Differentiated effects of formal and informal institutional distance between countries on the environmental performance of multinational enterprises

Aguilera‐Caracuel, Javier; Hurtado‐Torres, Nuria Esther; Aragón‐Correa, J. Alberto; Rugman, Alan M.

doi:10.1016/j.jbusres.2013.04.002

Cited by 53 publications

(44 citation statements)

References 62 publications

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“…Analysing how national institutions influence multinationals to practice corporate social responsibility, Marano and Kostova (2016) find that the strongest pressure occurs when the company depends economically on the country or when the country is a leader in CSR. Aguilera‐Caracuel, Hurtado‐Torres, Aragón‐Correa, and Rugman (2013) analyse how multinationals negotiate institutional differences (formal and informal) in the countries in which they operate to develop an approach that standardizes the firm's institutional approach to environmental impact to meet the pressures across these countries. Aguilera‐Caracuel and Guerrero‐Villegas (2018) find that multinationals undergoing geographical international diversification or operating in developing regions may intensify environmentally and/or socially conscious strategies to improve corporate image.…”

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

“…We can thus extend institutional theory to argue that Multilatinas seek legitimacy by responding to the pressures (mimetic, regulatory and coercive) in their institutional context. In response to coercive pressure, they will establish EMS to avoid government sanctions (Aguilera‐Caracuel et al, 2013) and demonstrate environmental commitment to customers, regulatory agencies and other institutions (Nishitani, 2010). Second, mimetic pressures lead Multilatinas to search for and adopt best practices and standards in their institutional field (Delmas & Toffel, 2004; Kostova, Roth, & Dacin, 2008).…”

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

See 1 more Smart Citation

Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment

et al. 2020

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The purpose of this study is to explore the relationship between green innovation (GI) and financial performance (FP) in emerging markets multinationals from Latin America (Multilatinas). Aligned with the natural resource-based view and institutional theory, and using moderated and hierarchical linear regression analyses with panel data from 86 listed firms during the period 2013-2017, we find that implementing effective GIs is not associated with greater FP. The paper also analyses the moderating effect of Environmental Management Systems (ISO 14001) and research and development (R&D) investment on the relationship between GI and FP. We find that Multilatinas' implementation of ISO 14001 does not affect the way they adopt GI and thus does not enhance their levels of FP, but a positive moderating effect is generated as companies increase their level of R&D investment. The paper expands knowledge of the way GI affects Multilatinas' FP, and these findings have policy implications for managers, policy makers, government and other institutions.

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Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment

et al. 2020

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“…Perego & Kolk, 2012; Aguilera-Caracuel, Hurtado-Torres, Aragón-Correa, & Rugman, 2013 Instrumental rationality Calculation of benefits can help in "de-coupling" environmental impact from economic growth.…”

Section: Bäckstrand 2003;mentioning

confidence: 99%

“…This variation has influenced studies that examine institutional pressure on multinational responsiveness (Perez-Aleman & Sandilands, 2008;Perego & Kolk, 2012;Aguilera-Caracuel et al, 2013;Fleury & Fleury, 2014) and the level of private involvement that contributes to sustainability (Koppenjan & Enserink, 2009).…”

Section: Multinationals and Sustainability Partnershipsmentioning

confidence: 99%

Global sustainability under uncertainty: How do multinationals craft regulatory policies?

Durugbo

Amankwah‐Amoah

2019

Corp Soc Responsibility Env

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Multinational corporations (MNCs) are increasingly mindful of the significance of sustainability transitions and the need for operations that are energy efficient and environmentally sound. Achieving sustainability under conditions of uncertainty entails the involvement of multiple stakeholders in initiating and carrying out sustainability-focused initiatives. Using longitudinal analysis of Royal Dutch Shell's sustainability policies, we developed an integrated model to elucidate how uncertainty influences sustainability policies in the specific context of MNCs. We identified three phases in the evolution of Shell's sustainability innovation: a self-reflective phase (2000-2003) characterized by intense pressure from climate advocacy groups, an investment phase (2004-2006) for which the MNC attempted to rise to the waste disposal and pollution challenge through renewable sources of energy, and a reorganization phase (2007-2010) to streamline operations. We also uncovered themes that influence how regulatory policies are crafted: responding positively to the "community's voice," risk spreading through joint ventures, revenue transparency for government accountability, and reporting innovation that confronts hard truths. The practical implications are outlined. KEYWORDS environmental policy, global environment, stakeholder engagement, sustainability transitions, sustainable development

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“…No obstante, otros estudios muestran que, a través de la internacionalización, las empresas, van a tener una mayor oportunidad para aprender puesto que están expuestas a diferentes ideas provenientes de diferentes mercados con peculiaridades culturales, institucionales (Kochhar y Hitt, 1995) así como exigencias propias en materia social (Strike et al, 2006) y medioambiental (Aguilera-Caracuel et al, 2013). Concretamente, las empresas van a poder adquirir conocimientos valiosos que les permitan responder a las expectativas de los diferentes grupos de interés, gestionar las diferencias regulatorias entre los diferentes países, establecer acuerdos y colaboraciones con otras organizaciones e instituciones, desarrollar habilidades de negociación con gobiernos e instituciones públicas basadas en la confianza y cooperación, y reforzar sus estándares sociales y medioambientales a lo largo de su entramado organizativo (Strike et al, 2006).…”

Section: Teoría De Conocimiento Internacionalización Y Desempeño Socialunclassified

The influence of internationalization on firm corporate social performance

2014

Self Cite

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Resumen:Recientemente estudios previos han comenzado a plantear la posible relación entre el fenómeno de la internacionalización y responsabilidad social corporativa de las organizaciones. En este trabajo analizamos en qué medida la internacionalización contribuye a una mejora sustancial del desempeño social de las empresas. Usando una muestra de 102 empresas estadounidenses de los sectores químico, energético y de maquinaria industrial, nuestros resultados muestran que no todas las dimensiones de la internacionalización permiten a las empresas adquirir conocimiento valioso que conduzca a una mejora de su desempeño social. Concretamente, comprobamos que, mientras el porcentaje de ventas en mercados extranjeros y la diversificación internacional cultural favorecen la puesta en marcha de prácticas de responsabilidad social corporativa avanzadas que redundan en un mejor desempeño social (cumpliendo con las demandas sociales de los grupos de interés de los distintos mercados donde operan), la diversificación internacional geográfica no tiene efecto directo en el desempeño social de las empresas. Por tanto, no es tan importante el número de mercados donde la empresa actúa, sino el grado de diferenciación cultural existente entre los mismos lo que hace que la propia empresa mejore su desempeño social. El presente trabajo incluye implicaciones relevantes para el mundo académico, directivos y reguladores públicos. Palabras clave:Empresas estadounidenses, sector químico, sector energético, sector de maquinaria industrial, diversificación internacional geográfica y cultural, análisis estático de datos de panel. Abstract:Recently, previous literature has paid special attention to study the relationship between firm internationalization and corporate social responsibility. In this research we examine the impact of internationalization on corporate social performance. Using a sample of 102 U.S. firms from the chemical, energy and industrial machinery industries, our results show that not all the dimensions of internationalization lead firms to enhance their level of social performance. Specifically, we can see that, whereas percentage of sales in foreign markets and cultural international diversification help firms to improve their level of social performance (complying with the different stakeholders' social needs in each country where they operate), geographical international diversification is not related to corporate social performance. Thus, the number of geographical areas is not an important issue, but the degree of cultural international diversification between these areas what really influences firms' corporate social performance. We discuss important implications for academia, managers and policy-makers as well.

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Differentiated effects of formal and informal institutional distance between countries on the environmental performance of multinational enterprises

Cited by 53 publications

References 62 publications

Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment

Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment

Global sustainability under uncertainty: How do multinationals craft regulatory policies?

The influence of internationalization on firm corporate social performance

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