External Stakeholder Pressure Research Articles

Institutional pressures and accountability processes in pursuit of sustainable development goals: Insights from Ghanaian indigenous oil companies

AbstractThis paper aims at exploring the institutional pressures and accountability processes in pursuit of sustainable development goals (SDGs) in indigenous oil companies in Ghana. Applying a qualitative research strategy, semi‐structured interviews with 20 company managers and other industry stakeholders were used to collect in‐depth and rich empirical data. In pursuit of the SDG agenda, the indigenous oil companies appear to be sensitive to both internal and external stakeholder pressure. However, the coercive pressures from regulators did not always result in the companies implementing actual change. Instead, coercive pressures from non‐governmental actors have taken on the role of ‘regulator’ of organisational practices. Also, internal forces of change were mainly the foreign partner's audit pressure and management commitment to enhance company reputation. Beyond the institutional pressures to incorporate SDGs into business practices, the finding adds fresh perspectives to the three logical steps of SDG accountability processes used by the companies to track their contribution to SDG implementation and reporting, namely: data collection, SDG performance measurement, and communication of SDG outcomes. Finally, the study discovers that the companies are making little progress towards the achievement of the SDGs because of financial limitations, rigid organisational environments that prevent change, and a lack of a standardised institutional framework. The findings suggest that in order for an organisation to gain legitimacy, its SDG agenda must incorporate the concerns of non‐governmental actors and local communities into its corporate decision‐making. Failure to meet the needs of these essential stakeholders may jeopardise the legitimacy of organisation which will threaten its survival.

Stakeholder Pressure Engaged with Circular Economy Principles and Economic and Environmental Performance

The study aims to investigate the impacts of internal and external stakeholder pressures on the adoption of circular economy (CE) principles. The study explores the primary barriers to and causes (external or internal stakeholder pressures) of CE’s transition across Mexico and explores the effects of stakeholder pressures (internal and external) on the adoption of CE principles on economic and environmental performance. For this, data were collected from 433 respondents using a structured questionnaire. For analysis, the study used the PLS-SEM technique to examine internal and external stakeholders as barriers and motivators of economic and environmental performance through CE principles. Both the structural model and the measurement model were assessed. As well as mediation analysis, the direct and indirect effects were determined. The study found that economic (β = 0.178, p = 0.000) and environmental performance (β = 0.233, p = 0.000) is affected by most external stakeholders through the adoption of circular economy principles. Although the internal stakeholders don’t affect the environmental performance (β = 0.040, p = 0.492), with the adoption of circular economy principles mediating the relationship, internal stakeholders encourage environmental performance (β = 0.201, p = 0.000). The study motivates the public, non-governmental organisations (NGOs) and the government to adopt CE principles for the achievement of economic and environmental performance and participation in the sustainable development agenda.

국내 중소수출제조기업 유통⋅물류 부문의 Green SCM 도입수준에 영향을 미치는 이해관계자 결정요인 연구

Recently, changes in the export environment are expanding the scope of mandatory environment in the eco-friendly distribution and logistics sector. Accordingly, domestic small and medium-sized export manufacturing companies are also included in the list of external stakeholder pressure on the implementation of an eco-friendly system for sustainable operation. Therefore, it is necessary to derive stakeholder determinants that affect the level of Green SCM adoption in the distribution and logistics sector of domestic small and medium-sized export manufacturing companies and present their eco-friendly management strategy directions. Based on Freeman’s stakeholder model, the purpose of our paper is to analyze how it affects the level of introduction of Green SCM by deriving stakeholder factors of small and medium-sized export manufacturers, and to analyze the significance of the moderating effect by conducting a multiple group analysis on the ISO 14001 data implementation period. To this end, our study distributed the questionnaire designed through pending research and in-depth interviews with experts to workers of domestic distribution logistics small and medium-sized export manufacturing companies, and used member lists of the Carbon Convergence Industry Research Association, Korea Trade Association, and professional trading companies to secure objectivity and reliability of samples. The analysis results of our study are as follows. First, the threat of government regulation had a negative (-) effect on the level of Green SCM adoption. Similar results were derived from studies by Xue et al. (2021) and Li et al. (2019) in that the stronger government regulations, the more negatively they affect corporate decision-making and performance. Second, supplier cooperation had a positive (+) effect on the level of Greem SCM adoption. These results are similar to the studies of Kitsis & Chen (2021), Park Chan-kwon, etc. (2019), and the higher the level of awareness of supplier cooperation, the higher the level of Green SCM adoption. Third, community responsibility had a positive (+) effect on the level of Green SCM adoption. This was similar to the study of Khosroshahi et al. (2021) in that small and medium-sized export manufacturing companies have an environmental responsibility as a member of the community and introduce eco-friendly management to contribute to the community. Fourth, the ISO 14001 data implementation period showed a significant moderating effect in the relationship between supplier cooperation and Green SCM adoption level. As a result, it was confirmed that the longer the ISO 14001 data implementation period, the higher the level of adoption through continuous eco-friendly activities to maintain eco-friendly certification.

External Pressures, Managerial Motive and Corporate Sustainability Strategy: Evidence from a Developing Economy

Based on social-system theories, our study analyzes the (i) influence of institutional and external stakeholder pressure on the adoption of corporate sustainability strategy and (ii) role of managerial motive in mediating the influence of external pressures on the adoption of corporate sustainability strategy. A questionnaire was developed to collect data from listed companies in Sri Lanka, and the data were analyzed using the covariance-based structural equation modeling technique. The results showed that the adoption of corporate sustainability strategy is positively influenced by external stakeholder pressures, whereas institutional pressures had no significant impact. The managerial motive was found to mediate institutional pressures, but it was not to mediate external stakeholder pressure on adopting corporate sustainability strategy. This is the first study from Sri Lanka to investigate the interplay between external forces and managers' internal motivations concerning adopting corporate sustainability strategy. External stakeholders and the institutional environment can call upon organizations to embrace a sustainability agenda in economies where adopting sustainability is purely voluntary. Managers may absorb the external pressures on sustainability and drive organizations to engage in sustainability initiatives. Keywords: Corporate sustainability strategy; institutional pressures; external stakeholder pressures; managerial motive; structural equation modelling

A sequential process from external stakeholder pressures to performance in services

PurposeThis study develops a sequential process model to address how to improve firm performance by responding to external stakeholder pressures in service contexts.Design/methodology/approachThe model posits that external stakeholder pressures affect firm performance through organizational learning, green creativity and environmental performance. Data from 219 service firms are utilized to test the hypotheses. A sequential mediation approach is adopted to analyze the model.FindingsResults reveal (1) organizational learning mediates the effects of government, customer and supplier pressures on firm performance, (2) environmental performance mediates the effect of customer pressure on firm performance, (3) organizational learning and green creativity serially mediate the effects of the three stakeholder pressures on firm performance and (4) the three external stakeholder pressures enhance firm performance through organizational learning, green creativity and environmental performance in a sequential manner.Originality/valueThis study originally contributes to the service literature by providing a sequential process lens to address how to improve performance by responding to external stakeholder pressures.

The role of industrial actors in the circular economy for critical raw materials: a framework with case studies across a range of industries

In this article, we explore concrete examples of circularity strategies for critical raw materials (CRMs) in commercial settings. We propose a company-level framework for systematically evaluating circularity strategies (e.g., material recycling, product reuse, and product or component lifetime extension) in specific applications of CRMs from the perspectives of specific industrial actors. This framework is applied in qualitative analyses—informed by relevant literature and expert consultation—of five case studies across a range of industries: (1) rhenium in high-pressure turbine components, (2) platinum group metals in industrial catalysts for chemical processing and oil refining, (3) rare earth permanent magnets in computer hard disk drives, (4) various CRMs in consumer electronics, and (5) helium in magnetic resonance imaging (MRI) machines. Drawing from these case studies, three broader observations can be made about company circularity strategies for CRMs. Firstly, there are multiple, partly competing motivations that influence the adoption of circularity strategies, including cost savings, supply security, and external stakeholder pressure. Secondly, business models and value-chain structure play a major role in the implementation of circularity strategies; business-to-business models appear to be more conducive to circularity than business-to-consumer models. Finally, it is important to distinguish between closed-loop circularity, in which material flows are contained within the “focal” actor’s system boundary, and open-loop circularity, in which material flows cross the system boundary, as the latter has limited potential for mitigating material criticality from the perspective of the focal actor.

Pathways towards Green Banking adoption: moderating role of top management commitment

PurposeThe purpose of this study is to empirically examine the determinants and outcomes of Green Banking adoption and the moderating influence of top management commitment under the corporate environmental ethics ideology. External stakeholder pressures are analyzed as determinants of Green Banking adoption. Brand image and operational efficiency are examined as outcomes of this business ideology. Green Banking adoption is adapted as a second-order construct with four first-order reflective constructs to ensure in-depth conceptualization of the construct.Design/methodology/approachGreen Banking adoption is studied at the bank branch level in a developing country, i.e. Pakistan. The data is collected from the branch managers of 212 bank branches from five major cities of Pakistan through mails. Self-administered survey was used for the data collection. The data was analyzed through the application of partial least square-structured equation modeling in SMART PLS 3.2.9. The measurement model and the structural model of the research framework were analyzed through the two-stage approach of the second-order analysis.FindingsThe results indicate a positive relationship between customer and competitor pressure and Green Banking adoption among bank branches in Pakistan depicting an influence of various environmental ethical pressures on bank’s adoption practices. Community pressure was shown to have no significant influence on Green Banking adoption at the branch level. The moderator of top management commitment caused a positive influence on the relationship between all the studied stakeholder pressures and Green Banking adoption. Branch managers reported branch image and operational efficiency to be enhanced due to Green Banking adoption.Originality/valueThis study attempts to fill in the significant gap in Green Banking adoption literature through an empirical analysis of Green Banking’s second-order construct. Currently, limited literature exists on the various aspects of Green Banking adoption, and an empirical study has not been conducted at the bank branch level. The study contributes significant practical, theoretical and methodological contributions to the area of Green Banking.

Environmental Performance Improvements and External Stakeholder Pressures in Companies with Certified Environmental Management System

The relationship between environmental performance and Environmental Management Systems has been widely investigated by international researches. Despite this, our paper adds new perspectives to the current literature framework. First, it is focused on companies with an Environmental Management System registered according to EMAS Regulation, while many previous studies considered also ISO14001 certified companies. Second, to achieve the objectives of this paper, a wide sample of Italian companies was considered, and the results of a questionnaire survey filled out by 143 organizations are reported. In addition, this study points out the relationship between environmental performance and stakeholder pressures which have not been thoroughly investigated in previous papers. The results show that EMAS positively influences performance on some environmental aspects such as water consumption and emissions into the atmosphere, while this positive influence is not confirmed for other aspects. The Public Authorities represent the stakeholder identified by the survey as the main external pressure to improve environmental performance.

Ecosystem Readiness: Blockchain Adoption is Driven Externally

Blockchain technology has been extensively tested, implemented, used, or even abandoned by organizations. Whether organizations adopt blockchain technology depends on many factors. Previous literature has identified a range of potential factors affecting the adoption of blockchain technology, but most studies have focused solely on a subset of specific factors. As a result, these studies can provide only limited explanations for the varying degrees of blockchain adoption. By relying on the well-established Technology-Organization-Environment (TOE) framework, we propose an extended Blockchain Adoption Model (BAM). We derive a rich set of factors from the current state of research on blockchain adoption and the business ecosystem literature and extend them by conceptual reasoning. We then develop testable hypotheses for each of the identified factors. The resulting 14 hypotheses are tested by conducting a survey (n= 350) within the DACH-region (Germany, Austria and Switzerland). We quantitatively analyze our BAM with a binary logistic regression analysis and identify six constructs impacting the adoption (relative advantage, observability, organizational age, external stakeholder pressure, regulatory uncertainty, and scope of business ecosystem). Based on our findings we introduce the novel idea of “ecosystem readiness” as the most important factor for the adoption of blockchain. Ecosystem readiness is characterized by the following attributes: 1) a large ecosystem scope, 2) stakeholders that are not yet collaborating in a trustful and regulated environment, and 3) a powerful organization leading the ecosystem. This powerful organization further intentionally promotes innovation by 4) making the benefits of this new technology observable for others, by 5) putting pressure on the other ecosystem participants to adopt the new technology, and eventually by 6) striving for regulatory certainty in the application and use of blockchain.

Capital expenditure deviations in a fragmented municipal context – the case of the Swedish municipal water and sewerage sector

PurposeThe aim of this paper is to explore whether and how external, political, financial and governance factors influence capital expenditure deviations in the Swedish municipal water and sewerage sector and to capture the consequences of municipal organisational fragmentation.Design/methodology/approachPanel data analysis of 238 municipalities and 1,190 observations of capital expenditure deviations over five years (2013–2017).FindingsApart from a low overall on average execution rate of 69%, the Swedish municipal water and sewerage sector seems generally sensitive to external stakeholder pressure for budget compliance, but not to the political power situation. Further, political signalling incentives generally do not influence capital expenditure deviations in the contexts of municipal corporations and cooperations, which supports the idea that these governance forms insulate the organisation from general stakeholder pressure and political control.Practical implicationsThe practical implication is that large and constant capital expenditure deviations call for change in regulation and governance of the municipal sector. However, in countries such as Sweden, where externalising services to municipal corporations and cooperations is significant, this discussion needs to address the consolidated level of the municipality. Otherwise, a large share of the investment budget will be unscrutinised. More closely related to the Swedish water and sewerage sector, the risks associated with a constantly low execution rate should be analysed and addressed.Originality/valueFirst, this paper contributes to the knowledge of aggregated capital expenditure deviations in general and specifically within the municipal water and sewerage sector. Second, analysing the municipal governance landscape adds further insights and suggestions on why budget performance varies. The results especially highlight that the governance forms of corporations and cooperations change the relation to political signalling incentives.

The effects of environmental factors on low-carbon innovation strategy: A study of the executive environmental leadership in China

Low-carbon development of industrial enterprises has received extensive attention with increasing greenhouse effect. Low-carbon innovation strategies are a meaningful way to cope with the current increases in carbon emissions. Promoting the switch to low-carbon production by enterprises require significant and urgent consideration. The research probes the impact of internal and external environmental factors, i.e. internal innovation resources and innovation ability, external institutional pressure and stakeholder pressure, on low-carbon innovation strategy of industrial enterprises. Combined with executive environmental leadership, this paper establishes a comprehensive model of low-carbon innovation strategy. We sampled the responses of 398 employees from industrial enterprises in China to a questionnaire and gathered data for analysis. The empirical results reveals the correlation between environmental factors and the low-carbon innovation strategy implemented by industrial enterprises and the role of executive environmental leadership. Further, we show that low-carbon innovation strategy of the enterprises positively correlates with institutional pressure, stakeholder pressure, independent innovation ability and absorption and re-innovation ability. The impact of cooperative innovation ability and innovation resources on low-carbon innovation strategy was not found to be significant. In addition, executive environmental leadership demonstrates a positive moderating effect on institutional pressure, stakeholder pressure and innovation resources, but adversely affects innovation ability to the low-carbon innovation strategy.

Translating stakeholder pressure into environmental sustainability-Studying HRM practices as mediating role

The research contributes towards the surviving exploration of Human Resource management, hereafter referred as HRM practices, depending on the instrumental estimation of the partner weight which leaves an effect on the organizations choices. This examination imagines HRM hones as an arrangement of the administration process that organizations are attempting to actualize keeping in mind the end goal to react the partner weight which influences the ecological manageability of the firms. Partners may apply weight on association's to execute HRM hones which could prompt enhance the ecological manageability. The current study addresses partner weight for the execution of HRM hones inside the organizations. The principle reason for this exploration is to control the partner's weight and to fill the holes occurred by external stakeholder pressure inside the organizations.
 The study examines the mediating effect of HRM practices with stakeholder pressure and environmental sustainability. This investigation depends on implementing the HRM practices and to control the stakeholder pressure within the firms. This investigation helps the managers to understand the importance of HRM hones. The collection of data is based on the primary and secondary sources. Primary sources are related to the questionnaires and secondary sources are related to the research articles. HR managers can use the result to control the stakeholders’ pressure and to improve the environmental sustainability. These findings are used to know about the variables that are creating the gap of communication and to decrease the pressure of stakeholders within the firms. It helps us to execute the new policies and norms within the firms.

Impacts of stakeholder influences and dynamic capabilities on the sustainability performance of supply chains: a system dynamics model

Dynamic capabilities (DCs) are crucial for companies to attain competitive advantage in dynamic business environments and supply chains, where environmental and social aspects are considered by sustainable supply chain management (SSCM). However, the effects of stakeholder influences on SSCM performance, which results from the interplay of DCs and SSCM practices, need to be analyzed. Therefore, a system dynamics (SD) model is proposed to include the influences of governmental, shareholder, and other external stakeholder pressure. The system behavior, i.e., the company’s SSCM performance, can thus be analyzed in face of varying time delays of stakeholder influences. Findings indicate that different intensities of stakeholder influences affect the development of SSCM practices and DCs of a focal company, and thus, overall SSCM performance. Consequently, intensities of stakeholder influences should be managed accordingly, while the impact of time delays has to be understood to control SSCM performance. The insights gained from the model support the decision- and policy-making, which can be considered from the perspective of the focal company, the regulatory authorities, the shareholders, and other external stakeholders that ultimately translate into customer pressure.

Legitimacy-seeking strategies in the gambling industry: the case of responsible gambling

PurposeThe purpose of this paper is to examine how responsible gambling policies are communicated and presented as a legitimation strategy to different stakeholders.Design/methodology/approachThis study is based primarily on 49 semi-structured interviews with internal and external stakeholders of Macao’s gambling industry in 2011. This study draws on Reast et al.’s (2012) legitimacy-seeking strategy framework.FindingsThe findings indicate that these organisations use construing and earning legitimacy strategies to ensure passive support and acquiescence from certain stakeholder groups, and they deploy bargaining and capturing legitimacy strategies to generate active support for this morally contested industry. As a means of attaining long-standing legitimacy in the industry, gambling operators engage symbolically rather than substantively in responsible gambling to minimise the legitimacy gap.Research limitations/implicationsThe findings of the study pertain to a unique setting and might not be suitable for generalisation.Practical implicationsIn the absence of stringent legal mechanisms and strong external stakeholder pressure, the 12th Five-Year Plan of the People’s Republic of China aims to transform Macao into a “World Centre of Tourism and Leisure”, and gambling companies may soon face much stronger pressures from the Chinese Government and the Macao Government.Social/implicationsVoluntary responsible gambling initiatives are liable to be used only in symbolic fashion, without offering genuine engagement or full commitment to the most vulnerable stakeholder group.Originality/valueThis study contributes to the literature on social and accounting literature by providing an in-depth case study of how organisations in the gambling industry use different communication strategies to shape and respond to controversial issues.

Green supply chain management adoption in Lebanese manufacturing industries: an exploratory study

This paper bases itself on the dual factor theory to study the motivators, barriers and hygiene factors affecting the adoption of green supply chain management (GSCM) activities in Lebanese manufacturing industries. Out of 60 Lebanese companies that have already taken green initiatives, 37 were analysed. The paper reveals that GSCM adoption is positively correlated with marketing opportunities, market motivators and manpower's involvement. We also found that the external stakeholder's pressure and the lack of government support hinder the GSCM adoption. Moreover, ISO 14001 certified companies have shown a higher rate of adoption of GSCM.

The Scholarship of Teaching and Learning: Changing the Dominant Narrative About (and In) Research Institutions

Despite calls for and advances in the scholarship of teaching and learning (SOTL) over the years, research-intensive institutions have a persistent reputation as preferring and demanding Boyer’s “scholarship of discovery” at the expense of SOTL work. In this article, we challenge the dominant narrative that research-focused institutions—the Carnegie “R1”and “R2”—do not engage in or value SOTL research in business and management education (BME). In a previous empirical study, we found evidence that a surprising proportion of R1 and R2 schools are already creating and disseminating innovative and impactful BME work. Using diffusion of innovations theory, we argue that those institutions can provide leadership due to their BME work, and examine what this might mean in terms of the prospects for diffusion of BME research among all research-intensive institutions. Due to external stakeholder pressures for excellent, evidence-based instruction, we assert that institutions that do subordinate SOTL to discipline-based scholarship will be forced to reframe their research portfolios. We end the article with solutions for how faculty could include BME work within their overall research efforts and challenge institutions to reconsider how BME scholarship may help them craft a more inclusive research narrative.

The Influence of External and Internal Stakeholder Pressures on the Implementation of Upstream Environmental Supply Chain Practices

This study examines the independent and combined influences of internal and external antecedents to upstream environmental practices. Proactive environmental strategy is considered as an internal antecedent and competitive pressure as an external antecedent. Multiple hierarchical regression analysis is used to test the hypothesized relationships using data from a sample of 149 manufacturing companies located within the U.K. food industry. The results suggest that proactive strategy and competitive pressure exert both independent and combined influences on environmental supply chain practices. Proactive strategy appears to be a stronger driver of these practices, suggesting that internal stakeholders such as directors, managers, and employees may be more influential in the adoption of certain practices than external stakeholder pressures. This article builds upon the recent wave of research highlighting the potential for internal and external factors to generate a combined influence on the adoption of environmental practices within companies and their supply chains.

Substantive or Symbolic Environmental Strategies? Effects of External and Internal Normative Stakeholder Pressures

AbstractDifferent forms of stakeholder pressures drive different environmental strategies in organizations. This article differentiates between internal and external normative stakeholder pressures to test their potentially unique effects on environmental strategies. The findings suggest that internal, normative stakeholder pressures primarily drive substantive commitments to environmental practices, reflecting an internalized, voluntary commitment to the natural environment and dedication to environmental leadership by the firm. External, normative pressures instead primarily drive symbolic commitments to environmental practices, aimed at managing the image of the organization to establish and reinforce an appearance of commitment to the natural environment. This novel perspective accounts for the institutionally plural contexts of organizations and their environments, in which internal pressures directly drive substantive environmental commitments and external pressures drive symbolic responses. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

The adoption of green business practices among small US Midwestern manufacturing enterprises

Manufacturers around the world green their businesses for a variety of reasons, including competitiveness, social responsibility, and external stakeholder pressure. However, small and medium enterprises (SMEs) are thought to lag behind larger ones in the adoption of green business practices. This paper explores the motivations for US Midwestern SMEs adopting a variety of green business practices, using a survey of 59 SMEs in the tool and die manufacturing industry. The majority of firms appear to be internally motivated to implement green practices – driven primarily by cost and competitiveness concerns, more than by social responsibility concerns. External coercive pressure from government or customers does not appear to be a significant motivation for these SMEs. However, informal pressure through government incentives and support programs, as well as mimetic pressure through peer learning via industry associations, appear to be more effective in helping these SMEs to further ‘go green.’

Managing Social Responsibility in Multitier Supply Chains

We study the management of social responsibility in a three-tier supply chain in which a Tier 2 supplier sells to a Tier 1 supplier, which in turn sells to a Tier 0 buyer. The Tier 2 supplier potentially violates social and environmental standards, resulting in harm to the Tier 0 and 1 firms. Each member of the supply chain can exert effort to improve the responsibility in Tier 2, and the efforts of Tiers 0 and 1 are substitutable with one another and complementary to the efforts of Tier 2. We show that in this scenario the buyer’s optimal strategy is one of extremes, consisting of direct control (only Tier 0 works with Tier 2), delegation (only Tier 1 works with Tier 2), or no effort (neither firm works with Tier 2), and we characterize the features of Tiers 0, 1, and 2 that lead the buyer to favor each strategy. Under the buyer’s optimal strategy, we find that selection of Tier 1 and 2 suppliers for greater responsibility or lower cost, as well as increased pressure from external stakeholders (consumers, NGOs, and governments), may increase the chance of a responsibility violation when the buyer shifts from control to delegation. We further illustrate how responsibility management differ in three- and two-tier supply chains, and show that perverse reactions to better supplier selection and greater external stakeholder pressure never occur in a two-tier system, demonstrating the unique challenges associated with multitier responsibility management. Lastly, we show that appropriately designed non-compliance penalties to either Tier 0 or 1 when a Tier 2 violation occurs can coordinate the three-tier supply chain, i.e., make it perform like a two-tier system, though such penalties face implementation challenges in practice.