Firm-and country-specific advantages: Towards a better understanding of MNEs' environmental performance in the international arena
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Ahmadova, Gozal; Bueno García, Manuel; Delgado Márquez, Blanca Luisa; Pedauga Sánchez, Luis EnriqueEditorial
Sage
Materia
Environmental performance International management Longitudinal analysis Regression analysis Competitive advantage and environmental strategy
Date
2022Referencia bibliográfica
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
Sponsorship
Spanish Ministry of Economy, Industry and Competitiveness (PID2019-106725GB-I00); Andalusian Government for Research (project B-SEJ-398-UGR20); University of GranadaAbstract
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.