IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v66y2008i2-3p517-532.html
   My bibliography  Save this article

The dynamics of belief in climate change and its risks in business organisations

Author

Listed:
  • Bleda, Mercedes
  • Shackley, Simon

Abstract

This paper presents a simulation model of the formation of the belief in climate change of a business organisation using a systems dynamics approach. Understanding how businesses form their belief on the issue of climate change is of paramount importance given the key role of beliefs and cognitive characteristics in the triggering and shaping of organisational adaptation processes. The main assumption of the model is that the dynamics of belief is driven by the perceived actual and potential changes in competitiveness as a consequence of climate impacts rather than by the growth of an ecological 'business conscience'. The model has been built using the STELLA software program, and it is based upon theoretical hypotheses drawn from behavioural studies of organisations and evolutionary theories of economic change.

Suggested Citation

  • Bleda, Mercedes & Shackley, Simon, 2008. "The dynamics of belief in climate change and its risks in business organisations," Ecological Economics, Elsevier, vol. 66(2-3), pages 517-532, June.
    • Handle: RePEc:eee:ecolec:v:66:y:2008:i:2-3:p:517-532
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921-8009(07)00519-8
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Geoffrey M. Hodgson, 1998. "Evolutionary and competence-based theories of the firm," Journal of Economic Studies, Emerald Group Publishing, vol. 25(1), pages 25-56, January.
    2. Mary Tripsas & Giovanni Gavetti, 2000. "Capabilities, cognition, and inertia: evidence from digital imaging," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1147-1161, October.
    3. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801.
    4. Richard A. Bettis & C. K. Prahalad, 1995. "The dominant logic: Retrospective and extension," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 5-14.
    5. Sidney G. Winter, 1971. "Satisficing, Selection, and the Innovating Remnant," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 85(2), pages 237-261.
    6. Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
    7. Paul Bate & Raza Khan & Annie Pye, 2000. "Towards A Culturally Sensitive Approach To Organization Structuring: Where Organization Design Meets Organization Development," Organization Science, INFORMS, vol. 11(2), pages 197-211, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
    2. Diendéré, Achille & Nguyen, Geneviève & Del Corso, Jean-Pierre & Kephaliacos, Charilaos, 2018. "Modeling the Relationship Between Pesticide Use and Farmers' Beliefs about Water Pollution in Burkina Faso," Ecological Economics, Elsevier, vol. 151(C), pages 114-121.
    3. Matthias Damert & Rupert J. Baumgartner, 2018. "External Pressures or Internal Governance – What Determines the Extent of Corporate Responses to Climate Change?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 473-488, July.
    4. Thomas A. Tsalis & Ioannis E. Nikolaou, 2017. "Assessing the Effects of Climate Change Regulations on the Business Community: A System Dynamic Approach," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 826-843, September.
    5. Bank, Matthias & Wiesner, Robert, 2011. "Determinants of weather derivatives usage in the Austrian winter tourism industry," Tourism Management, Elsevier, vol. 32(1), pages 62-68.
    6. Georg Weinhofer & Timo Busch, 2013. "Corporate Strategies for Managing Climate Risks," Business Strategy and the Environment, Wiley Blackwell, vol. 22(2), pages 121-144, February.
    7. Mercedes Bleda & Elisabeth Krull & Jonatan Pinkse & Eleni Christodoulou, 2023. "Organizational heuristics and firms' sensemaking for climate change adaptation," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6124-6137, December.
    8. Jennifer Steeves & Swenja Surminski, 2014. "Taking an organisational approach to private sector adaptation � the case of Tata Teleservices in India," GRI Working Papers 171, Grantham Research Institute on Climate Change and the Environment.
    9. Kenneth Dooley, 2018. "Routine Rigidity and Environmental Sustainability: Why Rational Innovations are Regularly Ignored," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 70-81, January.
    10. Yousefpour, Rasoul & Didion, Markus & Jacobsen, Jette B. & Meilby, Henrik & Hengeveld, Geerten M. & Schelhaas, Mart-Jan & Thorsen, Bo J., 2015. "Modelling of adaptation to climate change and decision-makers behaviours for the Veluwe forest area in the Netherlands," Forest Policy and Economics, Elsevier, vol. 54(C), pages 1-10.
    11. Silvia Amato, 2016. "East Asia Industrial Conversion Activity: Outlook at Post-Disaster Crisis Assessments with Technology Integration and Competitive Assimilation Modes," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-44, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pascal Seppecher & Isabelle Salle & Dany Lang, 2019. "Is the market really a good teacher?," Journal of Evolutionary Economics, Springer, vol. 29(1), pages 299-335, March.
    2. Sidney G. Winter, 2017. "Pursuing the evolutionary agenda in economics and management research," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 41(3), pages 721-747.
    3. Budhaditya Gupta & Tarun Khanna, 2019. "A Recombination-Based Internationalization Model: Evidence from Narayana Health’s Journey from India to the Cayman Islands," Organization Science, INFORMS, vol. 30(2), pages 405-425, March.
    4. de Vries, F.P., 1999. "The Behavioral Firm and Its Internal Game : Evolutionary Dynamics of Decision Making," Other publications TiSEM 81ac857a-7637-49d8-a52e-3, Tilburg University, School of Economics and Management.
    5. Filipe M. Santos & Kathleen M. Eisenhardt, 2005. "Organizational Boundaries and Theories of Organization," Organization Science, INFORMS, vol. 16(5), pages 491-508, October.
    6. Kousky, Carolyn & Rostapshova, Olga & Toman, Michael & Zeckhauser, Richard, 2009. "Responding to Threats of Climate Change Mega-Catastrophes," RFF Working Paper Series dp-09-45, Resources for the Future.
    7. Willem Smit, 2023. "Top Manager Heuristics Under Knightian Uncertainty: Control Versus Prediction and the Moderating Impact of Framing," Journal of Management Studies, Wiley Blackwell, vol. 60(5), pages 1302-1340, July.
    8. Markus Becker & Thorbjorn Knudsen, 2012. "Nelson and Winter Revisited," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 19, Edward Elgar Publishing.
    9. Miles M Yang & Feifei Yang & Tingru Cui & Ying-Chu Cheng, 2019. "Analysing the dynamics of mental models using causal loop diagrams," Australian Journal of Management, Australian School of Business, vol. 44(3), pages 495-512, August.
    10. Foxon, Timothy J., 2011. "A coevolutionary framework for analysing a transition to a sustainable low carbon economy," Ecological Economics, Elsevier, vol. 70(12), pages 2258-2267.
    11. Tomi Laamanen & Johan Wallin, 2009. "Cognitive Dynamics of Capability Development Paths," Journal of Management Studies, Wiley Blackwell, vol. 46(6), pages 950-981, September.
    12. Ioannis Ioannou, 2014. "When Do Spinouts Enhance Parent Firm Performance? Evidence from the U.S. Automobile Industry, 1890–1986," Organization Science, INFORMS, vol. 25(2), pages 529-551, April.
    13. Eckhardt, Jonathan T. & Shane, Scott A., 2011. "Industry changes in technology and complementary assets and the creation of high-growth firms," Journal of Business Venturing, Elsevier, vol. 26(4), pages 412-430, July.
    14. Dirk Martignoni & Anoop Menon & Nicolaj Siggelkow, 2016. "Consequences of misspecified mental models: Contrasting effects and the role of cognitive fit," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 2545-2568, December.
    15. Ruttan, Vernon W., 1996. "Sources Of Technical Change: Induced Innovation, Evolutionary Theory And Path Dependence," Bulletins 12974, University of Minnesota, Economic Development Center.
    16. Michael Lang, 2020. "Business Model Innovation Approaches: A Systematic Literature Review," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(2), pages 435-449.
    17. Dosi, G. & Virgillito, M.E., 2021. "In order to stand up you must keep cycling: Change and coordination in complex evolving economies," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 353-364.
    18. Cattaneo, Andrea & Robinson, Sherman, 2000. "Empirical models, rules, and optimization," TMD discussion papers 53, International Food Policy Research Institute (IFPRI).
    19. Christian W. Scheiner & Christian V. Baccarella & Nina Feller & Kai-Ingo Voigt & John Bessant, 2016. "Organisational And Individual Unlearning In Identification And Evaluation Of Technologies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-27, February.
    20. Shinjinee Chattopadhyay & Janet Bercovitz, 2020. "When one door closes, another door opens … for some: Evidence from the post‐TRIPS Indian pharmaceutical industry," Strategic Management Journal, Wiley Blackwell, vol. 41(6), pages 988-1022, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:66:y:2008:i:2-3:p:517-532. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.