This study integrates theories of diffusion and social identity to conceptualize the diffusion of Sustainability Report as a result of a firm’s identification with its reference groups. Specifically, we first hypothesize four different sources of external stakeholder pressures driving the diffusion. Next, we argue that the source of external stakeholder pressures has a differential effect on the adoption of SR for firms that claim their identity on sustainability management. For firms with organizational identity claims, in-group stakeholder pressure will amplify whereas (...) out-group stakeholder pressure will dampen the adoption. We test our theory using an event-history analysis of 675 publicly traded firms in Korea during the period of 2003–2010. The results show that all four sources of external pressure serve as mechanisms through which SR spread in Korea. More importantly, we find support for the moderating role of organizational identity claims in the effect of external pressures. We discuss how organizational identity matters in the diffusion of corporate social initiatives along with implications for policy makers. (shrink)

Organizational institutionalism has shown how institutional entrepreneurs can introduce new logics into fields and push for their broader acceptance. In academic science in the United States, however, market logic gained strength without such an entrepreneurial project. This article proposes an alternative “practice selection” model to explain how a new institutional logic can gain strength when local innovations interact with changes outside the field. Actors within a field are always experimenting with practices grounded in a variety of logics. When one logic (...) is dominant, innovations based on alternative logics may have trouble gaining the resources they need to become more broadly institutionalized. But if a changing environment starts systematically to favor practices based on an alternative logic, that logic can become stronger even in the absence of a coherent project to promote it. This is what happened in US academic science, as growing political concern with the economic impact of innovation changed the field’s environment in ways that encouraged the spread of local market-logic practices. (shrink)