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Constraining or enabling green capability development? How policy uncertainty affects organizational responses to flexible environmental regulations

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Teeter, Preston and Sandberg, Jörgen (2017) Constraining or enabling green capability development? How policy uncertainty affects organizational responses to flexible environmental regulations. British Journal of Management, 28 (4). pp. 649-665. doi:10.1111/1467-8551.12188 ISSN 1045-3172.

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Official URL: http://dx.doi.org/10.1111/1467-8551.12188

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Abstract

Despite their growing popularity, flexible environmental regulations are increasingly characterized by high levels of policy uncertainty. This uncertainty poses numerous challenges for managers, policymakers and researchers, for we still have a poor understanding of how such uncertainty affects organizational responses and the ability of organizations to generate unique capabilities. This paper presents findings of a qualitative study of how organizations respond to the introduction of flexible environmental regulations amidst extremely high levels of policy uncertainty. Through an investigation of Australia's complex, and ultimately brief, carbon pricing scheme, we find that policy uncertainty forces organizations to focus their responses on short-term investments and dealing with that very uncertainty, thereby precluding the development of green capabilities and preventing flexible regulations from achieving their intended policy results. However, we also find that organizations are able to develop innovative regulatory coping capabilities and that variation in regulatory response results in a variation in these capabilities.

Item Type: Journal Article
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
J Political Science > JF Political institutions (General)
K Law [LC] > K Law (General)
Divisions: Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH): Environmental management, Environmental protection -- Government policy, Clean energy industries, Environmental law
Journal or Publication Title: British Journal of Management
Publisher: Wiley-Blackwell Publishing Ltd.
ISSN: 1045-3172
Official Date: October 2017
Dates:
DateEvent
October 2017Published
6 September 2016Available
5 July 2016Accepted
Volume: 28
Number: 4
Page Range: pp. 649-665
DOI: 10.1111/1467-8551.12188
Status: Peer Reviewed
Publication Status: Published
Reuse Statement (publisher, data, author rights): "This is the peer reviewed version of the following article:Teeter, P. and Sandberg, J. (2017), Constraining or Enabling Green Capability Development? How Policy Uncertainty Affects Organizational Responses to Flexible Environmental Regulations. Brit J Manage, 28: 649-665., which has been published in final form at http://dx.doi.org/10.1111/1467-8551.12188. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions."
Access rights to Published version: Restricted or Subscription Access
Date of first compliant deposit: 20 November 2019
Date of first compliant Open Access: 20 November 2019

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