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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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    Cited by:

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    2. Lu Ye & Helen Wei Hu, 2025. "Mitigating Investor Reactions to Financial Misconduct: The Moderating Roles of Firm Commitment Cues," Journal of Business Ethics, Springer, vol. 198(3), pages 559-578, May.
    3. Panikos Georgallis & João Albino-Pimentel & Nina Kondratenko, 2021. "Jurisdiction shopping and foreign location choice: The role of market and nonmarket experience in the European solar energy industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 853-877, July.
    4. Jeroen Struben & Brandon H. Lee & Christopher B. Bingham, 2020. "Collective Action Problems and Resource Allocation During Market Formation," Post-Print hal-02927584, HAL.
    5. 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.
    6. 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.
    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. 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.
    9. Lucas, David S. & Park, U. David, 2023. "The nature and origins of social venture mission: An exploratory study of political ideology and moral foundations," Journal of Business Venturing, Elsevier, vol. 38(2).
    10. Kayleigh Bruijn & Panikos Georgallis & João Albino-Pimentel & Arno Kourula & Hildy Teegen, 2024. "MNE–civil society interactions: a systematic review and research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(2), pages 136-156, March.
    11. Chung, Sung Hun (Brian) & Odziemkowska, Kate & Piazza, Alessandro, 2024. "Threading the Needle of Corporate Activism: How Firms Frame Their Stances on Polarizing Social Issues," OSF Preprints 2ejyp_v1, Center for Open Science.
    12. Diane-Laure Arjaliès & Rodolphe Durand, 2019. "Product Categories as Judgment Devices: The Moral Awakening of the Investment Industry," Organization Science, INFORMS, vol. 30(5), pages 885-911, September.
    13. Benjamin Huybrechts & Helen M. Haugh & Bob Doherty, 2024. "Mission Accomplished? Balancing Market Growth and Moral Legitimation in the Fair Trade Moral Market," Journal of Management Studies, Wiley Blackwell, vol. 61(4), pages 1393-1426, June.
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    15. Diwei Lv, David & Zhu, Hang & Chen, Weihong & Lan, Hailin, 2021. "Negative performance feedback and firm cooperation: How multiple upward social comparisons affect firm cooperative R&D," Journal of Business Research, Elsevier, vol. 132(C), pages 872-883.

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