The Synergistic Trap: How Strategic Alliances Amplify Corporate Vulnerability to Climate Risk

As climate change increasingly challenges corporate operations and sustainable development, the role of strategic alliances in managing environmental risks requires critical reassessment. While prior research highlights their benefits for innovation and performance, potential adverse consequences in the face of climate risks remain underexplored. Using panel data of Chinese A-share listed firms from 2010 to 2023, this study applies econometric models to evaluate the impact of strategic alliances on firms’ climate risk exposure. The findings show that strategic alliances significantly weaken firms’ resilience to climate risks by diverting executive attention from environmental issues, constraining sustainability capacity building, and reducing sensitivity to supply chain risks. These adverse effects are more pronounced for firms with poor carbon performance and lower firm value. Moreover, compared with contractual alliances, equity-based alliances create deeper binding and reduce flexibility in responding to climate change. The study contributes to theory and practice by suggesting that firms should optimize alliance structures, increase partner heterogeneity, and enhance executive awareness of climate risks to improve resilience in the context of climate governance.