The Role of Trade Associations in Environmental Compliance Under Limited Enforcement: The case of small businesses

Abstract

AbstractAlthough a substantial body of research has considered the role of non‐state actors in establishing regulatory policies, relatively little research has focused on the influence of such actors at the implementation phase. To fill this gap in the literature, we extend the research on compliance motivations and institutional theory by exploring the role of trade associations in facilitating environmental compliance of small businesses, an area in which the problem of limited enforcement is particularly acute. Using data from dry‐cleaning facilities, we investigate the ways in which a trade association contributes to improvements in environmental performance among its members. The results reveal that the trade association can promote compliance by helping its members to become familiar with regulatory requirements and to develop technical capacity to meet them. Based on the findings, we propose ways to increase the practical involvement of non‐state actors to compensate for enforcement shortfalls. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment