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

Kawai, Norifumi, Strange, Roger and Zuchella, Antonella (2018) Stakeholder pressures, EMS implementation, and green innovation in MNC overseas subsidiaries. International Business Review. ISSN 0969-5931

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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.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Business and Management
Depositing User: Joy Blake
Date Deposited: 05 Mar 2018 12:19
Last Modified: 22 May 2018 14:24
URI: http://sro.sussex.ac.uk/id/eprint/74200

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