Implications of climate change for strategic management theory

Abstract

PurposeThe purpose is to stimulate scholarship in the strategic management field that accounts for conditions implied by projected impacts of climate change.Design/methodology/approachFollowing conceptual logic, the article analyses how changes in the strategic environment brought about by climate change may challenge current strategic management theory. It develops avenues for theory development based on expanding the field’s scope and extending its limits of applicability.FindingsThe article highlights the extent to which the strategy field has evolved in a stable empirical context, despite its attention to dynamism and hence is less well aligned with potentially pervasive new pressures and impacts. It sets out a rationale for moving beyond symbolic environmentalism, possibilities to harness cognitive and behavioural insights, dilemmas in strategic innovation and the empirical potential of non-mainstream contexts.Practical implicationsFirms and organisations can expect widespread systemic effects from climate change that challenge established ways of operating. The article explores how strategic management could better support strategists in navigating these shifts such that firms can continue to thrive.Originality/valueThe article approaches the issue of climate change specifically from the perspective of strategic management of firms rather than as policy or social advocacy. It focuses on pressures and characteristics that distinguish climate change from other environmental and social impacts on firms.