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Multinational enterprises’ internationalization and adoption of sustainable development goals

Author

Listed:
  • Ranjan DasGupta
  • Satish Kumar
  • Rajesh Pathak

Abstract

Purpose - Using a sample of 1,517 multinational enterprises (MNEs) from 25 countries, this study aims to examine whether firm’s level of internationalization has a deterministic role for their engagement with sustainable development goals (SDGs). Additionally, this study aims to investigate the country- and industry-specific moderation effects on the relationship. Design/methodology/approach - This study employs negative binomial regression model along with the fixed effects for industry and time in the empirical estimation. Findings - This study shows that MNEs’ internationalization is associated with their higher engagement in SDGs. This is owing to the pressures MNEs face from diverse stakeholders coupled with the need to build local legitimacy to overcome the liability of foreignness. The country-level results of this study suggest that this positive relation is stronger in countries with weak legal environment, countries with weak investor protection and in countries with higher SDG index scores. However, the industry-level results of this study indicate that the positive relation between MNEs internationalization and their SDG engagement are weaker in industries facing more competition and industries exposed to negative externalities. The results survive to controls for factors specific to firm and industry. Originality/value - This study is one of the early studies which empirically examine the role of MNE internationalization and SDG engagement. Also, the findings of this study improve the understanding on country-specific and industry-specific challenges in implementing SDGs.

Suggested Citation

  • Ranjan DasGupta & Satish Kumar & Rajesh Pathak, 2022. "Multinational enterprises’ internationalization and adoption of sustainable development goals," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 18(4), pages 617-638, February.
    • Handle: RePEc:eme:ijmfpp:ijmf-09-2021-0416
    DOI: 10.1108/IJMF-09-2021-0416
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    Citations

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    Cited by:

    1. Leonidou, Leonidas C. & Theodosiou, Marios & Nilssen, Frode & Eteokleous, Pantelitsa & Voskou, Angeliki, 2024. "Evaluating MNEs’ role in implementing the UN Sustainable Development Goals: The importance of innovative partnerships," International Business Review, Elsevier, vol. 33(3).
    2. Dachs, Bernhard & Amoroso, Sara & Castellani, Davide & Papanastassiou, Marina & von Zedtwitz, Max, 2024. "The internationalisation of R&D: Past, present and future," International Business Review, Elsevier, vol. 33(1).
    3. Roberto Herrera Barriga & Diana Escandon‐Barbosa, 2024. "Synergizing board dynamics, sustainability, and strategy for international success," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3368-3378, July.
    4. Feng, Yanchao & Sabir, Saeed Ahmad & Quddus, Abdul & Wang, Jianxin & Abbas, Shujaat, 2024. "Do the grey clouds of geopolitical risk and political globalization exacerbate environmental degradation? Evidence from resource-rich countries," Resources Policy, Elsevier, vol. 89(C).
    5. Marika Arena & Giovanni Azzone & Sara Ratti & Valeria Maria Urbano & Giovanni Vecchio, 2023. "Sustainable development goals and corporate reporting: An empirical investigation of the oil and gas industry," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 12-25, February.
    6. Elías Domingo‐Posada & Pilar L. González‐Torre & Marta M. Vidal‐Suárez, 2024. "Sustainable development goals and corporate strategy: A map of the field," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 2733-2748, July.
    7. Alan Bandeira Pinheiro & Gabriel Gusso Mazzo & Gabriele da Cunha Lopes & Manuel Castelo Branco, 2023. "A Bird’s Eye View: Uncovering the Impact of Stakeholder Pressure on Sustainable Development Goal Disclosure," Sustainability, MDPI, vol. 15(23), pages 1-15, November.

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