Stakeholder Pressures and Decarbonization Strategies in Mittelstand Firms

Jörn H. Block, Pramodita Sharma, Lena Benz

Journal of Business Ethics · 2024 · Volume 193 · Issue 3

Abstract

This study examines the influence of stakeholder pressures and family ownership on strategic decarbonization choices of German Mittelstand firms. It distinguishes betweensymbolicstrategies focusing on compensating CO2-emissions andsubstantivestrategies directed toward reducing carbon emissions. The relative pressure exerted byinternalandexternalstakeholders on these strategic choices is examined. Data from 443 manufacturing firms reveal that overall stakeholder pressures increase the pursuit of decarbonization strategies. Internal stakeholders pressures are associated with increased reliance on substantive decarbonization strategies both in family-owned and non-family-owned firms. Pressure from external stakeholders are associated with increased reliance on both substantive and symbolic decarbonization strategies only in non-family-owned firms. No effect of external pressures was found in family-owned firms. Implications for theory, management practice, and policy makers are discussed.

Keywords

Decarbonization strategies, Family firms, Mittelstand, Stakeholder pressures, Symbolic and substantive strategies

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