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Necessity as the mother of ‘green’ inventions: Institutional pressures and environmental innovations

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  • Pascual Berrone
  • Andrea Fosfuri
  • Liliana Gelabert
  • Luis R. Gomez‐Mejia

Abstract

Drawing on institutional theory and innovation literature, we argue that greater regulatory and normative pressures concerning environmental issues positively influence companies' propensity to engage in environmental innovation. Analysis of environment‐related patents of 326 publicly traded firms from polluting industries in the United States suggests that institutional pressures can trigger such innovation, especially in those firms displaying a greater deficiency gap (i.e., firms polluting relatively more than their industry peers). Moreover, we find that this effect is stronger when asset specificity is high, and that the availability of resources plays different roles depending on the type of pressures (regulatory vs. normative).Copyright © 2012 John Wiley & Sons, Ltd.

Suggested Citation

  • Pascual Berrone & Andrea Fosfuri & Liliana Gelabert & Luis R. Gomez‐Mejia, 2013. "Necessity as the mother of ‘green’ inventions: Institutional pressures and environmental innovations," Strategic Management Journal, Wiley Blackwell, vol. 34(8), pages 891-909, August.
    • Handle: RePEc:bla:stratm:v:34:y:2013:i:8:p:891-909
    DOI: 10.1002/smj.2041
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