Crowding in or crowding out? How non-governmental organizations and media influence intrinsic motivations toward corporate social and environmental responsibility

Abstract

Motivation crowding theory examines how external intervention may undermine intrinsic motivation. Earlier research has shown that intrinsic motivation plays a decisive role in fostering environmental performance of households and consumers, but that external pressures may “crowd out” the intrinsic motivations. Similar patterns could be expected in business organizations. However, only a few studies consider crowding effects of financial incentives on businesses’ intrinsic motivation to environmental responsibility, whereas none addresses the impact of external pressures from non-governmental organizations (NGOs) and media, despite their prominent role. This study aims to address this gap by offering a mediation framework explaining how pressures from NGOs and media affect intrinsic motivation. Empirically, the paper adds to the scant empirical research by estimating a model on a sample of 4,364 enterprises from twelve European countries. We find that NGOs and media pressures increase financial benefits from environmental responsibility, which in turn crowd in intrinsic motivation in enterprises.