Academy of Management Journal
It's Not Easy Building Green: The Impact of Public Policy, Private Actors, and Regional Logics on Voluntary Standards Adoption
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Academy of Management Journal AMJ-2015-0769.R5 Special Research Forum: Grand Challenges Institutional theory < Theoretical Perspectives, Organizations and the Natural Environment < Topic Areas, Social issues in management (General) < Social Issues in Management < Topic Areas, Organization and management theory (General) < Organization and Management Theory < Topic Areas, Entrepreneurship (General) < Entrepreneurship < Topic Areas Human-induced climate change is one of the most daunting challenges of the early 21st century. Addressing climate change will require new sectors that create economically and ecologically sustainable products and services. Such sectors have received encouragement through voluntary certification standards. For example, the Leadership in Energy and Environmental Design (LEED) voluntary certification standard seeks to reduce the environmental impacts of buildings through stimulating growth of the â&#x20AC;&#x153;green buildingâ&#x20AC;? sector. Both public and private actors have subsequently attempted to promote such standards; however, we know little about the relative efficacy of these actors in encouraging adoption. We know even less about how regional culture conditions the impact of such efforts. In this study, we theorize and test how regional institutional logics filter the efficacy of public and private efforts to promote adoption of standards. Our results demonstrate that in addition to policy, private actors such as social movement organizations, market intermediaries, and entrepreneurs play a role in bolstering adoption. Yet, the efficacy of such interventions is dependent upon variations in regional culture. Our findings advance understanding of how new markets are socially constructed and the conditions under which efforts to promote new sectors are more effective.