The Influence of Regulatory Pressure in Shaping Construction Firms’ Decision to Adopt Green Innovation

Abstract

The construction industry plays a vital role in meeting the needs of society and enhancing the quality of life. It contributes to a better standard of living for people and increases the economic output of countries all over the world. However, its activities are considered as making a major contribution to environmental problems. From emitting greenhouse gas to contributing waste, construction is not necessarily an environmentally friendly activity. These conflicting issues have pressured the industry to intensify its effort and move towards sustainable construction. As the government in the United Kingdom has set targets towards achieving sustainability by 2050, it is necessary for the construction industry to play its role to protect the environment by engaging in environmental-related practices. The aim of this study, therefore, is to examine how far the pressure from regulators could influence Scottish construction firms to adopt green innovation. Based on the qualitative findings, it shows that current pressure from regulators has not encouraged many building firms to adopt green practices. In fact, the low levels of adoption represent the number one concern within the industry. The findings of this study also have implications, particularly for policy makers, to explore strategies and more stringent regulations that could encourage more firms in the construction sector, to seek to reduce their impact on the natural environment. As the government takes a leadership role in this regard, participation from other stakeholders within the industry is importance to bring about wider adoption of green practices.