A request was made to the participants to respond on a five-item Likert scale, with fixed-alternatives limiting social desirability bias (Ibrahim et al, 2006), ranging from "To a great extent" (5) to "Not at all" (1) on account of its adequacy to the participants' demographic characteristics and suitability for statistical validation.…”

“…Sincere companies have shown keen interests and proactivity toward climate conservation by adopting appropriate preventive strategy acting beyond regulatory compliances (Barba-S anchez and Atienza-Sahuquillo, 2016). However, conceptualizing climate strategy proactivity (CSP), a stakeholder-centric proactive and voluntarily displayed strategic corporate behavior, cannot be based on the Western ideologies to contextualize other developing countries, as doing so can lead to avoidable inconsistencies (Kant, 2020a;Kant and Agrawal, 2020). Further, CSP and its relationship with competitive advantage (CA) require a multi-construct approach for a comprehensive understanding.…”

“…It underscored the need for Indian companies to take advantage of the opportunities, reconfiguring their strategies, resources and capabilities which might be taken as the fundamental example of companies in other various developing countries (Bruche, 2012), contextualizing their climate-related issues and concerns. Climate strategy proactivity questionnaire (CSPQ) scale promises to be a helpful tool for the companies in various developing countries in addition to India drawing an exhaustive scope of climatefriendly strategy for gaining and sustaining competitive advantage (Kant and Agrawal, 2020). This paper provides a detailed report of the primary validation of the newly developed CSPQ scale.…”