Proactive Environmental Strategy, Foreign Institutional Pressures, and Internationalization of Chinese SMEs

Ko, Dr. Wai Wai; Chen, Prof. Yantai; Chen, Dr. Cheng-Hao Steve; Wu, Dr. Meng-Shan Sharon and Liu, Prof. Gordon (2021). Proactive Environmental Strategy, Foreign Institutional Pressures, and Internationalization of Chinese SMEs. Journal of World Business, 56(6), article no. 101247.

DOI: https://doi.org/10.1016/j.jwb.2021.101247

Abstract

We explain how proactive environmental strategy affects emerging country small- and medium-sized enterprise (SME) internationalization and the contingency roles of foreign institutional environment. A survey of 217 Chinese SMEs reveals the positive effects of proactive environmental strategy on inward-focused and outward-focused internationalization activities. The results also show that foreign institutional pressures influence such effects in nonlinear ways. That is, a medium level of foreign environmental regulatory pressure maximizes the positive effects of proactive environmental strategy on inward-focused internationalization activities, while a medium level of foreign environmental customer pressure maximizes the positive effects of proactive environmental strategy on outward-focused internationalization activities.

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