Developing a dynamic capabilities approach to risk mitigation strategies driven by water scarcity

Abstract

Water stress mitigation has become a new business imperative evidenced by both institutional and practice communities. In this context, the academic community has suggested that the “identification, assessment and management of water-related risks have emerged as major concerns for companies” (p.1019 Aivazidou et al., 2016). Leading corporations understand that natural resource scarcity has become “a critical supply chain risk factor” (p.158, Bell et al., 2012) and that firms should incorporate sustainable water management programmes into their corporate social responsibility and environmental management agenda (Aivazidou et al., 2016). This research develops an integrated dynamic network capability framework for water scarcity risk mitigation.