Time Dynamic Analysis of the Relationships Between Corporate Carbon Management, Organizational Capabilities, and Firm Performance: The Resource-based and Natural Resource-based View

Interest in corporate environmental responses to climate change has been growing, although most studies use static approaches, which cannot explain the dynamics from accumulated capabilities. In this study, we examine the antecedents and consequences of corporate environmental responses to climate change by investigating dynamic changes in organizational capability by employing a method that integrates dynamic analysis with the resource-based and natural resource-based views. We conduct a longitudinal analysis of carbon management practices, total quality management, operations management, and market performance of 72 firms in Korea. The results demonstrate that corporate responses to climate change are affected more by accumulated organizational learning capability than initial capability. However, the relationship between increased carbon management practices and firm performance is not confirmed. The findings support the resource-based view that the accumulation of organizational capability and performance affects corporate environmental responses to climate change. By contrast, the findings do not provide sufficient evidence for the natural-resource-based view that the responses in turn drive corporate performance improvement.