Indigenous Resource and Institutional Capital: The Role of Local Context in Embedding Sustainable Community Development

Although scholars agree that local context is critical in a firm’s commitment to sustainable development, questions remain about how this context plays a role in achieving simultaneous goals of sustainable community development and firm strategic success. By sampling two groups of firms differentiat...

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Published in:Business & society 2012-09, Vol.51 (3), p.409-449
Main Author: Valente, Mike
Format: Article
Language:English
Subjects:
Commitments
Community Development
Environmental management
Indigenous Populations
Intangible assets
Interest Groups
Management theory
Studies
Sustainable Development
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description Although scholars agree that local context is critical in a firm’s commitment to sustainable development, questions remain about how this context plays a role in achieving simultaneous goals of sustainable community development and firm strategic success. By sampling two groups of firms differentiated according to their adoption of a weak or strong orientation to sustainable development, this author searched for relevant explanations from the local context that help to answer this very question. Results point to indigenous resource and institutional capital, the combination of which assists the firm in its ability to embed sustainable development. Whereas more tangible forms of capital assist in the strategy implementation process, less tangible forms of capital influence the strategy formulation process. What is more, firms tended to progress sequentially in the appropriation of these forms of capital as a result of the strengthening of the relationship with contextual stakeholders.
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subjects Commitments
Community Development
Environmental management
Indigenous Populations
Intangible assets
Interest Groups
Management theory
Studies
Sustainable Development
title Indigenous Resource and Institutional Capital: The Role of Local Context in Embedding Sustainable Community Development
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