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

Yoo Jung Ha ()
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Yoo Jung Ha: University of York

Asian Business & Management, 2021, vol. 20, issue 4, No 4, 488-517

Abstract: 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.

Keywords: MNE; Eco-innovation; Imitation; Social proof; Non-routine environment (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1057/s41291-020-00142-y

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