The roles of network embeddedness, market incentives, and slack resources in the adoption of clean technologies by firms in developing countries

Naeem Ashraf, Breeda Comyns, Ghulam Ali Arain, Zeeshan Ahmed Bhatti

    Research output: Contribution to journalArticlepeer-review

    206 Downloads (Pure)

    Abstract

    Worldwide carbon dioxide emissions continue to increase driven by fossil fuel consumption and industrial discharges. Progress on carbon emission reduction requires firms to adopt clean technologies which minimize material and energy consumption. Technological change is particularly required in developing countries, where industrial emissions often lead to chronic urban pollution problems. In this study, we explore the antecedents of clean technology strategy by firms in developing countries. We combine the contingent natural resource-based view with the relational view to examine how network embeddedness, market incentives and slack resources influence adoption of clean technology. The empirical support for our hypotheses comes from data obtained from 342 firms that operated in the carbon-offset market during the years 2007 to 2009. We find that a firm’s relational network structure influences adoption of clean technologies, particularly when market incentives are low. Contrary to one of the hypotheses, the results of our paper suggest a negative relationship between a firm’s slack resources and its clean technology strategy. Our study highlights the benefits of networks in fostering adoption of clean technology in developing countries. Furthermore, we find that high market incentives (carbon price) decrease the probability of clean technology adoption, so adding to the view that firms respond to carbon-offset rules to realize high carbon revenues at the lowest cost.
    Original languageEnglish
    Number of pages15
    JournalClimate Policy
    Early online date17 Oct 2018
    DOIs
    Publication statusEarly online - 17 Oct 2018

    Keywords

    • Adoption of clean technologies
    • carbon-offset market
    • slack resources
    • network embeddedness
    • market incentives

    Fingerprint

    Dive into the research topics of 'The roles of network embeddedness, market incentives, and slack resources in the adoption of clean technologies by firms in developing countries'. Together they form a unique fingerprint.

    Cite this