Multinational enterprises’ internationalization and adoption of sustainable development goals

Abstract

PurposeUsing a sample of 1,517 multinational enterprises (MNEs) from 25 countries, this study aims to examine whether firm’s level of internationalization has a deterministic role for their engagement with sustainable development goals (SDGs). Additionally, this study aims to investigate the country- and industry-specific moderation effects on the relationship.Design/methodology/approachThis study employs negative binomial regression model along with the fixed effects for industry and time in the empirical estimation.Findings This study shows that MNEs’ internationalization is associated with their higher engagement in SDGs. This is owing to the pressures MNEs face from diverse stakeholders coupled with the need to build local legitimacy to overcome the liability of foreignness. The country-level results of this study suggest that this positive relation is stronger in countries with weak legal environment, countries with weak investor protection and in countries with higher SDG index scores. However, the industry-level results of this study indicate that the positive relation between MNEs internationalization and their SDG engagement are weaker in industries facing more competition and industries exposed to negative externalities. The results survive to controls for factors specific to firm and industry.Originality/valueThis study is one of the early studies which empirically examine the role of MNE internationalization and SDG engagement. Also, the findings of this study improve the understanding on country-specific and industry-specific challenges in implementing SDGs.

Sustainable strategy as a lever for corporate legitimacy and long-term competitive advantage: an examination of an emerging market multinational

“…Hence, this study advances theory regarding compensation of liabilities through the implementation of sustainability practices as a strategy to gain legitimacy in emerging market contexts, which is lacking nowadays (DasGupta et al , 2022). Similarly, from a managerial perspective, it highlights the importance for managers to address stakeholder demands and institutional conditions of host countries to gain legitimacy among them.…”

Simple doable goals: a roadmap for multinationals to help achieve the UN’s sustainable development goals

“…A review of the literature on the sustainability strategies of MNEs reveals that MNEs are attempting to move from charity-based CSR to focus on sustainability, with both headquarter and local imperatives shaping these initiatives (Burritt et al , 2020). DasGupta et al (2022), in an empirical study of a large set of multinationals, find that the MNEs’ internationalization is associated with their high engagement with the SDGs, owing to the pressure MNEs face from diverse stakeholders coupled with the need to build local legitimacy to overcome the liabilities of foreignness. In other words, an MNE’s sustainability agenda is likely to depend on the interests and beliefs of its extended stakeholder network.…”

Sustainable development goals and corporate reporting: An empirical investigation of the oil and gas industry

“…In particular, Van Zanten and Van Tulder (2018) do not find any significant relationship between a company's degree of internationalisation and its referencing of the SDGs in corporate reporting. On the contrary, DasGupta et al (2022), analysing the companies included in the Financial Times (FT) Global 500 ranking, report that the level of internationalisation is associated with a higher engagement with the SDGs, influenced by the pressures that companies operating at international level face from diverse stakeholders (DasGupta et al, 2022).…”