Coping with global climate change in the post-COVID-19 pandemic: the roles of business perception and resources in adaptation strategy decisions

Abstract

Taking the context after the COVID-19 pandemic, this study provides important insights into the adaptation strategies of businesses to climate change (CC). Specifically, businesses’ decisions to adopt strategies such as business as usual, risk assessment and preparation, bearing and managing risks, or sharing and shifting risks are investigated through the lens of their perception of CC and available internal and external resources. Using the resource-based view and a sample of 335 businesses in the Mekong Delta, Vietnam, this study identifies key factors influencing these adaptation strategies. Partial least squares structural equation modeling and multigroup analysis reveal that small and medium enterprises (SMEs) are more proactive in adopting CC strategies compared to larger enterprises. While there are some limitations in the generalizability of findings with the study’s focus on a single region and reliance on cross-sectional data, this study highlights that the COVID-19 pandemic has heightened business awareness of climate change risks, moderating the impact of businesses' perceptions of CC on their adaptation choices. Policymakers should support SMEs by providing external resources and fostering collaboration to enhance climate resilience, while larger enterprises may require regulatory frameworks to prioritize internal resource allocation for climate adaptation.