The impact of emerging institutional norms on adoption timing decisions: evidence from C‐TPAT—A government antiterrorism initiative

Ritchie, William; Melnyk, Steven A.

doi:10.1002/smj.1948

Cited by 37 publications

(59 citation statements)

References 43 publications

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“…We can also explain the actions of the late adopters -they are often responding to institutional pressure and favorable economic returns (Ritchie & Melnyk, 2012;Melnyk et al, 2013). For instance, by considering standard adoption as a social process, Melnyk, Ritchie, and Calantone (2013) argue that the laggards' decision to adopt a standard is strongly influenced by the actions and cues taken from early adopters.…”

Section: Being Widely Accepted -The Critical Challenge Facing the Pubmentioning

confidence: 99%

“…After all, the economic advantages of early involvement (higher economic returns in exchange for assuming higher risks) are not present (Ritchie & Melnyk, 2012 Since standards are an effective signaling mechanism (Montiel et al, 2012), signaling theory offers a suitable theoretical framework to examine these new standards and the adoption context in greater detail. Specifically, this study advances theory suggesting that signal strength 12 varies with the timing of standard adoption and that social motivations prevail in the early adoption decision.…”

Section: Being Widely Accepted -The Critical Challenge Facing the Pubmentioning

confidence: 99%

“…This scenario is most evident with private-authored standards (e.g., ISO 9000). However, as noted by Ritchie and Melnyk (2012) and Melnyk, Ritchie, and Calantone (2014), public-authored standards present early adopters with very different economic results. Here, it is the late adopters, not the early adopters, who are the recipients of the highest economic returns.…”

Section: Introductionmentioning

confidence: 96%

“…Further complicating our understanding of this process is the loci of authorship. That is, standards can be either public-authored or private-authored (Ingram & Clay, 2000;Ritchie & Melnyk, 2012;Terlaak, 2007). 3 The process by which an administrative innovation such as a standard is developed, adopted, and diffused has traditionally been studied with the assumption that the early adopters, who face the high risks (after all, they may have selected and invested in the "wrong" standard), are rewarded by correspondingly higher economic returns.…”

Section: Introductionmentioning

confidence: 99%

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Why be first if it doesn’t pay? The case of early adopters of C-TPAT supply chain security certification

Melnyk

Ritchie

et al. 2016

IJOPM

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Purpose The purpose of this paper is to focus on adoption of certified management standards, specifically public standards. Such standards play an increasingly important role in today’s business environment. However, to generate adoption benefits, they must be first widely accepted – a situation where they have become viewed as the de facto norms. For this state to occur early adopters play a critical role. Past research has argued that early adopters, in exchange for assuming more risk, are rewarded with higher economic returns. Yet, these findings are based on private, not public standards. With public standards, early adopters do not receive such benefits. There is evidence that public standards are becoming more important. This situation leads to a simple but important question addressed in this study – if early adopters assume the risks of embracing a new public standard without economic benefits, then what is their motivation? To resolve this question, this study draws on agency theory and prospect theory. The authors argue that early adopters embrace such standards because of their desire to minimize risk resulting from failure to support the goal at the heart of the public standards. Design/methodology/approach Data were obtained from the Customs-Trade Partnership Against Terrorism (C-TPAT) Partners Cost Benefit Survey and analyzed through structural equation modeling. Findings Early adopters of public standards are not driven by economic benefits but rather by the need to minimize their exposure to the risks associated with failing to satisfy the goals associated with a public standard. In other words, they were motivated by the need to minimize costs. In the case of C-TPAT, these costs are those of failing to provide or improve network security. Research limitations/implications This study has shed new light on the standards adoption process by clarifying the specific motivations that drive early adoption of a public standard. In addition to identifying the loss aversion motives of early adopters and economic benefit motives of later adopters, the authors have also elaborated on the notion that standards have differing levels of precedence, particularly when comparing private with public standards. Practical implications In a world characterized by increasing demands for outcomes such as improved security and where governmental funding is falling, due to growing deficits and governments that are becoming more conservative, the authors expect the use of public standards to increase. Originality/value Different from prior research on private standard, the paper focuses on the organizations involved in the adoption and diffusion of a public standard, with special attention being devoted to the early adopters. The paper provides a theoretical explanation for the actions of early adopters of a public standard through the theoretical lens of prospect theory.

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Section: Being Widely Accepted -The Critical Challenge Facing the Pubmentioning

confidence: 99%

Section: Being Widely Accepted -The Critical Challenge Facing the Pubmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 96%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Why be first if it doesn’t pay? The case of early adopters of C-TPAT supply chain security certification

Melnyk

Ritchie

et al. 2016

IJOPM

Self Cite

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“…The "institution-based view of strategy" label was first advocated by me in the Asia Pacific Journal of Management in 2002. While I can claim credit for coining this expression, institution-based research in strategy, organization and IB is a broad scholarly movement with numerous participants (Ahn & York, 2011;Ahuja & Yayavaram, 2011;Carney, Gedajlovic, & Yang, 2009;Chari & David, 2012;Dau, 2012;Hoskisson, Wright, Filatotchev, & Peng, 2013;Khoury & Peng, 2011;Kim, Kim, & Hoskisson, 2010;Liu, Yang, & Zhang, 2012;Lu, Tsang, & Peng, 2008;Mahlich, 2010;Meyer, Estrin, Bhaumik, & Peng, 2009;Meyer & Peng, 2005;Peng, 2003Peng, , 2012Peng, , 2013Pinkse & Kolk, 2012;Ritchie & Melnyk, 2011;Shinkle & Kriauciunas, 2012). While institutionally oriented scholars are naturally interested in advancing this view, it is interesting to note that a leading IB scholar John Dunning, who was not known to be an "institutionalist" and whose career spanned five decades, strongly promoted the institution-based view toward the end of his career (Dunning, 2004;Dunning & Lundan, 2008).…”

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confidence: 99%

New Research Directions in the Institution-Based View

Peng¹

2014

Multidisciplinary Insights From New AIB Fellows

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This paper points out new directions for the deepening and broadening of the institution-based view, by drawing on three streams of research with which I have been involved recently: (1) outward foreign direct investment from emerging economies, (2) bankruptcy laws and entrepreneurship development, and (3) institution-based research focusing on Africa. Such deepening has been accomplished by enhancing our institutionbased understanding of foreign direct investment with a focus on emerging multinationals, while broadening has been done both substantively by probing into the impact of bankruptcy laws on entrepreneurship development around the world and geographically by calling for enhanced research attention on Africa via an institution-based lens.

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When does it pay to be green? The strategic benefits of adoption speed

Su,

Fu,

Linderman

2024

J of Ops Management

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Does the speed of adopting environmental practices impact financial benefits? The strategy literature discusses the contingencies under which firms can gain an early‐mover advantage or a late‐mover advantage. This research examines the effect of adoption speed on two types of environmental practices: environmental innovation practices (EIP) and environmental management practices (EMP). The results show that early adoption of EIP increases competitive advantage when firms face intense competition. In comparison, we show that early adoption of EMP increases competitive advantage when firms face extremely low competition or have moderate to high levels of slack resources. The study contributes to the literature by revealing the nuances, contingencies, and boundary conditions of when it pays to be green. Prior research shows mixed results when studying firms' decisions to implement environmental practices, which implies that it may not pay to be green. This study shows that firms can get an early mover advantage from environmental practices, but it depends on the type of environmental practices, the firm's internal slack resources, and the firm's external competitive environment.

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The impact of emerging institutional norms on adoption timing decisions: evidence from C‐TPAT—A government antiterrorism initiative

Cited by 37 publications

References 43 publications

Why be first if it doesn’t pay? The case of early adopters of C-TPAT supply chain security certification

Why be first if it doesn’t pay? The case of early adopters of C-TPAT supply chain security certification

New Research Directions in the Institution-Based View

When does it pay to be green? The strategic benefits of adoption speed

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