IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v56y2025i6d10.1057_s41267-025-00794-y.html
   My bibliography  Save this article

Beyond reductionism: rethinking MNEs’ role in environmental crises

Author

Listed:
  • Liena Kano

    (University of Calgary)

  • Birgitte Grøgaard

    (BI Norwegian Business School)

  • Luciano Ciravegna

    (INCAE Business School
    University of Reading)

  • Gilbert Kofi Adarkwah

    (BI Norwegian Business School
    HEC Montréal)

Abstract

This counterpoint challenges the view advanced by Yu, Bansal, and Arjaliès (J Int Business Stud 54:1151–1169, 2023), who argue that multinational enterprises (MNEs), by virtue of their cross-border operations, are inherently detrimental to the environment. While Yu et al.’s call for responsible resource use is commendable, we contend that their framework oversimplifies the complex realities of international business (IB). Drawing on New Internalization Theory (NIT), we examine environmental crises through the lens of multilevel complexity—macro-level institutional interdependencies, firm-level heterogeneity, and individual-level cognitive and behavioral constraints. Our approach underscores the role of bounded rationality and bounded reliability across all relevant actors—not just MNE managers—in shaping environmental outcomes. We find that Yu et al.’s proposed strategies give limited attention to the institutional, industry, organizational, and governance conditions under which environmental value is created. By contrast, we apply comparative institutional analysis to investigate MNEs’ impact on the environment as compared to feasible, real-world alternatives. We argue that meaningful environmental progress hinges not on targeting MNEs, but on fostering multilateral coordination among public, private, and civil society actors, with MNEs being well positioned to lead such collaborations. We call for scholarship that avoids ideological overreach, embraces IB theory, and acknowledges MNEs as key agents in advancing environmental sustainability.

Suggested Citation

  • Liena Kano & Birgitte Grøgaard & Luciano Ciravegna & Gilbert Kofi Adarkwah, 2025. "Beyond reductionism: rethinking MNEs’ role in environmental crises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 56(6), pages 795-806, August.
  • Handle: RePEc:pal:jintbs:v:56:y:2025:i:6:d:10.1057_s41267-025-00794-y
    DOI: 10.1057/s41267-025-00794-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41267-025-00794-y
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41267-025-00794-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

    for a different version of it.

    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:pal:jintbs:v:56:y:2025:i:6:d:10.1057_s41267-025-00794-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.

    We have no bibliographic references for this item. You can help adding them by using 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-journals.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.