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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

    ()

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

Suggested Citation

  • Subrata Chakrabarty & Liang Wang, 2012. "The Long-Term Sustenance of Sustainability Practices in MNCs: A Dynamic Capabilities Perspective of the Role of R&D and Internationalization," Journal of Business Ethics, Springer, vol. 110(2), pages 205-217, October.
  • Handle: RePEc:kap:jbuset:v:110:y:2012:i:2:p:205-217
    DOI: 10.1007/s10551-012-1422-3
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    References listed on IDEAS

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    8. 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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    Citations

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    Cited by:

    1. Subrata Chakrabarty & A. Erin Bass, 2015. "Comparing Virtue, Consequentialist, and Deontological Ethics-Based Corporate Social Responsibility: Mitigating Microfinance Risk in Institutional Voids," Journal of Business Ethics, Springer, vol. 126(3), pages 487-512, February.
    2. Jeremy Galbreath, 2016. "When do Board and Management Resources Complement Each Other? A Study of Effects on Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 136(2), pages 281-292, June.
    3. repec:spr:manint:v:55:y:2015:i:5:d:10.1007_s11575-015-0253-8 is not listed on IDEAS
    4. repec:eee:worbus:v:53:y:2018:i:2:p:263-279 is not listed on IDEAS
    5. Subrata Chakrabarty, 2015. "The Influence of Unrelated and Related Diversification on Fraudulent Reporting," Journal of Business Ethics, Springer, vol. 131(4), pages 815-832, November.
    6. Vithessonthi, Chaiporn & Racela, Olimpia C., 2016. "Short- and long-run effects of internationalization and R&D intensity on firm performance," Journal of Multinational Financial Management, Elsevier, vol. 34(C), pages 28-45.
    7. 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.
    8. Omid Sabbaghi & Gerald Cavanagh, 2015. "Jesuit, Catholic, and Green: Evidence from Loyola University Chicago," Journal of Business Ethics, Springer, vol. 127(2), pages 317-326, March.
    9. repec:eee:worbus:v:52:y:2017:i:5:p:591-614 is not listed on IDEAS
    10. Sardana, Deepak & Terziovski, Mile & Gupta, Narain, 2016. "The impact of strategic alignment and responsiveness to market on manufacturing firm's performance," International Journal of Production Economics, Elsevier, vol. 177(C), pages 131-138.
    11. repec:gam:jsusta:v:10:y:2018:i:1:p:226-:d:127314 is not listed on IDEAS
    12. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.
    13. 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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