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ESG Strategies and Sustainable Performance in Multinational Enterprises

Author

Listed:
  • Kao-Shan Chen

    (Department of Business Administration, Vanung University, Taoyuan City 32061, Taiwan)

  • Shih-Tse Lin

    (Department of Business Administration, Vanung University, Taoyuan City 32061, Taiwan)

  • Che-Jen Chuang

    (Department of Tourism & Leisure Management, Vanung University, Taoyuan City 32061, Taiwan)

Abstract

This study examines the impact of ESG strategies on sustainable performance in multinational enterprises (MNEs), with a particular focus on the mediating role of internal market-oriented culture (IMOC) and the moderating effect of job crafting. To validate these key mechanisms, the study employs a stratified random sampling method to collect data from 614 employees across manufacturing, service, and technology-intensive industries. The data were analyzed using structural equation modeling (SEM) to test the hypothesized relationships. The empirical results demonstrate that ESG strategies significantly enhance sustainable organizational performance, with IMOC serving as a critical mediator linking ESG strategies to improved outcomes. Furthermore, job crafting strengthens the positive relationship between IMOC and sustainable performance, indicating that when employees proactively reshape their tasks and roles to align with ESG objectives, organizational sustainability is further enhanced. The influence of cultural context plays a crucial role in this process. The findings reveal that the effects of IMOC and job crafting are more pronounced in collectivist cultures (e.g., China and Japan), while in individualist cultures (e.g., the United States and Germany), performance improvements rely more heavily on individual incentives and feedback mechanisms. These insights provide practical guidance for MNE managers on how to tailor ESG strategies, IMOC, and job crafting approaches to specific regional and cultural settings. This study contributes to the literature by demonstrating how ESG strategies interact with internal cultural and behavioral mechanisms to drive sustainable performance in MNEs. It highlights the role of IMOC and job crafting as internal drivers that bridge ESG initiatives with tangible organizational outcomes. From a practical perspective, the findings offer actionable guidance for MNEs on how to design adaptive ESG strategies and employee engagement practices tailored to culturally diverse environments. These insights provide managers with a clear pathway to enhance employee-driven change and improve sustainable performance across global operations.

Suggested Citation

  • Kao-Shan Chen & Shih-Tse Lin & Che-Jen Chuang, 2025. "ESG Strategies and Sustainable Performance in Multinational Enterprises," Sustainability, MDPI, vol. 17(2), pages 1-31, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:751-:d:1570346
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    References listed on IDEAS

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