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Proactive Environmental Strategy, Foreign Institutional Pressures, and Internationalization of Chinese SMEs

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  • Ko, Dr. Wai Wai
  • Chen, Prof. Yantai
  • Chen, Dr. Cheng-Hao Steve
  • Wu, Dr. Meng-Shan Sharon
  • Liu, Prof. Gordon

Abstract

We explain how proactive environmental strategy affects emerging country small- and medium-sized enterprise (SME) internationalization and the contingency roles of foreign institutional environment. A survey of 217 Chinese SMEs reveals the positive effects of proactive environmental strategy on inward-focused and outward-focused internationalization activities. The results also show that foreign institutional pressures influence such effects in nonlinear ways. That is, a medium level of foreign environmental regulatory pressure maximizes the positive effects of proactive environmental strategy on inward-focused internationalization activities, while a medium level of foreign environmental customer pressure maximizes the positive effects of proactive environmental strategy on outward-focused internationalization activities.

Suggested Citation

  • Ko, Dr. Wai Wai & Chen, Prof. Yantai & Chen, Dr. Cheng-Hao Steve & Wu, Dr. Meng-Shan Sharon & Liu, Prof. Gordon, 2021. "Proactive Environmental Strategy, Foreign Institutional Pressures, and Internationalization of Chinese SMEs," Journal of World Business, Elsevier, vol. 56(6).
    • Handle: RePEc:eee:worbus:v:56:y:2021:i:6:s1090951621000584
    DOI: 10.1016/j.jwb.2021.101247
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