An institutional theory perspective on sustainable consumption

Abstract

This research investigates the role of institutions in shaping sustainable consumption, an urgent inquiry given that unsustainable consumption patterns are pushing Earth toward environmental catastrophe. By integrating sustainable consumption and institutional theory, this research reveals how institutions either facilitate or inhibit sustainable consumption. Existing scholarship considers these areas separately and lacks a unified framework to address this multi-faceted issue. Specifically, this research answers three questions. How do institutions: (1) facilitate or hinder sustainable consumption; (2) impact consumers’ trust in the sharing economy; and (3) (de)legitimate corporate sustainability communication? Employing a multi-method approach, the research is organised into three papers using a systematic literature review, an experimental vignette survey, and a qualitative content analysis of news articles. The first paper advances an institutional theoretical model for understanding sustainable consumption as a continuum, identifying aspects that support or obstruct such practices. The second paper uncovers institutional factors influencing trust and participation intention in the sharing economy. The third paper explores the legitimacy of business sustainability communication strategies. Collectively, the research contributes to scholarship by unifying sustainable consumption and institutional theory, offering insights into the roles different institutional factors play. The research provides actionable insights for businesses seeking to promote sustainability and lays the groundwork for researchers to extend this framework conceptually and methodologically.