A New Perspective on Strategic Choices for the Survival and Development of Energy Enterprises: An Analysis of Market Power, Innovation Strategy, and Sustainable Development of Major Multinational Oil Companies

Abstract

As global economic recession and deterioration of the ecological environment become increasingly prominent, every responsible enterprise, especially the energy enterprises with more environmental controversies, will be faced with the most difficult choice regarding sustainable operation in history: market power expansion strategy, or technological innovation strategy? Most of the literature supports the finding that the former can occupy the market advantage and obtain the current market survival, but the future potential is low, while the latter reduces the firm’s negative externality and gains future competitiveness, but current profits are reduced. This paper proposes a new perspective to evaluate the “sustainable development of enterprises” and then constructs a new measurement model, using a linear regression model for empirical analysis, which provides technical support and guidance for energy enterprises facing this decision-making dilemma. For further research, we have proposed more practical business management strategies for the sustainable development of petrochemical companies in developing countries.