Outward foreign direct investment and corporate green innovation: An institutional pressure perspective
South African Journal of Business Management
| Field | Value | |
| Title | Outward foreign direct investment and corporate green innovation: An institutional pressure perspective | |
| Creator | Yang, Zhen Ali, Syed T. Ali, Farman Sarwar, Zahid Khan, Muhammad A. | |
| Description | Purpose: Institutional theory is a reasonable explanation for the motives of corporate social responsibility (CSR) behaviours (e.g. corporate green innovation). The existing literature defines institutional pressure as threats for legitimacy when firms operate within a country or a region; one area that has received little attention is the situation when a firm extends its operations across borders to pursue internationalisation. The study investigates the impact of outward foreign direct investment (OFDI) on green innovation at the firm level.Design/methodology/approach: The zero-inflated negative binomial regression models are estimated to analyse the data collected from 2065 manufacturing enterprises listed in China during 2007–2017 (n = 14 129). Green innovation is measured by the number of green patents, according to the World Intellectual Property Organization (WIPO) International Patent Classification (IPC) Green Inventory.Findings/results: The findings show that OFDI is positively associated with green innovation for emerging market enterprises (EMEs). Furthermore, compared with investment in emerging economies, OFDI in developed economies has a stronger positive relationship with corporate green innovation. The positive effect of OFDI on corporate green innovation will be higher for EMEs located in sub-national regions (i.e., province of the home country) with lower levels of institutional development.Practical implications: Emerging market enterprises should overcome organisational inertia and compete in a broader market to enhance their awareness and ability of green innovation.Originality/value: This article contributes to the existing literature by exploring institutional pressure faced by EMEs when they operate overseas (e.g. OFDI) can play a significant role in influencing green innovation, and enriches our understanding of EMEs’ inclination towards CSR (e.g. green innovation) in the context of internationalisation. | |
| Publisher | AOSIS | |
| Date | 2020-06-08 | |
| Identifier | 10.4102/sajbm.v51i1.1883 | |
| Source | South African Journal of Business Management; Vol 51, No 1 (2020); 12 pages 2078-5976 2078-5585 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajbm.org/index.php/sajbm/article/view/1883/1561
https://sajbm.org/index.php/sajbm/article/view/1883/1560
https://sajbm.org/index.php/sajbm/article/view/1883/1562
https://sajbm.org/index.php/sajbm/article/view/1883/1559
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