Abstract

Sustainability benchmarking is gaining importance in industry. Despite its increasing popularity, the existing research utilizing theory to explain the organizations intention to shape performance measurement systems (PMS) for sustainability benchmarking is limited. Drawing upon institutional theory and organizational culture, this study investigates how institutional pressures motivate organizations to shape PMS for sustainability benchmarking and how such effects are moderated by organizational culture. The results of a survey of 277 respondents, gathered from Indian manufacturing firms, suggest that two of the dimensions of the institutional pressures (i.e. coercive pressures and normative pressures) are positively related to the PMS whereas the third dimension (i.e. mimetic pressures) does not affect PMS. Furthermore, organizational culture (i.e. flexible orientation and control orientation) plays a different role on the differential effect of coercive pressures, normative pressures and mimetic pressures on shaping PMS for sustainability benchmarking. The current manuscript offers an interesting contribution to the sustainability benchmarking literature: we integrate the perspectives of ‘external pressures’ and ‘organizational culture’ –as neither perspective, can on, its own can shape the PMS for sustainability benchmarking–, and ‘organizational structure’ under which the external pressures are most effective. From a practitioners' perspective, our study provides theory-driven and empirically-proven guidance for managers to understand the effect of external pressures and the role of organizational structure on PMS for sustainability benchmarking.

DOI

10.1016/j.ijpe.2017.06.029

Publication Date

2017-11-01

Publication Title

International Journal of Production Economics

Volume

193

First Page

63

Last Page

76

ISSN

0925-5273

Embargo Period

2020-07-09

Organisational Unit

Plymouth Business School

Download

Share

COinS