Compliance with institutional imperatives on environmental sustainability: Building theory on the role of Green IS

Addressing the complexity of the growing number of regulatory imperatives from global institutional environments has prompted firms in the IT sector to leverage the enabling effects of IT-based systems to help manage environmental compliance and related organisational risks. Thus, a new breed of IS—Green IS—emerged in recent years. This paper presents an integrative theoretical model that: (1) employs institutional theory to help explain how a range of exogenous regulative, normative and cultural-cognitive factors from the institutional environment and the organisational field influence IT manufacturers’ decisions on the design and manufacture of environmentally sustainable products; and (2) uses organisational theory to describe the strategic endogenous arrangements that organisations institute using Green IS in order to support sense-making, decision making and knowledge creation around environmental sustainability. The paper employs the findings of a case study of Compliance and Risks’ Ltd. Compliance-to-Product (C2P) application and its implementation in two US-based Fortune 500 IT manufacturers to help validate and refine the a priori theoretical model. The paper therefore makes a significant contribution to theory building on the phenomenon of Green IS, through its articulation of empirically-based theoretical propositions which employ conceptual mechanisms to explain how Green IS can support organisational sense-making, decision making and knowledge sharing and creation around the design and manufacture of Green IT.