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State-Level Institutional Pressure, Firms' Organizational Attributes, and Corporate Voluntary Environmental Behavior

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Abstract:

Using a neoinstitutional theory, this study examines how state-level institutional pressure influences firms’ decisions to participate in the U.S. Environmental Protection Agency (EPA) Energy Star for Buildings (ESBs) program. In this program, firms voluntarily commit to optimizing energy use in their buildings. We also investigate how participation is influenced by organizational attributes of firms that influence potential economic returns from ESBs participation. Our binary probit analysis shows that the influence of state-level institutional pressure on participation in the ESBs program is weak relative to that of firms’ organizational attributes. Our empirical findings suggest that a firm's decision to participate in the ESBs program is more likely to be driven by economic calculations, such as potential return on investment, than by an effort to relieve institutional pressure exerted by state institutional actors.

Keywords: Energy Star for Buildings program; corporate social responsibility; neoinstitutional theory; organizational attributes; state institutional pressures

Document Type: Research Article

DOI: https://doi.org/10.1080/08941920.2010.546828

Affiliations: 1: Department of Public Administration,Inha University, Incheon, South Korea 2: Graduate School of Governance,Sungkyunkwan University, Seoul, South Korea

Publication date: 2011-11-01

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