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Leaders and Laggards: The Influence of Competing Logics on Corporate Environmental Action
Abstract
We study the sources of resistance to change among firms in the Canadian petroleum industry in response to a shift in societal
level logics related to corporate environmental performance. Despite challenges to its legitimacy as a result of poor environmental
performance, the Canadian petroleum industry was divided as to how to respond, with some members ignoring the concerns and
resisting change (i.e., laggards) while others took action to ensure continued legitimacy (i.e., leaders). We examine why
organizations within the same institutional field responded differently, delaying the industry response. We found that one
population of firms was aligned with increasing pressures from its stakeholders for improved environmental performance, and
the other was influenced by local cultural, political, and economic ideals less demanding of environmental actions. Our results
reveal that several factors both at the institutional field level and the organizational level affected how these two populations
reacted to a changing societal logic. Implications for theory, practice, and future research are discussed.
... By showing that field settlements are constituted by the progressive accumulation of micro-settlements, our study unpacks the nature of the shared understandings that constitute field settlements, and helps explain how and why fields guarded by powerful incumbents change in some circumstances (Greenwood et al., 2002;Zietsma et al., 2017) but not in others (Feront & Bertels, 2021;Grodal & O'Mahony, 2017). Specifically, it helps explain the gradual ratcheting up and/or watering down of voluntary regulations and standards (Buchanan & Barnett, 2021;Haack & Rasche, 2021;Moog, Spicer, & Böhm, 2015;Overdevest, 2010;Sethi & Schepers, 2014) which can be viewed as forms of field settlement, and highlights the precise ways that industry laggards prevent substantive field-level practice change (Herremans, Herschovis, & Bertels, 2009). Revealing the composition and structure of field settlements is useful, as it helps explain why field debates stall, or why protracted negotiations do not always lead to practice change, as achieving micro-settlements on certain aspects of an issue (whether it poses a risk to the industry, for example) is less challenging (as these are far less committing and binding) than achieving settlements on concrete, substantive and widespread practice change, including the measures used to evaluate them. ...
... Within industry-led FCOs, these struggles often take the form of conflict between industry leaders-namely, field incumbents who are more progressive, who view change as necessary and who want the collective to undertake work that helpss to close legitimacy gaps-and industry laggards, who are more conservative, who view signals of changing expectations as erroneous or exaggerated, and who want the collective to undertake work that helps defend and maintain the status quo (Herremans et al., 2009). Our study shows how field incumbents' calibrating practices in response to pressures arising from societal grand challenges enable or impede their openness to making substantive changes to current "ways of doing" and underscores the importance of these practices for understanding the dynamics of field settlement (re)formation at a micro-level. ...
... Although activist stakeholders make a wide array of demands and some of these may seem difficult to tie directly to relative firm performance, engagement with a broad array of stakeholders has increasingly been viewed as 'a legitimate part of corporate strategy' in the eyes of both shareholders and other influential firm constituents (Herremans et al., 2009;Ioannou andSerafeim, 2015, p. 1058). Further, the relationship between how a firm engages with stakeholders (and the issues it focuses on) and financial performance remains unclear (Garcia-Castro and Francoeur, 2016;Hafenbrädl and Waeger, 2017). ...
Despite the impact of CEO regulatory focus on a wide range of organizational outcomes, most research does not consider how regulatory focus can vary based on situational factors. Taking an interactionist perspective rooted in industrial‐organizational psychology, we propose that CEO regulatory focus exhibits variance driven by situational factors, namely, a CEO's job demands. Integrating this perspective with regulatory focus theory and research on executive job demands, we theorize and test the extent to which CEO regulatory focus is influenced by relative firm performance, with stakeholder activism and CEO tenure as moderators of this relationship. Using a sample of large U.S. companies, our tests offer evidence for how situational factors cause CEO regulatory focus to vary. We conclude our work by developing a research agenda regarding situational antecedents of CEOs' intrapersonal constructs more broadly.
... Prior studies have examined firms' innovation strategies in green markets under the firstmover, quick-follower, and laggard categories (Freeman and Soete 1997;Herremans, Herschovis, and Bertels 2009;Laari, Töyli, and Ojala 2018). While proactive firms (or first-movers) are understood to invest heavily in net-zero innovation to be leaders in the newly emerging green markets; defensive firms (or laggards) invest sparsely into net-zero innovation and instead defend the status quo as long as possible by prolonging the life of existing assets and investments (Jové-Llopis and Segarra-Blasco 2020; Marin, Marzucchi, and Zoboli 2015;Wesseling et al. 2015). ...
Transition pathways for net zero encompass seemingly insurmoun-table innovation challenges for the scaling of less mature technological solutions such as hydrogen, materials substitution, and electrification as well as societal challenges to increase the market acceptability of these solutions. In this article, we present a conceptual framework which provides a firm-level perspective on net-zero innovation which has four unique characteristics, i.e. it is complex, systemic, urgent, and directional. The framework shows that the input, process, and output constraints that incumbent firms face in the net-zero transition can be tackled through four firm-level innovation levers-i.e. recombinative, collaborative, integrative, and socio-cognitive capabilities-which, in concert, act as enablers for firms to address these net-zero constraints. We conclude the article by outlining the framework's main insights for firms' innovation strategies for net zero and the policy implications. We also propose avenues for future research on net-zero innovation.
... Second, the empirical analysis enriches our understanding of the relevant role played by settled institutional logic and organizational embeddedness of sustainability-related demands and associated practices in a specific organization (Lepori and Montauti, 2020; Pache and Santos, 2013;Herremans et al., 2009). In the Chinese institutional setting, whilst the adoption of SRA practices is recognized as substantiating the sustainability reporting process; nevertheless, it is envisaged as a redundant, unrealistic change to the self-serving (and self-disciplinary) accountability mechanism established in a CSOE. ...
Purpose – This case study presents a critical analysis of why and how corporate managers in China are reluctant to adopt sustainability reporting assurance (SRA) provided by externally independent third-party assurers, despite the fact that it is acknowledged as a value-adding activity globally.
Design/methodology/approach – A longitudinal fieldwork case study was conducted from 2014 to 2019 in a Chinese central state-owned enterprise (CSOE), a pioneer in sustainability reporting practice since the mid- 2000s, to collect first-hand empirical data on managerial perceptions of the adoption of external SRA. Semi- structured interviews with 25 managers involved in sustainability (reporting) practice were conducted. The interview data were triangulated with an analysis of archival documents and board meeting minutes pertaining to the undertakings of sustainability practices in the case study organization.
Findings – Our empirical analysis suggests that while managers recognize the benefits of adopting external SRA in enhancing the legitimacy of sustainability accountability, they oppose SRA because of their deep- rooted allegiance to the dominant logic of sociopolitical stability in China. SRA is envisaged to risk the stability of the socialist ideology with which CSOEs are imbued. Therefore, any transformational approach to accepting a novel (foreign) practice must be molded to gain control and autonomy, thereby maintain the hegemony of stability logic. Instead of disregarding external verification, managers of our case SOE appear to harness sustainability reporting as a navigational space to engage in internally crafted alternative manners in order to resist the rationality of SRA.
Originality/value – The empirical analysis presents a nuanced explanation as to why internal managers have hitherto been reluctant to embrace the embedding of independent assurance into the sustainability reporting process. Our prolonged fieldwork provides ample context-specific, intra-organizational evidence regarding the absence of SRA in Chinese CSOEs, which warrants more attention given their considerable presence in the global economy. In addition, the empirical analysis contributes to our understanding of the managerial capture of sustainability issues in a specific context of state capitalism and how organizations and individuals in an authoritarian regime interpret and respond to novel discourses derived from distinct institutional settings.
... Within this study, primary conflict is the divide between academic foundations of college athlete support service professionals. Considering the role of educational training as the guiding principle within respective fields, further investigation can provide deeper insights the presence of conflicting educational foundations within fields (20,40,59,60). ...
This study investigates the presence of competing educational foundations within college athlete support service units across the 65 'Power Five' conferences to call for more human development elements within sport management education and training. To determine the orientation of professionals within these units, educational foundation is used as the measure given the role education holds in establishing and communicating norms, values, and rules of practice for professionals within the discipline. Information was gathered through staff biographies and triangulated through secondary sources (university archives and social media accounts - LinkedIn and Twitter). Of the total population of professionals (n = 1095), 910 professionals were verified through the data search. The distribution of educational foundations shows an approximate distribution of 51%, 41%, and 8% distribution of human development, commercially-centric, and specialized educational foundations - respectively. Discussion and implications highlight the growing presence of (non-sport management) human development professionals within college athlete support services and calls for more human development orientation within the field of sport management.
Purpose
This study identifies three main CSR motivations (i.e. strategic benefits, altruism and greenwashing) and explores the relationship between CSR motivations and environmental collaboration by considering the mediating role of environmental commitment and the moderating role of team autonomy.
Design/methodology/approach
The data collected from 336 respondents in the construction industry, structural equation modeling and bootstrapping were used to test hypotheses.
Findings
The findings show that altruistic CSR enhances environmental collaboration through enhancing environmental commitment, whereas greenwashing CSR damages environmental collaboration through reducing environmental commitment. Although there is no direct association between strategic CSR and environmental collaboration, environmental commitment mediates the effects of strategic CSR on environmental collaboration. Moreover, the positive effect of strategic CSR and altruistic CSR on environment commitment is stronger when team autonomy is stronger, whereas the negative effect of greenwashing CSR on environment commitment is weaker when team autonomy is stronger.
Originality/value
The findings contribute to the understanding of how CSR motivations can act as catalysts for collaborative efforts in addressing environmental issues within construction projects and offer theoretical understanding of team autonomy by illustrating its role in shaping organizational responses to CSR motivations. The findings can provide insights into why and how participating teams can collaborate better on environmental management, enriching the knowledge of environmental management practices in construction projects.
The last three decades have witnessed substantial growth in the literature exploring the motives and drivers of corporate greening. Extant research analyzing the governance determinants of corporate environmental disclosure provides competing and contrasting results; despite the growing sustainability challenges create an urgent need for effective monitoring and incentive mechanisms to promote corporate transparency and accountability. This warrants further inquiry in the field, yet very few comprehensive reviews have been presented on governance determinants of corporate environmental disclosure. To fill this gap we conduct a systematic review of 121 published papers and distinguish the governance mechanisms fostering corporate environmental disclosure. Our paper identifies factors influencing the adoption, extant, and quality of environmental disclosure, and provides useful future research directions.
Sustainability reporting is the new language of business communication with its stakeholders under the frameworks like GRI, TCFD, and CDP. Non-financial performances of the firms are increasingly becoming the critical assessment criteria of overall corporate performance. The present bibliometric study explores the dynamics of the scientific contribution in the area of corporate reporting using the PRISMA method. Nine hundred thirty-one documents were extracted from Scopus database for the bibliometric study after carefully choosing the most relevant documents following different levels of filtering in the broad PRISMA format. An analysis of publication patterns, temporal trends, geographical spread, research focus, authorship trends was conducted. Disclosures considering institutional theory, stakeholder theory, legitimacy theory further linking to financial and non-financial performance have been attempted. The study highlighted the trending areas of research as corporate governance, ESG reporting, role of stakeholders, etc. The study brings out the need for framework-centric research on CDP, GRI, TCFD, and more empirical studies on ESG parameters relating to operational performance. Lastly the dominance of sustainability is emerging as a key differentiator and disruption tool in the business world.
Purpose
This study examines how carbon tools, including carbon accounting and management tools, can be created, used, modified and linked with other traditional management controls to materialise and effectuate organisations’ response strategies to multiple interacting logics in carbon management and the role of sustainability managers in these processes.
Design/methodology/approach
This study utilises the construct of accounting toolmaking, which refers to practices of adopting, adjusting and reconfiguring accounting tools to unfold how carbon tools are used as means to materialise responses to multiple interacting carbon management logics. It embraces a field study approach, whereby 38 sustainability managers and staff from 30 organisations in New Zealand were interviewed.
Findings
This study finds that carbon toolmaking is an important means to materialise and effectuate organisations’ response strategies to multiple interacting carbon management logics. Four response strategies are identified: separation, selective coupling, combination and hybridisation. Adopting activity involves considering the additionality, detailing, localising and cascading of carbon measures and targets and their linkage to the broader carbon management programme. In adjusting carbon tools, organisations adapt the frequency and orientation of carbon reporting, intensity of carbon monitoring and breadth of carbon information sharing. Through focusing on either procedural sequencing, assimilating, equating or integrating, toolmaking reconfigures the relationship between carbon tools and traditional management control systems. Together, these three toolmaking activities can be configured differently to construct carbon tools that are fit for purpose for each response strategy. These activities also enact certain roles on sustainability managers in the process of representing, communicating and/or transferring carbon information knowledge, which also facilitate different response strategies.
Practical implications
The study demonstrates the various carbon toolmaking practices that allow organisations to handle the multiple interacting logics in carbon management. The findings provide suggestions for organisations on how to adopt, adjust and reconfigure carbon tools to better embed the ecological logic in organisations’ strategies and operations.
Originality/value
The authors identify how carbon toolmaking materialises and effectuates organisations’ responses to multiple interacting logics in carbon management.
Offered here is a conceptual model that comprehensively describes essential aspects of corporate social performance (CSP). The three dimensional model address major questions of concern: (1) What is included in the definition of CSR? (2) What are the social/stakeholder issues the firm must address? and (3) What is the organization's strategy/mode/philosophy of social responsiveness.
The first dimension is the source of the original four-part definition of CSR originated: economic, legal, ethical, and discretionary (later termed philanthropic). It was later presented at the CSR Pyramid (1991).
Existing theories of the nature of the state in Western capitalist democracies have been mostly propounded from one of three major theoretical perspectives, each emphasising a particular aspect of the state: the 'pluralist', which emphasises its democratic aspect: the 'managerial', which emphasises its bureaucratic elements: and the 'class', which focuses on its capitalistic aspect. Each of these theoretical perspectives has contributed something to our understanding of the state, but each also has its limitations. In this book, Alford and Friedland evaluate the strengths and weaknesses of each perspective and present a new, synthetic framework for a more comprehensive theory of the state. Impartially reviewing the major historical and empirical works within each theoretical tradition, they reveal how empirical study has been shaped by theoretical assumptions. They agree that each perspective has a distinctive 'power' to understand part of the reality of the modern state, although it is powerless to explain other parts. In each case, the part that can be explained is the perspective's 'home domain', or the aspect of the state that it emphasises, while other aspects are either rejected or reinterpreted. The authors argue that the state cannot be adequately understood unless full account is taken of each of these home domains, and they suggest how the contributions of each perspective to the explanation of its own domain can be integrated into a new, and more powerful, theory.
This study tests a central proposition of institutional theory, that organizational isomorphism increases organizational legitimacy. Results show that isomorphism in the strategies of commercial banks is related to legitimacy conferred by bank regulators and the media, even in the presence of organizational age, size, and performance.
- This paper describes the process of inducting theory using case studies from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.
