Stakeholder pressures, EMS implementation, and green innovation in MNC overseas subsidiaries

Norifumi Kawai, Roger Strange and Antonella Zucchella

International Business Review, 2018, vol. 27, issue 5, 933-946

Abstract: In this paper, we address the issue of green innovation by the overseas subsidiaries of multinational corporations (MNCs). Drawing upon stakeholder theory and institutional theory, we propose a conceptual model to explain how stakeholder pressures in host countries prompt MNC subsidiaries to undertake green product and process innovations. Our findings indicate that MNC subsidiaries need to meet market stakeholders’ pressures in order to achieve social legitimacy in host countries, and that the implementation of formal environmental management systems (EMS) is an important mechanism translating these pressures into green innovation initiatives. Furthermore, we find that the positive relationship between market stakeholder pressures and EMS implementation is reinforced by global ‘green’ institutional pressures in the different host countries.

Keywords: Green innovation; MNC subsidiaries; Stakeholder pressures; Environmental management systems; Global institutional pressures (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (62)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:27:y:2018:i:5:p:933-946

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DOI: 10.1016/j.ibusrev.2018.02.004

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