Greening multinational enterprises in the oil, gas and petrochemicals: Environmental sustainability and the moderation role of environmental sensitivity

Abstract

Purpose: Premised on the shortage of research on the role of organisational mindfulness in promoting environmental sustainability, this study evaluates the effects of organisational mindfulness and mindful organising on environmental sustainability outcomes in the critical case of multinational enterprises (MNEs) operating in the oil and gas sector in the Arabian Gulf. Design/methodology/approach: Data were collected from the (oil and gas sector) MNES. A total of 92 completed responses were received. The respondents include executives, senior managers and directors. The data were analysed using SmartPLS software. The measurement and structural models were evaluated. Findings: The models show that four (of five) dimensions of organisational mindfulness (defined as organisational goals, desires and strategies) and mindful organising (defined as organisational tactics and practices) are significantly related. Mindful organising is significantly associated with more environmentally sustainable outcomes. But contrary to expectations sensitivity to the local environment did not have a significant moderating effect on the relationship between mindful organising and environmental sustainability initiatives and outcomes of these MNEs. Research limitations/implications: The paper presents several hypotheses, most of which were confirmed. Direct effects of organizational mindfulness, mindful organizing were confirmed. Environmental sensitivity has a direct effect rather than a moderating effect (as hypothesized) on environmental sustainability. Practical implications: Environmental sustainability can be approached by MNEs in the oil and gas sector by among other factors, increased environmental sensitivity, signalling environmental behaviours the organisation expects, rewards and supports and putting in place a social process that is reliant on extensive and continuous interactions between individuals and among teams regarding these environmental expectations. Social implications: Social and environmental performance of MNEs can be improved through mindfulness-based approaches, effects of which can be transmitted through a social process that relies on continuous real-time communication and interactions among members through formal and informal interactions during meetings, briefings, work and play. Sensitivity and respect for the host community and environment can bolster brand image and social relations. Originality/value: The paper addresses the greening issues surrounding the largely unexplored context of the Arabian Gulf’s oil and gas sector. It demonstrates that ongoing greening communications and interactions through briefings, meetings, updates and in teams' ongoing work are some of the mechanisms for achieving sustainability. Also environmental sensitivity is a direct driver rather than a contingent factor of sustainability.