This study examined the use and effectiveness of corporate sustainability practices (CSP) and the subsequent effect on a strategic outcome, competitive advantage. The new institutional sociology (NIS) theoretical framework was applied, informed by three different dimensions of institutional pressures (coercive, mimetic and normative). The study used a survey method and developed a seven‐dimensional model utilising the 52 principles provided by the OECD. It used a structural equation modelling in order to test the hypothesised associations between institutional pressures, CSP and competitive advantage to provide an institutional and contextualised perspectives from an emerging economy setting. The study found significant associations between the three types of institutional pressure with specific dimensions of CSP. The findings further revealed that specific CSP dimensions are diversely (positively and negatively) associated with competitive advantage. In line with the tenets of greenwashing, it highlighted the important role of institutional pressures from stakeholders (government, policy and customers) in implementing specific CSP. The findings inform managers, governments, foreign investors and other stakeholders in emerging economies about the influence of the institutional pressure in promoting the use of CSP and the effect of such practices on competitive advantage. From the context of an emerging economy, the study provides a unique empirical insight into the NIS perspective in promoting CSP and the subsequent impact on the strategic outcome, competitive advantage.

The growing concerns about climate change have seen global leaders and the international community launch diverse initiatives, deals and reforms in an attempt to combat its negative impact. In response to these initiatives, corporates are increasingly prioritising environmental sustainability practices, such as reducing resource use, recycling and redesigning products and services to transition to sustainable operations, as a means of promoting trust and credibility, increasing their reputation and protecting the planet. However, the extant literature does not provide a clear understanding of the determinants of promoting corporate environmental sustainability practices (CESPs). Thus, drawing upon both resource‐based views (RBVs) of the firm and the economic views of neo‐institutional theory (NIT), this study examined the role of employee organisational commitment (EOC) and organisation innovation culture (IC) in promoting CESP. This quantitative study collected the required data through a questionnaire survey of senior to mid‐level managers of a total of 201 Dhaka Stock Exchange (DSE)‐listed and non‐listed firms. A two‐step structural equation modelling (SEM) technique, employing SmartPLS, was followed to test the study's hypothesised associations. The findings provide evidence of a direct association between EOC and CESP and an indirect association through IC. Our findings are robust as alternative models were developed and tested based on different control and instrumental variables relating to organisational characteristics. The findings of the study contribute to the environmental sustainability literature by providing empirical evidence of the importance of EOC and IC in promoting CESP. Further, the findings inform managers, governments, foreign investors and other stakeholders on the importance of building EOC and developing suitable cultural practices within an organisation that promote CESP.

While digitalisation has significant implications for environmental management activities, this nexus has received minimal attention in research. Given this backdrop, this study uses a unique survey dataset of 386 micro and small enterprises (MSEs) and conducts an OLS regression analysis to examine the impact of digitalisation on environmental management activities. The study also investigates how family ownership moderates this relationship. The study finds that digitalisation supports environmental management activities as an important strategic mechanism, and that family ownership has a negative moderating effect on the relationship between digitalisation and environmental management activities. This study contributes to ‘institutional theory’ by highlighting its applicability to the new context of MSEs in emerging markets. Further, the study provides managerial insights into how to ensure environmental management practices in the digital age.

Organizations increasingly promote individual creativity as a strategy to manage their performance and financial strain. Drawing on self-regulation and goal-setting theories, this study examines whether the diagnostic use of budgets stifles or stimulates managers’ creativity directly or indirectly through frugal spending behaviour and perceived goal clarity. Budgetary controls and frugal spending behaviour—with the focus on conserving resources and constraining spending—have traditionally been suggested as hindering individual creativity. However, by analysing survey data collected from middle-level managers in Indonesia, our findings show that the diagnostic use of budgets increases managers’ frugal spending behaviour which, in turn, enhances their creativity. Furthermore, the diagnostic use of budgets increases managers’ perceived goal clarity, with goal clarity and frugal spending behaviour fully mediating the relationship between the diagnostic use of budgets and creativity. The study contributes to the budgeting literature by showing that diagnostic use of budgets encourages managers’ frugal spending behaviour to effectively manage organisational costs and stimulate their creativity.