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Identifier to cite or link to this item: https://hdl.handle.net/10086/28236

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Title
Environmental regulation and international expansion of MNEs : The moderating role of pollution reduction resources and firm multinationality on location choice
Creator
Creator Name
MALEN, Joel MALEN, Joel
Affiliation
Affiliation Name
Hitotsubashi University
Creator Name
YAMANOI, Junichi YAMANOI, Junichi
Affiliation
Affiliation Name
Waseda University
Abstract
We examine how stronger environmental regulations influence MNE international expansion decisions by attending to two sources of firm heterogeneity that moderate this effect: possession of pollution reduction capabilities and firm multinationality. Empirical tests on 523 cases of international manufacturing expansion into 49 potential host countries by 124 Japanese chemical industry firms between 2001 and 2010 reveal that the market entry deterring effect of stronger environmental regulations is weaker for firms possessing unique capabilities for pollution reduction and for more multinational firms. Moreover, because more multinational firms have greater incentives and skills for modifying capabilities to create value in host-country environments, the positive moderating effect of PR-capabilities are strengthened yet further for high multinationality firms.
Publisher
Institute of Innovation Research, Hitotsubashi University
Issued Date
2016-12
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
IIR Working paper ; No. 16-13
Number of Pages
35
Appears in Collections
IIR Working Paper
URL
https://hdl.handle.net/10086/28236