Institute for Social, Behavioral, and Economic Research

This paper investigates the determinants of the early adoption of the international environmental management standard ISO 14001 using a panel of 84 countries from 1996 to 2002. It analyzes the relationship between firms’ decisions to adopt international management standards and institutional factors. The analysis emphasizes that, in the case of an emerging standard, the potential lack of consensus within the regulatory/institutional environment concerning the value of a new standard could send mixed signals to firms about the standard. The results show that in the early phase of adoption, regulative and normative forces within the institutional environment can work against each other. This study contributes to the institutional theory perspective by offering a more complex specification of the neo-institutional model where institutional forces can compete with each other.