Green dynamic capabilities, climate change management, and business performance: evidence from metal-mechanical industries in Southern Brazil
Year: 2026
Type: article
Abstract: This study examines how green dynamic capabilities, understood as a firm's capacity to sense environmental change and to integrate and reconfigure resources in response to it, influence climate change management and business performance in metalworking industries. A survey of top managers from 142 metalworking firms in Rio Grande do Sul, Brazil, was analysed with partial least squares structural equation modelling. Green dynamic capabilities showed a strong positive effect on climate change management and explained 79.7% of its variance. Their direct effect on business performance was not statistically significant once climate change management was included in the model, although the capabilities to integrate and to reconfigure resources were each associated with performance when the capability dimensions were examined separately. Climate change management had a positive effect on business performance and fully mediated the relationship between green dynamic capabilities and performance. The descriptive results show a sector that scores high on environmental sensing and low on the integration and reconfiguration of resources. The findings indicate that green capabilities translate into economic results when firms turn them into concrete mitigation and adaptation practices, which gives managers and policymakers a practical sequence for investment in industrial decarbonization and climate resilience.
Source: Cleaner Manufacturing
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $1,200
OpenAlex ID: W7221508634