Abstract

We examine to what extent business organizations respond in a substantive manner to ecological pressures at the community level through the introduction of green process and product innovations. We argue that the noneconomic utility in the form of personal reputation gains that business owners derive from such substantive responses is greater when owner identifiability is high, and that owner identifiability therefore strengthens the effect of ecological community pressures on the introduction of green innovations by firms. Our hypotheses are tested on a sample of over 2,800 German firms using instrumental variable regression analyses, and we find support for our ideas. This study contributes to institutional theory by clarifying how the utility derived from substantive responses to institutional pressures depends on owner identifiability, thereby advancing insight on the heterogeneity in organizational responses to such pressures.

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