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The Dynamic Between Firms' Environmental Strategies and Institutional Constraints in Emerging Economies: Evidence from China and Taiwan

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  • John Child
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    Abstract

    This paper combines institutional and political perspectives to develop a framework for analysing firms' strategies in relation to demands for environmental protection in emerging economies. The main subjects for an examination of the framework and the issues it raises are three large-scale diversified multinational corporations (MNCs) in the chemicals sector, each with manufacturing in both China (PRC) and Taiwan. They are contrasted with four local firms in the same sector. An accommodation between MNCs' strategies and institutional constraints is achieved through a system of dynamic relationships in which both firms and institutional agents have a stake. Institutions are found to be more pervious to corporate strategic action than has been assumed by recent institutional theory, and with consequences that are not necessarily inimical to local community interests. The study offers new insights into (1) the processes that lead to conformity in corporate environmental practices (isomorphism), (2) the need to extend the normal purview of institutional theory, and (3) the contribution of a political perspective that allows for MNC proactivity. Copyright Blackwell Publishing Ltd 2005.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Management Studies.

    Volume (Year): 42 (2005)
    Issue (Month): 1 (01)
    Pages: 95-125

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    Handle: RePEc:bla:jomstd:v:42:y:2005:i:1:p:95-125

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    Cited by:
    1. Jisun Yu & Sung Kim, 2013. "Understanding liability of foreignness in an Asian business context: A study of the Korean asset management industry," Asia Pacific Journal of Management, Springer, vol. 30(4), pages 1191-1217, December.
    2. Owens, Martin & Palmer, Mark & Zueva-Owens, Anna, 2013. "Institutional forces in adoption of international joint ventures: Empirical evidence from British retail multinationals," International Business Review, Elsevier, vol. 22(5), pages 883-893.
    3. Diego Quer & Enrique Claver & Laura Rienda, 2007. "Business and management in China: A review of empirical research in leading international journals," Asia Pacific Journal of Management, Springer, vol. 24(3), pages 359-384, September.
    4. Liu, Yi & Li, Yuan & Wei, Zelong, 2009. "How organizational flexibility affects new product development in an uncertain environment: Evidence from China," International Journal of Production Economics, Elsevier, vol. 120(1), pages 18-29, July.
    5. Tony Tong & Jing Li, 2008. "Real options and MNE strategies in Asia Pacific," Asia Pacific Journal of Management, Springer, vol. 25(1), pages 153-169, January.
    6. X. Meng & S. Zeng & C. Tam, 2013. "From Voluntarism to Regulation: A Study on Ownership, Economic Performance and Corporate Environmental Information Disclosure in China," Journal of Business Ethics, Springer, vol. 116(1), pages 217-232, August.
    7. Chan, Ricky Y.K., 2010. "Corporate environmentalism pursuit by foreign firms competing in China," Journal of World Business, Elsevier, vol. 45(1), pages 80-92, January.
    8. Tsai-Ju Liao & Chwo-Ming Yu, 2013. "The impact of local linkages, international linkages, and absorptive capacity on innovation for foreign firms operating in an emerging economy," The Journal of Technology Transfer, Springer, vol. 38(6), pages 809-827, December.
    9. Kevin Zhou & Caroline Li, 2007. "How does strategic orientation matter in Chinese firms?," Asia Pacific Journal of Management, Springer, vol. 24(4), pages 447-466, December.
    10. Yuan Li & YongFeng Sun & Yi Liu, 2006. "An empirical study of SOEs' market orientation in transitional China," Asia Pacific Journal of Management, Springer, vol. 23(1), pages 93-113, March.
    11. Arjen H. L. Slangen & Jean-Fran├žois Hennart, 2008. "Do Foreign Greenfields Outperform Foreign Acquisitions or Vice Versa? An Institutional Perspective," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1301-1328, November.
    12. Reimann, Felix & Ehrgott, Matthias & Kaufmann, Lutz & Carter, Craig R., 2012. "Local stakeholders and local legitimacy: MNEs' social strategies in emerging economies," Journal of International Management, Elsevier, vol. 18(1), pages 1-17.
    13. Chen, Dong & Newburry, William & Park, Seung Ho, 2009. "Improving sustainability: An international evolutionary framework," Journal of International Management, Elsevier, vol. 15(3), pages 317-327, September.
    14. Pinkse, Jonatan & Kuss, Matthias J. & Hoffmann, Volker H., 2010. "On the implementation of a 'global' environmental strategy: The role of absorptive capacity," International Business Review, Elsevier, vol. 19(2), pages 160-177, April.
    15. Yaqun Yi & Yi Liu & Hong He & Yuan Li, 2012. "Environment, governance, controls, and radical innovation during institutional transitions," Asia Pacific Journal of Management, Springer, vol. 29(3), pages 689-708, September.

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