Institutional Pressures Research Articles

Sustainability action in the real estate sector — An organizational and institutional perspective

IntroductionDecision-makers' perceptions, influenced by institutional and organizational pressures, shape sustainability action. However, the current body of research on the impact of these pressures within the real estate sector, particularly among real estate owner organizations, remains limited. Research argumentThis explorative study fills the research gap by providing empirical findings and theoretical interpretation that explains the influence and outcomes of institutional pressures on decision-making processes. Methodological approachExplorative surveys and interviews were conducted with asset managers in Sweden to understand their sustainability perceptions and actions within the real estate sector. Main findingsThe study found a notable shift in sustainability perceptions among asset managers in Sweden, with most recognizing sustainability as critical for commercial real estate, challenging the notion of their passivity and highlighting their proactive engagement. Economic incentives significantly influence sustainability actions, with top priorities being energy efficiency and renewable energy due to their positive business impact. Other sustainability actions are also important but not prioritized to the same extent, revealing specific priorities within real estate owner organizations, an area less explored in prior research. ConclusionThe article proposes a theoretical framework to guide future research on how institutional and organizational mechanisms shape decision-makers' sustainability perceptions, guiding sustainability action. Understanding these mechanisms is essential for implementing Sustainable Development Goals in practice across industries.

How Circular Economy Disclosure Responds to Institutional Determinants Empirical Evidences in Non-Financial European Firms

Despite the increasing attention that the circular economy (CE) has received at the international level in recent years, the literature has paid limited attention to the importance of institutional factors that may influence firms’ disclosure of CE. Thus, there is a gap in the study of CE disclosure, especially when compared with other studies dedicated to environmental disclosure. This paper aims to fill this gap by investigating the institutional pressures, in terms of coercive, normative, and mimetic factors, that influence firms’ behavior with respect to CE disclosure. This research focuses on a sample of 366 nonfinancial firms, operating in 14 EU countries between 2015 and 2020. The results show that coercive and mimetic institutional pressures positively influence the level of CE disclosure issued by the firms. More specifically, the stringency of the environmental policy (coercive pressure) and the belonging to an environmentally sensitive sector (mimetic pressure) have a positive impact on the CE disclosure provided. With respect to normative pressure, the results are mixed. In fact, only the adoption of Global Reporting Initiatives’ (GRIs) standard requirements is positively and significantly related to CE disclosure. The presence of an external assurance, as well as the commitment to the SDGs, is not significantly related to the CE disclosure. The absence of an analytical standard that organically addresses the issue of CE, by guiding companies in their disclosure, may explain the irrelevance of these factors in the process of convergence of the information produced. This research contributes to this area by filling a gap in the CE literature, providing some insights into the determinants of disclosure and the role of institutional pressures in influencing the level of CE information. In addition, the research adds to previous studies on disclosure by measuring the CE information provided by companies with an indicator developed based on specific environmental items collected from the Refinitiv Eikon database, which could be used in future research. The findings of this paper have some important practical implications. In particular, the results confirm to policymakers that stricter regulations have a positive impact on disclosures related to the CE. Thus, a new specific European regulation should promote more homogeneous and analytical CE disclosure, increasing the sensitivity among firms and practitioners on this topic. A similar approach may be followed for the same purpose by other regional or local policymakers. The paper also emphasizes the necessity of introducing more stringent regulations on assurance and SDGs by the regulatory or professional bodies to achieve greater uniformity of behavior by firms.

Why companies adopt supply chain sustainability practices: A study of companies in Brazil

With the increased concern about social and environmental impacts, managing sustainability in supply chains has become a focus of interest. In consequence, companies are adopting supply chain sustainability practices also due to pressures from various stakeholders. Questions arise about how certain types of pressures can influence the adoption of behavioral and technical practices related to sustainability and how these relationships vary along supply chains. The research utilizes data from Brazilian companies and employs structural equation modelling to investigate the adoption of sustainability practices in supply chains. Normative and mimetic pressures positively affect behavioral and technical practices. On the other hand, coercive pressures have no influence on the adoption of sustainability practices, whether technical or behavioral. The findings enhance the understanding of how institutional pressures shape the adoption of sustainability practices, benefiting companies and policymakers aiming to promote sustainable supply chains.

The effect of green supply chain management practices on corporate environmental performance: Does supply chain competitive advantage matter?

AbstractThis paper examines the impact of institutional pressure (IP), top management support (TMS), green supply chain management practices (GSCM), and supply chain competitive advantage (SCCA) on corporate environmental performance (EP). We also analyze the mediation effect of GSCM on the interplay between TMS and EP. Additionally, the paper also provides an analysis of the moderating role of SCCA between IP and EP. To attain the objective of this research, we assembled data from 710 business entities within the Shaanxi province of China utilizing a survey design approach. The structural equation model (SEM) was applied to test and assess the hypothetical outline. The study outcomes empirically show that TMS, GSCM, and SCCA positively and significantly impact EP. Interestingly, our study found an insignificant association between IP and EP. The study's results also demonstrate that IP directly relates to top management support. Moreover, the study's empirical findings reveal that GSCM positively mediates IP and EP. The study findings show that SCCA shapes IP and EP's connection. Accordingly, the practical implications of our study's findings suggest that business managers, investors, and government agencies must know the importance of adopting sustainable practices within the supply chain. Business managers must take action to integrate environmental criteria into supplier selection, evaluate suppliers' EP, and collaborate with eco‐friendly suppliers. Hence, government agencies, stakeholders, and business managers can use this information to shape regulations and policies that encourage businesses to adopt sustainable supply chain practices. Offering incentives such as tax benefits or grants for sustainability initiatives can also promote adoption. The study recommends that a business culture that targets improving EP due to IP and top management support is essential in achieving GSCM practices, thereby promising competitive advantage.

Understanding the relationship between institutional pressures, supply chain integration and the adoption of circular economy practices

This paper explores the role of institutional pressures and supply chain integration in the adoption of Circular Economy practices. Using a Delphi-like approach and leveraging on a panel of 30 experts in the field of Circular Economy, this study aims to gain additional insights into how coercive, normative, and mimetic pressures can drive the implementation of circular supply chains. The findings reveal a hierarchy of institutional pressures, with coercive market and regulatory pressures having a greater impact compared to normative and mimetic pressures. Additionally, the study identifies various responses to these pressures, illustrating different trajectories towards the implementation of Circular Economy practices. Furthermore, the research investigates the role of supply chain integration. Generally, a higher level of supply chain integration can amplify the effect of institutional pressures, promoting the adoption of incremental Circular Economy practices. However, it is noteworthy to mention that supply chain integration may also hinder the adoption of more radical Circular Economy approaches, favouring the retention of linear supply chains.

What is the business value of your data? A multi-perspective empirical study on monetary valuation factors and methods for data governance

Digitalization has greatly increased the importance of data in recent years, making data an indispensable resource for value creation in our time. There is currently still a lack of theories as well as practicable methods and techniques for the monetary valuation of data, and data is therefore not yet sufficiently managed in terms of business management principles. In this context, this research is intended to design theory ingrained principles for a multidimensional conceptual approach to the monetary valuation of data as assets. We draw on the theory of dynamic capabilities as a further development of resource theory as well as value theory. To this end, the research conducts a qualitative field study followed by a quantitative survey study. Literature analysis is used to explain different dimensions in the qualitative field study. Structural equation modeling is used to analyze empirical data collected in the quantitative study. The results show that data value determination is a multidimensional and hierarchical construct consisting of three primary dimensions. These are the benefit-oriented, cost-oriented, and quality-oriented dimensions. The results also confirm that institutional pressures (coercive, normative, mimetic) that influence organizational behaviors lead to a greater intention for organizations to adapt a monetary data value determination.

Предпринимательство в российском аграрном секторе

The article is devoted to the formation of entrepreneurial layers on the example of heads of farms and entrepreneurs of informal sector structures in the agricultural labor market, based on Rosstat panel studies on employment of rural residents and their households for 2011-2022 and data from agricultural censuses of 2006-2021. The factors of their formation and stability (crystallization) are considered in the conditions of severe institutional pressure of 30-year agrarian reforms, the criteria of which are an increase in ownership of agricultural land, the growth of agricultural production and its export to world markets. These indicators demonstrated the entrepreneurial potential based on authority as a characteristic of subjects with a high level of social capital, possessing, in addition to skills and competencies, the social connections necessary to transform into material and financial income within the existing economic conditions and institutional requirements. The analysis showed that farmers and entrepreneurs as entrepreneurial strata differ in resource potential, values, implemented social, labor practices and integration into a new innovative economy. Results of the analysis of socio-structural processes in the Russian countryside showed a socio-economic and institutional environment that affects the development of farms, business structures and the state of the agricultural labor market, where the movement of labor and the level of employment in the formal and informal sectors by agriculture, income, the socio-economic situation of households was revealed. The indicators of sectoral employment in the labor market demonstrate the historical moment of the rural world, when traditional forms of management are leaving, the familiar contours of the social structure of the village disappear and new social strata arise that construct the modern reality of rural areas.

Green Tax Policy Model: Towards Green Growth Environment

The objective of green tax law is to promote green growth among companies, people and communities as well as environmental preservation. The Malaysian green tax law, however, is more concerned with tax incentives than with tax penalties. Evidence showed most companies in Malaysia are not even aware of the incentive-based tax and thus, do not include them as part of their strategies for environmental sustainability. The green tax penalty has become a popular environmental policy tool for many countries, but not in Malaysia. The Malaysian system of environmental taxes should include the green tax penalty. Therefore, this study aims to identify key drivers for companies to respond to the green tax policy. The study uses institutional theory to explore the driving force of green tax acceptance within companies. Institutional pressure suggests that the three mechanisms of organisational changes are coercive, mimetic, and normative pressures. Coercive pressure stems from political influences and the legitimacy problem; mimetic pressure results from a standard response to uncertainty, and normative pressure is associated with professionalisation. The study utilises the survey questionnaire to identify opinions, experiences and behaviours towards green tax acceptance among manufacturing companies. The population of the study is manufacturing companies and the unit of analysis is managers or accountants who represent the manufacturing companies and members of the Federation of Malaysian Manufacturer (FMM). The outcomes from the study confirmed the institutional theory to support the green tax reform acceptance for companies in Malaysia. The study also develops a green tax model that the government can take into account when enacting green tax reform so that companies can cooperate with Malaysia's green tax law. The study contributes to institutional theory by conceptualising the key drivers of green tax laws among Malaysian companies. The conceptualisation is used to formulate a structural model that explains the key drivers of green tax laws, and the structural model is tested against empirical data. A better understanding of factors influencing green tax policy acceptance is relevant to the government to strengthen the green growth environment and enhance awareness to create a shared responsibility among Malaysian companies.

Environmental orientation and sustainability performance; the mediated moderation effects of green supply chain management practices and institutional pressure

This research delves into the examination of how green supply chain management practices serve as a channel, and how institutional pressures act as limiting factors, affecting the connection between environmental orientation and sustainability performance. The investigation draws on data collected from 202 small and medium-sized manufacturing enterprises (SMEs) in Ghana. The results of the study indicate that while environmental orientation has a positive impact on environmental performance, it does not significantly influence economic performance. Moreover, the study highlights that the relationship between environmental orientation and environmental performance is mediated by the adoption of green supply chain management practices. However, this mediation is not observed in the context of economic performance. Notably, the research underscores that the positive indirect correlation between environmental orientation and environmental performance, facilitated by green supply chain management practices, remains significant with the boundaries of regulatory institutional pressure. This study makes a noteworthy contribution by offering empirical evidence from an African economy, shedding light on the effectiveness of institutional pressures and environmental orientation on both economic and environmental performance.

Responsibility boundaries and the governance of global value chains: The interplay of efficiency, ethical, and institutional pressures in global strategy

AbstractResearch SummaryI explore the relationship of firm global strategy and global value chain (GVC) governance, within a context of expanding responsibility boundaries for unethical practices in the value chain. Specifically, focusing on the tantalum supply chain within the digital electronics GVC, I conduct a case‐based process study that contextualizes the different strategic responses of three manufacturers of tantalum capacitors when faced with similar efficiency, ethical, and institutional pressures. Integrating the GVC and global strategy literatures, I find that structural inertia in GVCs limits the efficacy of strategies that preserve, rather than alter, the governance structure, instead requiring a strategic restructuring carried out by individual firms, whose internalization of responsibility boundaries is encouraged by the institutionalization of these boundaries through public policy.Managerial SummaryUnethical practices within global value chains are increasingly becoming the responsibility of firms with no direct control over such practices, leading to growing pressures for firms to alter their global strategies to meet social and institutional demands. Research has focused on strategies that preserve the structure of the value chain, despite questions about the efficacy of these approaches. By looking at the case of “conflict minerals” within the digital electronics value chain, this study finds that inherent flaws in value chain structures, which managers can identify, require individual firms to implement strategies that change the structure of the value chain, specifically by increasing ownership and control over the linkages where unethical practices occur and encouraging public policies that add value to these strategies.

What motivates firms to adopt a green supply chain and how much does it matter?

This study integrates the elaboration likelihood model, institutional theory, and the image management perspective to identify the internal and external forces that can effectively drive firms to adopt a green supply chain. Using survey data from a sample of 246 firms in the Chinese manufacturing sector, we empirically examine how the internal green process and green product innovation of firms and different types of external institutional pressures contribute to their adoption of a green supply chain, which in turn can explain the variation in their environmental and new-product development performance. Results of our structural equation modeling analysis reveal that the internal green process and green product innovation of firms and three types of external institutional pressures (i.e., coercive, normative, and mimetic pressures) play an important role in driving green supply chain adoption. Moreover, firms can improve their environmental and new-product development performance by adopting a green supply chain. In addition, though the image management motivation of firms tends to play a negative moderating role in the relationship between their green process innovation and green supply chain adoption, such motivation positively moderates the contribution of coercive pressure to their green supply chain adoption. Our findings can help explain why emerging-market firms tend to adopt a green supply chain and do not follow the pattern predicted by classical strategic management theories. The results of our study clearly demonstrate the determinants and consequences of the adoption of a green supply chain of firms and confirm that their green supply chain adoption can exert a positive effect on their environmental and new-product development performance. Overall, our research highlights the importance of recognizing internal innovation and external institutional forces in driving the green supply chain adoption of firms, which in turn will contribute to their environmental and new-product development performance. In this regard, our study extends the stream of research on green supply chains and sheds new light on the importance of abandoning the conventional supply chain and adopting a green one. Our study also provides important implications for research, practice, and policymaking.

The current state of corporate human rights disclosure of the global top 500 business enterprises: Measurement and determinants

This study contributes to the ongoing debate on business and human rights by providing insight into the current state and determinants of corporate human rights disclosures among the top 500 largest business enterprises worldwide. To do so, we use a 13-item human rights disclosure score to evaluate disclosure in two dimensions: scope and quality. Overall, the measured global level of corporate human rights disclosure is low, with business enterprises scoring on average only 3.72 out of 13 points. This indicates a lack of transparency, awareness, and sensitivity regarding corporate responsibility to respect human rights as described in the United Nations Guiding Principles on Business and Human Rights. However, there are considerable differences across countries. The higher-scoring business enterprises are predominantly based in Australia and Europe. Multivariate analyses reveal that corporate visibility, sector sensitivity in terms of higher litigation risk, and institutional pressure in the form of soft law are positively associated with corporate human rights disclosure levels. However, we find that current forms of national mandatory regulation do not achieve the desired impact on high-quality corporate human rights disclosure, which suggests more targeted and concrete reporting requirements as well as better enforcement may be necessary to improve corporate human rights disclosures.

Climate change adaptation capability, business-to-business marketing capability and firm performance: Integrating institutional theory and dynamic capability view

Drawing on institutional theory and the dynamic capability view, this research explores the relationship between climate change adaptation (CCA) capability and firm performance and the mediating role of the marketing capability of a business-to-business (B2B) firm. To test the theoretical model developed in this study, data are collected from a developed country (Australia) and a developing country (South Africa) using the survey method. The study is important from two perspectives: (a) it is one of the first to analyze the impact of institutional pressures on building CCA capability, and (b) it reveals that marketing capability functions as a partial mediator and aids CCA capability in improving B2B firm performance. The unique contribution of this study is its emphasis on identifying the key elements required for exceptional B2B firm performance amid climate change. The study provides insights into the specific aspects that drive success in this setting by examining institutional pressures and B2B firms' CCA capability, marketing capability, and performance. The study contributes by employing two organizational theories (i.e., institutional theory and the dynamic capability view) to explain the underlying mechanisms underpinning improved B2B business performance amid climate change.

The Impact of Institutional Pressures on BIM Identity Formation in the Construction Industry and the Mediating Role of Perceived Usefulness

The Impact of Institutional Pressures on BIM Identity Formation in the Construction Industry and the Mediating Role of Perceived Usefulness

The Mediating Role of Transformational Leadership in the Relationship Between Institutional Pressures and Collaboration with Commercialization of University Research Output: A Pilot Study

The increasing recognition of universities as a seedbed of new knowledge and technology to boost economic growth, technological improvements, and competitiveness has led to the notion of commercialization of university research outputs to gain traction and popularity in different fora. Despite the significance attached, the commercialization of research outputs and innovation has remained low in universities. The purpose of this study is to lay emphasis on Uganda’s Universities in light of the examination of how institutional pressures and collaboration influence the commercialization of university research output with the mediating role of transformational leadership. Data was collected using a questionnaire from 115 university staff in the 23 chartered universities in Uganda. The paper adopted Exploratory Factor Analysis (EFA) for instrument validity and reliability, and Structural Equation Modeling (SEM) for testing and estimating relations between the commercialization of university research outputs with its antecedents of institutional pressures, collaboration and transformational leadership. The results indicate that the operational measures developed for research commercialization, along with its antecedents satisfy the reliability and validity tests. The proposed measurement scale for research commercialization with its antecedents (institutional pressures, collaboration and transformational leadership) will help practitioners to measure research commercialization performance in universities. The findings demonstrated that transformational leadership mediates the relationship between institutional factors and collaboration with the commercialization in Ugandan Universities.

Factors Affecting the Adoption of the International Financial Reporting Standards for Small and Medium-Sized Enterprises

International Financial Reporting Standards (IFRS) as a plethora of new accounting rules that are commonly used by public companies to provide efficient and accurate financial information in an organisation. However, the study revealed that Malaysian Small and Medium-Sized Enterprises (SMEs) face persistent challenges and apparent shortcomings in the adoption of IFRS. To solve the problems of the study, the goals were created to find out how external environmental factors impact SMEs in Perlis, Malaysia, when adopting IFRS. The research is conducted based on real-time data and the currently published papers, which are related to factors affecting the implementation of IFRS for SMEs in different countries. The research was evaluated using a quantitative method that could be easily collected and analysed from the population size data in Perlis, Malaysia. The research revealed that institutional pressure, economic development, and project governance all had a favourable relationship with the IFRS initiative, but cultural considerations had no discernible influence on SMEs' adoption of IFRS. This research provides an opportunity for the important contributors in SMEs to quickly address both internal and external factors and the future success of adopting IFRS. It is important to emphasise that the results of the study can help SMEs overcome obstacles and take advantage of the benefits associated with the adoption of IFRS by providing valuable insights and actionable recommendations. As a result, SMEs can improve their financial reporting processes, transparency, and compliance, which in turn can improve their competitiveness and credibility in the international marketplace.

Understanding Gaps Between Objective and Subjective Performance Measures: Accreditation of Public Service Organizations and Citizen Satisfaction

Governments use various performance measures to ensure that public services delivered by private-sector providers are safe and meet citizens’ particular needs. These measures can include awarding accreditation and assessing citizen satisfaction. However, few studies have investigated how objective performance measures relate to citizens’ subjective evaluations of providers from the perspective of service users. To fill this gap in the literature, this study closely explores a particular case of the Korean childcare market in which governments administer a large number of private-sector providers that play a dominant role in delivering public services. Our findings indicate the positive accreditation–satisfaction link is weakened when parents may not be aware of a provider's accreditation status or when their selected service provider is nonprofit, as opposed to for-profit. Overall, this study suggests that it is important to understand why there is some degree of incongruence between objective and subjective measures and how these two different performance indicators converge in the data. Special attention should be given to bridging the gap by closely reviewing institutional pressure on service providers and a symbolic impression of accreditation.

From Iron Cage to Glass House: Repurposing of bureaucratic management and the turn to openness

Although many contemporary organizations face institutional pressures to embrace open organizing principles, some defer or decline the call. We examine how existing bureaucratic practices shape organizations’ initial steps towards openness to explain variation in substantive openness in the practice of management. Scrutinizing the assumption that bureaucratic organizations operate behind closed doors, we study the turn to openness in a single metropolitan area with heterogeneous management practices and shared calls for greater transparency and inclusion. Econometric analyses paired with in-depth interviews reveal that more bureaucratic organizations first encountered such ideals of openness because they were quicker to use digital communication tools. How open organizations are managed results from the repurposing of existing practices in pursuit of openness. The turn to openness can be understood as a transformation of existing bureaucratic management instead of de-novo adoption of new practices. Our study illuminates how bureaucratic management counterintuitively enables some organizations to become more open, and offers support for repurposing as a mechanism of change in the transformation of an organizational field.

Institutional Pressure and Eco-innovation: The Moderating Role of Environmental Uncertainty

The growing environmental difficulties triggered by enterprises’ activities have drawn academics and development experts’ attention to mechanisms to advance growth and development without compromising the environment. Discussions about eco-innovation have become topical as a result, yet there still remains a dearth of understanding on the subject. Eco-innovation emphasises the duality of technological innovation and environmental protection as long-term solutions to the inherent tensions between these goals. Despite this, there has been little research on methods to improve eco-innovation performance, taking into account internal and external factors. Cognizant of the external environment’s dynamics, this study, based on institutional theory, investigates how institutional pressure affects eco-innovation. We used a cross-sectional survey approach to draw data from 155 businesses. Results revealed institutional pressures, that is, normative, mimetic, and coercive, also environmental complexity (EC) has a positive role in promoting eco-innovation. While environmental dynamics was found to have a positive moderating effect on the relationship between normative pressure and eco-innovation, EC was revealed to have a moderating influence on the relationship between mimetic, normative pressure, and eco-innovation. In light of these seminal findings that have received little research attention, we propose policy, theoretical, and practical implications.

Investigating the role of institutional pressures, technology compatibility, and green transformation in driving manufacturing industries toward green development

The purpose of this study is to investigate organizational drivers of green innovation and green development in China's manufacturing industry. The study presents a theoretical framework that consists of technology compatibility, institutional pressure, and green transformation. These factors impact organizations' green innovation adoption behavior, improving enterprise green development. Analysis of 321 executives and non-executives’ data using Partial Least Squares Structural Equation Modeling. Technology compatibility aligns enterprises with new systems and mitigates integration challenges, institutional pressures (mimetic, coercive, and normative) motivate adherence to green development strategies, and green transformation promotes sustainability across production, ecology, and carbon neutrality. This shifts organizational behavior toward green innovation adoption for greater development. The study also finds partial mediation effects between exogenous and endogenous components, supporting theory and practice.