This article is based on my dissertation research at the Anderson School of Management at UCLA. I offer special thanks to my dissertation committee, especially to my dissertation co-chairs Jose de la Torre and George Yip. I also would like to thank Alan Beckenstein, Donald Hatfield, Devi Gnyawali, the co-Editor of the Special Issue Anne Ilinitch, and three anonymous reviewers for their helpful comments at various stages of this work. All errors and omissions remain my own. Financial support Effects of "Best Practices" of Environmental Management on Cost Advantage:

International certifiable management standards that have been advocated as a governance mechanism for firm self-regulation of corporate social responsibility issues are effective only if certified firms comply with the requirements of the standards. Our empirical analysis shows that ISO-certified firms in China strategically select their level of compliance depending on customer preferences, customer monitoring, and expected sanctions by customers. Our findings have implications for the effectiveness of a global system of self-regulation based on certifiable standards, research on certifiable standards, and for practicing managers who require suppliers to obtain standard certifications. Journal of International Business Studies (2006) 37, 863–878. doi:10.1057/palgrave.jibs.8400231

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