The influence of macro factors on corporate water management: A multi-country quantile regression approach

• Published in: Journal of cleaner production 2019-07, Vol.226, p.1013-1021
• Main Authors: Ortas, Eduardo, Burritt, Roger Leonard, Christ, Katherine Leanne
• Format: Article
• Language: English
• Subjects: Contingency theory; Corporate water management; Macro factors; Multi-country study; Quantile regression
• ISSN: 0959-6526; 1879-1786
• DOI: 10.1016/j.jclepro.2019.04.165

Businesses are among the largest consumers of freshwater worldwide. However, existing academic research has barely touched upon how companies manage actual water challenges. In consequence, there is an urgent need to establish the factors that foster and restrict companies’ water management practices. Based on contingency theory this research examines the extent to which different macro factors might affect corporate water management practices of a sample of 3729 listed companies operating in 59 different countries. Results of quantile regression modelling reveal country population growth rates, extreme weather events and aridity are linked with corporate water management practices of leaders. None of the macro factors considered drive water management practices of laggards, and for the average company only aridity drives practice. Given the findings, suggestions to improve corporate water management are made for government policy makers and managers of companies with different quality of water management practices. •The influence of macro factors on corporate water management is examined.•Evidence of a sample of 3729 listed companies within 59 countries is provided.•Quantile regression modelling is applied.•Population growth rates, extreme weather events and aridity are the key drivers.