Sustainability as a business purpose: A case of electric vehicles

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Abstract

Sustainability is an important aspect of business purposes in organizations. It has been emphasized by a number of corporations and firms as a key component of their long-term success (Grove & Clouse, 2018). Using electric vehicles (EVs) as a context for sustainable products, our empirical study attempts to understand the factors that influence the purchase of EVs in India. The snowball sampling technique has been used to collect data from 156 respondents who own a car or were considering buying one. The research uses a rational choice theory as a framework for analysis. The key findings of the study include a new conceptual model, the responsible innovation sustainable eco-friendly (RISE) adoption model, and a set of new additional factors such as financial incentives, environmental concerns, and cost constraints, in addition to the existing behavioral factors, charging infrastructure, and external influences that are present in the literature. Given the current focus on sustainability and EVs across the world, this study is highly relevant for automobile companies to formulate their EVs strategies and also give pointers for policymaking in this area. There are several theoretical and managerial implications for various stakeholders outlined.

Keywords: Sustainability, Electric Vehicles, Business Purpose, New Product Adoption, Automobile Industry, Rational Choice Theory

Authors’ individual contribution: Conceptualization — R.K. and R.M.; Methodology — R.K., R.M., and P.M.R.; Formal Analysis — P.M.R.; Investigation — R.K., R.M., and P.M.R.; Writing — Original Draft — R.M., Writing — Review & Editing — R.K., R.M., and P.M.R.; Supervision — R.K.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

Acknowledgements: We would like to thank Rohit Tapader, Shobhit Shankar, and Siddhartha Jha, 2020–2021 batch students, Great Lakes Institute of Management for their support.

JEL Classification: D11, D12, M10, Q56, R40

Received: 23.03.2022
Accepted: 25.05.2022
Published online: 30.05.2022

How to cite this paper: Krishnamurthy, R., Muralidharan, R., & Maddipetlolu Rajendran, P. (2022). Sustainability as a business purpose: A case of electric vehicles. Corporate Governance and Sustainability Review, 6(2), 18–28. https://doi.org/10.22495/cgsrv6i2p2