Do formal and informal institutions matter for firm-level strategic environmental actions? A multi-level perspective from Jordan

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Do formal and informal institutions matter for firm-level strategic environmental actions? A multi-level perspective from JordanDate
2022Citation
Eiadat, Y. H., & Fernández-Castro, A. M. (2022). Do formal and informal institutions matter for firm-level strategic environmental actions? A multi-level perspective from Jordan. Journal of Environmental Planning and Management, 65(3), 461–489. https://doi.org/10.1080/09640568.2021.1887826
Abstract
[Abstract]: We developed an overarching multi-level mediation model using 199 responses
from 53 companies from the industrial sector in Jordan to examine (1) the
mediation effect of firm-level environmental climate on the relationship between
formal regulatory institutions and firm-level strategic environmental actions, and
(2) the role that informal institutions conveyed via political, normative, and
business connections plays on the environment-related cognitions of top managers.
At the ‘within’ level, our results indicate that top managers with strong political
connections develop negative environment-related cognitions while those with
strong normative and business connections develop positive environment-related
cognitions. At the firm-level, our results reveal that firm-level environmental
climate – as an aggregated measure of the ‘within’ level environmental cognitions
of top managers – fully mediates the relationship between formal regulatory
institutions and firm-level strategic environmental actions. This study demonstrates
how multilevel research is used to enrich understanding of firm-level strategic
environmental actions, with implications beyond Jordan.
Keywords
Firm-level strategic environmental actions
Formal institutions
Informal institutions
Multilevel analysis
Jordan
Formal institutions
Informal institutions
Multilevel analysis
Jordan
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Atribución-NoComercial-SinDerivadas 4.0
ISSN
1360-0559