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The impact of social norms on entrepreneurial action: Evidence from the environmental entrepreneurship context

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  • Meek, William R.
  • Pacheco, Desirée F.
  • York, Jeffrey G.

Abstract

Using insights from institutional theory, sociology, and entrepreneurship we develop and test a model of the relationship between centralized and decentralized institutions on entrepreneurial activity. We suggest that both decentralized institutions that are socially determined as well as centralized institutions that are designed by governmental authorities are important in promoting firm foundings in the environmental context. In a sample of the U.S. solar energy sector we find that state-sponsored incentives, environmental consumption norms, and norms of family interdependence are related to new firm entry in this sector. Our findings also suggest that the efficacy of state-level policies in the sponsoring of entrepreneurial growth is dependent upon the social norms that prevail in the entrepreneur's environment. We expand entrepreneurship theory and the study of institutions and the natural environment by demonstrating the integral role that social norms play in influencing the creation of new firms and by illustrating the potential effect social norms have on the effect of policy that seeks to encourage environmentally responsible economic activity.

Suggested Citation

  • Meek, William R. & Pacheco, Desirée F. & York, Jeffrey G., 2010. "The impact of social norms on entrepreneurial action: Evidence from the environmental entrepreneurship context," Journal of Business Venturing, Elsevier, vol. 25(5), pages 493-509, September.
  • Handle: RePEc:eee:jbvent:v:25:y:2010:i:5:p:493-509
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    References listed on IDEAS

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    Cited by:

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    2. Heshmati, Almas, 2015. "A Review of the Circular Economy and its Implementation," IZA Discussion Papers 9611, Institute for the Study of Labor (IZA).
    3. Walter, Sascha G. & Block, Jörn H., 2016. "Outcomes of entrepreneurship education: An institutional perspective," Journal of Business Venturing, Elsevier, vol. 31(2), pages 216-233.
    4. Marra, Alessandro & Antonelli, Paola & Dell’Anna, Luca & Pozzi, Cesare, 2015. "A network analysis using metadata to investigate innovation in clean-tech – Implications for energy policy," Energy Policy, Elsevier, vol. 86(C), pages 17-26.
    5. O'Neil, Isobel & Ucbasaran, Deniz, 2016. "Balancing “what matters to me” with “what matters to them”: Exploring the legitimation process of environmental entrepreneurs," Journal of Business Venturing, Elsevier, vol. 31(2), pages 133-152.
    6. Jacob Hörisch & Jana Kollat & Steven A. Brieger, 2017. "What influences environmental entrepreneurship? A multilevel analysis of the determinants of entrepreneurs’ environmental orientation," Small Business Economics, Springer, vol. 48(1), pages 47-69, January.
    7. Theodore L. Waldron & Greg Fisher & Michael Pfarrer, 2016. "How Social Entrepreneurs Facilitate the Adoption of New Industry Practices We thank guest editor Gideon Markman and the reviewers for their exceptional guidance during the review process. We also than," Journal of Management Studies, Wiley Blackwell, vol. 53(5), pages 821-845, July.
    8. repec:spr:jglont:v:7:y:2017:i:1:d:10.1186_s40497-017-0085-z is not listed on IDEAS
    9. Muñoz, Pablo & Dimov, Dimo, 2015. "The call of the whole in understanding the development of sustainable ventures," Journal of Business Venturing, Elsevier, vol. 30(4), pages 632-654.
    10. Walter, Sascha G. & Schmidt, Arne & Walter, Achim, 2016. "Patenting rationales of academic entrepreneurs in weak and strong organizational regimes," Research Policy, Elsevier, vol. 45(2), pages 533-545.
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    12. Zhang, Wei & White, Steven, 2016. "Overcoming the liability of newness: Entrepreneurial action and the emergence of China's private solar photovoltaic firms," Research Policy, Elsevier, vol. 45(3), pages 604-617.
    13. Clay Dibrell & Justin Craig & Jaemin Kim & Aaron Johnson, 2015. "Establishing How Natural Environmental Competency, Organizational Social Consciousness, and Innovativeness Relate," Journal of Business Ethics, Springer, vol. 127(3), pages 591-605, March.
    14. Tang, Zhi & Tang, Jintong, 2012. "Stakeholder–firm power difference, stakeholders' CSR orientation, and SMEs' environmental performance in China," Journal of Business Venturing, Elsevier, vol. 27(4), pages 436-455.
    15. Jeffrey G. York & Michael J. Lenox, 2014. "Exploring the sociocultural determinants of de novo versus de alio entry in emerging industries," Strategic Management Journal, Wiley Blackwell, vol. 35(13), pages 1930-1951, December.
    16. Shirokova Galina & Knatko Dmitri & Vega Gina, 2013. "To Be or Not to Be: When Should a Threshold Firm in an Emerging Market Move to Professional Management?," EERC Working Paper Series 13/01e, EERC Research Network, Russia and CIS.
    17. Klyver, Kim & Nielsen, Suna Løwe & Evald, Majbritt Rostgaard, 2013. "Women's self-employment: An act of institutional (dis)integration? A multilevel, cross-country study," Journal of Business Venturing, Elsevier, vol. 28(4), pages 474-488.
    18. Eesley, Charles & Wang, Yanbo, 2017. "Social influence in career choice: Evidence from a randomized field experiment on entrepreneurial mentorship," Research Policy, Elsevier, vol. 46(3), pages 636-650.
    19. repec:eee:jbvent:v:32:y:2017:i:5:p:569-587 is not listed on IDEAS
    20. Wood, Matthew S. & Williams, David W. & Drover, Will, 2017. "Past as prologue: Entrepreneurial inaction decisions and subsequent action judgments," Journal of Business Venturing, Elsevier, vol. 32(1), pages 107-127.
    21. Richard A. Hunt & Bret R. Fund, 2016. "Intergenerational Fairness and the Crowding Out Effects of Well-Intended Environmental Policies," Journal of Management Studies, Wiley Blackwell, vol. 53(5), pages 878-910, July.
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    23. Ding, Zhujun & Au, Kevin & Chiang, Flora, 2015. "Social trust and angel investors' decisions: A multilevel analysis across nations," Journal of Business Venturing, Elsevier, vol. 30(2), pages 307-321.
    24. Shirokova, Galina V. & Sokolova, Liubov S., 2013. "Exploring the Antecedents of Entrepreneurial Orientation in Russian SMEs: The Role of Institutional Environment," Working Papers 819, Graduate School of Management, St. Petersburg State University.

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