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Environmental upgrading of Third World enterprises through linkages to transnational corporations. Theoretical perspectives and preliminary evidence

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  • Soeren Jeppesen
  • Michael W. Hansen

Abstract

With economic globalization, Third World enterprises are increasingly collaborating with foreign firms through trade, subcontracting and equity linkages. The paper examines under which conditions linkages to foreign firms lead to environmental upgrading of Third World enterprises. Derived from the authors' research in a number of developing countries, the paper presents preliminary evidence of such upgrading. As the existing literature on environmental upgrading has a normative bias and tends to ignore economic mandates and constraints, the remaining part of the paper presents four theoretical frameworks based on standard business economics that may explain under which conditions linkages between Third World enterprises and foreign firms may be accompanied by environmental upgrading. It is argued that environmental upgrading in the value chain must be understood partly as a result of external industry and market forces, and partly as a result of the internal resources and competitive strategies of the companies involved. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.

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  • Soeren Jeppesen & Michael W. Hansen, 2004. "Environmental upgrading of Third World enterprises through linkages to transnational corporations. Theoretical perspectives and preliminary evidence," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 261-274, July.
    • Handle: RePEc:bla:bstrat:v:13:y:2004:i:4:p:261-274
    DOI: 10.1002/bse.410
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    2. Mahwish J Khan & Stefano Ponte & Peter Lund-Thomsen, 2020. "The ‘factory manager dilemma’: Purchasing practices and environmental upgrading in apparel global value chains," Environment and Planning A, , vol. 52(4), pages 766-789, June.
    3. Christian Geisler Asmussen & Andrea Fosfuri & Marcus Møller Larsen & Grazia D. Santangelo, 2023. "Corporate social responsibility in the global value chain: A bargaining perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(7), pages 1175-1192, September.
    4. Valentina De Marchi & Eleonora Di Maria, 2015. "Eco-innovazione, relazioni di fornitura e implicazioni per la comunicazione nelle piccole imprese: un focus sulla moda italiana," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2015(4), pages 87-104.
    5. Richard Perkins & Eric Neumayer, 2010. "Geographic Variations in the Early Diffusion of Corporate Voluntary Standards: Comparing ISO 14001 and the Global Compact," Environment and Planning A, , vol. 42(2), pages 347-365, February.
    6. Amira Khattak & Christina Stringer, 2017. "Environmental Upgrading in Pakistan's Sporting Goods Industry in Global Value Chains: A Question of Progress?," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(1), pages 43-64, March.
    7. Claribel Muller & Walter J. V. Vermeulen & Pieter Glasbergen, 2012. "Pushing or Sharing as Value‐driven Strategies for Societal Change in Global Supply Chains: Two Case Studies in the British–South African Fresh Fruit Supply Chain," Business Strategy and the Environment, Wiley Blackwell, vol. 21(2), pages 127-140, February.
    8. Mohamed Akli Achabou & Sihem Dekhili & Mohamed Hamdoun, 2017. "Environmental Upgrading of Developing Country Firms in Global Value Chains," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 224-238, February.
    9. Adam Lindgreen & Valérie Swaen & François Maon, 2009. "Introduction: Corporate Social Responsibility Implementation," Journal of Business Ethics, Springer, vol. 85(2), pages 251-256, April.
    10. repec:ipg:wpaper:2014-496 is not listed on IDEAS
    11. Michida, Etsuyo & Ueki, Yasushi & Nabeshima, Kaoru, 2014. "Impact on Asian firms of product-related environmental regulations through global supply chains : a study of firms in Malaysia," IDE Discussion Papers 453, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. Ha-Chi Le & Thai-Ha Le, 2023. "Effects of economic, social, and political globalization on environmental quality: international evidence," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4269-4299, May.
    13. Maria Chiarvesio & Valentina De Marchi & Eleonora Di Maria, 2015. "Environmental Innovations and Internationalization: Theory and Practices," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 790-801, December.
    14. Ans Kolk & Pan Hong & Willemijn van Dolen, 2010. "Corporate social responsibility in china: an analysis of domestic and foreign retailers' sustainability dimensions," Business Strategy and the Environment, Wiley Blackwell, vol. 19(5), pages 289-303, July.
    15. Hannes Hofmann & Christian Busse & Christoph Bode & Michael Henke, 2014. "Sustainability‐Related Supply Chain Risks: Conceptualization and Management," Business Strategy and the Environment, Wiley Blackwell, vol. 23(3), pages 160-172, March.
    16. Hochachka, Gail, 2023. "Climate change and the transformative potential of value chains," Ecological Economics, Elsevier, vol. 206(C).
    17. Xianbing Liu & Jie Yang & Sixiao Qu & Leina Wang & Tomohiro Shishime & Cunkuan Bao, 2012. "Sustainable Production: Practices and Determinant Factors of Green Supply Chain Management of Chinese Companies," Business Strategy and the Environment, Wiley Blackwell, vol. 21(1), pages 1-16, January.
    18. Valentina De Marchi & Eleonora Di Maria & Stefano Micelli, 2013. "Environmental Strategies, Upgrading and Competitive Advantage in Global Value Chains," Business Strategy and the Environment, Wiley Blackwell, vol. 22(1), pages 62-72, January.

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