Institutional Theory and Corporate Sustainability: Determinant Versus Interactive Approaches

Institutional theory has shifted from determinant to interactive arguments in recent decades, and sustainability scholarship reflects this change. In this article, I consider whether this shift is empirically justified. I review the use of both determinant and interactive arguments in sustainability research and test two sets of competing hypotheses regarding the likelihood of adoption of sustainable practices. Through logistic regression analysis of a sample of 391 U.S.-based firms, I find no support for hypotheses grounded in determinant arguments, but strong support for hypotheses based on interactive arguments. The results of this study offer implications for scholars, practitioners, and policymakers