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Internationalization and Sustainable Operations: A Broad Investigation of China’s Manufacturing Firms with Implications for Emerging Markets

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  • Tiansen Liu

    (School of Social and Behavioral Sciences, Nanjing University, Nanjing, China State Key Laboratory of Pollution Control and Resource Reuse, Nanjing University, Nanjing, China School of Economics and Management, Harbin Engineering University, Harbin, China)

  • Yue Zhu

    (School of Management, Harbin Institute of Technology, Harbin, China)

  • Xinpeng Xing

    (School of Business, Jiangnan University, Wuxi, China)

Abstract

We investigate if internationalization behaviors encourage sustainable operations of China’s manufacturing firms due to their substantial impact on climate change and special governance modes, and organize a heterogeneity test to clarify what kind of internationalization behaviors can robustly influence such operations. We find that firms with abundant assets and heavy-polluting feature are more committed to sustainable operations. Getting close to international sustainability standards, international auditing standards, and international business all improve sustainable operations. Heterogeneity test further shows that compared with international standards, the positive impact of international business on sustainable operation lacks a robustness, which responds to an argument that for one country, international business acts as a double-edged sword. Overall, this paper reveals internationalization as a key indicator significantly influencing economic, ecological, and social spheres in manufacturing sectors of emerging markets, and complying with well-accepted international standards can be significantly embodied in a more optimistic sustainable operations. However, how to deal with international business in a right manner is a research highlight worthy of ongoing discussion. We focus on different types of internationalization behaviors, and this indicator can theoretically inspire future study to dialectically evaluate the role of internationalization in addressing sustainability problems in emerging markets’ pillar industries.

Suggested Citation

  • Tiansen Liu & Yue Zhu & Xinpeng Xing, 2021. "Internationalization and Sustainable Operations: A Broad Investigation of China’s Manufacturing Firms with Implications for Emerging Markets," Scientific Review, Academic Research Publishing Group, vol. 7(1), pages 1-10, 01-2021.
    • Handle: RePEc:arp:srarsr:2021:p:1-10
    DOI: 10.32861/sr.71.1.10
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