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

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  • Laura M. Canevari‐Luzardo
  • Frans Berkhout
  • Mark Pelling

Abstract

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.

Suggested Citation

  • Laura M. Canevari‐Luzardo & Frans Berkhout & Mark Pelling, 2020. "A relational view of climate adaptation in the private sector: How do value chain interactions shape business perceptions of climate risk and adaptive behaviours?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 432-444, February.
    • Handle: RePEc:bla:bstrat:v:29:y:2020:i:2:p:432-444
    DOI: 10.1002/bse.2375
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    2. Wei‐Jr Juo & Chao‐Hung Wang, 2022. "Does green innovation mediate the relationship between green relational view and competitive advantage?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2456-2468, July.
    3. Giuseppe Forino & Jason von Meding, 2021. "Climate change adaptation across businesses in Australia: interpretations, implementations, and interactions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 18540-18555, December.
    4. Banjo Roxas, 2021. "Environmental sustainability engagement of firms: The roles of social capital, resources, and managerial entrepreneurial orientation of small and medium enterprises in Vietnam," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2194-2208, May.
    5. Izabela Delabre & Joss Lyons‐White & Clara Melot & Eirik Ingwardo Veggeberg & Anthony Alexander & Martin C. Schleper & Robert M. Ewers & Andrew T. Knight, 2023. "Should I stay or should I go? Understanding stakeholder dis/engagement for deforestation‐free palm oil," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5128-5145, December.
    6. Barbara Kump, 2021. "When do threats mobilize managers for organizational change toward sustainability? An environmental belief model," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2713-2726, July.
    7. Udeke Huiskamp & Bauke ten Brinke & Gert Jan Kramer, 2022. "The climate resilience cycle: Using scenario analysis to inform climate‐resilient business strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1763-1775, May.

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