Institutional Pressures Research Articles

Corporate Political Activities and Political Environments in International Business

This article summarizes my dissertation on corporate political activities and political institutional environments in international business. It addresses how firms are affected by random (crisis), regular (election), and firm-induced changes in their political environment. The three key findings of my dissertation are that internal and external institutional pressures are not independent of each other; firms´ international and national diversification act as safeguards when political events occur; and non-pivotal corporate political activities are oftentimes underestimated. In its entirety, the dissertation not only sheds light on various political challenges, but also on firms’ strategies in addressing those challenges.

An Empirical Study on the Performance of Heterogeneous Institutional Investors and A-share Enterprises

Taking China's A-share listed companies from 2008 to 2020 as the research object, this paper studies the impact of institutional investors' shareholding ratio on corporate performance. The results show that the shareholding of institutional investors can significantly increase the performance of enterprises; Considering the different nature of institutional investors, they can be divided into stable institutional investors, transactional institutional investors, pressure resistant institutional investors and pressure sensitive institutional investors. It is found that stable institutional investors and pressure resistant institutional investors have more significant effects on corporate performance than their control groups. Taking into account the difference in supervision of enterprises between pressure-resistant institutional investors and pressure-sensitive institutional investors, combined with the nature of the ultimate controller of enterprises, the study finds that only pressure-resistant institutional investors have a significant impact on the performance of state-owned enterprises.

Institutional pressures, CEOs’ attributes, and strategic response towards climate change mitigation: The case of energy firms

Institutional pressures, CEOs’ attributes, and strategic response towards climate change mitigation: The case of energy firms

Inter-state war, institutions and multinationals: insights from the Russian-Ukraine war

PurposeWars, and violent conflicts generally, can generate significant institutional dynamics and new legitimacy pressures for multinational enterprises (MNEs). The purpose of this paper is to understand the nature or source of institutional pressures facing MNEs in war and to examine how MNEs respond and navigate these institutional pressures.Design/methodology/approachThis is a conceptual paper.FindingsThrough the theoretical lens of institutional theory and drawing on insights from the devastating Russian–Ukrainian war in Europe, the study provides a framework that explains the nature of institutional pressures impacting MNEs in a major war conflict and how MNEs respond to these pressures. Central to the framework is the impact of formal and informal institutions on MNEs during war. As a result of regulatory and social pressures, MNEs have to make important strategic decisions either to protect their legitimacy or to defend their economic objectives against institutional demands.Originality/valueAs the paper situates the pressures of war for MNEs in a formal and informal institutional context, this offers a new approach to understanding the costs and pressures of war on MNEs.

Why does “green” matter in supply chain management? Exploring institutional pressures, green practices, green innovation, and economic performance in the Chinese chemical sector

There is a growing concern over the depletion of natural resources caused by rapid industrialization and its impact on the environment. As a response to these concerns, many companies are now focusing on implementing green supply chain management (GSCM) practices and green innovation (GI) as part of their environmental strategies to improve their economic performance (EP). Empirical evidence regarding the actual effects of these practices on the economic performance of Chinese chemical companies is still limited, warranting further investigation. To close the gap, this study utilizes the resource-based view and Institutional Theory to explore how three types of institutional pressures influence GSCM practices in Chinese chemical companies. Additionally, it examines the role of top management support (TMS) in shaping the relationship between GSCM practices and economic performance. The PLS-SEM approach was used to analyze the data gathered from 414 samples from listed Chinese chemical companies. The findings of the study revealed four key outcomes: First, institutional pressures have a positive influence on the adoption of GSCM practices by companies. Second, both GSCM practices and GI have a positive impact on economic performance, indicating that companies can enhance their economic performance by incorporating environmentally friendly practices. Third, GI acts as a mediator between GSCM practices and economic performance, indicating that the implementation of GI plays a crucial role in improving companies' economic outcomes through GSCM practices. Lastly, the relationship between GSCM practices and economic performance is strengthened when top management provides strong support for these initiatives. Overall, these findings not only have an academic impact on the supply chain domain but also provide effective environmental management practices to the top managers in Chinese chemical sector, allowing them to make decisions that benefit organizational efficiency, innovation, and performance. By identifying the factors that drive the adoption of GSCM practices and their influence on economic performance, the study offers valuable guidance for companies to integrate sustainable practices into their operations.

Board functions in governance arenas: a comparative case study of four Swedish family firms

PurposeThe purpose of this paper is to explore board functions and their location in family firms.Design/methodology/approachThrough structured induction in a four-case study of medium-sized Swedish family firms, the authors demonstrate that board functions can be located in other arenas than in the common board and suggest propositions that explain their distribution.Findings(1) The board is but one of several arenas where board functions are performed. (2) The functions performed by the board vary in type and emphasis. (3) The non-family directors in a family firm serve the owners, even sometimes governing them, in what the authors term “bidirectional governance”. (4) The kin strategy of the family influences their governance. (5) The utilization of a board for governance stems from the family (together with its constitution, kin strategy and governance strategy), the board composition and the business conditions of the firm.Research limitations/implicationsBeing a case study the findings are restricted to concepts and theoretical propositions. Using structured induction, the study is not solely inductive but still contains the subjectivity of induction.Practical implicationsGovernance agents should have an instrumental view on the board, considering it one possible governance arena among others, thereby economizing on governance.Social implicationsThe institutional pressure toward active boards could paradoxically reduce the importance of the board in family firms.Originality/valueThe board of a family company differs in its emphasis of board functions and these functions are performed with varying emphases in different governance arenas. The authors propose the concept of kin strategy, which refers to the governance importance of the structure of the owner and observations on bi-directional governance, indicating that the board can govern the owners.

The relevance of carbon performance and board characteristics on carbon disclosure

PurposeThe purpose of this study is to examine the impact of carbon performance on carbon disclosure among nonfinancial French-listed firms, while also considering the corporate board’s characteristics as a secondary objective.Design/methodology/approachThis study uses a sample of Société des Bourses Françaises 120 Index (SBF-120) French-listed firms to investigate the effect of multiple carbon performance proxies on carbon disclosure based on random effects models for the period 2010–2021. Generalized method of moments regressions are used to encounter endogeneity problems.FindingsDrawing on stakeholder theory, this paper finds that greater carbon performance leads to greater carbon disclosure. Given the growing societal awareness about climate-change issues, carbon-responsible firms are likely to disseminate relevant carbon-related information through disclosures to respond to the information demands of a varied stakeholder group. Coherent with signaling theory, large firms that undertake carbon-reduction initiatives tend to disclose more information about their enhanced carbon performance to equity participants to distinguish themselves and highlight their decarbonization efforts.Originality/valueThis study offers significant insights given that SBF-120 firms are involved in climate-change activities as a response to the growing institutional and societal pressure to perform better and disclose reliable environmental information in their sustainability reports.

Interrogating diversity: Feminism and the destructuration of Australian board appointment practices

AbstractResearch Question/IssueHow have social movements influenced the diversity of Australian corporate leadership? Although board diversity is crucial for corporate governance, the research in this topic is bifurcated between studies examining interlocking directorates and the presence of boardroom gender diversity.Research Findings/InsightsIn this study, we use a novel dataset and method to understand board diversity. We integrate the analysis of social diversity (structural connections) and demographic diversity among ASX50 boards in 2019 and 2023. Social network analysis (SNA) reveals a closely connected corporate community, with prosopography data identifying a narrow range of “acceptable” demographic characteristics.Theoretical/Academic ImplicationsWe extend institutional theory by examining the role of global social movements (GSMs) for the destructuration of board appointment practices and the resulting uneven progress on equality. Activism from the global feminist movement has applied multi‐dimensional coercive and normative pressures to develop a “pipeline” and “catalyst” for women's board appointments. Simultaneously, the absence of targeted action on other diversities and the intensification of directors' professional requirements have institutionalized the group's social and demographic profile.Practitioner/Policy ImplicationsThese findings are relevant to policymakers and corporations, highlighting the role of social movements for disrupting the status quo and the multidimensional institutional pressures needed to destructure entrenched appointment practices.

Comp Lit’s Other Half: In Defense of Literature, with Lao She

How might we now make sense of Comp Lit’s ‘literature’ half amid a contemporary mediascape in which literature no longer possesses the cultural centrality it once enjoyed? To probe this question, I turn to scholarly efforts from a century ago to make a case for reading literature within the university classroom by formulating ‘criticism’ as a field of study. I focus on the eminent Chinese writer Lao She 老舍 (1899–1966), who taught in both Chinese and British classrooms, and who unexpectedly sparked the introduction of ‘criticism’ in the Chinese academy through his translation of a little-known textbook for criticism by the American professor Elizabeth Nitchie (1889–1960). Drawing upon Lao She’s conviction in the critical capacity of literature, I argue that returning to ‘criticism’ – as Lao She articulates it in his pedagogical lectures and his profound yet overlooked short story ‘Filling a Prescription’ ( Zhuayao 抓药, 1934) – can help build a justification for the continued importance of teaching literature’s reading. Amid institutional pressures to ‘rebrand’ Comparative Literature, this article ultimately suggests that there may be reason yet for the discipline not to abandon its focus on literature too hastily.

Institutional Pressures on Sustainability and Green Performance: The Mediating Role of Digital Business Model Innovation

The purpose of this study is to examine the mediating role of digital business model innovation (DBMI) in the relationship between institutional pressures (i.e., regulation and normative pressures) on sustainability and green performance. To verify our hypotheses, we performed the structural equation model as an analytical technique using 396 datasets from firms listed on the China Stock Exchange. The structural results showed that institutional pressures had a positive effect on DBMI, and that DBMI had a significant effect on green performance. The analysis also supports the full mediation role of DBMI between institutional pressures and green performance. We believe that our findings contribute to ongoing knowledge by enriching institutional perspectives on sustainable management and providing managers with practical implications on how to drive DBMI.

Social reproduction in crisis: Gendered labour regimes in agro‐export sectors in Ecuador and Chile

AbstractThe pandemic lays bare the centrality of social reproduction in upholding global commodity networks. Capitalism's reliance on gendered and racialized systems of social reproduction has deepened structural contradictions and socio‐economic divides across agro‐export sectors and agrarian communities. We analyse how COVID‐19 policies and responses in Ecuador and Chile are reshaping systems of social and labour protection in feminized agro‐export sectors. We integrate labour regime and gender regime frameworks, showing how they are (1) co‐constituted via global forces, national policies, institutional pressures and local practices; (2) intertwined in neoliberal and social‐democratic development models; and (3) forged through control, consent and resistance. We analyse national legal frameworks and policy responses to COVID‐19, as well as industry, union and worker reactions, illustrating how ‘neutral’ policies have gendered outcomes, (re)creating false binaries between production and reproduction and paid and unpaid work. We find that the pandemic has reshaped gendered labour regimes in agro‐exports: in Ecuador, undermining the fragile commitment to a social‐democratic gendered labour regime and in Chile, strengthening social‐democratic supports and promises of a more equitable gendered labour regime. In both cases, states and firms have neglected to include social reproduction in the ‘costs’ of development, thus threatening national development models grounded in the exploitation of cheap female labour in agro‐export sectors.

Doing youth participatory action research (YPAR) with Bourdieu: An invitation to reflexive (participatory) sociology

Recent years have seen an increased epistemological and methodological interest within sociology in participatory research. Seen as one mode by which to upturn the apparent antagonism between ‘town’ and ‘gown’, and as a pragmatic way to render sociology more ‘public’, participatory research seems to offer resolutions to some of the field’s more pressing recent concerns. It also appears to provide redress to continuing institutional pressure to establish ‘impact’ for our research. This article offers a close and theoretically informed examination of the assumptions and practices of youth participatory action research, or YPAR, in order to contribute to deepened disciplinary understandings of the possibilities and limits of participatory approaches. Framed by the reflexive sociology of Pierre Bourdieu, we draw upon cross-national conversations through which we have intentionally reflected on moments of ambivalence or discomfort in our own participatory research practice(s). We utilise these to engage critically with some recurring problems in YPAR, suggesting these also have relevance to sociological enquiry more broadly. Our collaborative process of mutual reflexivity, developed through walking and talking together, writing individually and then providing feedback and clarifications, has allowed us to deepen our understanding of the power dynamics at play in participatory sociological enquiry.

Student Perceptions of Pedagogical Approaches to Integrating the SDG 8 into Business School Education

This paper aims to assess students’ perceptions regarding the extent of integration of the eighth principal Sustainable Development Goal (SDG 8) “promote inclusive and sustainable economic growth, employment, and decent work for all” into an undergraduate business school (BS) course. We analyzed students’ perceptions with respect to three pedagogical themes: content/curriculum; knowledge and skills; and awareness and attitudes. Based on legitimacy theory, we conducted a survey of 124 students at a globally accredited business school that has been a pioneer in terms of integrating SDGs into business school education in the Middle East and particularly in the United Arab Emirates (UAE), which we refer to as Alpha Business School (ABS). A Q-methodology approach was adopted by designing a concourse of 37 statements. Our research findings highlight that in response to institutional governmental pressure to implement the SDGs at all levels in the country, ABS has begun to integrate the SDGs into its practice, including undergraduate courses. However, after a more in-depth analysis, the findings suggest that traditional learning methods and a “business as usual” mentality continue to prevail as a management paradigm among students and that, therefore, ABS has only embedded SDG 8 symbolically without undergoing a full substantive change. In conclusion, further work is needed to incorporate the SDGs into all dimensions of the business school’s activities and to promote new methodologies, skills, and competencies. This paper is helpful for accounting educators and curriculum setters in the process of revamping accounting curricula to reflect the importance of sustainability education. The results of this study have professional, academic, and policy-making implications.

Decoupling institutional pressure: how and why academic journals do it

PurposeThis study aims to verify empirically that when a group of isomorphic organisations is subjected to institutional pressure that conflicts with their technical efficiency or interests, this group will embrace opaqueness and decoupling.Design/methodology/approachThis is a multiple case study of 16 Brazilian academic journals. The authors analyse whether the editorial boards of these journals play an effective or merely ceremonial role in the administration of the journals.FindingsThe authors find indications that isomorphic organisations revert to decoupling when the pressures they are subjected to are in conflict with their technical efficiency or interests. The authors also find indications of an inverted U-shaped relationship between the collaboration recruiting power of a journal in an academic field and decoupling. This collaboration recruiting power is closely related to the journal’s position in academic rankings.Practical implicationsThe authors have shown that, although some scientific journals can deal with internationalisation pressures, for others, this is difficult and leads to decoupling and opaqueness. This is not a desirable situation. It can be counterproductive and draw attention to bureaucratic procedures.Originality/valueThis relation between opaqueness and institutional pressure for a group of organisations within the context of neo-institutional theory has not yet been verified empirically. This study’s results show how institutional pressure and organisational opaqueness are related in an organisational field. This theoretical contribution has practical implications because of decoupling’s potentially negative effects.

Greening the Supply Chain: Drivers and Outcomes in the Korean Manufacturing Industry

This research investigates the determinants of green supply chain management (GSCM) adoption and its impact on organizational performance, while considering the potential moderating factors influencing GSCM adoption. Despite the growing prevalence of GSCM practices among Korean firms, the factors driving their adoption have not received sufficient attention. To bridge this gap, the study uses structural equation modeling, integrating stakeholder theory and resource-based theory to explore how green entrepreneurial orientation (GEO), institutional pressure, and relational capital affect GSCM adoption. Additionally, the study explores the effects of GSCM implementation on competitiveness and economic performance. Drawing data from a sample of 213 Korean manufacturing firms, the PLS-SEM analysis highlights the significant influence of GEO, institutional pressure, and relational capital on GSCM adoption. Additionally, the study emphasizes the positive impact of GSCM implementation on firm competitiveness. These findings provide valuable insights for enhancing sustainability in supply chain management and are applicable to similar context countries such as Taiwan, China, Japan, and the Netherlands.

The Ideological Fundamentals of Social Entrepreneurship: the Political Economy Aspect

For many centuries ideology has been playing a major role in the development of societies and economies. It can evolve at the level of the state (the macro-level), as well as at the level of enterprises (the micro-level). At the level of special enterprises, such as social ones, the special ideology that shapes their behavior model, their development strategy and creates the fundamentals of their social mission that make them different from ordinary commercial enterprises, exists. This paper attempts to search for the ideological fundamentals of social entrepreneurship that shape their special way in the socio-economic development of several countries at the modern phase of the formation development. The social and economic missions are assumed to comprise the base of ideology of any social enterprise. The social mission of social enterprises refers to value creation for the “public good”, whereas their economic mission refers to value creation for “private gain”. It is shown that the ideology of social enterprises is reflected in the balance between these two missions during different periods of its development. It is concluded that in the historical perspective the outcome of this balance depends on the institutional pressure in a given country. The modern post-Soviet critical Marxism approach is used as a theoretical and methodological basis of the study. Due to it, the main formations of socio-economic development are derived and the development vector for the long run is specified.

Digital innovation and transformation capabilities in a large company

AbstractIn a dynamic and quickly changing world, digital innovation and transformation can help enhancing organizational efficiency and have competitive advantage. In addition, the digital innovation and transformation can facilitate the development of a growth‐oriented culture of workforce. Therefore, this study aims at developing the digital innovation and transformation capabilities at large organization. The study uses a four‐layered process for driving the digital innovation and transformation in the case organization. The study positions the digital innovation and transformation mechanism through the lens of the dynamic capability view and institutional theories. The findings indicate the emergence of digital champions as change agents, a digital council as a monitoring channel, a digital core team as technological enablers and reverse mentoring as an innovative cultural dimension of change facilitating dynamic capabilities of the organization. In terms of institutional pressures, coercive and mimetic pressures emerged as major contributors to the advancement of the digital skill set and digital mindset of the experienced workforce especially, supported by Hofstede's cultural dimensions. Study further delineates the insights for practice, theory and policy. To this end, the study showcases the future scope of work at the case company, since it is an ongoing project on digital innovation and transformation to make organization and related infrastructure resilient, digital and innovative.

How green human resource management and institutional pressure drive performance via green image: the equifinal paths and their performance outcomes

Although the enablers of green image have been studied extensively, most prior studies have focused on the net effects of individual factors. In addition, the existing literature overlooks how green image is shaped by different paths and the impact of these paths on different performance. From the configurational perspective, we identify how the configurations of green human resource management (GHRM) depend on perceived institutional pressure to shape a favorable green image. Using data from 317 Chinese manufacturers, we conduct fuzzy set qualitative comparative analysis and propensity score matching analysis to explore the configurations that achieve a favorable or unfavorable green image and whether a favorable green image formed by different configurations improves firm performance. The results reveal five equifinal paths of GHRM that depend on perceived institutional pressure and can enhance green image and three that can shape an unfavorable green image. We also find that favorable green images shaped by distinct configurations have different effects on firm performance. This research enriches the literature on green image and provides novel insights for enhancing green image and subsequent firm performance.

An institutional explanation of management accounting change in an emerging economy: evidence from Bangladesh

PurposeThis study aims to investigate the nature of management accounting (MA) change and the institutional pressures driving the change using the context of an emerging economy – Bangladesh.Design/methodology/approachThe study collected data from 20 listed companies in Bangladesh through in-depth interviews. It uses the typology of MA change proposed by Sulaiman and Mitchell (2005) in identifying the nature and extent of MA change executed during the preceding three years. A modified version of Granlund and Lukka’s (1998) model is used to identify and explain the impact of institutional and economic pressures on MA change.FindingsThis study finds that MA changes have taken place in the Bangladeshi listed companies in the forms of modification, addition and replacement during the preceding three years. The findings also showed that mimetic and coercive pressures influence the adoption of new MA techniques or changes in the existing MAP. The impact of economic forces (specifically the advancement of operating technology and competition intensity) on MA change is also well evident.Originality/valueThis study focuses on the typology of MA change and the institutional forces affecting the MA change, which have rarely been addressed in the context of an emerging and developing economy.

COMMODIFICATION OF HUMAN EMOTION AND MARRIAGE IN CAPITALISM (A READING OF PROBST’S THE MARRIAGE BARGAIN FROM A MARXIST PERSPECTIVE)

This research aims to analyze Jennifer Probst’s The Marriage Bargain from a Marxist perspective to examine how social institutions like marriage and human emotions are commodified in the era of late capitalism. The novel deals with the theme of love, romance and marriage, but also highlights the commodification of marriage in a capitalist society. The two main characters, Alexandria and Nicholas, use marriage as a means to solve their economic problems, challenging the traditional notion of marriage as a bonding of two souls. This research aims to explore this phenomenon. This qualitative study employs a Marxist literary analysis of the novel, focusing on the commodification of marriage and human emotions in the late capitalist society. It examines how the novel’s characters challenge the traditional concept of marriage and use it as a commodity to satisfy their material needs. The core finding of this research is that under the harsh economic pressures of late capitalism, human emotions and social institutions like marriage are commodified, and people compromise their ideals for economic gain. The novel shows how marriage is used as a commodity to solve economic problems, and how the traditional concept of marriage is being challenged by the utilitarian values of modern societies. The research concludes that The Marriage Bargain is an illustrative example of the commodification of marriage and human emotions in late capitalism. The exploration of this discourse clarifies how the institution of marriage is being used as a commodity to satisfy material needs. The novel raises an uncommon issue regarding the marital relationship, and the utilitarian attitude of its characters towards their own marriage represents the emerging social problem of the reification of human relationships.