Edited by Pauline Deutz, Donald I. Lyons and Jun Bi
Chapter 12: Institutional capacity for sustainable industrial systems in Caldas, Colombia
Markets and regulatory pressures have been recognised as significant drivers for diffusing concepts related to sustainability (Boons et al., 2011), in addition to coercion, imitation, training and professionalisation (DiMaggio and Powell, 1983). Governments and other stakeholders have used these mechanisms to induce sustainability-related actions among firms (Darnall, 2003). In emerging markets, societal forces promoting sustainability in industrial systems are often weak (Blackman, 2006). Enforcement of environmental regulation, a traditional driver for environmental improvement (Boons and Baas, 1997), is generally limited: overseeing large numbers of small firms is burdensome for underfinanced and understaffed environmental agencies (Blackman, 2006). Moreover, most firms in these economies serve local markets where environmental advocacy or pressure from local customers is lacking (Dasgupta et al., 1997). Also, non-governmental organisations (NGOs) and communities have little capacity and power to impose meaningful pressure on small firms (Maranto-Vargas and Gomez-Tagle, 2007). Compounding matters, transparency and availability of environmental information is often scarce (Velazquez et al., 2008).
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