Do institutional pressures boost sustainability control systems?

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose This study aims to analyze the effect of coercive, normative and mimetic pressures on the formal systems and organizational values that conform the sustainability control systems (SCS) of a company. Design/methodology/approach Theoretically, the authors base their proposal on Malmi and Brown’s (2008) framework for management control systems but under a sustainability lens. The authors developed a quantitative measure of the SCS to, subsequently, analyze the potential influence of the institutional pressures on it. Findings The results assert that normative pressure is the most effective isomorphic force, followed by the mimetic one. The coercive pressure appears not as effective as the others. Practical implications Implications of these results are of interest for academia, contributing to the theoretical development of control mechanisms for sustainability, and organizations, offering a tool to measure and internally benchmark their control systems. Policymakers should be more cautious when regulating, focusing their efforts on non-coercive mechanisms. Instead of coercive measures, better results can be achieved through the fostering of an environment in which SCS are promoted. Social implications As SCS increase the credibility and transparency of sustainability disclosures, a better understanding of these systems improves the relationships between the company and its stakeholders. Originality/value The paper proposes an original and replicable measure of SCS, tests and uses it to determine the effect of institutional pressures. In this way, it contributes to the knowledge on SCS as a tool to manage and control sustainability strategies, enriching the literature on institutional theory and SCS.

Keywords

  • Coercitive
  • Institucional pressures
  • Management control system
  • Mimetic
  • Normative
  • Sustainability control systems
  • Sustainability management control

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