The Dynamic Between Firms’ Environmental Strategies and Institutional Constraints in Emerging Economies: Evidence from China and Taiwan*

John Child · Terence Tsai

508 citations0/0 files storedJournal of Management Studies

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Management and Organizational Studies International Business and FDI Environmental Sustainability in Business

Abstract

ABSTRACT This paper combines institutional and political perspectives to develop a framework for analysing firms’ strategies in relation to demands for environmental protection in emerging economies. The main subjects for an examination of the framework and the issues it raises are three large‐scale diversified multinational corporations (MNCs) in the chemicals sector, each with manufacturing in both China (PRC) and Taiwan. They are contrasted with four local firms in the same sector. An accommodation between MNCs’ strategies and institutional constraints is achieved through a system of dynamic relationships in which both firms and institutional agents have a stake. Institutions are found to be more pervious to corporate strategic action than has been assumed by recent institutional theory, and with consequences that are not necessarily inimical to local community interests. The study offers new insights into (1) the processes that lead to conformity in corporate environmental practices (isomorphism), (2) the need to extend the normal purview of institutional theory, and (3) the contribution of a political perspective that allows for MNC proactivity.

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References

1984Case Study Research: Design and Methods 1983The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields 1990Institutions, Institutional Change and Economic Performance 2004The iron cage revisited institutional isomorphism and collective rationality in organizational fields 1991Institutions, Institutional Change and Economic Performance 2011External Control of Organizations: Resource Dependence Perspective 1979The External Control of Organizations: A Resource Dependence Perspective 1983The Iron Caged Revisited : Institutional Isomorphism and Collective Rationality in Organizational Fields

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