Institutional Dynamics and Corporate Sustainability: The Cascading Effects of Environmental Legislation on Firm-Level Practices in Vietnam's Emerging Economy
Author: Catherine DO*
Saddleback College, Mission Viejo, California, USA.
Published Date: 2024-10-28
Keywords: Corporate sustainability performance, Environmental legislation, Managerial environmental attitudes, Organizational environmental strategies, Fuzzy-set Qualitative Comparative Analysis (fsQCA).
Abstract:
This study investigates the complex relationships between environmental legislation, managerial environmental attitudes, organizational environmental strategies, and corporate sustainability performance, while considering the moderating effects of firm size and industry type. Using a mixed-methods approach, we collected data from 543 manufacturing firms and employed both partial least squares structural equation modeling (PLS-SEM) and fuzzy-set Qualitative Comparative Analysis (fsQCA). Our findings reveal a cascading effect of environmental legislation on corporate sustainability performance, mediated by managerial attitudes and organizational strategies. The results demonstrate the critical role of environmental legislation in shaping managerial attitudes and organizational strategies, which in turn significantly influence corporate sustainability performance. The fsQCA results identify multiple pathways to high sustainability performance, highlighting the equifinality in achieving this outcome. Firm size and industry type were found to moderate several relationships in the model, providing a more nuanced understanding of the drivers of corporate sustainability. This study contributes to the literature by offering empirical evidence for the interconnected nature of regulatory, managerial, and organizational factors in driving sustainability performance, demonstrating the equifinality in achieving high sustainability performance, and highlighting the importance of contextual factors. These findings have significant implications for policymakers, managers, and researchers in the field of corporate sustainability.
