Do industry associations influence corporate environmentalism in developing countries? Evidence from Trinidad and Tobago

Kalim Shah and Jorge Rivera ()

Policy Sciences, 2013, vol. 46, issue 1, 39-62

Abstract: As environmental regulations increase, industry associations play a growing role in representing their respective members. This role has been documented in many industrialized countries but less so in emerging economies. In this study, we investigate the level of corporate environmentalism exhibited by member firms of two industry associations operating in Trinidad and Tobago. Using a two-stage Heckman regression that corrects for the endogeneity introduced by self-selection bias in the evaluation of voluntary choices, our findings indicate that firms that are members of the foreign-originated American Chamber of Commerce of Trinidad and Tobago appear to show stronger corporate environmentalism than those belonging to the locally formed Chamber of Commerce. Enhanced institutional pressures from these respective industry associations, peers and competitors within associations, access and exposure to best practices, networking opportunities and service bundling may explain these differences. These results suggest that environmental policy makers in emerging economies may be able to leverage foreign-originated industry associations to promote stronger corporate environmentalism. Policy makers may need to consider how to encourage local chambers to emulate the some of the institutional conditions of foreign-originated ones. Copyright Springer Science+Business Media, LLC. 2013

Keywords: Corporate environmentalism; Industry associations; Chambers of commerce; Developing countries; Neo-institutional theory; Trinidad and Tobago (search for similar items in EconPapers)
Date: 2013
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DOI: 10.1007/s11077-012-9162-x

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