Exploring Dynamic Capabilities in Implementing SDG 13 Climate Action Strategies: A Qualitative Study of Chinese B2B Firms

Abstract

Mitigating climate change has emerged as a paramount global imperative, aiming to safeguard the well-being and prosperity of both humanity and the planet. In this endeavour, the business sector is increasingly recognized as a pivotal player in spearheading initiatives to counter this grand challenge. Furthermore, businesses are demonstrating a robust commitment to international climate agreements, thereby offering insightful perspectives relating to Sustainable Development Goal (SDG) 13, namely Climate Action. However, there is a lack of research on how firms develop capabilities to engage in marketing strategies to mitigate climate change. To this end, this thesis adopts the Dynamic Capability theory (DCT), to explore how firms adapt and thrive in rapidly changing environments by developing and deploying specific capabilities to address environmental challenges. This study employs a qualitative multiple-case study approach, focusing on Chinese business-to-business (B2B) manufacturing firms. By conducting semi-structured in-depth interviews with top-tier managers, the study endeavours to delineate the critical capabilities firms leverage to formulate and execute strategies aligned with SDG 13 Climate Action. Additionally, the study assesses how these climate action-related capabilities enable B2B firms to sense and capitalize on new strategic and sustainable development opportunities and reconfigure their resources to achieve competitive advantage. The challenges they face in this process are also discussed. The conceptual significance of this study resides in its potential to broaden the applicability of DCT within the realms of environmental sustainability and climate action in B2B firms, thus addressing a gap in the theory's relevance to this sphere. Substantively, this study contributes to furnishing invaluable insights for policymakers, business leaders, and practitioners within the sphere of environmentally sustainable development, especially within the B2B sector.