Impact of Institutional Pressures and Dynamic Capabilities on Sustainability Performance of Oil and Gas Sector

Nikunj Jain, Piyush Choudhary, Abinash Panda, Sourabh Jain, Prasanta Dey

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose – Globally, the oil and gas industries are under pressure from numerous stakeholders for their sustainable operations against the backdrop of climate change, ecological damage, and social challenges. Drawing on the twin theoretical frameworks of the institutional theory and dynamic capability perspective, this study examines the impact of the institutional pressures
and dynamic capabilities on the overall sustainability performance of oil and gas industry.
Design/methodology/approach – This study uses survey method to analyze the responses from 275 middle management professionals of oil and gas industry in India using partial least squares structural equation modelling (PLS-SEM). Further, focused group discussions with the select industry leaders validate the empirical findings of this study.
Findings – The research reveals that both institutional pressures and firm’s dynamic capabilities have significant positive impact on its economic and environmental performance in oil and gas sector in India. However, they do not have any impact on social performance, unlike earlier findings.
Research limitations/implications – The main limitation of the study is generalizability of the findings given the cross-sectional design of the study.
Practical implications – Insights of this study will help regulators and policy makers in formulating effective regulatory and policy frameworks, besides creating awareness amongst the organizations to simultaneously focus on all the three aspects of sustainability performance.
Originality/value – The research has bearing on policy formulation and creating a regulatory ecosystem to ensure overall sustainability performance of oil and gas industry in India.
Original languageEnglish
JournalInternational Journal of Energy Sector Management
DOIs
Publication statusAccepted/In press - 19 Aug 2022

Bibliographical note

This author accepted manuscript is deposited under a Creative Commons Attribution Non-commercial 4.0 International (CC BY-NC) licence. This means that anyone may distribute, adapt, and build upon the work for non-commercial purposes, subject to full attribution. If you wish to use this manuscript for commercial purposes, please contact permissions@emerald.com

Keywords

  • Institutional pressures; sustainability performance; dynamic capabilities; oil and gas industry; social responsibility

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