Abstract
This study focuses on climate change regulatory pressures at the national/regional level, which can be considered emergent institutions – newly established and subject to change – in contrast to established institutions. We explore their impact on the environmental sustainability performance of multinational enterprises, advancing beyond the extant literature's focus on their binary compliance reactions. Utilizing a sample of Standard & Poor's 1200 firms, our findings indicate that variations in climate change regulatory pressures at the national/regional level can account for differences in environmental sustainability performance at the corporate level. Moreover, this relationship is moderated by two critical firm characteristics: foreign market exposure and industry carbon intensity. Foreign market exposure, particularly in the context of developing countries, can diminish the positive effects of a home country's climate change regulatory pressures, while industry carbon intensity can amplify these effects.
Original language | English |
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Pages (from-to) | 223-239 |
Number of pages | 17 |
Journal | British Journal of Management |
Volume | 36 |
Issue number | 1 |
Early online date | 14 Jun 2024 |
DOIs | |
Publication status | E-pub ahead of print - 14 Jun 2024 |
Bibliographical note
Publisher Copyright:© 2024 The Author(s). British Journal of Management published by John Wiley & Sons Ltd on behalf of British Academy of Management.