Managing decarbonization in global value chains : Decision-making and operational resilience in Finnish manufacturing MNEs

Abstract

Decarbonization is a pressing issue that must be embedded in business strategies, as excessive carbon emissions accelerate extreme weather events, deplete ecosystems, and exacerbate the biodiversity crisis. The rapidly evolving regulatory landscape, including stringent European mandates, underscores the need for adaptable strategies to mitigate environmental impacts while enhancing resilience in global value chains. Despite the significant emissions they generate, the decision-making processes that enable managers to achieve decarbonization in global value chains are poorly understood. This gap is significant, as businesses face mounting pressures to align with new regulations and foster resilience. To address this, we conducted an exploratory study with two Finnish machinery manufacturing firms, leveraging in-depth interviews and sustainability reports. By employing the awareness–motivation–capability framework, the study reveals that decision-making is shaped by awareness linked to planning, motivation tied to path dependency, and capability influenced by time, offering insights into decarbonization strategies and operational resilience.