The Role of Ownership on Norm-conforming Environmental Initiatives: Lessons from China

This paper argues that ownership type matters in the decision of adopting norm-conforming environmental practices. More specifically, we argue that family ownership, given its strong emphasis on socioemotional elements, has a positive effect in the adoption of ISO 14001 certification; that state-owned enterprises, characterized by the paradox of public administration, has a neutral impact; and that institutional investors, driven by a clear economic focus, is negatively related with the adoption of environmental standards. We further suggest that, when the family ownership coexists with either state or institutional concentrations, it is generally the family’s preference for norm-confirming actions that prevail. Drawing on a sample of 556 Chinese firms over a period of 4 years, we find general support for our thesis.