Nature: The Silent Architect of Firm Performance Through Biodiversity Management Strategies

Abstract

Biodiversity is a critical yet often overlooked factor in business performance. Despite growing concerns over biodiversity loss, research on corporate strategies for managing biodiversity remains largely underexplored. This study extends the Natural Resource‐Based View by incorporating biodiversity as a distinct and valuable resource that firms can strategically manage for competitive advantage. We propose three Biodiversity Management Strategies (BMS): Biodiversity Stewardship, Biodiversity‐Related Credentials, and Biodiversity‐Based Collaborations—which help firms to address biodiversity loss and support economic activity. Based on a cross‐sector industry analysis, we identify 13 key management actions that help mitigate impacts on various ecosystem services. These actions are organized within the mitigation hierarchy (Avoid, Reduce, Restore, Offset), providing a structured approach for integrating biodiversity into corporate strategy. Our analysis reveals 74 performance areas (40 for protecting biodiversity and 34 for supporting economic activities), demonstrating how BMS can support superior firm performance.