Institutional pressures and firms’ environmental management behavior: the moderating role of slack resources

Firms’ environmental management behavior is divided into two dimensions: substantive and symbolic. The effects of coercive pressure, mimetic pressure, and normative pressure on these two dimensions are explored based on institutional theory. The moderating role of slack resources in the above relationships is examined using a resource-based view. Data from 193 Chinese listed companies in the heavy-polluting industries from 2014 to 2018 are used to test the hypotheses. The results show the strongest facilitator of substantive environmental management behavior is coercive pressure, while the strongest promoter of symbolic environmental management behavior is mimetic pressure. Slack resources positively moderate institutional pressures and firms’ environmental management behavior relationships partially. The conclusions are significant to both environmental practitioners and managers.