Untangling the Influence of Corporate Sustainability on Export Intensity: The Moderating Role of R&D Intensity

Abstract

Growing global environmental and social issues have imposed increased pressure on firms to address sustainability challenges in international markets, with a particular focus on improving their export performance. This is of significant importance for emerging market firms aiming to expand their presence in international markets, as they are compelled to bolster their environmental and social sustainability capacity to enhance their export intensity. This study delves into the relationship between corporate sustainability and export intensity through a longitudinal examination of 141 firms listed on Borsa Istanbul from 2014 to 2021. The results suggest that corporate sustainability positively influences export intensity, and this influence is further positively moderated by R&D intensity. Additionally, post-hoc analysis employing supplementary data pertaining to the environmental, social, and governance dimensions of corporate sustainability reveals that environmental performance plays a positive role in shaping export intensity, with R&D intensity positively moderating this relationship. In summary, our findings underscore that exporting firms that effectively integrate impactful R&D intensity into their international business operations are likely to harness their sustainability strategies, particularly those related to the natural environment, to achieve higher export intensity.