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Can institutional forces create competitive advantage? An empirical examination of environmental innovation

Author

Listed:
  • Berrone, Pascual

    (IESE Business School)

  • Gelabert, Liliana

    (Universidad Carlos III)

  • Fosfuri, Andrea

    (Universidad Carlos III)

  • Gomez-Mejia, Luis R.

    (Arizona State University)

Abstract

We examine institutional pressures as antecedents of environmental innovation. Drawing on institutional theory and a resource-based view of the firm, we argue that regulatory and normative forces influence companies' propensity to innovate in environment-related projects. Furthermore, we suggest that this relationship is contingent on the availability and specificity of the companies' resources. These relationships were tested using environmental patents and citations of 340 publicly-traded companies from polluting industries in the U.S. Results suggest that institutional pressures can be a source of competitive advantage, and regulatory forces are becoming more strongly associated with environmental innovations as the intensity of companies' R&D activities increase.

Suggested Citation

  • Berrone, Pascual & Gelabert, Liliana & Fosfuri, Andrea & Gomez-Mejia, Luis R., 2007. "Can institutional forces create competitive advantage? An empirical examination of environmental innovation," IESE Research Papers D/723, IESE Business School.
    • Handle: RePEc:ebg:iesewp:d-0723
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    References listed on IDEAS

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    2. Lei Wang & Leonel Prieto & Kim T. Hinrichs, 2010. "Direct And Indirect Effects Of Individual And Environmental Factors On Motivation For Self-Employment," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 481-502.
    3. JS Keshminder & Pablo del Río, 2019. "The missing links? The indirect impacts of drivers on eco‐innovation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(5), pages 1100-1118, September.
    4. Berrone, Pascual & Gelabert, Liliana & Fosfuri, Andrea, 2009. "The impact of symbolic and substantive actions on environmental legitimacy," IESE Research Papers D/778, IESE Business School.
    5. Scott R. Colwell & Ashwin W. Joshi, 2013. "Corporate Ecological Responsiveness: Antecedent Effects of Institutional Pressure and Top Management Commitment and Their Impact on Organizational Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 22(2), pages 73-91, February.
    6. Asadul Hoque & Muhammad Mohiuddin & Zhan Su, 2018. "Effects of Industrial Operations on Socio-Environmental and Public Health Degradation: Evidence from a Least Developing Country (LDC)," Sustainability, MDPI, vol. 10(11), pages 1-22, October.
    7. Tracy A. Jenkin, 2013. "Extending the 4I Organizational Learning Model: Information Sources, Foraging Processes and Tools," Administrative Sciences, MDPI, vol. 3(3), pages 1-14, August.

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    Keywords

    environmental innovation; institutional theory; resource-based view;
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