Environmental sustainability orientation from a dynamic capabilities perspective - a conceptual approach

Purpose: The environmental problems which have been deepening in recent decades, i.e. climate change or the degradation of the biosphere, are creating a new reality of pursuing business activity. On the one hand, firms - by their nature - seek to maintain the efficiency and to gain a competitive advantage, on the other hand - they are more and more often obliged to balance environmental goals with economic goals. Although there are opinions that these goals are competitive in themselves, it is possible for firms to reconcile them effectively by adopting Environmental Sustainability Orientation. Since this orientation is analysed in the literature from various research perspectives, this paper attempts to conceptualise it from a Dynamic Capabilities perspective. Design/methodology/approach: The paper is theoretical and based on an in-depth review of the literature. The developed conceptual model includes the direct and indirect relations among dynamic capabilities formulated in multidimensional terms, Environmental Sustainability Orientation and organisational outcomes. Embedding considerations in resource-based theories, three key processes (organisational learning, integration and reconfiguration of resources) have also been analysed, which, as necessary for building dynamic capabilities, make it easier for firms to adopt strategic Environmental Sustainability Orientation. Findings: The considerations included in the paper complement the literature in the area of strategic management and make it easier to understand Environmental Sustainability Orientation at the organisational level. They also point to a need to undertake further scientific work, the authors of which can use the research propositions elaborated in the paper and thus empirically verify the proposed conceptual model. Originality/value: The key scientific contribution of the paper is the development of a research framework formulating Environmental Sustainability Orientation from a Dynamic Capabilities perspective, i.e., respectively: (1) the capability to identify opportunities and/or threats (sensing), (2) the capability to use these opportunities and/or cope with threats (seizing) and (3) the capability to reconfigure the firm’s resources and competences (reconfiguring). The logic of this approach results from the fact that the three fundamental processes underlying the building of dynamic capabilities - organisational learning, integration and reconfiguration of resources - supported by the conscious action of CEO, make it easier for firms to adopt strategic Environmental Sustainability Orientation.