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Interactive effects of various institutional pressures on corporate environmental responsibility: Institutional theory and multilevel analysis
Author(s) -
Gao Yawen,
Gu Jibao,
Liu Hefu
Publication year - 2019
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.2276
Subject(s) - obligation , normative , multilevel model , institutional theory , psychology , cognition , social psychology , dimension (graph theory) , business , positive economics , economics , political science , law , management , mathematics , machine learning , neuroscience , computer science , pure mathematics
This study investigates the role of institutional pressures in corporate environmental responsibility (CER) by testing the interacting effects among cognitive, regulative, and normative pressures at cross levels. Specifically, this research decomposes the cognitive dimension of CER into perceived environmental benefit and perceived ethical obligation to differentiate their mechanisms. The sample is obtained from 212 firms within 34 industrial clusters. Results of two‐level regression modeling confirm that regulative and normative pressures play different roles in the positive effects of perceived environmental benefit and perceived ethical obligation on CER. Regulative pressure attenuates the effect of perceived environmental benefit and amplifies the effect of perceived ethical obligation. Meanwhile, normative pressure attenuates the effect of perceived ethical obligation. These findings suggest that heterogeneous interaction effects may reduce the efficiency of institutional pressures during the initial stage of CER diffusion. Implications for future research and policies are discussed.