IDEAS home Printed from https://ideas.repec.org/a/pal/abaman/v22y2023i4d10.1057_s41291-022-00203-4.html
   My bibliography  Save this article

Reporting of environmental policies and internationalization of Asia–Pacific firms: the moderating role of innovation as a source of legitimacy

Author

Listed:
  • Gozal Ahmadova

    (University of Ramon Llull
    University of Granada)

  • Blanca L. Delgado-Márquez

    (University of Granada)

  • Javier Aguilera-Caracuel

    (University of Granada)

Abstract

This study aims to examine whether Asia–Pacific firms use reporting environmental policies to reduce their liability of origin in the international arena. Furthermore, moderating effects of institutional and organizational innovations are captured as sources of legitimacy. A multilevel modeling technique was used to test the hypotheses. The sample was composed of 91 firms from 11 countries in 10 different sectors during the period from 2014 to 2018. Using institutional theory, the results show that the reporting of environmental policies has a significant positive impact on the firms’ scope of internationalization. The results reveal that high institutional innovation has a negative moderating role in the relationship between firms’ reporting of environmental policies and their scope of internationalization. However, it was found that organizational innovation does not exhibit a significant moderating effect on this relationship.

Suggested Citation

  • Gozal Ahmadova & Blanca L. Delgado-Márquez & Javier Aguilera-Caracuel, 2023. "Reporting of environmental policies and internationalization of Asia–Pacific firms: the moderating role of innovation as a source of legitimacy," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1243-1273, September.
    • Handle: RePEc:pal:abaman:v:22:y:2023:i:4:d:10.1057_s41291-022-00203-4
    DOI: 10.1057/s41291-022-00203-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41291-022-00203-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41291-022-00203-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Symeou, Pavlos C. & Zyglidopoulos, Stelios & Gardberg, Naomi A., 2019. "Corporate environmental performance: Revisiting the role of organizational slack," Journal of Business Research, Elsevier, vol. 96(C), pages 169-182.
    2. Lenn Gomes & Kannan Ramaswamy, 1999. "An Empirical Examination of the Form of the Relationship Between Multinationality and Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(1), pages 173-187, March.
    3. Eduardo Ortas & Isabel Gallego‐Álvarez & Igor Álvarez, 2019. "National institutions, stakeholder engagement, and firms' environmental, social, and governance performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(3), pages 598-611, May.
    4. Tao Bai & Stephen Chen & Xiao He, 2019. "How Home-Country Political Connections Influence the Internationalization of Service Firms," Management International Review, Springer, vol. 59(4), pages 541-560, August.
    5. Mahabubur Rahman & Saqib Aziz & Mathew Hughes, 2020. "The product‐market performance benefits of environmental policy: Why customer awareness and firm innovativeness matter," Post-Print hal-03004777, HAL.
    6. Qun Tan & Carlos M. P. Sousa, 2019. "Why Poor Performance is Not Enough for a Foreign Exit: The Importance of Innovation Capability and International Experience," Management International Review, Springer, vol. 59(3), pages 465-498, June.
    7. Olga Hawn & Ioannis Ioannou, 2016. "Mind the gap: The interplay between external and internal actions in the case of corporate social responsibility," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 2569-2588, December.
    8. Aguilera-Caracuel, Javier & Hurtado-Torres, Nuria Esther & Aragón-Correa, Juan Alberto & Rugman, Alan M., 2013. "Differentiated effects of formal and informal institutional distance between countries on the environmental performance of multinational enterprises," Journal of Business Research, Elsevier, vol. 66(12), pages 2657-2665.
    9. Alan M. Rugman & Alain Verbeke, 2005. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Chapters, in: Analysis of Multinational Strategic Management, chapter 8, pages 104-119, Edward Elgar Publishing.
    10. Yuri Mishina & Timothy G. Pollock & Joseph F. Porac, 2004. "Are more resources always better for growth? Resource stickiness in market and product expansion," Strategic Management Journal, Wiley Blackwell, vol. 25(12), pages 1179-1197, December.
    11. Michael Polonsky & Rachid Zeffane & Patrick Medley, 1992. "Corporate environmental commitment in Australia: A sectorial comparison," Business Strategy and the Environment, Wiley Blackwell, vol. 1(2), pages 25-39, June.
    12. Kathy Babiak & Sylvia Trendafilova, 2011. "CSR and environmental responsibility: motives and pressures to adopt green management practices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(1), pages 11-24, January.
    13. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    14. Martin-Tapia, Inmaculada & Aragon-Correa, Juan Alberto & Senise-Barrio, Maria Eugenia, 2008. "Being green and export intensity of SMEs: The moderating influence of perceived uncertainty," Ecological Economics, Elsevier, vol. 68(1-2), pages 56-67, December.
    15. Khedhaouria, Anis & Thurik, Roy, 2017. "Configurational conditions of national innovation capability: A fuzzy set analysis approach," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 48-58.
    16. J. -D. Lee & A. Heshmati, 2009. "Introduction Productivity, Efficiency, and Economic Growth in the Asia-Pacific Region," Contributions to Economics, in: Jeong-Dong Lee & Almas Heshmati (ed.), Productivity, Efficiency, and Economic Growth in the Asia-Pacific Region, pages 1-10, Springer.
    17. Julia Hartmann & Stephan Vachon, 2018. "Linking Environmental Management to Environmental Performance: The Interactive Role of Industry Context," Business Strategy and the Environment, Wiley Blackwell, vol. 27(3), pages 359-374, March.
    18. Najah Attig & Narjess Boubakri & Sadok El Ghoul & Omrane Guedhami, 2016. "Firm Internationalization and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 134(2), pages 171-197, March.
    19. D’Angelo, Alfredo & Majocchi, Antonio & Buck, Trevor, 2016. "External managers, family ownership and the scope of SME internationalization," Journal of World Business, Elsevier, vol. 51(4), pages 534-547.
    20. Oesterle, Michael-Jörg & Richta, Hannah Noriko & Fisch, Jan Hendrik, 2013. "The influence of ownership structure on internationalization," International Business Review, Elsevier, vol. 22(1), pages 187-201.
    21. Pino G. Audia & Henrich R. Greve, 2006. "Less Likely to Fail: Low Performance, Firm Size, and Factory Expansion in the Shipbuilding Industry," Management Science, INFORMS, vol. 52(1), pages 83-94, January.
    22. Saptarshi Purkayastha & Vikas Kumar & Jane Wenzhen Lu, 2017. "Business group heterogeneity and the internationalization-performance relationship: Evidence from Indian business groups," Asia Pacific Journal of Management, Springer, vol. 34(2), pages 247-279, June.
    23. Hartmann, Julia & Uhlenbruck, Klaus, 2015. "National institutional antecedents to corporate environmental performance," Journal of World Business, Elsevier, vol. 50(4), pages 729-741.
    24. Glen Dowell & Stuart Hart & Bernard Yeung, 2000. "Do Corporate Global Environmental Standards Create or Destroy Market Value?," Management Science, INFORMS, vol. 46(8), pages 1059-1074, August.
    25. Jeong-Dong Lee & Almas Heshmati (ed.), 2009. "Productivity, Efficiency, and Economic Growth in the Asia-Pacific Region," Contributions to Economics, Springer, number 978-3-7908-2072-0, January.
    26. Joanna Tochman Campbell & Lorraine Eden & Stewart R Miller, 2012. "Multinationals and corporate social responsibility in host countries: Does distance matter?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(1), pages 84-106, January.
    27. Mahabubur Rahman & Saqib Aziz & Mathew Hughes, 2020. "The product‐market performance benefits of environmental policy: Why customer awareness and firm innovativeness matter," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 2001-2018, July.
    28. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    29. Kalim U. Shah & Surendra Arjoon & Meena Rambocas, 2016. "Aligning Corporate Social Responsibility with Green Economy Development Pathways in Developing Countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 24(4), pages 237-253, July.
    30. Luis R. Gomez‐Mejia & Marianna Makri & Martin Larraza Kintana, 2010. "Diversification Decisions in Family‐Controlled Firms," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 223-252, March.
    31. Jian Du & Chao Zhou, 2019. "Does guanxi matter in the foreign expansion of Chinese manufacturing firms? The mediator role of linking and leveraging," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 473-497, June.
    32. Carneiro, Jorge & Bamiatzi, Vassiliki & Cavusgil, S. Tamer, 2018. "Organizational slack as an enabler of internationalization: The case of large Brazilian firms," International Business Review, Elsevier, vol. 27(5), pages 1057-1064.
    33. Martín-Tapia, Inmaculada & Aragón-Correa, J. Alberto & Rueda-Manzanares, Antonio, 2010. "Environmental strategy and exports in medium, small and micro-enterprises," Journal of World Business, Elsevier, vol. 45(3), pages 266-275, July.
    34. Natalia Ortiz-de-Mandojana & Javier Aguilera-Caracuel & José Manuel de la Torre-Ruíz & Vera Ferrón-Vílchez, 2011. "Can National Innovation Substitute The Role of Environmental Regulation to Improve Corporate Environmental Performance?," FEG Working Paper Series 05/11, Faculty of Economics and Business (University of Granada).
    35. Pérez-Cornejo, Clara & de Quevedo-Puente, Esther & Delgado-García, Juan Bautista, 2019. "How to manage corporate reputation? The effect of enterprise risk management systems and audit committees on corporate reputation," European Management Journal, Elsevier, vol. 37(4), pages 505-515.
    36. Noailly, Joëlle & Ryfisch, David, 2015. "Multinational firms and the internationalization of green R&D: A review of the evidence and policy implications," Energy Policy, Elsevier, vol. 83(C), pages 218-228.
    37. Stewart R. Miller & Douglas E. Thomas & Lorraine Eden & Michael Hitt, 2008. "Knee Deep in the Big Muddy: The Survival of Emerging Market Firms in Developed Markets," Management International Review, Springer, vol. 48(6), pages 645-666, December.
    38. Blanca L. Delgado‐Márquez & Luis Enrique Pedauga, 2017. "Environmental Behavior and MNEs: A Strategy Pulled by Stakeholder Engagement," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 927-939, November.
    39. Valentina Marano & Tatiana Kostova, 2016. "Unpacking the Institutional Complexity in Adoption of CSR Practices in Multinational Enterprises," Journal of Management Studies, Wiley Blackwell, vol. 53(1), pages 28-54, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Efrén Gómez‐Bolaños & Nuria Esther Hurtado‐Torres & Blanca Luisa Delgado‐Márquez, 2020. "Disentangling the influence of internationalization on sustainability development: Evidence from the energy sector," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 229-239, January.
    2. Zhou, Xi & Ying, Sammy Xiaoyan & You, Jiaxing & Wu, Huiying, 2024. "Like parent, like child: MNCs’ CSR and their foreign subsidiaries’ environmental footprint," Journal of Business Research, Elsevier, vol. 172(C).
    3. Charl de Villiers & Jing Jia & Zhongtian Li, 2022. "Corporate social responsibility: A review of empirical research using Thomson Reuters Asset4 data," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4523-4568, December.
    4. Kalpana Tokas & Kartik Yadav, 2023. "Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market," Global Business Review, International Management Institute, vol. 24(6), pages 1302-1325, December.
    5. Eduardo Duque‐Grisales & Javier Aguilera‐Caracuel & Jaime Guerrero‐Villegas & Encarnación García‐Sánchez, 2020. "Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3286-3302, December.
    6. Kafouros, Mario & Cavusgil, S. Tamer & Devinney, Timothy M. & Ganotakis, Panagiotis & Fainshmidt, Stav, 2022. "Cycles of de-internationalization and re-internationalization: Towards an integrative framework," Journal of World Business, Elsevier, vol. 57(1).
    7. Danchi Tan & Weichieh Su & Joseph T. Mahoney & Yasemin Kor, 2020. "A review of research on the growth of multinational enterprises: A Penrosean lens," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 498-537, June.
    8. Jean-Luc Arregle & Francesco Chirico & Liena Kano & Sumit K. Kundu & Antonio Majocchi & William S. Schulze, 2021. "Family firm internationalization: Past research and an agenda for the future," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(6), pages 1159-1198, August.
    9. 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).
    10. Shoaib Aslam & Mohamed H. Elmagrhi & Ramiz Ur Rehman & Collins G. Ntim, 2021. "Environmental management practices and financial performance using data envelopment analysis in Japan: The mediating role of environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1655-1673, May.
    11. Liu, Mei & Marshall, Andrew & McColgan, Patrick, 2021. "Foreign direct investments: The role of corporate social responsibility," Journal of Multinational Financial Management, Elsevier, vol. 59(C).
    12. Bauweraerts, Jonathan & Sciascia, Salvatore & Naldi, Lucia & Mazzola, Pietro, 2019. "Family CEO and board service: Turning the tide for export scope in family SMEs," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    13. Roger Leonard Burritt & Katherine Leanne Christ & Hussain Gulzar Rammal & Stefan Schaltegger, 2020. "Multinational Enterprise Strategies for Addressing Sustainability: the Need for Consolidation," Journal of Business Ethics, Springer, vol. 164(2), pages 389-410, June.
    14. Hitt, Michael A. & Li, Dan & Xu, Kai, 2016. "International strategy: From local to global and beyond," Journal of World Business, Elsevier, vol. 51(1), pages 58-73.
    15. Fahad Khalid & Juncheng Sun & Guanhua Huang & Chih-Yi Su, 2021. "Environmental, Social and Governance Performance of Chinese Multinationals: A Comparison of State- and Non-State-Owned Enterprises," Sustainability, MDPI, vol. 13(7), pages 1-21, April.
    16. Amer, Estefania, 2023. "Internationalization, institutional pressures in foreign markets, and environmental sustainability," Journal of International Management, Elsevier, vol. 29(1).
    17. Del Bosco, Barbara & Cristina Bettinelli, 2020. "How Do Family SMEs Control Their Investments Abroad? The Role of Distance and Family Control," Management International Review, Springer, vol. 60(1), pages 1-35, February.
    18. Na Yang & Jue Wang & Xiaming Liu & Lingyun Huang, 2022. "Home-country institutions and corporate social responsibility of emerging economy multinational enterprises: The belt and road initiative as an example," Asia Pacific Journal of Management, Springer, vol. 39(3), pages 927-965, September.
    19. Krzysztof Wach, 2017. "Exploring the Role of Ownership in International Entrepreneurship: How does Ownership Affect Internationalisation of Polish Firms?," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(4), pages 205-223.
    20. Xu, Kai & Hitt, Michael A. & Dai, Li, 2020. "International diversification of family-dominant firms: Integrating socioemotional wealth and behavioral theory of the firm," Journal of World Business, Elsevier, vol. 55(3).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:abaman:v:22:y:2023:i:4:d:10.1057_s41291-022-00203-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.