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Necessity as the mother of ‘green’ inventions: Institutional pressures and environmental innovations
Author(s) -
Berrone Pascual,
Fosfuri Andrea,
Gelabert Liliana,
GomezMejia Luis R.
Publication year - 2013
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2041
Subject(s) - normative , asset (computer security) , environmental regulation , institutional theory , business , porter hypothesis , industrial organization , economics , natural resource economics , management , law , political science , computer security , computer science
Drawing on institutional theory and innovation literature, we argue that greater regulatory and normative pressures concerning environmental issues positively influence companies' propensity to engage in environmental innovation. Analysis of environment‐related patents of 326 publicly traded firms from polluting industries in the United States suggests that institutional pressures can trigger such innovation, especially in those firms displaying a greater deficiency gap (i.e., firms polluting relatively more than their industry peers). Moreover, we find that this effect is stronger when asset specificity is high, and that the availability of resources plays different roles depending on the type of pressures (regulatory vs. normative).Copyright © 2012 John Wiley & Sons, Ltd .