Institutional entrepreneurship and carbon reduction practices − Evidence from South Korea aviation industry

Abstract

This paper identifies regulatory requirements as primary drivers for participation in domestic ETSs, supported by common values and reputation considerations. This extends the theory of institutional entrepreneurship by demonstrating how regulatory frameworks can incentivize corporate actors to adopt sustainable practices. It highlights the critical role of regulatory environments in shaping institutional entrepreneurship, suggesting that stringent regulations can effectively drive organizations toward sustainability. This perceived normative and cognitive pressure aligns with Levy and Kolk (2002), which suggests that climate strategies are formulated by managers from countries where such environmental practices are strictly required (Pinkse, 2007). Compared with previous studies, this paper reveals that collective institutional entrepreneurship can create opportunities for integrating sustainability policies under favorable conditions. Unlike Jolly et al. (2016), who highlighted the isolated and contested actions of individual actors, this study shows that sustainability policies and developments by legacy aviation groups often overlap at both micro (individual) and meso (organizational or institutional) levels. This intersection of corporate values with individual passengers, other subsidiary airlines and international community expectations underscores a collective institutional entrepreneurship that fosters integrated sustainability policies under favorable conditions.