De-internationalization or Re-internationalization? The Role of Environmental Sustainability Orientation at Firm and Country level

Abstract

This study investigates how firms’ awareness of sustainability affects the revision of their internationalization strategy. Adopting a resource-based view (RBV) approach, the authors argue that sustainable-oriented firms have a higher propensity to de-internationalize (i.e., to go back to their home country) when confronted with the need to relocate foreign manufacturing subsidiaries, as the shortening of value chains would allow the reduction of transportation emissions and enhanced corporate image as green-oriented entities. Furthermore, the authors explore the role exerted by a stringent regulatory setting in the home country on the likelihood of de-internationalization. The empirical test conducted on a sample of relocations performed across European nations in 2002–2014 reveals that multinational enterprises (MNEs) – regardless of their sustainability orientation – have a higher probability to de-internationalize when their home countries have strict institutional contexts in place.

Citation

Barbaglia, M., Bianchini, R., Butticè, V. and Elia, S. (2024), "De-internationalization or Re-internationalization? The Role of Environmental Sustainability Orientation at Firm and Country level", van Tulder, R., Grøgaard, B. and Lunnan, R. (Ed.) Walking the Talk? MNEs Transitioning Towards a Sustainable World (Progress in International Business Research, Vol. 18), Emerald Publishing Limited, Leeds, pp. 197-221. https://doi.org/10.1108/S1745-886220240000018015