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Amid increased emphasis on sustainable development, understanding the sustainability initiative and practice of companies has attracted the attention of both academia and industry. Corporate sustainability combines triple values including environmental protection, social wellbeing, and economic benefit for companies. Drawing on institutional theory and employing an inductive case research method, we examine companies developing their green innovation and sustainability projects in a challenging context of China. Four representative case studies and in-depth interviews were conducted to examine how these firms overcome barriers in the less developed institutional environment. To better explain corporate sustainability with green innovations, a conceptual framework has been proposed to illustrate how firms operate in a network of relationship and cooperate with their external stakeholders. Firms’ strategies to dynamically achieve the aim of corporate sustainability were identified based on a co-evolutional mechanism in the interface between institutions and organizations.

Corporate Sustainability and Green Innovation in an Emerging Economy—An Empirical Study in China