Abstract
Using panel data of 1080 multinational corporations (MNCs) from the United States, we examine the effects of environmental sustainability practices on the degree of firms’ offshoring activities. In addition, we disaggregate offshoring activities into their core components depending on whether or not the firm buys (inputs) or sells (outputs) and/or owns assets in a given country and examine the extent to which sustainability practices influence the different components of offshoring decisions. The results indicate that sustainability practices significantly affect offshoring activities of MNCs. In particular, we found that sustainable business practices matter when the firm sells goods or owns assets in the given host nation. Additionally, the results show that the sustainability–degree of the internationalization relationship is crucial for MNCs that have offshoring activities in advanced economies relative to those firms that have activities in emerging markets. Our results are robust to alternative explanations.
Original language | English |
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Article number | 101789 |
Journal | International Business Review |
Early online date | 24 Dec 2020 |
DOIs | |
Publication status | E-pub ahead of print - 24 Dec 2020 |
Bibliographical note
Publisher Copyright:© 2020 Elsevier Ltd
Keywords
- Advanced economies
- Emerging economies
- Environmental sustainability
- Offshoring strategy
- Production assets
ASJC Scopus subject areas
- Business and International Management
- Finance
- Marketing