Institutional pressures and environmental innovations of manufacturing firms in Uganda

Abstract

Purpose This study aims to investigate the predictive power of institutional pressures (IP)—including coercive, normative, and mimetic influences—on environmental innovations (EI) within medium and large (M&L) manufacturing firms operating in Uganda. Design/methodology/approach This quantitative study gathered data through structured surveys from key stakeholders in Uganda's manufacturing sector, involving 208 firms across diverse regions. Utilizing SmartPLS Version 4, Structural Equation Modeling was applied to examine the correlation between IP and EI. Findings Our analysis reveals the significant influence of IP on EI in Uganda's M&L manufacturing firms. While regulatory mandates theoretically relate to EI, our findings suggest no statistically significant association. Conversely, societal norms and mimetic pressures positively impact EI. Notably, mimetic pressures exhibit the strongest predictive potential, followed closely by normative pressures. Research limitations/implications Our findings highlight the significant impact of mimetic and normative pressures on EI in Uganda's industrial sector. Policymakers and business leaders can utilize these pressures to foster industry-wide innovations and align strategies with societal values, complementing coercive pressures for regulatory compliance. Originality/value This study provides new insights into how IP drive EI in Uganda's manufacturing sector. By clarifying the roles of coercive, normative, and mimetic pressures, it guides policymakers and business leaders in enhancing environmental initiatives.