Can institutional forces create competitive advantage? An empirical examination of environmental innovation
AbstractWe 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.
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Bibliographic InfoPaper provided by IESE Business School in its series IESE Research Papers with number D/723.
Length: 27 pages
Date of creation: 21 Nov 2007
Date of revision:
environmental innovation; institutional theory; resource-based view;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2008-02-09 (Agricultural Economics)
- NEP-ALL-2008-02-09 (All new papers)
- NEP-COM-2008-02-09 (Industrial Competition)
- NEP-CSE-2008-02-09 (Economics of Strategic Management)
- NEP-ENT-2008-02-09 (Entrepreneurship)
- NEP-ENV-2008-02-09 (Environmental Economics)
- NEP-INO-2008-02-09 (Innovation)
- NEP-IPR-2008-02-09 (Intellectual Property Rights)
- NEP-PPM-2008-02-09 (Project, Program & Portfolio Management)
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