Environmental managers as institutional entrepreneurs: The influence of institutional and technical pressures on waste management☆
Introduction
A body of theory often evoked to explain management of environmental issues is institutional theory (Hoffman and Ventresca, 2002, Campbell, 2006). One limitation of much institutional research, however, is that it artificially separates technical and institutional environment for analytic purposes. For some of the earlier research on institutional theory, this separation may have been appropriate, as it focused primarily on industries, such as education, where institutional pressures are relatively strong. The fact is, however, for most industrial organizations both environments are prevalent. In the case of environmental management within manufacturing organizations, assessing the effect of both institutional and technical pressures is particularly important because manufacturing organizations exist within a strong technical environment (Scott, 1995). Thus, one goal of this paper is to better understand how both technical and institutional pressures play a role in a firm's environmental management and performance.
The paper also focuses on the role of the individual in managing these pressures. Several researchers have called for a greater integration of micro processes with institutional theory (Hirsch and Lounsbury, 1997, Norus, 1997). Specifically, Norus (1997) calls for a greater emphasis on the foundation of links between individuals, institutions and business firms in neoinstitutional analysis. Critical in understanding an organization's response to institutional and technical pressures, therefore, are organizational boundary spanners. This paper looks at the role of environmental managers as boundary spanners and, in some cases, institutional entrepreneurs and discusses the factors that influence their responses to external pressures.
Using an inductive approach to theory development, this paper compares the solvent management programs of two “sister” automobile assembly plants, the Chrysler minivan plant in St. Louis and the Chrysler minivan plant in Windsor, Canada. Although the two countries employ a similar legal framework, there are enough significant differences between the two regulatory systems that make it an interesting comparative case for investigating the influence of institutional and technical pressures on managerial action.
Section snippets
Theoretical development
Over the past decade, there has been an emerging body of literature that attempts to make room for rational, strategic action within institutional environments (Clemens and Douglas, 2005, Rodrigues and Child, 2003, Oliver, 1997, Oliver, 1991, Goodstein, 1994, Fligstein, 2001, Fligstein, 1997, Beckert, 1999, Dorado, 2005). The role of strategic action, however, can actually be found in the seminal articles on institutional theory, which outlined that there were two types of organizational
Methods
This research compares two Chrysler Assembly plants, St. Louis (US) and Windsor (Canada), which were rebuilt in 1995 to be similar in both product and production technologies. Fieldwork consisted approximately of one month at each plant. For both plants, entry was made into the plant through the paint department, but there was full access to the rest of the organization.
The primary mode of information gathering was interviewing over the course of the late 1990s. The first part of the fieldwork
Background
The United States is known for its long history of antagonistic, strict, command and control style of regulation (Bardach and Kagan, 1982). This style can clearly be seen in the regulation of air pollutants from automobile assembly plants. In the United States, the primary pollutant of concern is Volatile Organic Compounds (VOCs), which is a significant factor in urban air pollution. Under the Clean Air Act (CAA), established in 1970 and amended in 1990, not only are regulatory limits in the
Analysis
Central in this story of waste management were the plant level PEM environmental managers, who sat at the nexus of multiple boundaries. Some of these boundaries can be distinguished by the different stakeholders, such as regulatory agencies, the local community, the plant employees, and the PEM corporate office. All of these relationships created an institutional field in which multiple discourses regarding the nature of plant shop environmental performance existed. In addition, there were
Conclusions
The paper suggests that organizational responses to environmental pressures are both technical and institutional. While separation of these two types of environmental pressure may have been useful in the initial stages of institutional theory, it is no longer sufficient. In this study, in contrast to what is assumed in much institutional theory, we found that the technical and institutional pressures need not conflict with one another. In some cases, responses to institutional pressures can
References (47)
- et al.
Understanding strategic responses to institutional pressures
J Bus Res
(2005) - et al.
Boundary spanning roles and organization structure
Acad Manage Rev
(1977) - et al.
Going by the book: The problem of regulatory unreasonableness
(1982) Agency, entrepreneurs and institutional change: the role of strategic choice and institutionalized practices in organizations
Organ Stud
(1999)Institutional analysis and the paradox of corporate social responsibility
Am Behav Sci
(2006)New Source Performance Standards and Guidelines for the Reduction of VOC Emissions from Canadian Automotive OEM Coating Facilities
(1995)- et al.
When accreditation standards change: factors affecting differing response to public and private organizations
Acan Manage J
(2002) - et al.
The Canadian environmental legal regime: a road for the foreign investor
Can Environ Leg Regime
(1991) - et al.
Institutional theory and institutional change: introduction and special research forum
Acad Manage J
(2002) - et al.
Task and institutional influences on managers' mental models of competition
Organ Stud
(2002)
Measuring the unmeasured: an institutional entrepreneur strategy in an emerging industry
Hum Relat
Institutional Entrepreneurship, partaking, and convening
Organ Stud
Organizational boundary spanning in institutionalized environments
Acad Manage J
Social skill and the theory of fields
Sociol Theory
Fields, power and social skill: A critical analysis of the New Institutionalism
Cognitive underpinnings of institutional persistence and change: a framing perspective
Acad Manage Rev
Institutional pressures and strategic responsiveness: employer involvement in work-family issues
Acad Manage J
Institutional entrepreneurship in mature fields: the big five accounting firms
Acad Manage J
Is cooperation the answer? Canadian environmental enforcement in comparative context
J Policy Anal Manage
Ending the family quarrel: toward a reconciliation of ‘old’ and ‘new’ institutionalisms
Am Behav Sci
Technology, political structure and social regulations
Comp Polit
Institutional evolution and change: environmentalism and the u.s. chemical industry
Acad Manage J
Organizations, Policy, and the Natural Environment: Institutional and Strategic Perspectives
Cited by (64)
Determinants of target location selection for acquirers in the manufacturing sector: Pollution intensity, policy enforcement, and civic environmentalism
2022, Journal of Business ResearchCitation Excerpt :This study contributes to the literature on target location selection in CBAs. IB scholars have recognized the importance of learning host countries’ environmental regulations on location strategies (Meyer et al., 2009; Peng 2003; Rothenberg, 2007). However, the host country’s environmental policy stringency or the environmental policy distance was not prioritized in evaluating various institutional factors (see the review from Xie et al., 2017).
Ecodesigning for ecological sustainability
2021, Frontiers in Plant-Soil Interaction: Molecular Insights into Plant AdaptationInstitutional pressure, ultimate ownership, and corporate carbon reduction engagement: Evidence from China
2019, Journal of Business ResearchScientists, environmental managers and science journalists: A hierarchical model to comprehend and enhance the environmental decision-making process
2018, Perspectives in Ecology and ConservationCitation Excerpt :Due to institutional constraints, the manager usually has a large demand for projects and limited time to develop and implement them (Pullin et al., 2004). He/she usually has to face political and economic pressures, which sometimes involves institutional’ interests (Kagan et al., 2003; Rothenberg, 2007). Hence, the interaction with the journalist usually is not a priority to him/her (Fig. 2, left bottom gray arrow).
Carbon toolmaking: responding to multiple interacting logics in carbon management
2024, Accounting, Auditing and Accountability Journal
- ☆
Funding for this research was provided by the MIT International Motor Vehicle Program and the Alfred P. Sloan Foundation under Award No. 2005–5–14 IC. The author would like to thank Lotte Bailyn, Maureen Scully, Tom Kochan, Mark Ventresca, David Levy, two anonymous reviewers, and the journal editor for their ideas and comments. Thanks also go to Chrysler Corporation and its employees for their cooperation and assistance.