The Impact of Green Innovation Strategies on Multinational Corporations' Competitive Advantage in Emerging Markets: The Moderating Role of Institutional Pressures and Local Adaptability
DOI:
https://doi.org/10.54097/gmettm30Keywords:
Green innovation strategy, Multinational enterprises, Emerging markets, Institutional pressure, Local responseAbstract
Against the backdrop of global climate change and resource constraints, the sustainable development of multinational corporations (MNCs) in emerging markets has emerged as a critical theme in international management research. Green innovation strategies are regarded as a vital pathway for achieving triple bottom line objectives and optimizing competitiveness. Using a sample of 326 subsidiaries of multinational corporations operating in four major emerging markets in East and Southeast Asia (China, India, etc.), this study employs hierarchical regression, robustness tests, and endogeneity treatment to examine the impact of green innovation strategies on the competitive advantage of multinational corporations in emerging markets, as well as the moderating effects of institutional pressure and local responsiveness. Green innovation strategies exert a significant positive impact on the competitive advantage of multinational corporations in emerging markets. Institutional pressure positively moderates this relationship: greater institutional pressure amplifies the competitive advantage effect of green innovation. Local responses also positively moderate this relationship: stronger subsidiary adaptability enhances the value conversion efficiency of green innovation. Institutional pressure and local responses exhibit positive interaction; the competitive advantage gain from green innovation is maximized when high pressure and high response overlap. This paper proposes a theoretical model integrating green innovation strategy, institutional pressure, and local response, filling gaps in green innovation research regarding implementation levels. It provides crucial insights for multinational corporations developing green innovation and localization strategies, as well as for host countries in emerging markets optimizing their institutional environments.
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