International certification in developing countries: The role of internal and external institutional pressure

This paper examines the different internal and external institutional factors that affect the decision of businesses in developing countries to adopt international certification (IC). Past studies focus on pressure from international laws, the role of multinationals, and businesses mimicking practices of their counterparts in developed countries. This paper finds that, in addition to these external factors, internal factors may have a significant role. Even though environmental regulation is weak in developing countries, governments do not ignore industrial pollution and casualties. They respond by increasing bureaucratic regulations for businesses and this can affect the decision to adopt IC. Furthermore, internal pressure may come from workers' unions that push for a safe and healthy working environment.