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The Long-Term Sustenance of Sustainability Practices in MNCs: A Dynamic Capabilities Perspective of the Role of R&D and Internationalization

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  • Subrata Chakrabarty

    ()

  • Liang Wang

    ()

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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. Copyright Springer Science+Business Media B.V. 2012

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    File URL: http://hdl.handle.net/10.1007/s10551-012-1422-3
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    Bibliographic Info

    Article provided by Springer in its journal Journal of Business Ethics.

    Volume (Year): 110 (2012)
    Issue (Month): 2 (October)
    Pages: 205-217

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    Handle: RePEc:kap:jbuset:v:110:y:2012:i:2:p:205-217

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    Web page: http://www.springerlink.com/link.asp?id=100281

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    Keywords: Corporate social responsibility; Sustainability practices; R&D; Innovation; Multinational; Internationalization; Dynamic capabilities; Resource-based view;

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    1. Chakrabarty, Subrata, 2009. "The influence of national culture and institutional voids on family ownership of large firms: A country level empirical study," Journal of International Management, Elsevier, vol. 15(1), pages 32-45, March.
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    12. Li, Yuming, 2001. "Expected Returns and Habit Persistence," Review of Financial Studies, Society for Financial Studies, vol. 14(3), pages 861-99.
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    Cited by:
    1. Deborah de Lange & Timo Busch & Javier Delgado-Ceballos, 2012. "Sustaining Sustainability in Organizations," Journal of Business Ethics, Springer, vol. 110(2), pages 151-156, October.
    2. Subrata Chakrabarty & A. Bass, 2014. "Institutionalizing Ethics in Institutional Voids: Building Positive Ethical Strength to Serve Women Microfinance Borrowers in Negative Contexts," Journal of Business Ethics, Springer, vol. 119(4), pages 529-542, February.

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