Enhancing the Vietnamese SMEs' Adaptation to Climate Change Through Human Resources: The Mediating Effect of Adaptability Culture

Abstract

Adaptation to climate change has emerged as a significant priority for policy and research efforts. This study delves into the multifaceted issue of climate change adaptation within Small and Medium-sized enterprises (SMEs) operating in Vietnam. Beyond merely mitigating vulnerability, these enterprises are actively seeking out avenues for green innovation, using adaptive diversification strategies to navigate the challenges posed by a changing climate. Adaptation to climate change has emerged as a significant priority for policy and research efforts. This study focuses on the adaptation strategies of SMEs in Vietnam in response to climate change. It not only aims to mitigate vulnerability but also explores green innovation opportunities through adaptive diversification. The research investigates the influence of human resources on the ability to adapt to diversification, with organizational adaptive culture acting as a mediating variable within the theoretical framework of the Resource-Based View (RBV). Through an analysis of survey data from 280 SMEs in Vietnam using Structural Equation Modeling (SEM) in SmartPLS4, the study reveals that both human resources and adaptive culture positively impact SMEs' adaptation to climate change. These findings provide valuable insights for management and policy, underscoring the importance of investing in human resources and nurturing adaptability culture within SMEs to effectively tackle climate change challenges.