Lens Of Institutional Theory Research Articles

Measuring museum sustainability within the framework of institutional theory: A dictionary‐based content analysis of French and British National Museums' annual reports

AbstractIn the context of increasing attention on museum sustainability, this research adopts a dictionary‐based, content‐analysis approach to measure the degree of sustainability disclosed in European museum annual reports and similar documents. The analysis is carried out through the lens of institutional theory, assuming that the presence of formal and informal regulations positively affects the level of sustainability in annual reporting practices. Furthermore, the paper discusses the level of sustainability disclosed by different types of museums and the impact of the COVID‐19 pandemic on the extent of sustainability‐oriented reporting. The article compares top public museums in the UK and France, the European countries where accountability practices are most deeply rooted for legal and cultural reasons, and where the most visited museums in the world are located. The findings show that the type of museum and the country significantly affect the ESG (Environmental, Social, and Governance) score, whereas mentioning COVID‐19 or the year of publication does not.

Show me? Inspire me? Make me? An institutional theory exploration of social and environmental reporting practices

PurposeAlbeit gradual and uneven, the emergence of social and environmental reporting by publicly held corporations has been a major development in the last few decades. This paper aims to explore patterns of the emergence of these disclosures. Using an institutional theory lens, this paper considers mimetic, normative and coercive possibilities.Design/methodology/approachUS publicly traded company data from 2013 to 2019 is used to test the hypotheses. Mimetic forces are proxied with corporate board interlock frequency. Normative ones use the extent of gender diversity on corporate boards. Measures of business climate and industry regulatory sensitivity proxy coercive potentiality.FindingsStudied in isolation, each of the three forces through which organizations pursue the heightened legitimacy of enhanced environmental and social disclosures has credibility. The strongest support exists for mimetic and normative mechanisms, perhaps because the US government has been reluctant to make these expanded disclosures mandatory.Research limitations/implicationsIn the world of voluntary action, more attention to diffusion is needed. For these purposes, better proxies will be needed to study change. Social and environmental information should be separated for individual analysis.Practical implicationsAt least in the USA, companies are attentive to what other companies are doing. There is something to be said for the ethical dimension of corporate transparency.Social implicationsGovernmental action in this area has not been effective, at current levels. Corporate leadership is essential. Critical information is shared about disclosure by board members.Originality/valueAlthough institutional theory makes several appearances in this area, to the best of the authors’ knowledge, the current study is the first empirical archival study to examine the three forces simultaneously, providing evidence as to the relative magnitude of each institutional force on environmental and social disclosures. Should these disclosures not be mandated by government, this study shows pathways for enhanced disclosures to continue to spread.

A Theoretical Framework for Sustainability Initiatives from the Lens of Stakeholder Theory and Institutional Theory

This paper proposes a theoretical framework that synthesises two theories in explaining business sustainability initiatives. The relevant theories are stakeholder theory and institutional theory that are commonly employed in the corporate social responsibility and sustainability literature. The similarities and interrelatedness of these two theories are contended as complementing instead of competing. In fact, they are relevant to be linked to sustainability initiatives in explaining the motivation of such effort from the perspective of these theories. Moving forward, this framework can be employed as a theoretical foundation for empirical studies to obtain better prediction on the motives and reasons of sustainability initiatives from different contexts. Also, it will be employed to gauge the relevance of these theories in explaining the engagement of business in such initiatives.

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.

Measuring the effects of electronic government services and corrupt practices on information exchange: a comparison of public and private hospitals

PurposeHealth Information Exchange (HIE) is essential for the efficient and cost-effective delivery of health-care services. The provider’s administrative structure and external environment can substantially influence adopting technologies involving inter-organizational linkages, such as HIE. Using the theoretical lens of institutional theory, this study aims to compare how public and private hospitals' engagement in HIE is influenced by corruption and government online services or e-government usage.Design/methodology/approachThe study uses the positivist research design of secondary data analysis to test the six hypotheses proposed. Data from multiple third-party reliable sources, including the European Commission and World Bank, are combined into the final dataset consisting of observations from 1,442 hospitals across 30 countries in Europe. A multilevel modeling approach is used to associate country and hospital-level variables and test the hypothesis.FindingsThe study finds that, on average, a 10% increase in corruption leads to a 6.3% decrease, while a 10% increase in e-government leads to a 7% increase in the probability of HIE engagement for a hospital. The negative impact of corruption on average is 18% more in public than private hospitals, while the positive impact of e-government is 75% stronger in public in comparison to private hospitals. The study also finds that HIE engagements in health systems with predominantly public hospitals are more sensitive to corruption and e-government.Originality/valueTo the best of the authors’ knowledge, the study is one of the first to use the institutional view to test the influence of government actions and public providers' concentration on HIE engagement. The comparison of public and private institutions enriches our understanding of promoters and inhibitors of HIE.

It is a balancing act: understanding the key audit matters disclosure in the context of a developing country

PurposeThis study aims to examine the strategies that auditors in Bangladesh follow in identifying and reporting key audit matters (KAMs). The study also examines the factors affecting auditors’ strategies in the identification and disclosures of KAMs.Design/methodology/approachThe authors have conducted interviews with audit partners, chief financial officers (CFOs) and regulators involved in KAMs reporting and monitoring. The authors have used the lens of institutional theory of coercive, mimetic and normative isomorphism and the concept of decoupling.FindingsAuditors have used a decoupling strategy by identifying and reporting greater number of industry-generic KAMs than that of other countries in an effort to minimize risks and avoid regulatory scrutiny, although they disclose remote risks as KAMs and mask severe problem areas of the client. Because of the principle-based approach of International Standards on Auditing (ISA) 701 and because of the pressure and misunderstanding from the audit committee, auditors report industry-generic items and generic descriptions of KAMs.Practical implicationsThe findings have important implications for the standard setters and local and global audit firms for the diffusion of new auditing standards in different jurisdictions. Without the development of audit firm-level capability and the corporate governance environment, changes in standards may not be effective in achieving the objectives of the standards.Social implicationsAlthough auditors consider that the KAMs reporting requirements provide with opportunities to enhance audit profession’s legitimacy and public trusts, the actual KAMs reporting practices are driven by the market logic, an urge to maintain the status quo with clients and eventual rationalization of the impairment of professional independence.Originality/valueGiven the dearth of prior research on the implementation and diffusion patterns of ISA 701 KAMs reporting, this study fills the gap in the literature. To the best of the authors’ knowledge, this is the first known study to examine auditors’ strategic responses to balance among conflicting priorities in reporting KAMs.

When the Institutional Theory Lens Meets Sustainability: Bridging the Gaps

When the Institutional Theory Lens Meets Sustainability: Bridging the Gaps

The institutional development of Islamic finance in the Middle East: A post-colonial comparative perspective

The Islamic finance sector has experienced rapid growth since its commercialisation in the 1970s. For many Muslim countries that gained independence from their colonial rulers, developing a financial industry that represented their faith and value belief systems gave the population a sense of identity. In our study, we traced the historical development of the Islamic finance sector in the Middle East. We applied a post-colonial perspective and the institutional theory lens to analyse the evolution of governance models across the three Middle Eastern countries of Bahrain, Kuwait, and the UAE. We found that the foundation for the Islamic finance sector in these countries was laid soon after they had gained independence. The governance models in these countries have evolved from a decentralised approach to a centralised system aimed at harmonising operations both regionally and globally. This paper highlights implications for theory, policy, and practice and identifies avenues for future research.

Corruption, formal institutions, and foreign direct investment: The case of OECD countries in Africa

AbstractPurposeCorruption has shown a mixed impact on foreign direct investment (FDI). This study proposed moderating the role of two—foreign aid (international institution) from the home country and democracy (national institution) in the host country—between corruption‐FDI nexus.MethodologyThe framework is analyzed using panel data analysis (2001–2018) of bilateral foreign aid and FDI from 18 European members of the Organization for Economic Cooperation and Development (OECD) to 34 African countries.FindingsThe presents several key findings. First, Africa's level of government corruption harms bilateral FDI from Europe. Second, the OECD's bilateral foreign aid moderates the negative effects of Africa's host‐country corruption on FDI. Third, the level of democracy in the host country also moderates the negative impact of corruption on FDI. Finally, foreign aid strongly moderates the negative effect of corruption on FDI in democratic countries compared to non‐democratic host countries.Research ImplicationsThis study provides the institutional analysis that bilateral foreign aid and democracy as formal institutions affect the European multinational enterprises's decision to invest in Africa.Practical ImplicationsIt presents the policy and managerial implications. First, European MNEs managers avoid investing in Africa, and governments must take strict actions to attract FDI. Second, foreign aid and democracy motivate MNEs to invest in Africa. Finally, the OECD policymaker could formulate rigorous and relevant conditions for foreign aid to Africa to reduce corruption.Originality/ValueThrough the lens of institutional theory and selectorate theory, the novel institutional role of foreign aid and democracy is proposed and tested between the nexus of corruption‐FDI.

An Ecosystem for Social Entrepreneurship and Innovation: How the State Integrates Actors for Developing Impact Investing in Portugal

In this article, we explore how an important state intervention in cooperation with many civil society actors led to impact investing field emergence, intending to create favourable conditions for social entrepreneurship and social innovation. Twenty in-depth interviews were conducted in Portugal, with the main players in the field, including private sector, government, NGOs, and EU authorities. The ecosystem formed by these actors is analysed under the institutional theory lens and through an inductive method, leading to a process-based model. The results of our case study show a state struggling to involve private sector in providing resources to the field. On demand side, new entrepreneurs are finding difficulties in meeting legal requirements and answering suppliers’ selection criteria. Intermediaries contribute to reducing complexities, but are fighting to encounter their place in the field. Our evidences further suggest that social entrepreneurship and social innovation could be implemented as socially embedded actions, in response to local demands.

‘Take my advice’: Entrepreneurial consumers and the ecosystemic logics of digital platforms

Technology affordances democratize access to entrepreneurship, making it relatively common for consumers to expand their social media activities to become digital entrepreneurs. The decreasing distance between consumption and entrepreneurial practices on digital platforms such as Twitch, Spotify, and YouTube amplifies the influence of cultural elements germane to entrepreneurial ecosystems. This article investigates the effect of this societal change on the discourse and behavior of consumers through the lens of institutional logics theory. It uses computational social science methods to analyze 1,909,370 comments posted on 249 videos published on a YouTube channel that unboxes technological products. The findings show that many end-users offer business advice to digital influencers as if they are collaborating with a buddy entrepreneur. A quantitative procedure demonstrates that these individuals have more subscribers than the average end-user. Further, the percentage of comments on this interaction correlates positively with end-user (consumer) engagement. This relationship indicates that a digital influencer's ability to inspire entrepreneurial behavior among end-users may benefit his/her business. It also suggests the existence of an entrepreneurship-related continuum from consumers to digital influencers.

Calling for Cancellation: Understanding how Markets Are Shaped to Realign With Prevailing Societal Values

Cancellations, often referred to derogatively as “cancel culture”, are becoming increasingly pervasive in public discourse, political debate, and the marketing field. Cancellations pose a clear threat to established market actors and have the potential to re-organize institutional structures. However, empirical work investigating this phenomenon is limited. This study adopts an institutional theory lens to investigate how calls for brand cancellation unfold. In doing so, it provides insight into how markets are shaped to realign with prevailing institutional logics around political ideology, race, gender, sexuality, abuse, and corporate greed. Further, it outlines the triggers that prompt institutional entrepreneurs to attempt to delegitimize the existence of incumbent brands. It also reveals how various actors (consumers, brands, media, affiliates, influencers, opponents) engage in institutional work to disrupt, create, or maintain institutional logics, as well as their own legitimacy. Macro implications for social values, political factions, markets, marketing practices, and brands are discussed.

Tourist walkability and sustainable community-based tourism: conceptual framework and strategic model

PurposeThis paper aims to determine the significance of tourist walkability on three community-based tourism sustainability indicators, namely, the economic, social and environmental benefits and costs impacting community’s quality of life through the lens of the triple bottom line approach with the institutional theory.Design/methodology/approachThis study views institutions as either enabling or restricting the sustainable community-based tourism because institutions influence resource integration and value assessment by the beneficiary. Moreover, institutions also lead the co-creation of sustainable community-based tourism among various stakeholders. Drawing on this conceptualisation, the notion of sustainable community-based tourism is filtered through the lens of institutional theory. Thus, this work approaches sustainable community-based tourism as a dynamic process of co-creating a tourist destination formed by different actors’ and institutions within the ecosystem of the tourist destination. Meanwhile, the triple bottom line benefits and costs experienced by the overall community would produce net effects on the residents’ perceptions of sustainable tourism.FindingsThis paper classifies both tangible and intangible costs and benefits because of tourist walkability and its triple bottom line trade-offs experienced by tourists and residents. This paper penetrates new grounds by reviewing the triple bottom line impacts of tourist walkability on residents’ quality of life. Government policies as mediating variable and national culture and individual personalities of tourists and residents as moderating variables were discussed. A conceptual framework named Tourist Walkability Sustainable Tourism Impact on Residents (TWSTIR) is proposed. Finally, a Sustainable Community-based Tourism Strategic (SCBTS) model which is based on the two dimensions of intensity of tourist walkability and residents’ quality of life is proposed.Research limitations/implicationsResearch limitations may include a lack of assessment on political, technological and legal issues, and therefore, future research is warranted in these three areas. Some emotions and attitudes of the residents may not be captured since the Gross National Index (Gross National Happiness) may have its inherent blind spots.Practical implicationsThis paper would be of interest to the scholarly world, as its original idea and concluding research agenda are burrowing into a new sub-field of tourism research. In view of growth and degrowth of sustaining community-based tourism, the SCBTS model is presented to provide directions for tourism policymakers and entrepreneurs to formulate and implement appropriate strategy for the tourist walkability activity per se and investment in the accompanying infrastructure.Social implicationsThis paper also presents the sacrifices and inequities in the communities and the relevance of government policies, national culture and individual personalities of tourists and residents, in which the attention of tourism policymakers and the communities that thrive on the travel and tourism industry should not be neglected.Originality/valueThe idea and discussion of this paper is original. This paper burrows into a new sub-field of tourism research. Tourist walkability needs more attention from the scholars, as this tourist activity can have positive and negative effects on residents’ quality of life. The TWSTIR framework is developed to discuss the relationships of tourist walkability, triple bottom line concept and residents’ quality of life within the sustainable community-based tourism scope. The SCBTS model is presented for tourism policymakers and entrepreneurs to perform appropriate strategy for the tourist walkability activity and investment in the accompanying infrastructure.

Overcoming Circular Economy Challenges in Port Areas: An Institutional Perspective

The implementation of circular economy practices is a current and important topic. Despite extensive research on CE barriers in various industries and countries, there is limited discussion on circular economy challenges in port areas. This paper aims at empirically studying circular economy implementation, its associated obstacles, and the levers to overcome them by mobilizing institutional theory. To this end, we studied six cases of companies, located in a port area in France, that have implemented circular economy in their practices. We deployed a qualitative case study methodology. As results, we have identified 41 challenges divided into 5 groups: (1) economic-financial-market, (2) organizational-managerial-cultural, (3) technical-technological, (4) regulatory-governmental, (5) supply chain. The results were then interpreted through the lens of institutional theory. We found that institutional mechanisms - coercive, normative, mimetic, and informal instruments - can be mobilized so as to meet each of the challenges.

From Fast to Slow: An Exploratory Analysis of Circular Business Models in the Italian Apparel Industry

The apparel industry is a substantial contributor to global environmental pollution at any stage of the supply chain. Clothing production and transportation generate a large volume of waste and high greenhouse gas emissions, often exploiting cheap labour in developing countries. Consequently, stakeholders are becoming more aware of the environmental and human rights implications of the apparel industry. This paper aims to investigate how fashion companies are redesigning their value chain to meet growing stakeholder demands for sustainability and circular economy. Using purposeful sampling, a qualitative multiple case study design involving 21 Italian apparel companies adopting circular business models was conducted. Data were collected through remote semi-structured interviews, supplemented by secondary data to provide a richer context for our investigation. The research findings are interpreted through the theoretical lens of Institutional theory, showing the primary factors leading to the transition from fast to slow fashion business models. Notably, customer demand for supply chain transparency and the selection of certified suppliers strongly influence the development of apparel firms' business models, pushing companies to a radical change in their value proposition, creation, and delivery. This study guides practitioners, highlighting circular business model innovations and emerging digital technologies enabling apparel businesses to manage stakeholder engagement and promote sustainable development strategically.

Institutional isomorphism under the test of Non-financial Reporting Directive. Evidence from Italy and Spain

PurposeThis paper aims to analyse the impact of the European Union (EU) Directive on the quality of sustainability reporting under the institutional theory lens. Specifically, the authors evaluate what kind of institutional pressure has the highest impact on the quality of corporate disclosure on sustainability issues.Design/methodology/approachThe authors build a quality index based on the content analysis of sustainability information disclosed, before and after the transposition of the Directive, by Italian and Spanish companies belonging to different industries. The authors use an OLS regression model to analyse the effect of coercive, normative and mimetic forces on the quality of the sustainability reports.FindingsThe results highlight that normative and mimetic mechanisms positively affect the quality of sustainability reporting, whereas there is no evidence regarding coercive mechanisms, indicating that the new requirements do not provide a significant contribution to the development of better reporting practices, at least in the two analysed countries.Originality/valueTo the best of the authors’ knowledge, this is one of the few studies assessing the quality of sustainability reporting through an analysis involving the period before and after the implementation of the EU Directive. It enriches the literature on institutional theory by analysing how the different dimensions of isomorphism affect the quality of information disclosed by companies according to the EU requirements. It contributes to a better understanding of the impact of the non-financial information Directive, and the results of this paper can be relevant for regulators, practitioners and academia, especially in view of the adoption of the new Corporate Sustainability Reporting Directive proposal.

Symbol or substance? Scrutinizing the ‘risk transparency premise’ in marketized sustainable finance: The case of TCFD reporting

AbstractContemporary forms of “marketized” sustainable finance rely on the production, dissemination, and consumption of financialized ESG risk information. In this paper, we scrutinize this “risk transparency premise” in context of the TCFD's climate risk reporting framework. Adopting the lens of institutional theory and a mixed methods approach, we pursue two interrelated aims. First, we examine to which extent the climate risk disclosures of TCFD “supporters” from the European financial sector adhere to the information requirements spelled out in the TCFD framework. Second, we seek to uncover the organization level impediments that underlie substantive implementation of the TCFD framework and, in turn, the production and dissemination of the required climate risk information. Based on our findings, we argue that TCFD/climate risk reporting is prone to become a ‘ceremonial’ practice and that, at least as of now, the ‘institutional myth’ of risk transparency might rather serve to safeguard the ideals of the market as opposed to facilitate transformative change towards a more environmentally sustainable economy. Our findings complement research that has problematized contemporary forms of marketized sustainable finance as well as literature on climate risk reporting and TCFD more specifically.

A inteligência na gestão pública: uma análise sob a perspectiva institucional

Abstract Recent studies point out that the barriers to transition and structuring a smart government seem less technological and more institutional. Against this backdrop, this article provides an original contribution to the literature by analyzing the dimensions of intelligence in public management under the lens of institutional theory. Also, from the theoretical debate, the research develops a model of institutionalization of intelligence in public management. The card sorting technique was used to validate the four categories defined from the theoretical analysis (organizational structure, technological structure, human capital, and social engagement). These categories were defined considering the respective dimensions of intelligence: use of data and external information; organizational culture for intelligence; effective use of technologies (Big Data; Business Intelligence); evidence-based decision-making; inter-departmental and inter-organizational collaboration; database organization and unification; government agility; management efficiency and effectiveness; social engagement; innovation, co-creation, intelligence collective. The results point to the importance of incorporating elements from the institutional perspective to legitimize intelligence in government. Also, from the analysis of the card sorting stage, the results demonstrate agreement in classifying items by proposed construct, presenting itself as a future opportunity for the model to be quantitatively tested.

An exploratory study on the impact of COVID-19 on U.S. State boards of accountancy

In the United States (U.S.) individual state boards of accountancy govern the accounting profession within each state. When COVID-19 struck the U.S., state boards worked to maintain normal operations. This study examines how COVID-19 affected the regulatory and oversight activities of the state boards of accountancy and the ways in which boards adapted to the pandemic. We interview executive directors from 21 state boards to determine the pandemic’s impact on board operations and continuing professional education requirements. We also evaluate whether state boards implemented guidance from parties such as the National Association of State Boards of Accountancy (NASBA), and the resources boards had available to navigate the pandemic. Finally, we examine our analyses and findings through the lens of institutional theory. In doing so, we describe how state boards’ individual reactions to the pandemic resulted in a largely homogenous response, as affected by coercive, mimetic, and normative isomorphic mechanisms.

Nexus between institutional quality and corporate sustainable performance: European evidence

By analysing 796 companies' data from 21 European countries, this research uncovered the nexus between institutional quality (IQ) and corporate sustainable performance (CSP). The relationship was theoretically examined with the lens of institutional theory and then empirically tested. The findings show that IQ has a positive and significant impact in safeguarding CSP, and firms’ characteristics play an essential preamble in this regard. We additionally found the heterogeneous impact of IQ on CSP. To come to a conclusion, we have applied random effect, two-step system GMM and quantile regression models. Our findings are consistent and empirically robust; therefore, the study disseminates key messages to policymakers and practitioners about the role of IQ in safeguarding CSP.