Reporting of environmental policies and internationalization of Asia–Pacific firms: the moderating role of innovation as a source of legitimacy Ahmadova, Gozal Delgado Márquez, Blanca Luisa Aguilera-Caracuel, Javier Reporting of environmental policies Internationalization Institutional theory Liability of origin Innovation Legitimacy Asia–Pacific firms This research has been funded by the projects granted by the Department of Economic Transformation, Industry, Knowledge, and Universities (Regional Government of Andalusia): P20_00019; B-SEJ-398-UGR20. Additionally, this research has received funding from Spanish Ministry of Science and Innovation (Research Grant PID2019-106725GB-I00) and the Excellence Unit “Advanced Research in Economics and Business” of the University of Granada (Spain), UCE2018.02_2021-07. We thank the anonymous reviewers and members of the ISDE research group (SEJ-481, University of Granada) for their insightful comments and suggestions to improve the quality of this research paper. We also thank the research support program of the Faculty of Economics and Business Administration, University of Granada (Spain), 2022. This research aims to examine whether Asia–Pacific firms use reporting environmental policies to reduce their liability of origin in the international arena. Furthermore, moderating effects of institutional and organizational innovations are captured as sources of legitimacy. A multilevel modeling technique was used to test the hypotheses. The sample was composed of 91 firms from 11 countries in 10 different sectors during the period from 2014 to 2018. Using institutional theory, the results show that the reporting of environmental policies has a significant positive impact on the firms’ scope of internationalization. The results reveal that high institutional innovation has a negative moderating role in the relationship between firms’ reporting of environmental policies and their scope of internationalization. However, it was found that organizational innovation does not exhibit a significant moderating effect on this relationship. 2024-03-06T11:08:33Z 2024-03-06T11:08:33Z 2023 journal article Published version: Ahmadova, G., Delgado-Márquez, B.L. & Aguilera-Caracuel, J. Reporting of environmental policies and internationalization of Asia–Pacific firms: the moderating role of innovation as a source of legitimacy. Asian Bus Manage 22, 1243–1273 (2023). https://doi.org/10.1057/s41291-022-00203-4 https://hdl.handle.net/10481/89828 10.1057/s41291-022-00203-4 eng http://creativecommons.org/licenses/by-nc-nd/4.0/ open access Attribution-NonCommercial-NoDerivatives 4.0 Internacional Springer Nature