Resource Efficiency Strategies and Market Conditions

Long Range Planning, Forthcoming

45 Pages Posted: 25 Aug 2013  

Magali A. Delmas

University of California, Los Angeles (UCLA)

Sanja Pekovic

Université Paris - Dauphine

Date Written: August 23, 2013

Abstract

In this paper we analyze the factors that drive the adoption of innovative resource efficiency strategies to reduce energy and material use, under different market conditions. We uncover the "paradox" of lower adoption of resource efficiency strategies in an economic downturn and identify the characteristics of firms that adopt these strategies. Using data from a French survey with responses from 5,877 firms, we show that only 10% of the firms in our sample adopt resource efficiency strategies in perceived economic downturn as compared to 46% in perceived steady or growing market conditions. However, the probability of adopting such strategies in downturn conditions rises to 24% for firms that focus on cost leadership strategies, have adopted environmental standards, conduct their research internally and are vertically integrated. We provide recommendations to encourage more widespread adoption of resource efficiency strategies.

Keywords: business strategy, corporate sustainability, energy efficiency, resource efficiency, contingent theory

JEL Classification: L2, M2, Q4

Suggested Citation

Delmas, Magali A. and Pekovic, Sanja, Resource Efficiency Strategies and Market Conditions (August 23, 2013). Long Range Planning, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2315344

Magali A. Delmas (Contact Author)

University of California, Los Angeles (UCLA) ( email )

405 Hilgard Avenue
Box 951361
Los Angeles, CA 90095
United States

Sanja Pekovic

Université Paris - Dauphine ( email )

223 Rue Saint-Honore
Paris, 75775
France

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