Environmental innovation in foreign subsidiaries: The role of home-ecological institutions, subsidiary establishment mode and post-establishment experience

Palitha Konara, Carmen Lopez and Vikrant Shirodkar

Journal of World Business, 2021, vol. 56, issue 6

Abstract: In this study, we argue that foreign subsidiaries of multinational enterprises (MNEs) vary in terms of their engagement in environmental innovation depending on the strength of the MNE's home-ecological institutions. We also propose that the manifestation of this home-institutional effect varies depending on the choice of the subsidiary establishment mode (acquisition vs. greenfield) and over time based on the subsidiaries’ host experience. We test our hypotheses using a sample of foreign subsidiaries in Spain over the period 2003–2015. Our results support the home-institutional effect on subsidiary-level environmental innovation as well as the moderating effects of the subsidiary establishment mode and host experience.

Keywords: Environmental innovation; Regulatory institutions; Multinational enterprises; Institutional theory; Establishment mode (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (6)

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DOI: 10.1016/j.jwb.2021.101261

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