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Foreign multinational enterprises and eco-innovation in local firms: the effect of imitation

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  • Yoo Jung Ha

    (University of York)

Abstract

This paper investigates multinational enterprises (MNEs) as a potential referent for local firms making decisions on eco-innovation. By analyzing Korean innovation survey and patent data, we find local firms’ eco-innovation scope converges with that of the most profitable foreign MNEs within an industry, i.e., profitability is considered a reliable signal for imitation. The imitation tendency changes contingent on previous eco-innovation experience and innovation networks in other local firms. The degree of imitation is then negatively associated with local firms’ eco-innovation outputs. This study shows how local firms can use social proof from selected foreign MNEs to supplement their sense-making in a non-routine environment.

Suggested Citation

  • Yoo Jung Ha, 2021. "Foreign multinational enterprises and eco-innovation in local firms: the effect of imitation," Asian Business & Management, Palgrave Macmillan, vol. 20(4), pages 488-517, September.
    • Handle: RePEc:pal:abaman:v:20:y:2021:i:4:d:10.1057_s41291-020-00142-y
    DOI: 10.1057/s41291-020-00142-y
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