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Navigating Regulatory Transitions: The Evolving Role of Multi-Stakeholder Initiatives as Intermediaries in the Context of Mandatory Due Diligence Legislation
   

Navigating Regulatory Transitions: The Evolving Role of Multi-Stakeholder Initiatives as Intermediaries in the Context of Mandatory Due Diligence Legislation

Leona A. Henry, Julia Grimm, Nora Lohmeyer, Kristin Apffelstaedt Sophie Giulini
Journal of Management Studies
2026-07-08
business-government interactions due diligence legislation German Partnership for Sustainable Textiles German Supply Chain Act multi-stakeholder initiatives regulatory intermediaries
Whereas extant studies have mostly treated multi-stakeholder initiatives (MSIs) as instruments of private authority that interact with public governance in various spheres, this study offers an alternative view of MSIs as important regulatory intermediaries, specifically in times of regulatory flux. Building on an in-depth case study of the German Partnership for Sustainable Textiles in the context of the emerging German Supply Chain Act, we explore how MSIs can support firms in navigating the transition from voluntary governance to mandatory due diligence legislation. Our analysis reveals the evolving and multi-faceted intermediary roles that MSIs can enact, documenting the fine-grained practices whereby MSIs can support firms in managing the challenges related to changing regulatory landscapes. We also highlight several role-based tensions fuelled in this context and indicate how MSIs can manage those. Our findings contribute to theory on regulatory intermediation by illuminating a dynamic process shaped by the interplay between regulatory events, firm challenges, role-based tensions, and role adaptation. Extrapolating from our case, we theorize MSIs as actors that can effectively mediate business-government interactions and help build constructive institutional relationships in emerging regulatory fields.

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