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Environmental Sustainability Practices and Offshoring Activities of Multinational Corporations Across Emerging and Developed Markets

Lartey, Theophilus A., Amankwah-Amoah, Joseph, Danso, Albert, Adomako, Samuel, Khan, Zaheer, Tarba, Shlomo Y. (2020) Environmental Sustainability Practices and Offshoring Activities of Multinational Corporations Across Emerging and Developed Markets. International Business Review, . Article Number 101789. ISSN 0969-5931. (doi:10.1016/j.ibusrev.2020.101789) (Access to this publication is currently restricted. You may be able to access a copy if URLs are provided) (KAR id:84811)

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https://dx.doi.org/10.1016/j.ibusrev.2020.101789

Abstract

Using panel data of 1080 multinational corporations (MNCs) from the United States, we examine the effects of environmental sustainability practices on the degree of firms’ offshoring activities. In addition, we disaggregate offshoring activities into their core components depending on whether or not the firm buys (inputs) or sells (outputs) and/or owns assets in a given country and examine the extent to which sustainability practices influence the different components of offshoring decisions. The results indicate that sustainability practices significantly affect offshoring activities of MNCs. In particular, we found that sustainable business practices matter when the firm sells goods or owns assets in the given host nation. Additionally, the results show that the sustainability–degree of the internationalization relationship is crucial for MNCs that have offshoring activities in advanced economies relative to those firms that have activities in emerging markets. Our results are robust to alternative explanations.

Item Type: Article
DOI/Identification number: 10.1016/j.ibusrev.2020.101789
Uncontrolled keywords: Environmental sustainability; Offshoring strategy; Production assets; Advanced economies; Emerging economies
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Divisions > Kent Business School - Division > Department of Marketing, Entrepreneurship and International Business
Depositing User: Joseph Amankwah-Amoah
Date Deposited: 15 Dec 2020 09:43 UTC
Last Modified: 08 Oct 2021 15:55 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/84811 (The current URI for this page, for reference purposes)
Amankwah-Amoah, Joseph: https://orcid.org/0000-0003-0383-5831
Khan, Zaheer: https://orcid.org/0000-0001-5538-3123
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