 Organizational heuristics and firms' sensemaking for climate change adaptationMercedes Bleda, Elisabeth Krull, Jonatan Pinkse and Eleni Christodoulou Business Strategy and the Environment, 2023, vol. 32, issue 8, 6124-6137 Abstract: The complexity and uncertainty of climate change pose unique challenges to the development of corporate adaptation strategies. Climate adaptation requires organizations to rely on sensemaking to understand climate events, implications for their operations, and develop a response. Organizational heuristics can support sensemaking by simplifying decisions and reducing cognitive effort but also hinder it by creating bias and errors that lead to inefficient decisions. This paper analyzes how firms use organizational heuristics when making decisions on climate change by empirically investigating the adaptation responses of key infrastructure providers in the United Kingdom. Looking at selection, prioritization, procedural, and temporal heuristics, we examine how firms make sense of climate events and develop their responses accordingly. The analysis shows that while these rules‐of‐thumb are sensible in some instances, they can create biases, too, that may deflect responsibility or create a false sense of security leading to inefficient adaptation decisions. Date: 2023 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:bstrat:v:32:y:2023:i:8:p:6124-6137 Ordering information: This journal article can be ordered from Access Statistics for this article Business Strategy and the Environment is currently edited by Richard Welford More articles in Business Strategy and the Environment from Wiley Blackwell |
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