Firm Responses to Social Movement Pressures:A Competitive Dynamics Perspective

Abstract

Prior research has documented the influence of social movements on organizational action, but has largely omitted strategic management theory from theoretical and empirical models. This study uses a competitive dynamics lens to investigate the role of awareness, motivation, and capability in the relationship between social movements and firm responses. Empirical analysis of the responses of electric utilities in unregulated markets from 1995 to 2009 reveals that firm size, competitor actions, and prior experience impact the adoption of wind power and the ability of social movement activism to elicit firm responses. Our results provide a more comprehensive model of the dynamics of social movements and firm actions, and suggest the need to adopt a more strategic approach that integrates firm and competitive factors into this line of research.