The institutionalization of digital compliance

Purpose This research paper investigates how companies incorporate digital compliance, particularly data security and protection, as a fundamental aspect of corporate digital responsibility (CDR). We address the gap in understanding the institutionalization of digital compliance as a part of CDR. Design/methodology/approach Using institutional theory, we assess the impact of coercive, mimetic and normative forces on digital compliance. We used survey data from 162 predominantly large German companies and analyzed it through ordinary least squares (OLS) regressions. Findings Mimetic forces, driven by competitor knowledge, substantially affect digital compliance. Normative forces related to professional knowledge are also influential, while coercive forces exerted by customers have no significant impact on the adoption of digital compliance. In a supplemental analysis, the study highlights the moderating role of organizational agility. Research limitations/implications CDR is not limited to digital compliance. Future research should explore higher levels of CDR and consider stakeholders beyond customers. The focus on large German companies may limit generalizability. Practical implications The findings stress the importance of understanding competitive landscapes and professional discourses. Managers should be aware of these institutional forces and incorporate them into strategic planning for digital compliance and CDR. Originality/value This research extends institutional theory to digital compliance, offering insights into CDR-related corporate behavior and strategy, emphasizing the importance of competitor awareness and professional norms to manage digital risks.