Paper Type
Complete
Abstract
Environmental, social, and governance (ESG) information is widely used as a strategic signal in digital markets, yet its internal drivers under turbulence remain unclear. Drawing on threat rigidity theory and the exploration–exploitation framework, this study examines how environmental turbulence influences ESG engagement through cognitive and strategic mechanisms in IT firms. Using survey data from 120 Brazilian firms and partial least squares structural equation modeling (PLS-SEM), we test relationships among turbulence, threat rigidity, strategic orientation, and ESG behavior. Results show that turbulence strongly increases threat rigidity, which in turn reduces exploration and ESG engagement while reinforcing exploitation. Exploration is positively related to ESG, whereas exploitation is not. Turbulence does not directly affect strategic orientation, indicating that environmental shocks are filtered through cognitive processes. These findings position ESG as a strategically deployed information resource shaped by internal sensemaking and digital information-processing capabilities under turbulence.
Paper Number
1779
Recommended Citation
Martins, Fellipe; da Silva Junior, Wanderley; Sabatini-Marques, Jamile; and Larieira, Claudio Luis Carvalho, "Strategic Use of ESG Information Under Turbulence: Evidence from the IT Sector" (2026). AMCIS 2026 Proceedings. 5.
https://aisel.aisnet.org/amcis2026/scuidt/scuidt/5
Strategic Use of ESG Information Under Turbulence: Evidence from the IT Sector
Environmental, social, and governance (ESG) information is widely used as a strategic signal in digital markets, yet its internal drivers under turbulence remain unclear. Drawing on threat rigidity theory and the exploration–exploitation framework, this study examines how environmental turbulence influences ESG engagement through cognitive and strategic mechanisms in IT firms. Using survey data from 120 Brazilian firms and partial least squares structural equation modeling (PLS-SEM), we test relationships among turbulence, threat rigidity, strategic orientation, and ESG behavior. Results show that turbulence strongly increases threat rigidity, which in turn reduces exploration and ESG engagement while reinforcing exploitation. Exploration is positively related to ESG, whereas exploitation is not. Turbulence does not directly affect strategic orientation, indicating that environmental shocks are filtered through cognitive processes. These findings position ESG as a strategically deployed information resource shaped by internal sensemaking and digital information-processing capabilities under turbulence.
Comments
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