Foreign MNEs, Local Institutions & Corp. Environment Innovation

Fri, 20 Jan 2017 11:14:00 GMT

Economics Research Group Seminar

Speaker: Prof Annie Wei – University of Leeds

Wed, 25 Jan 2017, 13:15, BSG/20

All staff and students welcome

Foreign MNEs, Local Institutions and Corporate Environmental Innovation: Do Foreign MNEs matter in Local Isomorphic Mechanism?

Drawing on institutional theory, this study investigates the extent to which foreign direct investment (FDI) by multinational enterprises (MNEs) exerts mimetic forces on corporate environmental innovation (CEI) in domestic firms. We propose that foreign MNEs’ influence on CEI is positive, contingent on local institutions’ coercive forces. The effects of MNEs increase when they conduct CEI locally. The hypotheses are tested by firm-level data from South Korea, complemented by industrial and regional data. The findings broadly support the hypotheses and enhance our understanding of CEIs by demonstrating the need to introduce MNEs' boundary-spanning role and investigate its complementarity with local institutions.

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