Institutional Theory Research Articles

A step forward to gender equality: Breaking the political glass ceiling at local level

AbstractGender quota policies have the ability to alleviate the scarcity of women in politics. However, opponents of quotas argue that such policies may constitute, in the long term, a “glass ceiling.” In Portugal, although there is still a long way to go in terms of gender equality, some municipalities have been successful in electing many women. Therefore, the aim of this article is to investigate, through the lenses of historical institutionalism and contagion theory, the factors that help women break out of the glass ceiling trap at local level. The study is based on a dataset from the last local elections and uses a panel data regression to calculate the probabilities of electing more women to municipal councils. The results underline that left‐wing parties that have adopted voluntary quotas, municipal experience with women mayors, and competitive environments increase the likelihood of electing more women. Gender equality.

The influence of institutional void and socio-cultural factors on the internationalization of emerging multinationals

The process of firm internationalization involves critical decisions regarding location, entry mode, investment levels, and the management of foreign operations. This paper examines the effects of institutional voids and socio-cultural factors on the internationalization of Emerging Multinationals (EMNCs) from the BRICS and MENA regions. We draw on institutional and internationalization theories to explain how socio-cultural factors influence the internationalization of EMNCs. Using the two-step system GMM over a ten-year period (2012–2021), we find that institutional voids, religious diversity, power distance, and a firm’s ESG practices at home positively impact internationalization. These findings contribute to the literature by quantifying key variables related to internationalization, cultural diversity, institutional voids, power distance, and ESG engagement.

Analysing institutional responses towards disaster risk reduction: challenges and antecedents

Globally, the frequency and magnitude of weather-related hazards poses significant challenges for governments and the private and the not-for-profit sectors. This paper provides exploratory insight into the challenges that hinder institutional responses to risk reduction. This study specifically considered public sector organisations within disaster risk reduction (DRR) organisational fields. The paper identifies 3 major constraints, which include fragmentation, difficulties in using risk information and cultural identities that affect public sector organisations and community responses. To analyse these issues, an institutional theory lens was used to explain the antecedents under which institutional actors may respond based on events and stakeholder expectations and demands. The findings suggest that challenges hindering response to risks and emergencies are strategic, institutional or operational in nature. A selection of public sector organisations response initiatives is presented within an Australian context with analysis of the Sendai Framework for Disaster Risk Reduction 2015-2023 Priority 4. Recommendations and further research to identify and address other institutional constraints and sectors are recommended.

Environmental Social Governance and Financial Performance: A Symbiotic Relationship in Indian Manufacturing

Studying Environmental, Social, and Governance (ESG) aspects and firm performance is crucial for globally understanding how sustainable practices drive long-term profitability and competitiveness in diverse markets. The research gap lies in the need to empirically test the influence of ESG disclosure on corporate performance through the lens of institutional theory and signaling theory. The study aimed to examine the time-variant impact of ESG on the financial performance (FFP) of Indian manufacturing firms from 2019 to 2022. For the study’s analysis, we utilized a variant of structural equation modelling called the ‘cross-lagged panel model’. The cross-lagged panel analysis measured the association of aggregate ESG and its dimensions with FFP. Our findings suggested that the investment in the aggregate ESG commitment increased the firms’ financial performance among our sample companies. Regarding the individual aspects of ESG, the environmental and societal obligations of the firms had a positive impact on the firms’ earnings, whereas the governance aspect harms the FFP. This study provides beneficial recommendations to policymakers, investors, and portfolio managers based on the analysis.

Enhancing work safety behavior through supply chain safety management in small and medium sized manufacturing suppliers.

Enhancing work safety behaviors among Small and Medium-Sized Manufacturing Suppliers (SMMs) is crucial for establishing a more secure and efficient supply chain. Since the foundation of safety lies in positive prevention, it is crucial that SMMs adopt proactive and pro-social work safety behaviors that transcend mere compliance with standard regulations. Present-day diversified supply chain safety management apply varying degrees of pressures on SMMs. The effectiveness of such pressures, as well as their potential to spawn advanced safety behaviors in SMMs, is a matter of investigation. This research investigates the impact of Supply Chain Safety Management Pressure(SCSMP) on the SMMs' Work Safety Behaviors(WSB). A theoretical framework is constructed, grounded in institutional theory and theory of planned behavior, which earmarks three distinct dimensions of SCSMP: Coercive Pressure(CP), Mimetic Pressure(MP), and Normative Pressure(NP). The survey of 265 SMMs facilitated an assessment of the SMMs' Willingness for Responses(WR), which includes their Willingness for Adaptive Responses(WAR) and Willingness for Co-creative Responses(WCR). Subsequently, the resulting WSB entail Safety Compliance Behavior(SCB), Proactive Safety Behavior(PSB), and Pro-social Safety Behavior(PsSB). Among these, SCB is categorized as a basic safety behavior, while PSB and PsSB which emphasize voluntary, active, and cooperative actions, are classified as advanced safety behaviors. Our research findings underscore the substantial influence of the SCSMP in shaping WSB. WR serves as a critical intermediary, connecting external pressures with internal organizational practices. In particular, WCR is instrumental in the formation of advanced safety behavior. The theoretical contribution of this research is manifested in its enhancement of our comprehension regarding the determinants of WSB among SMMs. Furthermore, it addresses the literature gap in elucidating the effectiveness of supply chain safety management and the mechanisms behind the formation of WSB. The practical significance lies in elevating the overall safety standards throughout the supply chain and minimizing safety-related hazards among SMMs.

Précis: The Mind-Body Politic

The Mind-Body Politic is a study in the new discipline of political philosophy of mind, that aims to develop an embodied and enactive theory of social institutions, building on our 2009 study of the mind-body relation and mental causation, Embodied Minds in Action. In this sequel, we distinguish between (i) destructive, deforming social institutions–characteristic of contemporary neoliberal nation-states, and (ii) constructive, enabling social institutions, and defend what we call the mindshaping thesis and the enactive-transformative principle. The upshot is an activist, transformative philosophical theory.

Impact of Institutional Isomorphism on Gender Diversity on the Boards of Sport Organizations in Japan

This study utilized institutional theory to examine how the Governance Code implemented in Japan in 2019 increased the number of female board members in national sport federations (NF) recognized by the Japanese Olympic Committee (JOC). Using the three mechanisms of antecedents that lead to changes in institutional isomorphism as a framework (coercive isomorphism, mimetic processes, and normative pressures), we conducted semi-structured interviews with board members of sport organizations and analyzed the obtained data using thematic analysis. The results revealed institutional isomorphism influenced gender diversity on NF boards and identified the mechanisms that promote gender diversity on the boards of sport organizations.

Electric Vehicle Battery Remanufacturing: Circular Economy Leadership and Workforce Development

Given the increasing momentum globally towards sustainable transportation, the remanufacturing of used electric vehicle lithium-ion batteries (EV LIBs) emerges as a critical opportunity to promote the principles of the circular economy. Existing research highlights the significance of remanufacturing in resource conservation and waste reduction. Nevertheless, detailed insights into South Africa’s (SA’s) specific capabilities and strategic approaches in the context of used EV LIBs remain sparse. By utilizing in-depth interviews with fifteen key industry stakeholders and drawing on institutional theory, this qualitative study evaluates SA’s infrastructure, technical expertise, and regulatory frameworks in the EV LIB remanufacturing sector to address this gap. The findings reveal proactive strategies, including technical expertise, sustainable infrastructure, and robust regulatory frameworks aligned with global standards. This study proposes strategic initiatives like the Interdisciplinary Innovation Hub and Mobile Remanufacturing Labs, which are analytically derived from stakeholder insights and aim to predict potential pathways for workforce development, especially in rural areas. Innovative training programs, including the Virtual Reality Consortium, Circular Economy Institutes, and the Real-world Challenges Program, will ensure a skilled workforce committed to sustainability and circular economy principles. The conclusions highlight SA’s potential to become a leader in EV LIB remanufacturing by integrating circular economy principles, enhancing technical expertise, and fostering international collaboration.

Do effective and sustainable corporate governance mechanisms affect the relevance of non‐financial information?

AbstractThe aim of this paper is to investigate the value relevance of non‐financial information (NFI) under the EU Directive 2014/95/EU, since its increasing importance over recent years. Adopting a panel data set with all listed firms in Germany, Spain, France and Italy, we obtain a final sample of 10,025 firms‐year‐observations in the period from 2017 to 2021. Through the lens of institutional theory, it emerges that firms adopt coercive, mimetic and normative pressure to be recognised by investors in their NFI practices. Furthermore, the presence of effective and sustainable corporate governance mechanisms improve accounting information (namely, Earnings Per Shares and Book Value of Equity Per Shares) and NFI. The contribution of this study is twofold. First of all, it enriches the literature about value relevance of NFI; second, it is beneficial for practitioners, such as investors, policy makers and regulators on the strategic levels of effective corporate governance mechanisms. NFI has a positive effect on capital market and improve investors' decision‐making by providing information on diversity, environmental matters, social and employees matters, human rights and anti‐corruption and bribery matters, which will favour the firms' implementation of more sustainable actions. Indeed, if investors recognise the importance of a certain firm's NFI, the market value of that firm will increase with consequent reputational and economic‐financial benefits. To the best of authors' knowledge, this is the first study that investigates the role of effective and sustainable corporate governance mechanisms on the value relevance of NFI.

Agile transformation in uncertain times: exploring diffusion strategies and organisational maturity

ABSTRACT The turbulent and dynamic environment in which organisations are evolving today forces them to adapt in a timely manner and strengthen their resilience. Agility represents one of the recognised capacities to reach that resilience in a VUCA environment. However, consensus is not yet reached regarding how to become agile, and which ‘agility’ better matches the organisation’s needs and trajectory. Based on a qualitative exploratory approach of 15 expert narratives, dominantly from IT field, this study seeks to answer how does the adoption of agility in companies operating in uncertain business environments affect and reflect their level of organisational maturity. The research analyses the variety of strategies used by organisations to embrace agility and how these strategies correlate with levels of organisational maturity. Utilising New Institutional Theory (NIT) – a widely acknowledged framework in modern social sciences – this research uncovers the agility triggers in the organisation. Moreover, the findings highlight a continuum to agile organisation of three stages. The research also takes a fresh look at the concept of maturity. Maturity in the context of agile transformation lies a convergence point that reflects a global coherence in the system: the individual, the collective, the organisational, as well as the external, that of the organisations implementing agile practices.

Nudging manufacturing small and medium enterprises in developing communities to energy management: exploring the role of institutional pressure dimensions

Purpose This paper aims to investigate whether all the dimensions of institutional pressures matter for energy management (EM) of manufacturing small and medium enterprises using evidence from Uganda. Design/methodology/approach This study used a cross-sectional design using evidence from 195 manufacturing small and medium enterprises in Uganda. The study was conducted by administering a questionnaire to obtain quantitative data which were analyzed using Smart Partial Least Square Structural Equation Modeling. Findings The findings revealed that two dimensions of institutional pressures (coercive and mimetic) positively and significantly predict EM, unlike normative pressures. Notable is that coercive pressures contribute more to EM than mimetic pressures. Research limitations/implications This study uses a quantitative design; thus, future studies through interviews would offer more knowledge on EM. The government should reinforce regulations to achieve sustainable energy for all communities. Additionally, governments and industry associations should pay attention to the critical pressures (coercive and mimetic) to step up EM. Moreso, enterprise managers should comprehend government regulations and peers’ actions for effective EM. Originality/value This study contributes to EM literature by using institutional theory to examine the contribution of individual dimensions of institutional pressures to EM from the context.

Integrating ecosystems: The synergistic effects of digital innovation hubs on start-up growth

Background: South Africa faces significant socio-economic challenges, with unemployment rate. This highlights the need for economic strategies to generate employment, and start-ups are crucial in this context, as they foster innovation, create jobs and increase competitiveness.Aim: The study aims to investigate how digital innovation hubs (DIHs) influence start-up growth, focusing on their roles and functions.Setting: The research is set within the context of DIHs in Africa, specifically examining the 12 DIHs established under the AEDIBNET programme.Methods: A qualitative methodology was employed, using semi-structured interviews with six DIH managers and 28 entrepreneurs or start-up founders.Results: Supporting start-up growth, holistic development support and integrated ecosystem enhancement by DIHs emerged as key themes. These factors foster a conducive environment for innovation and sustained growth.Conclusion: Digital innovation hubs play a crucial role in supporting start-up growth by providing comprehensive and integrated support systems. Their functions collectively enhance start-up growth.Contribution: This study fills a critical gap in the existing literature on DIHs, offering empirical insights into their impact on start-up growth within the African context. The findings provide valuable implications for policymakers, practitioners and researchers aiming to foster the growth of start-ups. Additionally, the study integrates and expands upon knowledge spillover theory, institutional theory and cluster theory. It demonstrates how DIHs facilitate knowledge sharing, provide formal support structures, foster informal networks, and create and sustain entrepreneurial clusters.

Profit Tax as a Character of Regional Budget of Our Time

The authors develop approaches to tax decentralization based on the theory of imperfect institutions by T. Eggertsson, in terms of the critically important profit tax for regional budgets of Russia. We see the goal of our research in finding a balance between the action of formal rules and informal, social norms, technologies, and models for distributing the profits of the largest Russian companies as a tax base between the federal center of Russia and the regions depending on the actual location of employees and assets. The article is devoted to the action of a successful and unique formal rule of the tax institution for the Russian Federation – the formation of consolidated groups of taxpayers (CGT). The novelty of the article lies in the study of the phenomenon of transformation of the domestic system of paying profit tax in 2023 as a replacement of one formal rule (action of CGTs) with another formal rule – the introduction of a new excess profit tax for Russia. An empirical study of the regional distribution of payments of legal entities-payers of profit tax according to the formal rules of the CGTs from among the largest Russian companies registered outside Moscow was conducted. Based on the results of the study, a general conclusion was made about the acute contradiction of the current economic policy in Russia in the content of the tax institution: between the new informal social norm on territorial decentralization of the largest Russian companies and the opposite formal rules of tax centralization in terms of profit tax. In this regard, the current policy of coincidence of territorial and tax decentralization in terms of state-owned companies in China deserves attention.

Organizational Culture and Performance of Quasi-Public Institutions Within the Pension Industry in Kenya: A Case of Local Authorities Pension Trust

This study intended to examine the organizational culture and performance of quasi-public institutions within the pension industry in Kenya with a focus on Local Authorities Pension Trust. Key theories under review in this research paper were the Balance Score Card theory, Scheins organizational culture theory and Institutional theory. Descriptive research design was employed and utilized by this research. The 224 staff working in Local Authorities Pension Trust offices across the country formed the target population of this study. In order to determine the sample size, simple random sampling was utilized. For this research, the researcher utilized a questionnaire to collect data from responders. There were both open-ended and closed-ended questions on the survey. To determine the connection between organizational culture and performance, the researcher did a multiple regression analysis. Questionnaires were utilized for gathering quantitative data, which were then evaluated employing descriptive statistics in SPSS and displayed in the form of tables, pie charts, and bar graphs. The data gathered was leveraged to create pie charts, bar graphs, and tables that illustrated facts about the link between organizational culture and performance at Local Authorities Pension Trust. The study found that a balanced mix of clan culture, adhocracy culture, market culture and hierarchical culture had a positive significant effect on the performance of LAPTRUST. The study concludes that in a clan culture, employees are encouraged to participate in decision-making processes, share their ideas, and contribute to the overall success of the organization. The study recommended that the organization should encourage cross-functional teams and collaboration across departments to break down silos and promote innovation. The organization should invest in training programs that enhance employees' market knowledge and skills can contribute to a market culture. The organization should clearly define and communicate the roles and responsibilities of each level within the hierarchy, ensuring that employees understand their position and how it fits into the overall organizational structure.

Sustainability Management Accounting in Urban Development: A Case Study of an Egyptian State-Owned Enterprise

The public sector literature on sustainability management accounting (SMA) has grown significantly in recent years, with numerous theoretical and empirical studies examining the purported link between management accounting and corporate sustainability within organisations. However, despite this surge, prior studies have largely confined their analytical scope to traditional SMA issues, such as corporate social, environmental, and governance responsibilities. Their analyses have predominantly concentrated on largely investigated elements such as situational linkages, transformational dynamics, agency issues, resistance, and conflicts. This study aims to address these limitations by examining corporate SMA systems within the burgeoning field of urban development. It utilises institutional theory and a case study from Egypt, a developing country, to explore how urban development could impact adopting a corporate SMA system in politically sensitive state-owned enterprises (SOEs). Contrary to existing literature, the findings indicate that urban development has created financial pressures for national governments, which have used these as a political instrument to implement a corporate SMA system within related SOEs. Additionally, the findings highlight the significant role of management accountants as central figures in integrating and standardising a corporate SMA system into the daily practices of current executives through advanced enterprise resource planning (ERP) technology. Moreover, as a development of institutional theory, the findings demonstrate the influence of corporate SMA reports on the decision-making processes of national governments in the context of urban development.

Perceived Financial Value and the Adoption of the Cashless Payment System in the Matatu Transport Sector in Nairobi County, Kenya

Cashless payment systems have emerged as a transformative force in the global financial landscape, offering convenience and efficiency in transactions. Despite their widespread development, the adoption of these systems has been uneven, with only a select number of companies in specific countries making notable progress. This research investigated the correlation between perceived financial value and the adoption of cashless payment systems in Nairobi's Matatu sector. The central question was how perceived financial value influences this adoption. This research was grounded on institutional theory, the study used an explanatory research design with a target population of 1,176 Matatu SACCO managers and staff, from which a sample of 289 was selected using stratified and simple random sampling. Data was collected via a questionnaire, with validity assessed through Pearson Moment Correlation and reliability through the test-retest method. Quantitative analysis was conducted using SPSS. The findings revealed a significant impact of perceived financial value on cashless payment adoption (β=0.534, t=10.744, p<0.05) and a 67.9% positive correlation. The study concluded that a suitable legal and institutional framework is needed, requiring collaboration between the private and public sectors to support technological adoption among Matatu operators in Nairobi. In light of the study's findings, the researchers recommended that the lack of a suitable legal and institutional framework for e-payments necessitates a joint effort from both the private and public sectors to establish the necessary legal and institutional structures, thereby fostering an environment conducive to technology integration among Matatu operators in Nairobi and beyond.

E-Procurement Systems and Organizational Performance in Germany

Purpose: The aim of the study was to analyze the e-procurement systems and organizational performance in Germany. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The implementation of e-procurement has streamlined procurement processes, reducing costs and improving efficiency through automation and better supplier management. Organizations adopting e-procurement systems report enhanced transparency, reduced procurement cycle times, and improved compliance with procurement regulations. Additionally, the data-driven nature of e-procurement allows for better decision-making and strategic sourcing, contributing to overall organizational effectiveness and competitiveness in the market. Unique Contribution to Theory, Practice and Policy: Technology acceptance model (TAM), resource-based view (RBV) & institutional theory may be used to anchor future studies on analyze the e-procurement systems and organizational performance in Germany. Establish regular and comprehensive training programs tailored to the needs of procurement staff to ensure effective utilization of e-procurement systems. Develop a national policy framework that encourages e-procurement adoption in both public and private sectors.

Globalization and Local Procurement: A Study of Supply Chain Dynamics in Australia and Bangladesh

Purpose: The aim of the study was to analyze the globalization and local procurement: a study of supply chain dynamics in Australia and Bangladesh. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study on strategic sourcing's impact on cost reduction in Australia and Bangladesh manufacturing firms demonstrated significant positive results. It showed that strategic sourcing led to notable reductions in procurement costs, enhanced supplier management, negotiation, and risk mitigation strategies. The findings underscored the importance of aligning procurement strategies with organizational goals for sustainable cost reductions and competitive advantages in the sector. Unique Contribution to Theory, Practice and Policy: Resource dependence theory (RDT), transaction cost economics (TCE) & institutional theory may be used to anchor future studies on analyze the globalization and local procurement: a study of supply chain dynamics in Australia and Bangladesh. Businesses in both Australia and Bangladesh should prioritize building strong relationships with local suppliers to enhance supply chain resilience. Policymakers in both Australia and Bangladesh should create supportive regulatory frameworks that promote local procurement practices.

Emissions trading, corporate social responsibility, and innovation quality -based on the perspective of formal and informal institutions

ABSTRACT High-quality green innovation plays a significant strategic support role in high-quality economic developments. Drawing upon institutional theory and property rights theory, this paper investigates the drivers of green innovation quality (GIQ) from the perspectives of formal and informal institutions. Emissions Trading Schemes (ETS) represent formal institutions designed and implemented by governments, while Corporate Social Responsibility (CSR) represents informal institutions. The study finds that ETS significantly enhances GIQ. Moreover, CSR significantly and positively moderated the relationship between ETS and GIQ, indicating that the synergistic interaction between formal and informal institutions stimulates superior innovation quality. This paper contributes to the understanding of the relationship among government regulations, corporate ethics and responsibility, and innovation quality. This paper offers recommendations for environmental policy and management strategies.

Procurement Ethics and Corruption: An Examination of Italy and Zimbabwe

Purpose: The aim of the study was to analyze the procurement ethics and corruption: an examination of Italy and Zimbabwe. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study on procurement ethics and corruption in Italy and Zimbabwe reveals significant contrasts between the two countries. In Italy, procurement processes are more structured, with stringent regulations aimed at curbing corruption, yet challenges persist, particularly in the enforcement of these regulations. In contrast, Zimbabwe faces more profound issues with systemic corruption deeply embedded in its procurement practices, exacerbated by weaker institutional frameworks and lack of transparency. Unique Contribution to Theory, Practice and Policy: Principal-agent theory, institutional theory & ethical decision-making theory may be used to anchor future studies on analyze the procurement ethics and corruption: an examination of Italy and Zimbabwe. Organizations in both Italy and Zimbabwe should implement robust ethical training programs for procurement officials to promote integrity and accountability. Policymakers in Italy and Zimbabwe should collaborate to develop comprehensive anti-corruption frameworks that address the unique challenges faced in each country’s procurement landscape.