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Multinationals and sustainable development: Does internationalization develop corporate sustainability of emerging market multinationals?

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  • Sang‐Bum Park

Abstract

Based on theories of attention and institution, this paper examines how the internationalization of emerging market multinationals (EMNEs) affects their corporate sustainability (CS). A contrasting perspective with respect to the dual effects of internationalization on sustainability strengths (being good) and sustainability concerns (being bad) is developed. On one hand, it is argued that internationalization improves CS strengths because EMNEs that rely on foreign sales are motivated to adopt CS as a global business norm. Such norm‐conformity overcomes the liability of origin and legitimacy challenge in foreign markets. On the other hand, it is contended that internationalization also increases CS concerns because subsidiaries of EMNEs are susceptible to being decoupled from the headquarters' CS policy. The results show that internationalization can be both good and bad for CS. Thus, it can be misleading to simply say that there is either a positive or a negative relationship between internationalization and CS.

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  • Sang‐Bum Park, 2018. "Multinationals and sustainable development: Does internationalization develop corporate sustainability of emerging market multinationals?," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1514-1524, December.
    • Handle: RePEc:bla:bstrat:v:27:y:2018:i:8:p:1514-1524
    DOI: 10.1002/bse.2209
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