Internationalization, institutional pressures in foreign markets, and environmental sustainability

Estefania Amer

Journal of International Management, 2023, vol. 29, issue 1

Abstract: This study contributes to the internationalization processes and sustainability literatures by looking into how, when, and why companies respond differently to formal and informal institutional pressures in favor of environmentally friendly practices during international expansion processes. When companies enter new foreign markets or expand their sales into existing ones they can be subject to increased formal and informal pressures. I show, theoretically and empirically, that in these cases the informal pressures' tacit and experiential nature affects the timing and the likelihood of compliance with these pressures. First, compliance with informal pressures takes longer than for formal ones. Second, companies that cannot afford learning about informal pressures, because of resource constraints or a limited learning efficiency due to a narrow previous international experience, tend to forgo compliance with these pressures. Failure to comply with these pressures or to do so in a timely manner can have devastating consequences for internationalizing companies' legitimacy.

Keywords: Internationalization process; Sustainability; Institutional theory; Informal institutional pressures; Legitimacy (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1075425322000497
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:intman:v:29:y:2023:i:1:s1075425322000497

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/bibliographic
http://www.elsevier. ... 601266/bibliographic

DOI: 10.1016/j.intman.2022.100974

Access Statistics for this article

Journal of International Management is currently edited by M. Kotabe

More articles in Journal of International Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().