Isomorphic or non-isomorphic, the question of Institutionalization of sustainability reporting and the effect of Institutional Fields on American MNCs’ subsidiaries in Mexico.

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Gutierrez Huerter'O, Gabriela (2012) Isomorphic or non-isomorphic, the question of Institutionalization of sustainability reporting and the effect of Institutional Fields on American MNCs’ subsidiaries in Mexico. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Recently, several orporations all over the globe have embraced the publication of corporate communications, particularly the disclosure of CSR reports which generally include the environmental topic (Livesey, 2002) as a way to demonstrate the sustainability and transparency of their business. For MNCs operating in developing countries, this pressure will intensify with on-going discussions confronting the ideas that MNCs operating in developing countries may improve the social and environmental situation (Bansal & Roth, 2000) or, the opposed view, that they may only take advantage of the weak social and environmental standards of the developing countries (Strike, Gao & Bansat 2006).This paper’s interest is to explore the circumstances that pressures these American MNCs to follow or not this behaviour when operating abroad, particularly in Mexico.

This topic is investigated through the development of a theoretical model which associates six different patterns of response: three isomorphic responses (minimal, ceremonial, and proactive adoption), two non-isomorphic responses (avoidance and negotiation), and hybridisation to the institutional factors. It is those factors which affect the HQ and its subsidiary to adopt the practice of CSR (sustainability reporting) in the context of American MNCs’ subsidiaries with operations in Mexico.

Drawing mainly on Institutional Theory and International Business Literature and integrating some arguments from Strategic and Legitimacy Theory, Resource Dependence Theory. This work contrasts the concept of isomorphism and exposes the issues of complexity and heterogeneity that MNCs face. A limited isomorphism is expected. The nature of the MNC places it in some situations where it can choose to adopt other behaviours to obtain legitimacy.

The results presented here suggest that although the pressures from the environment have been considered to exert pressure on the HQ and subsidiary to adopt the practice, the model identifies the determinant role of the internal organizational characteristics to enhance a proactive adoption. The model shows that the cognitive beliefs have a resilient influence and are key whenever the coercive and normative pressures are unfavourable. The analysis of the interconnectedness of the pressures from two institutional fields in this dissertation aims to advance Institutional Theory towards explaining cases where the pressures from the fields are interlinked giving place to a juxtaposition of isomorphisms. Although providing a theoretical framework the paper also discusses the managerial, policy and research implications of the findings.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 08 Apr 2013 10:16
Last Modified: 19 Oct 2017 14:26
URI: https://eprints.nottingham.ac.uk/id/eprint/25750

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