Issue-based environmental sustainability factors in Nigeria’s oil and gas industry: the perspectives of academics

Abstract

Purpose

This study aims to develop a framework that enables the identification of sustainability factors from industry-specific environmental issues, and it proposes that these factors, in turn, can influence the corporate environmental performance (CEP) of firms in such an industry. It also validates the factor identification aspect of the framework.

Design/methodology/approach

The paper starts by reviewing relevant literature extensively and then developing an issue-based environmental sustainability framework to highlight the structural relationship of industry-specific sustainability factors with CEP. By involving 131 participants from academics in Niger Delta, the paper uses exploratory factor analysis techniques to reduce industry-specific sustainability factors from several environmental and socio-economic issues in the Nigerian oil and gas (O&G) industry.

Findings

Environmental risk originates from business environmental issues, and it triggers community reaction, which impacts negatively on corporate image. The nature of firm’s strategic responsiveness to these factors determines CEP.

Research limitations/implications

The study draws from the perspectives of academics on environmental issues in Niger Delta to validate the factor identification aspect of the framework. The views of other stakeholders are not included, and hence, it should be applied with caution.

Practical implications

Useful in identifying and managing industry-specific environmental issues, and thus, achieving some sustainable development objectives.

Originality/value

Although most previous studies have focused on generic CEP drivers, this study proposes sustainability factors that can originate from industry-specific environmental issues as crucial drivers of CEP in such an industry. It provides empirical evidence of such credible sustainability factors emerging from the Nigerian O&G industry’s environmental issues.

Citation

Jeremiah, M.S., Woldesenbet Beta, K. and Etim, R.S. (2023), "Issue-based environmental sustainability factors in Nigeria’s oil and gas industry: the perspectives of academics", Critical Perspectives on International Business, Vol. 19 No. 1, pp. 113-151. https://doi.org/10.1108/cpoib-02-2020-0012