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Differential Firm Commitment to Industries Supported by Social Movement Organizations

Author

Listed:
  • Rodolphe Durand

    (HEC Paris, 78351 Jouy-en-Josas, France)

  • Panayiotis (Panikos) Georgallis

    (University of Amsterdam, 1001 NL Amsterdam, Netherlands)

Abstract

This article theorizes about and tests the conditions under which firms’ commitment to an industry is influenced by social movement organizations (SMOs) that favor the industry. We argue that the more prominent SMOs are within an industry, the more a firm increases its commitment to that industry by expanding its operations; yet, this main effect should be moderated substantially by a firm’s idiosyncratic characteristics. The current research predicts that a firm’s location, its sensitivity to information about the industry’s potential, and its history of associations with activists determine the magnitude of the effect of SMO prominence on its strategic commitment to the industry. We test and find support for these hypotheses using a longitudinal data set of European manufacturers of solar photovoltaic cells between 1990 and 2011. The findings offer new insights for literature on social movements and organizations, as well as strategic management research.

Suggested Citation

  • Rodolphe Durand & Panayiotis (Panikos) Georgallis, 2018. "Differential Firm Commitment to Industries Supported by Social Movement Organizations," Organization Science, INFORMS, vol. 29(1), pages 154-171, February.
    • Handle: RePEc:inm:ororsc:v:29:y:2018:i:1:p:154-171
    DOI: 10.1287/orsc.2017.1170
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    6. Shon R. Hiatt & W. Chad Carlos & Wesley D. Sine, 2018. "Manu Militari : The Institutional Contingencies of Stakeholder Relationships on Entrepreneurial Performance," Organization Science, INFORMS, vol. 29(4), pages 633-652, August.
    7. Hoppmann, Joern & Vermeer, Ben, 2020. "The double impact of institutions: Institutional spillovers and entrepreneurial activity in the solar photovoltaic industry," Journal of Business Venturing, Elsevier, vol. 35(3).
    8. Muhammad Farhan Jalil & Wasim Ullah & Zeeshan Ahmed, 2021. "Training Perception and Innovative Behavior of SME Employees: Examining the Mediating Effects of Firm Commitment," SAGE Open, , vol. 11(4), pages 21582440211, December.
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    11. Margo P. M. Enthoven & Hendrik N. Thelken, 2023. "Activists' and social entrepreneurs' approaches towards consumer culture: Providing a protective space for sustainability transitions," Business Strategy and the Environment, Wiley Blackwell, vol. 32(2), pages 991-1004, February.

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