Institutional pressures and marketing ethics initiatives: the focal role of organizational identity |
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Authors: | Kelly D Martin Jean L Johnson Joseph J French |
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Institution: | (1) College of Business, Colorado State University, Fort Collins, CO 80523-1278, USA;(2) Amsterdam Business School, Plantage Muirdergracht 12, 1018 TV Amsterdam, The Netherlands;(3) Monfort College of Business, University of Northern Colorado, Greeley, CO 80639, USA |
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Abstract: | Institutional theory implies that normative societal expectations create pressures for organizations to respond acceptably
to important institutional constituents. Although the role of the institutional environment on marketing has been studied,
the organizational mechanisms by which firms respond to societal pressures remain under-investigated. We suggest that an important
determining factor involves organizational identity, which drives firm response to societal norms and facilitates its quest
for legitimacy. Accordingly, this study contributes to organizational theory in marketing by casting identity as the focal
mechanism in the firm’s response to the institutional environment. Marketing ethics and CSR issues frame this research given
natural synergies with institutional and organizational identity theories and evidence that increasingly, firms must respond
to societal expectations involving ethics in their marketing practices. Using game theoretical models and economic experiments,
we find that the influence of the institutional environment emerges through firm identity, affecting resource allocation to
ethical product augmentation. |
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