The Adoption of Voluntary Environmental Management Programs in Mexico: First Movers as Institutional Entrepreneurs Ivan Montiel Bryan W. Husted ABSTRACT. This article analyzes the adoption of vol- untary environmental management programs by firms operating in Mexico. Mexican firms can obtain national certification (Clean Industry) and/or international certi- fication (ISO 14001). Based on institutional entrepre- neurship theory, we posit that the role played by first movers as institutional entrepreneurs is crucial if these programs are to become established with sufficient strength and appeal. This understanding is especially important in an environment where more than one program can be adopted. We tested several hypotheses on the behaviors of 1328 facilities operating in Mexico, half of which (664) had certified environmental management programs. Of the 664 certified facilities, 217 were classi- fied as early adopters. Three variables predicted the likelihood of a facility being an early adopter: (1) con- nected to international market, (2) in the maquila sector, and (3) linked to an industry association that offers free resources. KEY WORDS: Mexico, institutional entrepreneurship, institutional theory, voluntary environmental manage- ment programs, certified management standards, ISO 14001 Introduction Mexico has made good progress toward protecting the natural environment over the last decade, but there are still pending environmental issues to be addressed. One of the main concerns is that envi- ronmental regulations related to issues such as water pollution, toxic waste management, deforestation, and ecosystem destruction are not properly enforced (Restrepo, 2004). Voluntary environmental man- agement programs might help firms establish their own environmental management systems, and ensure their compliance with regulations, when lack of enforcement is attributed to the lack of economic resources (Medina-Ross, 2005). This study seeks to understand the factors that initially drive firms operating in Mexico to adopt new voluntary programs for environmental stew- ardship. Specifically, we analyze the factors moti- vating the adoption of two voluntary environmental management programs: (1) a nationally certified voluntary agreement, which is the Mexican Clean Industry certification promoted by the Federal Attorney for Environmental Protection (PROF- EPA), one of Mexico’s environmental agencies, and (2) an internationally certified management standard, ISO 14001, that is promoted by the International Organization for Standardization, a private organi- zation. Our analysis of adoption is based on the new insights of institutional theory that concern institu- tional entrepreneurship. We examine how different institutional entrepreneurs emerge and help com- peting programs diffuse and become institutions in the Mexican business context. Our hypotheses are based on DiMaggio’s (1988) ‘‘interest and agency’’ arguments in institutional theory, Suchman’s (1995) arguments about manipulative environments and the role of institutional entrepreneurs, and ‘‘institutional mechanisms’’ that Eisenstadt (1980) says influence Ivan Montiel is Assistant Professor of Management at California State University, Los Angeles. His research interests include corporate socially responsible and sustainable strategies. Bryan W. Husted holds the Erivan K. Haub Chair in Business and Sustainability at the Schulich School of Business of York University. His research focuses on corporate social and environmental management. Journal of Business Ethics (2009) 88:349–363 Ó Springer 2009 DOI 10.1007/s10551-009-0282-y