IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i2p751-d1570346.html

ESG Strategies and Sustainable Performance in Multinational Enterprises

Author

Listed:
  • Kao-Shan Chen

    (Department of Business Administration, Vanung University, Taoyuan City 32061, Taiwan)

  • Shih-Tse Lin

    (Department of Business Administration, Vanung University, Taoyuan City 32061, Taiwan)

  • Che-Jen Chuang

    (Department of Tourism & Leisure Management, Vanung University, Taoyuan City 32061, Taiwan)

Abstract

This study examines the impact of ESG strategies on sustainable performance in multinational enterprises (MNEs), with a particular focus on the mediating role of internal market-oriented culture (IMOC) and the moderating effect of job crafting. To validate these key mechanisms, the study employs a stratified random sampling method to collect data from 614 employees across manufacturing, service, and technology-intensive industries. The data were analyzed using structural equation modeling (SEM) to test the hypothesized relationships. The empirical results demonstrate that ESG strategies significantly enhance sustainable organizational performance, with IMOC serving as a critical mediator linking ESG strategies to improved outcomes. Furthermore, job crafting strengthens the positive relationship between IMOC and sustainable performance, indicating that when employees proactively reshape their tasks and roles to align with ESG objectives, organizational sustainability is further enhanced. The influence of cultural context plays a crucial role in this process. The findings reveal that the effects of IMOC and job crafting are more pronounced in collectivist cultures (e.g., China and Japan), while in individualist cultures (e.g., the United States and Germany), performance improvements rely more heavily on individual incentives and feedback mechanisms. These insights provide practical guidance for MNE managers on how to tailor ESG strategies, IMOC, and job crafting approaches to specific regional and cultural settings. This study contributes to the literature by demonstrating how ESG strategies interact with internal cultural and behavioral mechanisms to drive sustainable performance in MNEs. It highlights the role of IMOC and job crafting as internal drivers that bridge ESG initiatives with tangible organizational outcomes. From a practical perspective, the findings offer actionable guidance for MNEs on how to design adaptive ESG strategies and employee engagement practices tailored to culturally diverse environments. These insights provide managers with a clear pathway to enhance employee-driven change and improve sustainable performance across global operations.

Suggested Citation

  • Kao-Shan Chen & Shih-Tse Lin & Che-Jen Chuang, 2025. "ESG Strategies and Sustainable Performance in Multinational Enterprises," Sustainability, MDPI, vol. 17(2), pages 1-31, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:751-:d:1570346
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/2/751/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/2/751/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Petitjean, Mikael, 2019. "Eco-friendly policies and financial performance: Was the financial crisis a game changer for large US companies?," Energy Economics, Elsevier, vol. 80(C), pages 502-511.
    2. Gunnar Friede & Timo Busch & Alexander Bassen, 2015. "ESG and financial performance: aggregated evidence from more than 2000 empirical studies," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 5(4), pages 210-233, October.
    3. Maha Faisal Alsayegh & Rashidah Abdul Rahman & Saeid Homayoun, 2020. "Corporate Economic, Environmental, and Social Sustainability Performance Transformation through ESG Disclosure," Sustainability, MDPI, vol. 12(9), pages 1-20, May.
    4. Kolk, Ans, 2016. "The social responsibility of international business: From ethics and the environment to CSR and sustainable development," Journal of World Business, Elsevier, vol. 51(1), pages 23-34.
    5. Broadstock, David C. & Chan, Kalok & Cheng, Louis T.W. & Wang, Xiaowei, 2021. "The role of ESG performance during times of financial crisis: Evidence from COVID-19 in China," Finance Research Letters, Elsevier, vol. 38(C).
    6. Sakis Kotsantonis & Chris Pinney & George Serafeim, 2016. "ESG Integration in Investment Management: Myths and Realities," Journal of Applied Corporate Finance, Morgan Stanley, vol. 28(2), pages 10-16, June.
    7. Robert G. Eccles & Ioannis Ioannou & George Serafeim, 2014. "The Impact of Corporate Sustainability on Organizational Processes and Performance," Management Science, INFORMS, vol. 60(11), pages 2835-2857, November.
    8. Saurabh Mishra & Sachin Modi, 2013. "Positive and Negative Corporate Social Responsibility, Financial Leverage, and Idiosyncratic Risk," Journal of Business Ethics, Springer, vol. 117(2), pages 431-448, October.
    9. Graham Hubbard, 2009. "Measuring organizational performance: beyond the triple bottom line," Business Strategy and the Environment, Wiley Blackwell, vol. 18(3), pages 177-191, March.
    10. Jae-Joon Han & Hyun Jeong Kim & Jeongmin Yu, 2016. "Empirical study on relationship between corporate social responsibility and financial performance in Korea," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 1(1), pages 61-76, December.
    11. Stefan Tangen, 2005. "Demystifying productivity and performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 54(1), pages 34-46, January.
    12. Gunther Capelle-Blancard & Aurélien Petit, 2019. "Every Little Helps? ESG News and Stock Market Reaction," Journal of Business Ethics, Springer, vol. 157(2), pages 543-565, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jangwoo Kim & Euntack Im & Gwangyong Gim, 2025. "The Impact of ESG Management by Automobile Companies on Consumer Purchase Intention," Sustainability, MDPI, vol. 17(19), pages 1-32, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohamed Marie & Baolei Qi & Ali Meftah Gerged & Haitham Nobanee, 2024. "Exploring Environmental, Social and Governance research in the wake of COVID‐19: A bibliometric analysis of current trends and recommendations for future research," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(6), pages 6131-6149, November.
    2. Sakhr Bani-Khaled & Graça Azevedo & Jonas Oliveira, 2025. "Environmental, social, and governance (ESG) factors and firm value: A systematic literature review of theories and empirical evidence," AMS Review, Springer;Academy of Marketing Science, vol. 15(1), pages 228-260, June.
    3. Li, WeiWei & Padmanabhan, Prasad & Huang, Chia-Hsing, 2024. "ESG and debt structure: Is the nature of this relationship nonlinear?," International Review of Financial Analysis, Elsevier, vol. 91(C).
    4. Li Wei & Wu Chengshu, 2024. "Company ESG performance and institutional investor ownership preferences," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 33(3), pages 287-307, July.
    5. Massimiliano Cerciello & Francesco Busato & Simone Taddeo, 2023. "The effect of sustainable business practices on profitability. Accounting for strategic disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 802-819, March.
    6. Quan‐Jing Wang & Hai‐Jie Wang & Gen‐Fu Feng & Chun‐Ping Chang, 2023. "Impact of digital transformation on performance of environment, social, and governance: Empirical evidence from China," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 32(4), pages 1373-1388, October.
    7. Mi Sook Lee, 2024. "The relationship between green innovation and sustainable growth in Korean companies: Moderated mediation effect of ESG score by industry," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 2797-2810, June.
    8. 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.
    9. Jin Zhu & Fei Huang, 2023. "Transformational Leadership, Organizational Innovation, and ESG Performance: Evidence from SMEs in China," Sustainability, MDPI, vol. 15(7), pages 1-23, March.
    10. Paolo Capelli & Federica Ielasi & Angeloantonio Russo, 2021. "Forecasting volatility by integrating financial risk with environmental, social, and governance risk," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1483-1495, September.
    11. Bissoondoyal-Bheenick, Emawtee & Brooks, Robert & Do, Hung Xuan, 2023. "ESG and firm performance: The role of size and media channels," Economic Modelling, Elsevier, vol. 121(C).
    12. Nektarios Gavrilakis & Christos Floros, 2023. "ESG performance, herding behavior and stock market returns: evidence from Europe," Operational Research, Springer, vol. 23(1), pages 1-21, March.
    13. Alberto Barroso Del Toro & Laura Vivas Crisol & Xavier Tort-Martorell, 2022. "The Sustainability Narrative: A Multi Study Using Event Studies to Analyse the American Energy Companies Shareholder’s Reaction to Sustainability News," IJERPH, MDPI, vol. 19(23), pages 1-17, November.
    14. Klimenko, Mikhail & Romanyuk, Kirill, 2025. "Investor perception of ESG-linked credit risk during the COVID-19 pandemic for U.S. and European firms," Finance Research Letters, Elsevier, vol. 86(PB).
    15. Thi Quynh Anh Dang & Thu Quang Luu & Duy Linh Nguyen & Duc Thuc Tran & Hoang Vu Tran, 2026. "Does ESG Contribute to Pump-and-Dump Schemes of Insider Investors on the Stock Market?," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 20(1), pages 1-19.
    16. Ana María Gómez-Bezares & Fernando Gómez-Bezares, 2020. "Catholic Social Thought and Sustainability. Ethical and Economic Alignment," JRFM, MDPI, vol. 14(1), pages 1-22, December.
    17. Olusola Enitan Olowofela & Hermann Azemtsa Donfack & Celestin Wafo Soh, 2025. "Sustainable Banking and Bank Stability in Nigeria: Empirical Evidence from Deposit Money Banks," JRFM, MDPI, vol. 18(4), pages 1-22, April.
    18. Xiyu Rong & Myung-In Kim, 2024. "ESG and the Cost of Debt: Role of Media Coverage," Sustainability, MDPI, vol. 16(12), pages 1-20, June.
    19. Bongiovanni, Alessio & Fiandrino, Simona, 2024. "Does firm environmental performance mitigate the market reaction to COVID-19 uncertainty?," Research in International Business and Finance, Elsevier, vol. 68(C).
    20. Reni Listyawati & Hadri Kusuma & Yuni Nustini, 2025. "The Role of Sustainability Disclosure in Enhancing Bank Performance: Evidence from ASEAN Countries," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 21-43.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:751-:d:1570346. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.