Impact of institutional pressures and dynamic capabilities on sustainability performance of oil and gas sector

Abstract

Purpose Globally, the oil and gas (OG) industries are under pressure from numerous stakeholders for their sustainable operations against the backdrop of climate change, ecological damage and social challenges. Drawing on the twin theoretical frameworks of the institutional theory and dynamic capability perspective, this study aims to examine the impact of the institutional pressures and dynamic capabilities on the overall sustainability performance of OG industry. Design/methodology/approach This study uses survey method to analyze the responses from 275 middle management professionals of OG industry in India using partial least squares structural equation modeling. Further, focused group discussions with the select industry leaders validate the empirical findings of this study. Findings The research reveals that both institutional pressures and firm’s dynamic capabilities have significant positive impact on its economic and environmental performances in OG sector in India. However, they do not have any impact on social performance, unlike earlier findings. Research limitations/implications The main limitation of the study is generalizability of the findings, given the cross-sectional design of the study. Practical implications Insights of this study will help regulators and policymakers in formulating effective regulatory and policy frameworks, besides creating awareness amongst the organizations to simultaneously focus on all the three aspects of sustainability performance. Originality/value The research has bearing on policy formulation and creating a regulatory ecosystem to ensure overall sustainability performance of OG industry in India.

Intellectual capital and human dynamic capabilities in decarbonization processes for net-zero business models: an in-depth examination through a systematic literature review

“…Moreover, IC positively impacts the environment and can increase firms’ performance by justifying societal pressures (Li et al. , 2022), whereas under institutional pressures, firms are forced to use their HDCs to show more sustainable performance to meet environmental challenges (Jain et al. , 2022).…”

“…Firms require to properly implement their IC strategies to sustain their sustainable competitive advantage (Xiao and Yu, 2020). Moreover, IC positively impacts the environment and can increase firms' performance by justifying societal pressures (Li et al, 2022), whereas under institutional pressures, firms are forced to use their HDCs to show more sustainable performance to meet environmental challenges (Jain et al, 2022). Firms' human, relational, and structural capital can serve as positive signals to start sustainable business models (Nigam et al, 2021).…”

Energy management in small and medium manufacturing firms: examining the enhancing role of top management commitment in a developing country context

“…Various extant studies have underlined the potential for promoting sustainability through small and medium enterprises in different countries (Dey et al , 2019; Dey et al , 2020a; Dey et al , 2022; Chowdhury et al , 2022b; Malesios et al , 2021). Previous scholars have studied the link between top management commitment (TMC) and EM (Kannan and Boie, 2003; Sa et al , 2017; Lawrence et al , 2019; Nunayon et al , 2020; Sola and Mota, 2020; Jain et al , 2022; Slacik et al , 2022). However, a few of these studies explain the contribution of TMC dimensions, which are top management participation (TMP), top management support (TMS) and top management beliefs (TMB), to EM.…”