Once A Conformist, Always A Conformist? The Discontinued Conformity to Sustainability Norm

Abstract

Although institutional scholars have well established the value of conformity to institutionalized norms, researchers have paid limited attention to the subsequence of the norm-conforming behaviors. Motivating by the abnormal phenomenon that some organizations deviate from the sustainability norm after their original conformity – which is described as discontinued conformity, we identify institutional immunity as a key mechanism to explain the inconsistent responses. We then introduce the distinction between ascribed and achieved immunity based on their different origins. While ascribed immunity is predetermined by organizations’ structural attributes, achieved immunity can be enhanced by intentional actions. Both types of immunity filter institutional pressures and reduce legitimacy loss, which enable the deviation afterward. We further argue that institutional quality moderates the relationship between institutional immunity and discontinued conformity. We test our hypotheses with 22,949 global observations covering 2012-2017 and find solid support. Our work enriches the conformity literature by adopting a dynamic view and advances the institutional perspective in sustainability and CSR researches.