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Is B Corp certification sufficiently attractive to emerging markets? A conceptual study of B Corps in China

Guangming Xiang (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu, China)
Zheng He (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu, China)
Tianli Feng (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu, China)
Zhenzhen Feng (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu, China)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 29 January 2024

256

Abstract

Purpose

This paper aims to explore how firms enter or exit B Corp certification faced with the tension between local and B Corp institutions, providing a better understanding of the unique impact of institutional complexity on B Corps' decision-making.

Design/methodology/approach

This paper applies multi-case analysis to 20 Chinese firms in various stages of B Corp certification, including eight certified B Corps, six decertified firms and six candidates. The qualitative data was used to code separately for two research questions.

Findings

The study findings reveal that: (1) Participants who can obtain expected social and economic benefits by innovating their operational mode to efficiently deal with this tension attempt to continuously pursue B Corp certification. A self-renewal model was developed to show how firms hybridize the two institutional logics; (2) Participants who find it hard to mitigate this tension tend to compromise with the local institution and conform less with the B Corp institution due to high opportunity and accounting costs, low short-term benefits and collective culture.

Originality/value

By highlighting the different responses of firms to institutional complexity, this study contributes to B Corp research, social identity theory and institutional complexity, providing practical implications for B Lab strategies in China.

Keywords

Citation

Xiang, G., He, Z., Feng, T. and Feng, Z. (2024), "Is B Corp certification sufficiently attractive to emerging markets? A conceptual study of B Corps in China", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-09-2022-1350

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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