ABSTRACT: Scholars have long explored the people, institutions, and events that lead to the emergence of new markets and industries that provide spillovers to the public good, benefits that accrue to society and the natural environment as a consequence of the economic activities. However, scholars often overlook the role that for-profit firms play in influencing the norms and institutional structures that develop as these industries mature.
What determines when and why a particular firm will enter an ecologically relevant industry? How does this differ for new firms vs. existing firms that already operate in another industry? And, what role do firms play in shaping the industry once they become part of it?
In this book chapter, we address these questions by offering a theoretical explanation of the emergence and evolution of the green building supply industry that grew in tandem with the emergence of the green building construction industry following the introduction of the LEED (Leadership in Energy and Environmental Design) standard in 1998.