Organisational drivers and sustainability implementation in the mining industry: A holistic theoretical framework

Abstract

AbstractWhile few studies have examined the role of institutional pressures on sustainable business practices, there is a dearth of empirical research regarding the influence of internal organisational characteristics on sustainability implementation in developing countries. This paper examines internal organisational features and how they influence multinational companies (MNCs) operating in a resource‐rich developing country to embrace and embed sustainability into corporate policies and practices. The findings show that the history of past sustainable practices, the level of internationalisation and managerial cognition internally drive MNCs to implement sustainability in their host countries. We discuss that managerial cognition drives MNCs to embrace sustainability in non‐enabling institutional environments based on private morality and perceived ethical obligation. Accordingly, we have proposed a holistic theoretical framework for sustainability implementation based on external drivers, institutional voids and complexity and the moderating role of internal organisational features.