IDEAS home Printed from https://ideas.repec.org/a/pal/abaman/v20y2021i4d10.1057_s41291-020-00142-y.html
   My bibliography  Save this article

Foreign multinational enterprises and eco-innovation in local firms: the effect of imitation

Author

Listed:
  • Yoo Jung Ha

    (University of York)

Abstract

This paper investigates multinational enterprises (MNEs) as a potential referent for local firms making decisions on eco-innovation. By analyzing Korean innovation survey and patent data, we find local firms’ eco-innovation scope converges with that of the most profitable foreign MNEs within an industry, i.e., profitability is considered a reliable signal for imitation. The imitation tendency changes contingent on previous eco-innovation experience and innovation networks in other local firms. The degree of imitation is then negatively associated with local firms’ eco-innovation outputs. This study shows how local firms can use social proof from selected foreign MNEs to supplement their sense-making in a non-routine environment.

Suggested Citation

  • Yoo Jung Ha, 2021. "Foreign multinational enterprises and eco-innovation in local firms: the effect of imitation," Asian Business & Management, Palgrave Macmillan, vol. 20(4), pages 488-517, September.
    • Handle: RePEc:pal:abaman:v:20:y:2021:i:4:d:10.1057_s41291-020-00142-y
    DOI: 10.1057/s41291-020-00142-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41291-020-00142-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41291-020-00142-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joep P. Cornelissen, 2012. "Sensemaking Under Pressure: The Influence of Professional Roles and Social Accountability on the Creation of Sense," Organization Science, INFORMS, vol. 23(1), pages 118-137, February.
    2. Yuzhe Miao & Jaeyong Song & Keun Lee & Chuyue Jin, 2018. "Technological catch-up by east Asian firms: Trends, issues, and future research agenda," Asia Pacific Journal of Management, Springer, vol. 35(3), pages 639-669, September.
    3. Paul R. Carlile, 2004. "Transferring, Translating, and Transforming: An Integrative Framework for Managing Knowledge Across Boundaries," Organization Science, INFORMS, vol. 15(5), pages 555-568, October.
    4. Chuck C Y Kwok & Solomon Tadesse, 2006. "The MNC as an agent of change for host-country institutions: FDI and corruption," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 767-785, November.
    5. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Multinational Corporations and Spillovers," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 8, pages 101-133, Palgrave Macmillan.
    6. Matthew A. Cole & Robert J. R. Elliott & Per G. Fredriksson, 2006. "Endogenous Pollution Havens: Does FDI Influence Environmental Regulations?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(1), pages 157-178, March.
    7. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1411-1431, December.
    8. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    9. Carrión-Flores, Carmen E. & Innes, Robert, 2010. "Environmental innovation and environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 27-42, January.
    10. Aguilera-Caracuel, Javier & Fedriani, Eugenio M. & Delgado-Márquez, Blanca L., 2014. "Institutional distance among country influences and environmental performance standardization in multinational enterprises," Journal of Business Research, Elsevier, vol. 67(11), pages 2385-2392.
    11. Anil K. Gupta & Vijay Govindarajan, 2000. "Knowledge flows within multinational corporations," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 473-496, April.
    12. Felipe A. Csaszar & Nicolaj Siggelkow, 2010. "How Much to Copy? Determinants of Effective Imitation Breadth," Organization Science, INFORMS, vol. 21(3), pages 661-676, June.
    13. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
    14. Lee, Keun & Malerba, Franco, 2017. "Catch-up cycles and changes in industrial leadership:Windows of opportunity and responses of firms and countries in the evolution of sectoral systems," Research Policy, Elsevier, vol. 46(2), pages 338-351.
    15. Linda Argote & Bill McEvily & Ray Reagans, 2003. "Managing Knowledge in Organizations: An Integrative Framework and Review of Emerging Themes," Management Science, INFORMS, vol. 49(4), pages 571-582, April.
    16. Bryan W Husted & David B Allen, 2006. "Corporate social responsibility in the multinational enterprise: strategic and institutional approaches," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 838-849, November.
    17. Vibha Gaba & Ann Terlaak, 2013. "Decomposing Uncertainty and Its Effects on Imitation in Firm Exit Decisions," Organization Science, INFORMS, vol. 24(6), pages 1847-1869, December.
    18. Sucheta Nadkarni & V. K. Narayanan, 2007. "Strategic schemas, strategic flexibility, and firm performance: the moderating role of industry clockspeed," Strategic Management Journal, Wiley Blackwell, vol. 28(3), pages 243-270, March.
    19. Steven Poelhekke & Frederick Ploeg, 2015. "Green Havens and Pollution Havens," The World Economy, Wiley Blackwell, vol. 38(7), pages 1159-1178, July.
    20. De Marchi, Valentina, 2012. "Environmental innovation and R&D cooperation: Empirical evidence from Spanish manufacturing firms," Research Policy, Elsevier, vol. 41(3), pages 614-623.
    21. Fosfuri, Andrea & Motta, Massimo & Ronde, Thomas, 2001. "Foreign direct investment and spillovers through workers' mobility," Journal of International Economics, Elsevier, vol. 53(1), pages 205-222, February.
    22. Jane W Lu, 2002. "Intra- and Inter-organizational Imitative Behavior: Institutional Influences on Japanese Firms' Entry Mode Choice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(1), pages 19-37, March.
    23. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    24. Abhinav Gupta & Vilmos F. Misangyi, 2018. "Follow the leader (or not): The influence of peer CEOs’ characteristics on interorganizational imitation," Strategic Management Journal, Wiley Blackwell, vol. 39(5), pages 1437-1472, May.
    25. Stanislav D. Dobrev, 2007. "Competing in the looking‐glass market: imitation, resources, and crowding," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1267-1289, December.
    26. García, Francisco & Jin, Byungchae & Salomon, Robert, 2013. "Does inward foreign direct investment improve the innovative performance of local firms?," Research Policy, Elsevier, vol. 42(1), pages 231-244.
    27. Sembenelli, Alessandro & Siotis, Georges, 2008. "Foreign Direct Investment and mark-up dynamics: Evidence from Spanish firms," Journal of International Economics, Elsevier, vol. 76(1), pages 107-115, September.
    28. Sally Maitlis & Scott Sonenshein, 2010. "Sensemaking in Crisis and Change: Inspiration and Insights From Weick (1988)," Journal of Management Studies, Wiley Blackwell, vol. 47(3), pages 551-580, May.
    29. Jonathan E. Haskel & Sonia C. Pereira & Matthew J. Slaughter, 2007. "Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 482-496, August.
    30. Julian Birkinshaw & Tina C. Ambos & Cyril Bouquet, 2017. "Boundary Spanning Activities of Corporate HQ Executives Insights from a Longitudinal Study," Journal of Management Studies, Wiley Blackwell, vol. 54(4), pages 422-454, June.
    31. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.
    32. Noailly, Joëlle & Ryfisch, David, 2015. "Multinational firms and the internationalization of green R&D: A review of the evidence and policy implications," Energy Policy, Elsevier, vol. 83(C), pages 218-228.
    33. Magali A. Delmas & Maria J. Montes‐Sancho, 2010. "Voluntary agreements to improve environmental quality: symbolic and substantive cooperation," Strategic Management Journal, Wiley Blackwell, vol. 31(6), pages 575-601, June.
    34. Hart E. Posen & Dirk Martignoni, 2018. "Revisiting the imitation assumption: Why imitation may increase, rather than decrease, performance heterogeneity," Strategic Management Journal, Wiley Blackwell, vol. 39(5), pages 1350-1369, May.
    35. Haridimos Tsoukas & Robert Chia, 2002. "On Organizational Becoming: Rethinking Organizational Change," Organization Science, INFORMS, vol. 13(5), pages 567-582, October.
    36. Fernando F. Suarez & Juan S. Montes, 2019. "An Integrative Perspective of Organizational Responses: Routines, Heuristics, and Improvisations in a Mount Everest Expedition," Organization Science, INFORMS, vol. 30(3), pages 573-599, May.
    37. Susan L Young & Mona V Makhija, 2014. "Firms’ corporate social responsibility behavior: An integration of institutional and profit maximization approaches," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(6), pages 670-698, August.
    38. Nikolaeva, Ralitza, 2014. "Interorganizational imitation heuristics arising from cognitive frames," Journal of Business Research, Elsevier, vol. 67(8), pages 1758-1765.
    39. Marion Frenz & Grazia Ietto-Gillies, 2007. "Does Multinationality Affect the Propensity to Innovate? An Analysis of the Third UK Community Innovation Survey," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(1), pages 99-117.
    40. Tatoglu, Ekrem & Bayraktar, Erkan & Sahadev, Sunil & Demirbag, Mehmet & Glaister, Keith W., 2014. "Determinants of voluntary environmental management practices by MNE subsidiaries," Journal of World Business, Elsevier, vol. 49(4), pages 536-548.
    41. Nicole Darnall & Irene Henriques & Perry Sadorsky, 2010. "Adopting Proactive Environmental Strategy: The Influence of Stakeholders and Firm Size," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1072-1094, September.
    42. Cristina Jude, 2016. "Technology Spillovers from FDI. Evidence on the Intensity of Different Spillover Channels," The World Economy, Wiley Blackwell, vol. 39(12), pages 1947-1973, December.
    43. Robert Salomon & Zheying Wu, 2012. "Institutional distance and local isomorphism strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(4), pages 343-367, May.
    44. Jan W. Rivkin, 2000. "Imitation of Complex Strategies," Management Science, INFORMS, vol. 46(6), pages 824-844, June.
    45. Josefina L. Murillo‐Luna & Concepción Garcés‐Ayerbe & Pilar Rivera‐Torres, 2008. "Why do patterns of environmental response differ? A stakeholders' pressure approach," Strategic Management Journal, Wiley Blackwell, vol. 29(11), pages 1225-1240, November.
    46. Ann Terlaak & Andrew A. King, 2007. "Follow the small? Information‐revealing adoption bandwagons when observers expect larger firms to benefit more from adoption," Strategic Management Journal, Wiley Blackwell, vol. 28(12), pages 1167-1185, December.
    47. Abhirup Chakrabarti, 2015. "Organizational adaptation in an economic shock: The role of growth reconfiguration," Strategic Management Journal, Wiley Blackwell, vol. 36(11), pages 1717-1738, November.
    48. John A. Mathews, 2017. "Dragon multinationals powered by linkage, leverage and learning: A review and development," Asia Pacific Journal of Management, Springer, vol. 34(4), pages 769-775, December.
    49. Donal Crilly & Pamela Sloan, 2012. "Enterprise logic: explaining corporate attention to stakeholders from the ‘inside‐out’," Strategic Management Journal, Wiley Blackwell, vol. 33(10), pages 1174-1193, October.
    50. Karl E. Weick & Kathleen M. Sutcliffe & David Obstfeld, 2005. "Organizing and the Process of Sensemaking," Organization Science, INFORMS, vol. 16(4), pages 409-421, August.
    51. Michael Jensen & Bo Kyung Kim, 2014. "Great, Madama Butterfly Again! How Robust Market Identity Shapes Opera Repertoires," Organization Science, INFORMS, vol. 25(1), pages 109-126, February.
    Full references (including those not matched with items on IDEAS)

    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. Pinget, Amandine, 2016. "Spécificités des déterminants des innovations environnementales : une approche appliquée aux PME [Specificities of determinants for environmental innovation : an approach applied to SMEs]," MPRA Paper 80108, University Library of Munich, Germany.
    2. Nicolò Barbieri & Claudia Ghisetti & Marianna Gilli & Giovanni Marin & Francesco Nicolli, 2016. "A Survey Of The Literature On Environmental Innovation Based On Main Path Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 596-623, July.
    3. Ergun Dogan & Koi Nyen Wong & Michael M. C. Yap, 2017. "Vertical and Horizontal Spillovers from Foreign Direct Investment: Evidence from Malaysian Manufacturing," Asian Economic Papers, MIT Press, vol. 16(3), pages 158-183, Fall.
    4. Konara, Palitha & Lopez, Carmen & Shirodkar, Vikrant, 2021. "Environmental innovation in foreign subsidiaries: The role of home-ecological institutions, subsidiary establishment mode and post-establishment experience," Journal of World Business, Elsevier, vol. 56(6).
    5. Ghisetti, Claudia & Marzucchi, Alberto & Montresor, Sandro, 2015. "The open eco-innovation mode. An empirical investigation of eleven European countries," Research Policy, Elsevier, vol. 44(5), pages 1080-1093.
    6. Gutsche, Gunnar & Ziegler, Andreas, 2019. "Determinants of environmental product and process innovations: New evidence on the basis of European panel data," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203617, Verein für Socialpolitik / German Economic Association.
    7. Dmitry Sharapov & Jan‐Michael Ross, 2023. "Whom should a leader imitate? Using rivalry‐based imitation to manage strategic risk in changing environments," Strategic Management Journal, Wiley Blackwell, vol. 44(1), pages 311-342, January.
    8. David Popp, 2019. "Environmental policy and innovation: a decade of research," CESifo Working Paper Series 7544, CESifo.
    9. Ghisetti, Claudia & Pontoni, Federico, 2015. "Investigating policy and R&D effects on environmental innovation: A meta-analysis," Ecological Economics, Elsevier, vol. 118(C), pages 57-66.
    10. Orlic, Edvard & Hashi, Iraj & Hisarciklilar, Mehtap, 2018. "Cross sectoral FDI spillovers and their impact on manufacturing productivity," International Business Review, Elsevier, vol. 27(4), pages 777-796.
    11. Andrés Barge‐Gil & Alberto López & Ramón Núñez‐Sánchez, 2020. "Technological spillovers from multinational firms," The World Economy, Wiley Blackwell, vol. 43(12), pages 3184-3202, December.
    12. Agarwal, Natasha & Milner, Chris & Riaño, Alejandro, 2014. "Credit constraints and spillovers from foreign firms in China," Journal of Banking & Finance, Elsevier, vol. 48(C), pages 261-275.
    13. Ren, Shenggang & Hu, Yucai & Zheng, Jingjing & Wang, Yangjie, 2020. "Emissions trading and firm innovation: Evidence from a natural experiment in China," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    14. Riccardo Crescenzi & Arnaud Dyèvre & Frank Neffke, 2022. "Innovation Catalysts: How Multinationals Reshape the Global Geography of Innovation," Economic Geography, Taylor & Francis Journals, vol. 98(3), pages 199-227, May.
    15. Sourafel Girma & Holger Görg & Mauro Pisu, 2016. "Exporting, linkages and productivity spillovers from foreign direct investment," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 10, pages 191-211, World Scientific Publishing Co. Pte. Ltd..
    16. Ioannis Bournakis & Sotiris Papaioannou & Marina Papanastassiou, 2022. "Multinationals and domestic total factor productivity: Competition effects, knowledge spillovers and foreign ownership," The World Economy, Wiley Blackwell, vol. 45(12), pages 3715-3750, December.
    17. Nuno Crespo & Maria Paula Fontoura & Isabel Proença, 2009. "FDI spillovers at regional level: Evidence from Portugal," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 591-607, August.
    18. Alessandra Colombelli & Jackie Krafft & Francesco Quatraro, 2021. "Firms’ growth, green gazelles and eco-innovation: evidence from a sample of European firms," Small Business Economics, Springer, vol. 56(4), pages 1721-1738, April.
    19. Thanh Tam Nguyen-Huu & Ngoc‐sang Pham, 2023. "FDI spillovers, New Industry Development, and Economic Growth," Post-Print hal-04240260, HAL.
    20. Neil Foster-McGregor, 2012. "Innovation and Technology Transfer across Countries," wiiw Research Reports 380, The Vienna Institute for International Economic Studies, wiiw.

    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:pal:abaman:v:20:y:2021:i:4:d:10.1057_s41291-020-00142-y. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.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.