The Effect of Sustainability Standard Uncertainty on Certification Decisions of Firms in Emerging Economies

40 Pages Posted: 26 Feb 2018

See all articles by Ivan Montiel

Ivan Montiel

Zicklin School of Business, Department of Management, Baruch College - The City University of New York

Petra Christmann

Rutgers, The State University of New Jersey - Management & Global Business

Trevor Zink

Loyola Marymount University - College of Business Administration

Date Written: February 26, 2018

Abstract

Firms are frequently pressured by customers to obtain certification to one or more voluntary sustainability standards. However, uncertainty associated with competing voluntary sustainability standards can reduce the value of standard certifications and jeopardize the entire voluntary regulatory system, especially in emerging economies. In this article we first identify three distinct sources of voluntary standard uncertainty: (i) diversity of customer requirements, (ii) dynamism of customer requirements, and (iii) the unpredictability of the future evolution of standard to then demonstrate empirically how all the three sustainability standard uncertainty sources negatively impact the likelihood adoption of food safety standards among 97 Mexican food exporting firms. We discuss ethical implications and offer recommendations for both, customers and suppliers, as well as standard-setting organizations.

Keywords: certification; emerging economies; global governance; voluntary sustainability standards; sustainability standard uncertainty

Suggested Citation

Montiel, Ivan and Christmann, Petra and Zink, Trevor, The Effect of Sustainability Standard Uncertainty on Certification Decisions of Firms in Emerging Economies (February 26, 2018). Journal of Business Ethics, Forthcoming; Baruch College Zicklin School of Business Research Paper No. 2018-02-03. Available at SSRN: https://ssrn.com/abstract=3130324

Ivan Montiel (Contact Author)

Zicklin School of Business, Department of Management, Baruch College - The City University of New York ( email )

NY
United States

Petra Christmann

Rutgers, The State University of New Jersey - Management & Global Business ( email )

Newark, NJ
United States
(973)353-1065 (Phone)
(973)353-1664 (Fax)

Trevor Zink

Loyola Marymount University - College of Business Administration ( email )

Los Angeles, CA 90045
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
17
Abstract Views
174
PlumX Metrics