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The literature on how emerging market multinational enterprises (EMNEs) overcome the liability of emergingness/origin has sidestepped a prerequisite for any efforts to overcome liability, namely, corporate compliance. The authors argue that EMNEs build corporate compliance capability as a knowledge-based firm-specific advantage (FSA) to adapt to institutional norms in advanced economies. In this study, the authors empirically examine the intricate relationships between corporate compliance capability and performance in the US subsidiaries of Chinese firms.

In this study, the authors use survey data to empirically examine the intricate relationships between corporate compliance capability and performance in the US subsidiaries of Chinese firms.

The findings reveal a positive relationship between corporate compliance capability and subsidiary performance, as mediated by local financing.

The study suggests that corporate compliance capability helps a subsidiary gain legitimacy, which leads to local resource acquisition and utilization. Corporate compliance capability thus serves as a source of a knowledge-based FSA for EMNEs in developed economies.

The regulatory landscape surrounding international construction projects presents significant challenges, and contractors are still struggling to pay a painful price for their performance in the project. While existing research has identified various causes of contractor compliance, the intricate interplay of these factors and their impact on compliance remain largely elusive. The motivation-opportunity-ability (MOA) framework may hold the key to determining what factors can foster induced contractor compliance in international projects.

This study collected 124 valid data samples from practitioners involved in large-scale international contracting projects through expert interviews and questionnaire surveys. Fuzzy-set qualitative comparative analysis (fsQCA) was employed to analyze the diverse combinations of contractor compliance factors.

The study identifies seven key factors that contribute to compliance behavior among international construction contractors: economic motivation, social motivation, normative motivation, legal completeness, deterrent sanctions, organizational learning and compliance management ability. The interplay of these factors promotes compliance in the following ways: When international construction contractors are influenced by both social and normative motivations, they exhibit a higher level of compliance. In situations where regulatory systems are relatively weak, the ability to manage compliance becomes the primary driver of compliance behavior for businesses. A comprehensive legal framework creates a conducive environment for contractors to improve their compliance through organizational learning.

The findings offer guidance for international construction contractors in enhancing compliance by considering factors such as motivations, legal frameworks, organizational learning and compliance management. This can lead to improved risk management and performance in international projects.

This research enhances fair and ethical practices in international construction by identifying compliance drivers, fostering positive social impact, mitigating negative consequences and empowering local communities. It informs legal and regulatory reform, encourages improved business practices and contributes to knowledge advancement in the field. Overall, the findings have the potential to positively impact the social fabric of international construction projects.

This study has made an important contribution to the field of compliance theory by integrating theories from multiple disciplinary domains and constructing a new theoretical framework from the perspectives of motivation, opportunity and capability. By elucidating how these factors interact and influence compliance behavior among international construction contractors, this research aids in understanding the complex dynamics of contractor compliance behavior and provides theoretical reference for compliance governance within the construction industry.

Viewing the domestic downside risk as a “pushing” factor for outward foreign direct investment (OFDI), this study aims to examine the surge in Chinese cross-border acquisitions (CBAs) between 2008 and 2017, a unique window when private firms in China were allowed to conduct CBAs.

This study examines the effect of down-side risk on cross-border acquisition performance by using the sample of Chinese A-share listed companies from 2008 to 2017. Specifically, this study considers three kinds of systemic risk, systematic risk and idiosyncratic risk, and respectively examines their impact on CBAs activities; this study also investigates their subsequent results after CBAs activities. The contingency effect of state ownership on the above relationship is also discussed.

The findings reveal that pre-CBA systemic risk explains the volume of CBA activities; CBAs are followed by a reduction in systemic risk; the interactions between systemic risk and CBAs decrease with the level of state ownership; and the above results do not hold for traditional risk measures (i.e. systematic risk and idiosyncratic risk).

This study contributes to the literature by revealing the role of systemic risk as a “pushing” factor in the context of OFDI and suggesting an alternative explanation for CBAs from China: Chinese firms (especially private firms) took advantage of the rare opportunity between 2008 and 2017 given by the government to transfer assets overseas through CBA.

This chapter explores the strategic responsiveness of commodity multinationals operating in developing countries to the uncertainties raised by the emergent European Union (EU) sustainability regulation. The study applies deductive theory triangulation to derive five response propositions, subsequently contrasted with inductive insights from an exploratory single-case study. The research involves in-depth interviews with a mix of senior and middle management and numerous external stakeholders. Empirical findings are discussed through storytelling and retrospective sensemaking and cross-checked against corporate documents, archive material, and online articles for added validation. This chapter concludes that an authentic commitment to corporate social responsibility and creating shared value can enhance the multinational enterprise (MNE)’s resilience and responsiveness to regulatory uncertainty, especially when combined with early signal scanning and real options reasoning. Through varied, first-hand insights, the case study demonstrates the role of reputation, core values, and ethical leadership in support of effective stakeholder engagement capabilities and the MNE’s ability to develop viable collaborative solutions to uncertainties implied by evolving sustainability regulation and stakeholder expectations. Taking an evolutionary view, this chapter introduces a process perspective on sustainability transition, relevant to firms seeking a shift in focus from mere compliance toward strategic responsiveness founded on adaptability and renewal.

In the global context, artificial intelligence (AI) technology and environmental, social and governance (ESG) have emerged as central drivers facilitating corporate transformation and the business model revolution. This paper aims to investigate whether and how the application of AI enhances the ESG performance of enterprises.

This study uses panel data from Chinese A-share listed companies spanning the period from 2012 to 2022. Through a multivariate regression analysis, it examines the impact of AI on the ESG performance of enterprises.

The findings suggest that the application of AI in enterprises has a positive impact on ESG performance. Internal control systems within the organization and external information environments act as mediators in the relationship between AI and corporate ESG performance. Furthermore, corporate compliance plays a moderating role in the connection between AI and corporate ESG performance.

This paper underscores the pivotal role played by AI in enhancing corporate ESG performance. It explores the pathways to improving corporate ESG behavior from the perspectives of internal control and information environments. This discussion holds significant implications for advancing the application of AI in enterprises and enhancing their sustainable governance capabilities.

This paper aims to explore how the three components of intellectual capital (IC) (human, structural and relational) are related to corporate innovation and how effective knowledge management can improve business performance, innovation and environmental compliance. Additionally, the study investigates the influence of environmental compliance on overall business performance.

The organizational resource-based view was used to develop a theoretical model and accompanying hypotheses. A survey design approach was used to collect data and evaluate the model. The predicted relationships were tested by structural equation modeling using data acquired from members of management teams in the Vietnamese manufacturing sector.

The three components of IC have significant positive effects on business performance. In addition, corporate innovation, knowledge management success (KMS) and environmental compliance all significantly increase business performance. Moreover, KMS indirectly enhances business performance through innovation and environmental compliance.

This study provides useful insights into knowledge management, innovation and environmental compliance for administrators, practitioners and scholars. The results support practical advice for how firms can integrate KMS strategies into their operations, improve environmental compliance and increase business success.

The links between IC, knowledge management, innovation and environmental compliance are of ongoing interest to organizational scholars. However, empirical research on the relationships of these factors with business performance has been limited. This study investigates these links and offers factual evidence for them.

The purpose of this paper is to discuss the merits of self‐regulation and the art of embedding it within an organisation, not as a secondary activity but as a core and fundamental business skill that ensures the survival of a business entity in the long term.

The objective is achieved by considering compliance leadership as a strategy within a modern company. If the highest layer of stewardship of the firm (directors) explicitly accepts a conventional definition of business ethics (the law, best practice, a set of values in a specific hierarchy), then the author can measure this agreement and benchmark it against the highest known standards of corporate governance.

Rational shareholders and managers will behave morally and find acceptable categorical imperatives to govern their behaviour. The delivery and preservation of long‐term value demand that firms build capabilities to self‐regulate and co‐shape their environment, particularly if highly regulated. The paper suggests a way to organise the compliance leadership within some well‐known business structures and present the idea that the chief executive officer of a firm who operates in a complex regulatory environment must make compliance a significant part if not the core element of his or her overall strategy.

Some arguments highlighting weaknesses in the Kantian arguments have not been fully discussed. A global initiative that measures the relationship between ethical maturity and share price has not been undertaken in the writing of this paper.

Twenty‐first century management must ensure the health and resilience of their company's culture to successfully manage and overcome the daily ethical questions that arise across all levels and layers of the organisation as a first priority and that whole business models can be built around this mission. Regulators should be accountable for recognising cultural crisis within the firms they regulate in order to balance the reliance on quantitative measurements of success and to navigate the complexity of the largest players in the market.

The paper builds on earlier research by the author that rational norms of behaviour are core business capabilities that will produce industry leaders that can change the risk landscape of the industries wherein these firms operate. This new leadership will be demanded by the rational shareholder and will transform firms into stakeholder firms capable of interacting with their environment and creating and sustaining value over the longest term.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

The concept of corporate environmental performance (CEP) is both used in and discussed with respect to international and regional standards, scientific work and business. Yet, there is no concensus on the meaning of the concept itself and on what elements or components it comprises. Moreover, although there is a discussion on interactions between the different levels of CEP, there is a lack of detailed and rigorous analysis. This paper merges the various insights on CEP and its underlying dimensions and addresses existing interactions between strategic and operational CEP. The interactions can be explained by two organizational theories prevailing in empirical studies namely institutional theory (IT) and the natural resource-based view (NRBV). The purpose of this paper is to synthesize the two theories to explain the different interactions.

First, recent papers that summarized research on the concept of CEP and its existing dimensions are reviewed yielding strategic and operational dimensions of CEP. Second, IT and the NRBV are analyzed in terms of how they are applied to CEP. The results are presented in a matrix which shows the interplay of CEP within its external pressures and strategic capabilities. Third, 37 empirical studies were analyzed by applying the method of an integrative research review. The review synthesized the theoretical approaches of the studies in their specific context, summarized their findings and categorized them into the theoretical arguments on which they are based.

Most studies are conducted on the pollution prevention level with different forms of institutional mechanisms. The studies are diversified and most positive results are found on that level. The studies analyzed differ widely in their methodological approaches, the measures applied and the theory on which they are based on, which may explain why the results were very heterogeneous.

The authors results should help environmental researchers understand how both dimensions are connected to each other and reveal that a combination of theories is essential when empirically investigating interactions within the construct of CEP. Moreover, the authors show that empirical research on CEP is imbalanced as too much studies concentrate on simple compliance measures for CEP. The authors contribute to the literature by summarizing important empirical work on CEP, classifying them into the matrix of IT and NRBV and showing neglected dimensions of CEP, namely higher strategic integration of environmental aspects into CEP measurements.

The present paper should be of particular interest to researchers investigating CEP both in theory and in terms of practical empirical analysis, as the authors show that both external and internal factors must be considered simultaneously in any evaluation. This may lead to far greater efforts in gathering information and data for future empirical research, but it is essential to do so, in order to obtain sufficient and reliable results that account adequately for the complex nature of CEP. Researchers should especially consider the matrix of IT and NRBV before commencing an empirical investigation, by locating their study in one of the fields of the matrix. This can support the choice of appropriate measurement indicators for the specific context and help focus on important external and internal items.

The pervasiveness of tax non-compliance remains a serious concern to most tax authorities around the world. The negative impact of tax non-compliance on the economy and the evolving nature of the Malaysian corporate tax system have motivated this study. The purpose of this paper is to examine the determinants of corporate tax non-compliance among small-and-medium-sized corporations (SMCs) in Malaysia.

This study used economic deterrence theory to analyze and test 375 tax-audited cases finalized by the Inland Revenue Board of Malaysia in 2011.

Multiple regression results revealed that marginal tax rate, company size and types of industry exerted significant effects on corporate tax non-compliance. The services and construction industries were noted to be the predominant industries engaged in tax non-compliance. The amount of concealed income unearthed during tax audit indicates clearly that there is widespread tax non-compliance in Malaysia and the quantum of tax lost through tax non-compliance is quite high.

This study only sampled SMCs audited in 2011, hence, care has been exercised in generalizing the findings.

This study affirms that marginal tax rate, company size and types of industry are the main factors influencing compliance behavior of SMCs. The findings provide important insights not only to the Malaysian tax authority, but also to tax authorities and tax researchers in other parts of the world given that tax non-compliance of SMCs is a prevalent and universal problem. For example, with regard to the finding that marginal tax rate and company size are linked to non-compliance, it can be surmised that tax authorities ought to divert resources to firms with such characteristics when conducting audits.

Most tax research tax examining corporate tax non-compliance used financial data from annual reports to predict tax non-compliance, which are not very accurate. This study used actual tax audit cases obtained from the tax authority which are reflective of the actual situation. This study complements the scant existing literature by empirically evaluating the factors that influenced corporate tax non-compliance in a developing country like Malaysia.