Effects of ecological innovation, governance structure, and social development on the adoption of sustainable reporting in the global tourism industry

Does the Institutional Environment Affect Sustainability Reporting? Worldwide Evidence

“…In support of these theoretical discussions, Rosati and Faria (2019) documented that firms in countries with higher national CSR performance have more propensity to engage in SDG reporting. Likewise, the results of Kılıç et al (2019), Uyar et al (2021), andYuan et al (2023) denoted that national environmental development and social performance significantly impact firms' tendency to adopt the GRI guidelines.…”

“…Corporate reporting practices can be impacted by firm-specific characteristics as well as factors associated with firms' country of origin. A strand of research concentrated on the effects of countrylevel factors such as political and legal systems, economic development, financial market systems, sustainable development, and culture and norms on sustainability performance and reporting (e.g., Li et al, 2010;Legendre & Coderre, 2013;Rosati & Faria, 2019;Tran & Beddewela, 2020;Yuan et al, 2023), suggesting that national institutional factors can drive firms' decisions to address environmental and social issues and report about sustainability efforts. For example, examining the association between the governance environment and CSR reporting in emerging countries, Li et al (2010) found that the governance environment is the most significant factor impacting CSR reporting.…”

“…Furthermore, Kılıç et al (2019) examined the relationship between the institutional environment and SR in the global aviation industry and found that the institutional environment is an important driver of GRI adoption. With a focus on the global tourism industry, Uyar et al (2021) and Yuan et al (2023) documented that the institutional environment significantly impacts companies' SR practices.…”

“…In a similar vein, Kılıç et al (2019) and Uyar et al (2021) determined that a strong national-level governance structure enhances the firms' propensity to adopt the GRI guidelines. In a recent study, Yuan et al (2023) documented that an effective governance structure promotes the adoption of the GRI framework among companies. In line with these arguments, it is predicted that a strong institutional governance environment may lead companies to release standalone sustainability reports using the GRI guidelines.…”

“…Second, prior research has primarily focused on a single country (e.g., Fifka & Pobizhan, 2014;Khan et al, 2020;Gerged & Almontaser, 2021) or region (e.g., Tran & Beddewela, 2020) or a particular industry (e.g., Kılıç et al, 2019;Gerged & Almontaser, 2021;Uyar et al, 2021;Yuan et al, 2023).…”