The Inverted U-Shaped Hypothesis and Firm Environmental Responsiveness: The Moderating Role of Institutional Alignment

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- Investigación (FEE) [893]
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The Inverted U-Shaped Hypothesis and Firm Environmental Responsiveness: The Moderating Role of Institutional AlignmentDate
2018Citation
Eiadat, Y. H.& Férnandez Castro, A. M. (2018). The Inverted U-Shaped Hypothesis and Firm Environmental Responsiveness: The Moderating Role of Institutional Alignment. European Management Review 15(3), 411-426. https://doi.org/10.1111/emre.12135
Abstract
[Abstract]: The impact of regulatory coercion on firm environmental responsiveness is well discussed by
institutional theorists. The intuitive nature of the relationship is positive and monotonic, i.e.,
the continuous strengthening of regulatory coercion prompts top management to be more
environmentally responsive. This paper shows that (1) overall, there is an inverted U-shaped
relationship between regulatory coercion and firm environmental responsiveness, that is, the
continuous strengthening of regulatory coercion induces top management to bring their firms’
environmental responsiveness up to a certain optimum level beyond which its ability to trigger
more proactive and substantive environmental responsiveness begins to decelerate, while
reactive and symbolic strategic conformity accelerates; (2) perceived institutional
(mis)alignment moderates the Inverted U-shaped relationship between regulatory coercion and
firm environmental responsiveness. Finally, results show that the Moderated Inverted U-shaped
Hypothesis advances the long-standing and contentious debate about the relationship between
regulatory coercion and firm environmental responsiveness.
Keywords
Institutional Theory
Firm environmental responsiveness
Regulatory coercion
Moderated inverted U-shaped hypothesis
Firm environmental responsiveness
Regulatory coercion
Moderated inverted U-shaped hypothesis
Description
This is the peer reviewed version of the following article: Eiadat, Y. H.& Férnandez Castro, A. M. (2018). The Inverted U-Shaped Hypothesis and Firm Environmental Responsiveness: The Moderating Role of Institutional Alignment. European Management Review 15(3), 411-426. https://doi.org/10.1111/emre.12135, which has been published in final form at https://doi.org/10.1111/emre.12135.This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
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ISSN
1740-4762