Sustainable Development and Institutional Theory

Abstract

Sustainable development can be defined as the formulation of economic, social and political development policies that meet the needs of the present without compromising the ability of future generations to meet their own needs. The concept of sustainable development in the twentieth century was associated with the rapid degradation of the natural environment, the depletion of natural resources and the environmental and economic side effects of increasing industrialization. Over time, it expanded to include concepts such as fighting poverty and hunger, clean energy, gender equality, public health, access to education, responsible production and consumption. In this chapter of the book, a compilation of sustainable development research based on institutional theory is presented to the readers. One can argue that studies examining sustainable development through institutional theory show a wide range of diversity. A significant portion of the studies focuses on the normative, coercive and mimetic isomorphism pressures and mechanisms of isomorphism originating from the institutional environment and/or organizational field. Institutional pressures related to sustainable supply chain management practices and sustainability reporting stand out as other prominent topics in the research. However, studies on institutional entrepreneurship actions and the demands and pressures of different institutional logics represented by stakeholders on organizational actors are currently rare. Considering that the research agenda is relatively new, it is possible to say that in the future, institutional theory will provide more effective, fruitful and efficient outputs in explaining the relationship between sustainable development and organizations.