Firms' intentions to use genetically modified organisms industrially: The influence of sociopolitical-economic forces and managerial interpretations in the Korean context

Abstract

The industrial use of genetically modified organisms (GMOs) has been highly controversial for many reasons. The controversies lead to a gap between societal needs and expectations of the potential benefits and risks related to the industrial use of GMOs. This gap has been imposing society-specific political-economic pressures on firms. These pressures derive from the external stakeholders' needs and expectations that GMOs will assume an important role in creating business opportunities for and damaging the social reputations of firms. This paper, by drawing upon the literature on managerial interpretations of issues, investigates the way sociopolitical-economic forces and managerial interpretations influence firms' intentions for the industrial use of GMOs in the Korean context. It uses a structural equation modeling (SEM) approach. Results based on survey data from 145 manufacturing companies indicate that social acceptance, and managerial interpretation influenced mainly by market attractiveness, will both make a significant contribution to the prediction of firms' industrial use intentions of GMOs. Market attractiveness was not a significant factor affecting the use intentions of GMOs directly. Some insights into what governments should do to promote sustainable use of GMOs in their countries are proffered.