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Exploring the Influence of Environmental Investment on Multinational Enterprises’ Performance from the Sustainability and Marketability Efficiency Perspectives

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  • Hsiao-Yen Mao

    (Department of International Business Administration, Chinese Culture University, Taipei 11114, Taiwan)

  • Wen-Min Lu

    (Department of International Business Administration, Chinese Culture University, Taipei 11114, Taiwan)

  • Hsin-Yen Shieh

    (Department of International Business Administration, Chinese Culture University, Taipei 11114, Taiwan)

Abstract

Sustainable development strategies are necessary to ensure sustainable performance even though resources are scarce in a firm. In this study, a two-stage production process is designed to analyze a firm’s performance, including sustainability and marketability, using a two-stage network data envelopment analysis. This process will help managers of a firm understand how to improve sustainability and marketability efficiency. The relationship between environmental investment and firm performance is also investigated using truncated regression. The results show that the environmental innovation score (EIS) and resource use score (RUS) have significant negative relationships with firm performance in the short term due to the fact of additional expenses incurred during the innovative research and development of new products and services. Moreover, the study reveals that the emission score positively affects both sustainability efficiency and marketability efficiency, while EIS and RUS have no effects on the efficiencies. These empirical findings are meant to assist managers in better comprehending the characteristics of business sustainability across industries with varying scales and performance levels, offer better business strategies for resource allocation, and enhance a firm’s performance in the post-pandemic era.

Suggested Citation

  • Hsiao-Yen Mao & Wen-Min Lu & Hsin-Yen Shieh, 2023. "Exploring the Influence of Environmental Investment on Multinational Enterprises’ Performance from the Sustainability and Marketability Efficiency Perspectives," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:7779-:d:1142902
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