Norwegian Firms’ Green and New Industry Strategies: A Dual Challenge

Abstract

Today, there is strong pressure for firms, in Norway and abroad, to adopt green or sustainable strategies. Furthermore, many Norwegian firms, directly or indirectly dependent on the dominating but declining petroleum sector, face a further challenge as they have to enter new industries in search of market opportunities. We address these dual challenges and study how green and new industry strategies are a function of firm- and regional-level characteristics. Multilevel analyses of Norwegian survey data show that both green and new industry strategies are pursued by knowledge-intensive firms that are innovative and having interfirm innovation collaboration. Green strategies are pursued by large firms and firms localized in sparsely populated regions, but they are avoided by independent firms and firms having carried out layoffs. New industry strategies are pursued by small firms, firms with growth in employees, and firms having carried out mergers or acquisitions and cost reductions.