Examining Firms’ Green Information Technology Practices: A Hierarchical View of Key Drivers and Their Effects

Abstract

This study examines key drivers of firms’ green information technology (IT) practices. A hierarchical view, premised in institutional theory and competitive dynamics, leads to a model that explains firms’ practices. This model includes factors that pertain to the environment (environmental awareness and government regulations), industry (industry norms and competitors’ green practices), and firm (customers’ and equity holders’ attitudes and internal readiness) levels. Survey data collected from 304 major firms in Taiwan are used to test the model and hypotheses. In particular, attitudes of a firm’s customers and equity holders, as well as its internal readiness, directly influence its green IT practices, while also channeling the effects of important contextual factors. Among the contextual factors considered herein, environmental awareness and industry norms influence firms’ practices both directly and indirectly. The overall results highlight the significance of contextual factors and underscore the mediating roles of firm-specific considerations. According to our findings, firms should implement strategic goals and make resource allocations toward green IT practices that are aligned with the industry-wide atmosphere and general public’s awareness of environmental protection.