WHO ADOPTS MANAGEMENT STANDARDS EARLY? AN EXAMINATION OF ISO 14001 CERTIFICATIONS.

Standardization processes are of strategic importance to firms. Often firms incur significant switching costs when they fail to adopt practices or technologies that become industry requirements. Unfortunately, choosing the correct standard is difficult. Early adopters risk choosing standards that fail. Insufficient attention has been paid to the factors that influence the early adoption of standards. Using data on certifications of the ISO 14001 environmental management system standard, we explore what type of firms are most likely to participate in the emerging standard. We find evidence that firms whose downside risk is minimal and that face the greatest scrutiny are more likely to be early adopters of standards. [ABSTRACT FROM AUTHOR]