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Abstract
What allows MNCs to maintain their sustainability practices over the long-term? This is an important but under-examined question.
To address this question, we investigate both the development and sustenance of sustainability practices. We use the dynamic
capabilities perspective, rooted in resource-based view literature, as the theoretical basis. We argue that MNCs that simultaneously
pursue both higher R&D intensity and higher internationalization are more capable of developing and maintaining sustainability
practices. We test our hypotheses using longitudinal panel data from 1989 to 2009. Results suggest that MNCs that have a combination
of both high R&D intensity and high internationalization are (i) likely to develop more sustainability practices and (ii)
are likely to maintain more of those practices over a long-term. As a corollary, MNCs that have a combination of both low
R&D and low internationalization usually (i) end up developing little or no sustainability practices and (ii) find it difficult
to sustain whatever little sustainability practices they might have developed.
- Content Type Journal Article
- Pages 1-13
- DOI 10.1007/s10551-012-1422-3
- Authors
- Subrata Chakrabarty, Department of Management, College of Business Administration, University of Nebraska-Lincoln, Lincoln, NE 68588-0491, USA
- Liang Wang, General Management, Richard Ivey School of Business, University of Western Ontario, London, ON N6A 3K7, Canada
- Journal Journal of Business Ethics
- Online ISSN 1573-0697
- Print ISSN 0167-4544