Linking perceived institutional force and environmental strategy: the moderating role of institutional incompleteness

Purpose This study aims to examine the impact of perceived institutional force on environmental strategy, and the moderating role of institutional incompleteness. Design/methodology/approach This study tests hypotheses employing hierarchical regression model based on a survey of 317 Chinese manufacturers. Findings The results reveal that perceived business and social force have positive impacts on symbolic environmental strategy. Perceived social force has a positive impact on substantive environmental strategy and a negative impact on greenwashing. Further analysis suggests that perceived social force has a stronger effect on substantive environmental strategy than perceived business force. Moreover, institutional incompleteness strengthens the impact of perceived business force on substantive environmental strategy, and the impact of perceived social force on symbolic and substantive environmental strategy. Originality/value This study establishes a framework integrating distinct types of perceived institutional force and environmental strategy and provides a new perspective on measuring greenwashing to extend environmental strategy literature.