Stakeholder Pressures, EMS Implementation, and Green Innovation in MNC Overseas Subsidiaries

Kawai, Norifumi and Strange, Roger N. and Zucchella, Antonella (2018) Stakeholder Pressures, EMS Implementation, and Green Innovation in MNC Overseas Subsidiaries. International Business Review, 27 (5). pp. 933-946. ISSN 0962-9262

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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: Journal Article
Keywords: green innovation, MNC subsidiaries, stakeholder pressures, environmental management systems, global institutional pressures
Faculty: ARCHIVED Lord Ashcroft International Business School (until September 2018)
Depositing User: Lisa Blanshard
Date Deposited: 27 Feb 2018 15:24
Last Modified: 09 Sep 2021 18:56

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