Firm-and country-specific advantages: Towards a better understanding of MNEs' environmental performance in the international arena Ahmadova, Gozal Bueno García, Manuel Delgado Márquez, Blanca Luisa Pedauga Sánchez, Luis Enrique Environmental performance International management Longitudinal analysis Regression analysis Competitive advantage and environmental strategy The authors acknowledge the financial support received from the Spanish Ministry of Economy, Industry and Competitiveness (project PID2019-106725GB-I00), the Andalusian Government for Research (project B-SEJ-398-UGR20), and the aid programme of the School of Economic and Business Sciences of the University of Granada for the revision of scientific texts. International diversification is predominantly assumed to have a mixed (either positive or negative) linear relationship with environmental performance in multinational enterprises (MNEs). Departing from this assumption, we use firm-specific advantages (FSA) and institutional theory to hypothesise that international diversification, due to recombination barriers, has a curvilinear U-shaped relationship with MNEs’ environmental performance. Because of their key roles as boosters of country-specific advantages (CSA), we also examine whether home country competitiveness and environmental levels moderate the proposed curvilinear relationship. Results from panel data of 298 MNEs between 2006 and 2017 from 21 different countries in 11 sectors provide support for the main curvilinear relationship and the moderating influence of home country competitiveness. Our study contributes to the international business literature by casting doubt on the widely held assumption that international diversification always carries either positive or negative effects on environmental records. 2024-03-06T12:35:23Z 2024-03-06T12:35:23Z 2022 journal article Published version: Ahmadova, G., Bueno García, M., Delgado-Márquez, B., & Pedauga, L. (2023). Firm-and country-specific advantages: Towards a better understanding of MNEs' environmental performance in the international arena. Organization & Environment, 36(3), 468-497. DOI: 10.1177/10860266221129699 https://hdl.handle.net/10481/89834 10.1177/10860266221129699 eng open access Sage