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Sustainability and Market Conditions:The Resource Efficiency paradox

Delmas, Magali; Pekovic, Sanja (2012-01), Sustainability and Market Conditions:The Resource Efficiency paradox. https://basepub.dauphine.fr/handle/123456789/11062

Type
Document de travail / Working paper
External document link
http://escholarship.org/uc/item/05v5d5tr
Date
2012-01
Publisher
Institute of the Environment and Sustainability, UC Los Angeles
Series title
Recent Works
Published in
Los Angeles
Pages
37
Metadata
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Author(s)
Delmas, Magali cc
Pekovic, Sanja
Abstract (EN)
In this paper we analyze the factors that drive the adoption of resource efficiency practices in constrained economic times. We uncover the ‘paradox’ of lower investments in resource efficiency practices in a downturn market and identify the characteristics of firms that seek the opportunity to invest more in such conditions. We argue that even though the attractiveness of resource efficiency practices should increase in downturn market conditions, such practices require complementary capabilities, strategies and organizational structure for their successful adoption. We test our framework using data from a French survey with responses from 5, 877 firms. Our results show that only 6% of the firms in our sample invest in resource efficiency practices in downturn markets, and that those firms are more likely to be vertically integrated, and to have a main focus on cost leadership strategies, have adopted environmental standards and conduct their research internally. We provide recommendations to encourage more widespread adoption of such models of frugal strategies.
Subjects / Keywords
Business Strategy; Corporate Sustainability; Energy Efficiency; Resource
JEL
L20 - General

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