Advancing the understanding of voluntary sustainability standard organizations’ geographic diffusion: the role of national institutions in global agrifood

Voluntary sustainability standard organizations (VSSOs) are influential non-state actors shaping the governance of global value chains, especially in low- and middle-income economies (LMIEs) where transnational production is concentrated. They play a pivotal role in aligning international trade and investment flows with sustainability and development objectives. Yet, their diffusion across LMIEs remains uneven, and the institutional determinants of their geographical presence remain poorly understood. Focusing on the global agrifood sector—where VSSOs are particularly widespread—this study provides a systematic, cross-national analysis of how national institutional environments relate to VSSOs’ geographical presence. Using a novel dataset covering 131 agrifood VSSOs and country-level indicators of institutional development, we build a VSSO–country network and apply correlation analyses to examine which institutional dimensions co-vary with VSSO presence. Results show that VSSOs are significantly more active in countries with well-developed trade, technical assistance, financial, and social protection institutions—key enablers of private sustainability governance. Conversely, we find no association between the strength of environmental institutions and VSSO diffusion. We build on these findings to identify institutional development targets that LMIE policymakers should consider if seeking to promote VSSO diffusion as part of their policy goals and in response to value-capture opportunities in GVCs.