Businesses that embrace dynamic, risk-taking cultures are well-positioned to spearhead rapid environmental advancements, according to a study from the University of Surrey.
The researchers surveyed 249 managers from multinational enterprises (MNEs) in Turkey, examining how adeptly these firms apply dynamic capabilities—their agility in adapting products and strategies to technological shifts and evolving consumer preferences.
Supporting the environment
The findings indicate that MNEs leveraging dynamic capabilities forge more effective collaborations with suppliers to enhance environmental practices.
Risk-taking MNEs, particularly when tackling straightforward environmental challenges such as implementing sustainability standards, promoting cleaner production, or adopting waste reduction strategies, derive substantial benefits from this approach.
These insights are crucial for both businesses and policymakers. Dynamic capabilities enable MNEs to cultivate robust supplier relationships focused on environmental solutions.
Dynamic capabilities
“Utilizing dynamic capabilities facilitates MNE-supplier collaboration to bolster environmental sustainability,” the authors state. “Responding to external pressures and reconfiguring processes is vital for aiding suppliers’ sustainability efforts, essential for achieving development goals. Through partnerships with suppliers and other stakeholders, MNEs can foster a more sustainable future.”
However, the study also highlights that addressing complex environmental problems, like initiatives to help suppliers reduce waste, can sometimes detract from long-term sustainability objectives. To mitigate this, MNEs should aim to minimize risks in their sustainability endeavours by fostering strong supplier collaborations and investing in targeted resources.
The researchers argue that MNEs adopting collaborative environmental practices, such as working with suppliers on materials and waste reduction, can unlock numerous benefits.
“Joint efforts on environmental solutions can yield cost savings, enhanced resource efficiency, and reduced waste. Additionally, they can bolster a company’s reputation and attract environmentally conscious consumers,” the study concludes.
“By nurturing a culture of innovation and risk-taking, MNEs can lead in crafting sustainable solutions throughout their supply chains.”
