International Isomorphism, Sustainable Innovation and Wealth for OECD Cities

Highlights

• This research offers strong and generalizable empirical support for sustainable urban governance such that policy makers can uniquely refer to this study to justify implementations of smart sustainable innovations and memberships in international city forums.
• The dependent variable is city GDP per capita to show direct economic impact, consequential for city policy discussions and distinct from previous research.
• Results show that cities investing in green space and innovation (patent activity) are wealthier.
• Results show that cities with more air pollution are less wealthy. Thus, more urban pollution is not a reflection of greater economic success i.e., a perception that where there is more industry polluting and/or wealthier consumers driving cars means a city is wealthier, is incorrect.
• International city group memberships enhance urban governance processes. C40 Cities membership is uniquely valuable, and being cooperative by joining many international city groups is associated with city wealth.
• International city memberships inform the use of innovative capacity towards wealth-producing sustainable outcomes.
• This research extends institutional theory with theoretical justification and empirical evidence to the city context. The mechanisms of isomorphism and the concept of institutional entrepreneurs, where city officials initiate changes by sharing across cities, are useful generalizable constructs. Also, the concept of legitimacy is advantageous for explaining the influence of some cities and their sustainable innovations.
• Policy makers who take an interest in whether long-term oriented sustainable investments and international city memberships pay off and how they relate to each other may note this study for guidance.