Policy networks and firm behaviours: Governance systems and firm reponses to external demands for sustainable forest management

Neo-institutional theory is attractive to scholars of corporate greening because of its multi-faceted approach that examines the role of formal institutions, conventions, and values. It is argued that while this literature sheds much light on how, when, and why firms respond to external pressures, it inadequately conceptualizes the role different governance systems have on corporate responses. To overcome this weakness, political science's own neo-institutional literature is incorporated, looking at state/societal relations (policy networks) and regulatory regimes, and then a theoretical framework is offered with which to understand corporate policy choices. Although this framework can be applied in a variety of policy areas, its purpose is to explain how and why forest companies in North America respond to external pressures for increased environmental protection.