The Sustainability Paradox: Why Firms Innovate More When Far From Home?

Aymen Ammari (), Ouidade Sabri, Ydriss Ziane () and Jérôme Caby ()
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Aymen Ammari: INSEEC - Institut des hautes études économiques et commerciales | School of Business and Economics
Ouidade Sabri: IAE Paris - Sorbonne Business School
Ydriss Ziane: IAE Paris - Sorbonne Business School
Jérôme Caby: IAE Paris - Sorbonne Business School

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Abstract: Drawing on Attention-Based theory, we study the impact of internationalization on Business Model Innovation and evaluate the impact of sustainability and SDG alignment on this relationship. Based on an international sample of more than 10,000 listed firms over the period 2020-2024, we observe that the degree of internationalization very significantly influences Business Model Innovation, the more firms are internationalized, the more they innovate. Our investigations also show that the SDG alignment amplifies the negative effect of domestic orientation on Business Model Innovation and conversely that SDG alignment favors Business Model Innovation for more globalized firms. Internationalized companies are more prepared to successfully integrate sustainability into their strategy, because the orientation of their attention is better structured for this. This leads to the unexpected finding that internationalization promotes sustainability contrary to the supposed benefits of deglobalization.

Keywords: Sustainability; SDG; Internationalization; Innovation; Business Model; Attention-Based View (search for similar items in EconPapers)
Date: 2026-06-16
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Published in ACIEK, UTAMED, Jun 2026, Malaga, Spain, Spain

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05670521

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