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Legitimacy for Sustainability: A Case of A Strategy Change for An Oil and Gas Company

Author

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  • Tahrir Jaber

    (School of Business and Economics, UiT–The Arctic University of Norway, N-9037 Tromsø, Norway)

  • Elin M. Oftedal

    (School of Business and Economics, UiT–The Arctic University of Norway, N-9037 Tromsø, Norway)

Abstract

This study introduces and validates a measure of a company’s institutional profile for sustainability. It uses institutional theory as a lens to understand the factors that legitimize the adoption of renewable energy activities in an oil and gas company. The three institutional dimensions used in this study are regulative, normative and cognitive, which aimed to measure legitimacy in an oil and gas company under a sustainable change. Survey-based research was carried out among employees to test this theory. Moreover, structural equation modeling was used to test the model fit, validate the measures, and test the four hypotheses. The results showed that regulative and normative pillars play the main role in legitimating renewable energy practices in our case company. The findings provide researchers and companies with a valuable resource for exploring legitimacy in order to understand what makes companies legitimize new sustainable activities that are outside the companies’ core business.

Suggested Citation

  • Tahrir Jaber & Elin M. Oftedal, 2020. "Legitimacy for Sustainability: A Case of A Strategy Change for An Oil and Gas Company," Sustainability, MDPI, vol. 12(2), pages 1-19, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:2:p:525-:d:307292
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    2. Paula Danyelle Berrêdo & Odilanei Morais dos Santos & Hafez Abdo & Marcelo Álvaro da Silva Macedo & Luciano Dias Losekann, 2024. "Energy transition: Assessing oil companies' compliance with their disclosed environmental strategic positioning," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3517-3534, July.
    3. de Boon, Auvikki & Sandström, Camilla & Rose, David Christian, 2022. "Perceived legitimacy of agricultural transitions and implications for governance. Lessons learned from England’s post-Brexit agricultural transition," Land Use Policy, Elsevier, vol. 116(C).
    4. Tahrir Jaber, 2021. "A Surge toward a Sustainable Future: Organizational Change and Transformational Vision by an Oil and Gas Company," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 25(3), pages 200031-2000.

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