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Sustainability in the Face of Institutional Adversity: Market Turbulence, Network Embeddedness, and Innovative Orientation

Author

Listed:
  • Dirk Clercq

    (Brock University
    Small Business Research Centre, Kingston University)

  • Narongsak Thongpapanl

    (Brock University
    Research Administration Center, Chiang Mai University)

  • Maxim Voronov

    (Brock University)

Abstract

Drawing from research on strategic choice, this study investigates the relationship between market turbulence and firms’ sustainable behavior, in the context of sustainability-related institutional adversity. It argues that the relationship between market turbulence and sustainability is mediated by network embeddedness, and this mediating role in turn is moderated by a firm’s innovative orientation. Data collected from a sample of Ontario restaurants inform predictions about firms’ propensity to adopt local wines in their portfolios, despite the limited market and normative support that these wines receive compared with imported wines. The study shows that market turbulence enhances sustainable firm behavior, through the development of strong network relationships. Furthermore, the mediating effect of network embeddedness is particularly salient among firms that exhibit a stronger innovative orientation. These findings reveal how and when turbulent market conditions can contribute to a firm’s sustainable behaviors in the presence of limited institutional support for such behaviors.

Suggested Citation

  • Dirk Clercq & Narongsak Thongpapanl & Maxim Voronov, 2018. "Sustainability in the Face of Institutional Adversity: Market Turbulence, Network Embeddedness, and Innovative Orientation," Journal of Business Ethics, Springer, vol. 148(2), pages 437-455, March.
    • Handle: RePEc:kap:jbuset:v:148:y:2018:i:2:d:10.1007_s10551-015-3004-7
    DOI: 10.1007/s10551-015-3004-7
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    2. Zeeshan Ahmed & Huan Qiu & Yiwei Zhao, 2024. "The Joint Forces of How to Live: Does Intellectual Capital Matter between Innovation and Financial Vulnerability?," JRFM, MDPI, vol. 17(2), pages 1-22, January.
    3. Lu Qiu & Die Hu & Yu Wang, 2020. "How do firms achieve sustainability through green innovation under external pressures of environmental regulation and market turbulence?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2695-2714, September.
    4. Hong-Jing Jia & Zi-Yin Zhuang & Yan-Xiang Xie & Yi-Xi Wang & Shi-Ying Wu, 2023. "Research on Dynamic Capability and Enterprise Open Innovation," Sustainability, MDPI, vol. 15(2), pages 1-23, January.
    5. Dirk Clercq & Eugene Kaciak & Narongsak (Tek) Thongpapanl, 2022. "When does market hostility curtail competitive performance through diminished entrepreneurial efforts? Buffering effects of women entrepreneurs’ family business support," Small Business Economics, Springer, vol. 59(3), pages 827-844, October.
    6. Yu-Shan Chen & Cui Wang & Ying-Rong Chen & Wei-Yuan Lo & Kuan-Ling Chen, 2019. "Influence of Network Embeddedness and Network Diversity on Green Innovation: The Mediation Effect of Green Social Capital," Sustainability, MDPI, vol. 11(20), pages 1-17, October.
    7. Wang, Chenxiao & Qureshi, Israr & Guo, Feng & Zhang, Qingpu, 2022. "Corporate social responsibility and disruptive innovation: The moderating effects of environmental turbulence," Journal of Business Research, Elsevier, vol. 139(C), pages 1435-1450.
    8. AlQershi, Nagwan & Saufi, Roselina Binti Ahmad & Ismail, Noor Azizi & Mohamad, Mohd Rosli Bin & Ramayah, T. & Muhammad, Nik Maheran Nik & Yusoff, Mohd Nor Hakimin Bin, 2023. "The moderating role of market turbulence beyond the Covid-19 pandemic and Russia-Ukraine crisis on the relationship between intellectual capital and business sustainability," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    9. Batat, Wided, 2020. "Pillars of sustainable food experiences in the luxury gastronomy sector: A qualitative exploration of Michelin-starred chefs’ motivations," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    10. Tugkan Arici & M. Sahin Gok, 2023. "Examining Environmental Turbulence Intensity: A Strategic Agility and Innovativeness Approach on Firm Performance in Environmental Turbulence Situations," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
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    15. Zhao, Danyang & Wang, Longwei & Gu, Flora F., 2021. "Reconsidering network embeddedness: Effects on different forms of opportunism," Journal of Business Research, Elsevier, vol. 131(C), pages 12-24.

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