The Impact of Institutional Pressures on Firms' Low‐Carbon Behaviors: A Configuration Approach

ABSTRACT Although the institutional environment is recognized as crucial for firms' low‐carbon development, how configurations of institutional pressures collectively shape firms' low‐carbon behaviors remains underexplored. Drawing on institutional theory, configuration theory, and resource‐based view, this study investigated the impact of institutional pressure configurations on firms' low‐carbon behaviors and the moderating role of artificial intelligence (AI) capability. The study used cluster analysis, analysis of variance (ANOVA), and OLS regressions with panel data from Chinese A‐share listed firms (2007–2022) to verify our research propositions. The results reveal three distinct firm clusters based on institutional pressure profiles. These configurations exert varying effects on both hard and soft low‐carbon behaviors. Generally, more intense pressures promote greater hard low‐carbon behaviors; conversely, high‐pressure firms are associated with significantly fewer soft low‐carbon behaviors compared to low‐pressure firms. Furthermore, a firm's AI capability enhances the positive influence of more intense institutional pressure on the adoption of hard low‐carbon behaviors and mitigates the negative influence of high institutional pressure on the adoption of soft low‐carbon behaviors. This study extends institutional perspectives on firms' environmental behaviors and provides actionable guidance for low‐carbon management.