Bound by Rules: The Extra-Jurisdictional Effects of Regulation and Social Norms

Abstract

Several strands of empirical work have begun to focus on how institutional change and the actions of institutional actors occurring in one locale can impact organizational behaviour in another. In this paper, we explore how the strategic decision making on the part of supplier firms is shaped by extra-jurisdictional regulative and normative pressures affecting their potential clients. The study’s context is the adoption of practices by suppliers to an industry supported by regulation endorsing private voluntary standards. A novel dataset is utilised which tracks the adoption of green building practices by a panel of 226 architecture studios in Australia from 2008-2015. In line with our theor..