Institutional Pressures Research Articles

Integrating CSR into Executive Compensation: Board Characteristics and Institutional Pressures

Integrating CSR into Executive Compensation: Board Characteristics and Institutional Pressures

Institutional pressures and greenwashing in social responsibility: reversing the link with hybridization capability

PurposeDespite the ongoing scholarly interest in greenwashing, it is not well known the impact of multiple institutional pressures on greenwashing in corporate social responsibility (CSR). Following the institutional logics perspective, this study investigates how three distinct logics – commercial, public, and social welfare – drive greenwashing and whether organizational capability for blending diverse CSR expectations reverses this link.Design/methodology/approachThe current study conceptualized and tested an original model on how three institutional logics influence greenwashing in CSR, with the mediation effect of hybridization capability as a response to logic plurality. Partial least squares structural equation modeling was performed on a survey data, which was collected from 150 middle managers in Turkey.FindingsThe results show that while commercial logic has no direct or indirect impact on greenwashing, public and social welfare logics drive greenwashing in CSR. However, these effects are reversed when the CSR hybridization capability increases.Practical implicationsThis study contributes to the understanding of what predicts CSR greenwashing by integrating a comprehensive theoretical framework involving multiple institutional logics, conflicting stakeholder demands, and organizational hybridity.Originality/valueTo the best of our knowledge, this is the first study that theoretically and empirically analyzed how the exposure of multiple external pressures affects the CSR greenwashing and how it can be reversed by CSR hybridization capability. This capability mitigates the threats and challenges of multiple logics and turns them into an opportunity to gain legitimacy in the eyes of stakeholders by preventing greenwashing.

Catalysts of Green Innovation: Exploring Firm Responses to Climate Risk and Institutional Pressure

Catalysts of Green Innovation: Exploring Firm Responses to Climate Risk and Institutional Pressure

BIM Adoption in MENA's Construction Industry: A Contractor's Perspective

This study delves into the multifaceted landscape of Building Information Modeling (BIM) adoption and implementation across the Middle East and North Africa (MENA) region's construction industry. Employing an online survey methodology, the research scrutinizes the varied profiles of contractors. Through regression analysis, the study investigates the impact of institutional pressures on the contractors’ BIM adoption, implementation, encountered barriers and challenges, expected benefits and outcomes, and related expertise and training. The analysis then extends to evaluate the interrelationships among such BIM variables. The key findings reveal significant influences of institutional pressures on BIM adoption and benefits as well as their expected benefits and outcomes but less impact on overcoming BIM barriers and challenges and enhancing expertise and training. The research highlights the limited role of BIM expertise and training in the adoption, implementation, and realization of its benefits and outcomes within the MENA construction sector. Furthermore, the study concludes that barriers, challenges, benefits, and outcomes don’t have a significant effect on BIM's adoption and implementation. The study also evaluates the primary benefits and outcomes of BIM alongside the main barriers and challenges encountered. Crucially, the research identifies and dissects the salient barriers to BIM deployment, such as awareness and expertise deficiency, financial and human resource constraints, training shortages, and resistance to change. This study not only provides a detailed snapshot of the BIM landscape but also lays the groundwork for addressing the persistent challenges and harnessing the full potential of BIM in revolutionizing construction methodologies in the MENA region. Doi: 10.28991/CEJ-2024-010-08-015 Full Text: PDF

Innovation as a Buffer: Environmental Institutional Pressure and Organizational Strategic Response

Innovation as a Buffer: Environmental Institutional Pressure and Organizational Strategic Response

Environmental Innovation in Response to Institutional Pressure from Officials

Environmental Innovation in Response to Institutional Pressure from Officials

Unlocking circularity: the interplay between institutional pressures and supply chain integration

PurposeThis paper investigates the role of institutional pressures (IPs) and supply chain integration (SCI) in driving the adoption of circular economy (CE) practices. It is hypothesised that, responding to IPs, firms might adopt higher levels of SCI in the attempt to implement CE practices.Design/methodology/approachA research model is developed and tested on a cross-sectional sample of 150 multi-national enterprises (MNEs). Textual content from corporate sustainability reports is used to measure the constructs of interest through an advanced coding approach.FindingsFindings show that IPs are driving the adoption of CE practices primarily through the mediation of SCI; the prominent roles of coercive regulatory pressures (CRPs) and normative pressures (NPs) are also highlighted. CRPs influence on CE practices is partially mediated by SCI, with NPs influence being fully mediated by it.Practical implicationsThe study shows that SCI is a key mechanism that lies in between IPs and CE practices; as such, organisations interested in implementing CE practices need to be aware of requirements for achieving higher levels of SCI.Originality/valueThis empirical study is the first large scale analysis that conceptualises how MNE-driven supply chains adopt CE practices. The study empirically validates the model and identifies research avenues in supply chain management (SCM) research to support the adoption of CE practices.

How Does Internationalization Help Reputation? The Role of the Learning Gap

This study delves into the intangible effects of internationalization on reputation, and proposes a mechanism by which internationalization can lead to improved reputation. Grounded in institutional and signaling theories, we begin by proposing that internationalization signals learning advantages deriving from experience in host environments and responses to foreign institutional pressures. Then, we derive the learning gap construct from two principal dimensions of the diversity of location portfolio, namely home—host cognitive distance and power asymmetry; and posit that this learning gap explains the link between internationalization and reputation. Analyses based on the legal service industry demonstrate that while international diversification is important in predicting reputational benefits at home, its effect is mediated through the learning gap deriving from each firm's internationalization, underscoring potential advantages of home—host differences.

It’s Just Too Much: Narratives of International Educators Navigating COVID-19

ABSTRACT The purpose of this study is to address how international educators who work with international students in the United States experienced the COVID-19 pandemic. Using secondary traumatic stress and compassion satisfaction as frameworks alongside a qualitative narrative inquiry research design, we interviewed 31 international educator participants to understand how they navigated organizational dynamics on their campuses, supported international students, and were impacted personally and professionally by the pandemic. Findings demonstrate participants’ experiences being in alignment with elements of secondary traumatic stress given institutional pressures and isolation, constant exposure to the trauma and challenges of international students that they sought to assist with, and complex immigration regulations that were constantly in flux during the pandemic. International educators’ work environment, broader professional network, satisfaction and passion in working with international students, and overall commitment to their profession served as positive mitigators to the challenges they experienced and reflected element of compassion satisfaction.

Institutional pressure and low carbon innovation policy: the role of EMS, environmental interpretations and governance heterogeneity

As the global community deals with the urgent need for sustainable development, the formulation and implementation of effective low carbon innovation policies have emerged as a critical challenge. However, the extant literature is unclear in examining low carbon innovation policy. Underpinned by institutional theory, the current study addresses the role of institutional pressure in the development of low carbon innovation policies. Additionally, the study examines the role of environmental management systems as a mediation and environmental interpretations and governance heterogeneity as moderators. Methodologically, the data were collected from the manufacturing sector of Pakistan. The findings suggest that institutional pressure greatly influences low carbon innovation policies. Furthermore, the findings from environmental management systems strongly suggest that they significantly encourage institutional pressure on low carbon innovation. Additionally, the roles of environmental interpretations and governance heterogeneity have a significant effect on the relationship. We use a non-profitability sampling technique. In October 2023, a total of 432 questionnaires were disseminated to manufacturing firms, yielding 299 valid responses for Time-1 and Time-2, respectively.

Creating more equitable rubrics to reduce discrimination and inequities in public-speaking courses

ABSTRACT Recent analyses of common public-speaking rubrics, grading practices, and course content have found widespread bias and inequities. This article contributes to the efforts to remedy some of the causes of these biases. It begins with a discussion of the disciplinary biases and institutional pressures that reinforce discriminatory assessment practices. It then details principles and methods for creating more inclusive, equitable, and accessible rubrics and demonstrates how they can be implemented. Shifting how we create and use rubrics for public-speaking courses can contribute to the discipline’s broader move toward inclusion, diversity, equity, and accessibility.

Compassionate deception: An ethnographic study of how and why health professionals and family members lie when caring for people with dementia in Danish nursing homes

This article uses the concept of compassionate deception to understand the complexity and duality at stake when health professionals and family members lie when caring for people with dementia. Drawing on ethnographic fieldwork at two Danish nursing homes, we argue that compassionate deception conceptually illustrates the fine balance we observed of using lies and deception, while simultaneously acting with recognition and care towards residents. Ethical standards in dementia care do not recommend lying. Nonetheless, based on the practices and perspectives of health professionals and family members we direct ethnographic attention towards the intersections of caring and lying. Focusing on everyday social interactions and negotiations in the nursing home context, this study emphasizes the delicate balance between employing lies and deception, and fostering recognition in the context of dementia care. The study underlines the importance of taking the mundane care practices, the interpersonal relationships, as well as the work conditions and institutional pressure of health professionals into account when discussing care ethics in dementia.

Assessing the nexus of Generative AI adoption, ethical considerations and organizational performance

Numerous enterprises employ Generative AI (GenAI) for a plethora of business operations, which can enhance organizational effectiveness. The adoption might be driven by multiple factors influencing the business landscape. Additionally, numerous ethical considerations could impact the deployment of GenAI. This unique study investigated how organizations adopt GenAI and its effects on their performance. Further, this research utilized institutional theory and ethical guidelines for AI design to develop a research framework examining how organizations adopt GenAI and its impact on their performance. A survey of 384 managers from information technology (IT) and information technology-enabled services (ITeS) companies was conducted. Data analysis was done using PLS-SEM to examine and validate the proposed model. The study outcome reveals that institutional pressures, i.e., coercive, normative and mimetic forces, influence the use of GenAI in organizations. It was also found that fairness, accountability, transparency, accuracy and autonomy influence the use of GenAI. Also, the results divulge that the use of GenAI influences organizational performance and is moderated by organizational innovativeness. This study provides insights to developers of GenAI, senior management of companies, the government and IT policymakers by highlighting the institutional pressures and ethical principles influencing the use of GenAI.

Agency conflicts in innovation adoption: Lessons from the airline industry

Introducing an innovation does not end, but rather starts, with adoption. In fact, some innovations display network elements and require more than one firm to take them up in order to be successful and deliver the intended results. Such is the case of NDC (new distribution capability), an airline-fostered enhancement of the way air travel services are conveyed and distributed from carriers to travel agents. The promise behind NDC is that travel services will be sold more richly and within a more open and inclusive framework. We draw on the diffusion of innovations, institutional theory, and agency theory to review the determinants of adoption and its effects on performance for service providers. We use the International Air Transport Association (IATA) ticket database to establish the role that institutional pressure plays on innovation behaviours and firms’ results. We find that institutional pressure, not just innovation attributes, influence outcomes. Also, given each player's different incentives and the asymmetry of information, ticket sales are selectively distributed in ways that fit the agent and only occasionally the airline principal. Thus, we conclude that travel intermediaries assess outcomes wholistically and that the innovation's revenue uplift depends on such assessment.

How institutional pressures on green innovation are perceived by firms? The role of board social ties

AbstractInstitutional pressures are major driving forces for firms' green innovation. However, there is significant heterogeneity in firms' responses to these forces due to the complex information environment within the institutional field. Social ties are known to provide information and resources. This study explores how board social ties, including business and political ties, shape firms' responsiveness to formal and informal institutional forces related to green innovation. Using a dataset from Chinese listed companies in the manufacturing sector, we propose that firms' business ties strengthen the effects of various institutional pressures on green innovation. On the other hand, political ties strengthen the impact of environmental regulation on green innovation but weaken the influence of imitative pressure on green innovation. This suggests that political ties can be a double‐edged sword in firms' responses to institutional pressures. This research contributes to institutional theory and social capital theory, offering implications for green innovation strategies.

The Nexus Between Digitalization Capability and Corporate ESG Performance: The Moderating Role of Institutional Pressures for Sustainability

The Nexus Between Digitalization Capability and Corporate ESG Performance: The Moderating Role of Institutional Pressures for Sustainability

Institutional forces, leapfrogging effects, and innovation status: Evidence from the adoption of a continuously evolving technology in small organizations

Although SMEs' innovation adoption has been widely studied, little research has explored how SMEs strategize a continuously evolving technology in a complex institutional context over time. Drawing from institutional perspectives, our case study, based on 44 interviews and field observation, seeks to analyze how institutional forces interact with the Wi-Fi adoption process at three small organizations with different innovation statuses. Results reveal the significance of institutional forces in shaping small organizations' technology adoption process. At the knowledge stage, institutional forces stem from the champion's advocacy and institutional pressures. At the persuasion and implementation stages, they are embedded in organizations' actions in following the institutional trend and complying with institutional norms. At the confirmation stage, they can be observed in organizations' shaping institutional changes or leapfrogging institutional trends. These insights challenge and extend the traditional linear perspective of innovation diffusion and contribute to the literature on technology adoption, digital transformation, innovation leapfrogging, institutional theory, and SMEs. Managerially, we propose three strategic responses (i.e., trend reformulation, service differentiation, complete transformation) that urge SMEs to utilize leapfrogging effects of technologies to renovate their innovation status.

Orientation towards environmental sustainability in European family versus nonfamily firms: the role of policymaker engagement and incentives

ABSTRACT This study contributes to the debate on family business environmental sustainability by investigating the environmental orientation of family versus nonfamily firms. We study whether family business status affects (i) the extent of environmental orientation, i.e. the number of incentives set for environmental sustainability activities, contingent upon firms’ engagement with policymakers, and (ii) how firms’ environmental orientation unfolds, considering the types and beneficiaries of the incentives. To do so, we build on behavioural theories in family business, along with the literature on firm non-market strategies and responses to institutional pressure. Data on 162 European manufacturing firms from the Carbon Disclosure Project and the Orbis database are collected. Our results show that family firms have a higher degree of environmental orientation than nonfamily firms. However, when they engage with policymakers, the family firm–environmental orientation relationship weakens. Regarding the types and beneficiaries of the incentives, family firms are more likely to provide monetary incentives and to be more inclusive in their incentive systems than nonfamily firms are.

Creating a bridge between ESG and firm's financial performance in Asian emerging markets: catalytic role of managerial ability and institutional quality

PurposeThe study is aimed at examining the impact of ESG on the financial performance (FP) of firms and determining the difference between the impact of ESG on market-oriented financial performance measure (Tobin’s Q) and internal productivity-based financial measure (ROA). The study has also explored the influence of managerial ability and institutional quality as moderating variables on the relation between ESG and the financial performance of firms (both measures of FP: Tobin’s Q and ROA).Design/methodology/approachThe study is quantitative exploratory and uses panel data of 687 publicly listed companies from the year 2013–2023. Data has been acquired from the reputed data providers and OLS regression has been used for panel data analysis with fixed effects.FindingsThe study reaffirms the positive impact of ESG on the financial performance of firms. Each pillar of ESG (environmental, social, and governance) has been found positively related to both measures of financial performance (Tobin’s Q and ROA). The study reveals that managerial ability and institutional quality, acting as supplementary variables, moderate the relationship between ESG and financial performance of firms.Research limitations/implicationsA limited sample comprising data from only 687 firms was used for the analysis. The latest data was not available, therefore, data from 2013 to 2023 was used in the study.Practical implicationsThis study indicates that ESG practices, which are mostly discretionary in Emerging Economies, can be induced through institutional pressures and ensuring higher quality managers. Policymakers in government institutions have to determine the inefficiencies, corrupt practices, and inconsistencies in policies that lower the effectiveness of institutions making them business-unfriendly. At the organizational level, policymakers need to ensure that responsible positions in the organization are held by managers with higher managerial ability. It is also to be ensured by shareholders that managers do not over-invest in ESG-related projects, particularly in organizations with weaker financial status. For managers, it is important to understand the positive benefits associated with ESG, even though they are in the long term.Social implicationsIn Emerging Economies, the official monitoring and regulatory mechanisms are weak, and lack a supportive attitude toward ESG initiatives. Voluntary and proactive firm-level environmental and social initiatives need to be encouraged and rewarded by institutions with public acknowledgment. ESG should be given priority by organizations for improving the quality of services and better social impact of businesses on society.Originality/valueMost of the past research explored the impact of ESG on financial performance in advanced countries or in emerging markets in a single/limited number of countries or industries. Also, past studies investigated the impact of institutional quality and managerial ability on ESG/financial performance in separate models. Conversely, this study has used a multi-country and multi-industry sample for more generalizable findings. Against the backdrop of the institutional environment of Emerging Economies, the study extends Institutional Theory and Upper Echelon Theory to include the role of managerial ability and institutional quality in the relationship between ESG and firms’ financial performance.

The emergence and organizational choices of patient advocacy associations: Evidence from the Italian context.

Within many advanced healthcare systems, patient advocacy associations are gaining a more relevant role in healthcare policy decisions. These associations provide help, representation, and voice to patients and citizens. However, although their role is important, a paucity of research exists analyzing their foundation dynamics, including their organizational decision, from a managerial perspective. To fill this knowledge gap, we formulated two research questions to investigate the motivations underlying the foundation of patient advocacy associations and the institutional pressures influencing the changes that have occurred in these associations throughout their evolution. Using a semi-structured questionnaire developed as part of a larger research project, we collected data about 31 patient advocacy associations operating within the Italian National Health Service. We employed qualitative analysis to examine the associations' birth and evolution as well as the motivations and influences driving change within the sampled organizations. Questionnaire responses provided information about the patient advocacy associations' histories and highlighted their close links with the Italian National Health Service. Our results indicated the motivations for the associations' establishment could be grouped into five categories: support at the system level, patient protection and support, actions to increase awareness, actions for improving patients' health and quality of life, and dissemination of knowledge. We also identified the frequency and nature of the changes within the associations and explored the institutional pressures that influenced these organizational changes. The results can be interpreted considering the organizational theories that focus on organizations' establishment decisions and how external pressures impact organizations' dynamics and evolution.