Mutual dependence and selective coercion: Corporate environmental investment among Chinese private firms

• In Event: 2251 - Section on Environmental Sociology Roundtables (1 hour)
  In Refereed Roundtable 60min: 17. Industry: Environmentalism and Anti-environmentalism

Abstract

This article brings developmental analysis into institutionalism and resource dependence theory, argues that apart from the great power imbalance between the state and business, yet they are, to some extents, mutually dependent, and the state relies on different business for different goals in developmental societies. This leads into state’s selective coercion on business. The study draws on a nation-wide survey of Chinese private firms, and examines how the state-business relationship affects corporate environmental investment. The findings show that a firm with political connection is more active in environmental investment than a firm without, and firm’s importance for the local economy is in an inverse-U relationship with firm’s environmental investment. Lastly, those patterns vary across regions in China. This article makes empirical and theoretical contribution to the research of corporate environmental behaviors and organizational studies.

Author

• Zongshi Chen, Zhejiang University