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Strategic literature has focused on how economies of scale in a firm offering outsourcing may generate incentives for clients to increase the outsourced services, but there has been limited research on how the clients’ features may influence the scope of services that they hire with an outsourcing provider. This study analyzes whether a client’s efficiency motivates it to increase ties with a specific provider of knowledge-intensive services in the context of business process outsourcing (BPO). We further explore whether industry conditions moderate the relationship.

A research framework is developed consisting of three main hypotheses. We combine industry data and proprietary and financial data from a longitudinal sample of 107 client firms of a multinational outsourcing service provider to test our hypotheses.

We find that more efficient firms hire more services from an outsourcing provider and that the munificence of the client firm’s industry positively moderates this relationship. Our results suggest that efficient clients can better keep transaction costs under control when accessing, assimilating, and exploiting the knowledge embedded in an expanded set of services provided by an outsourcing supplier.

This study extends the absorptive capacity perspective by showing that a client’s efficiency reinforces its opportunities to absorb knowledge-intensive services from a supplier when expanding the range of operations in the context of BPO.

The purpose of this paper is to explain the different international environmental strategies that multinational enterprises (MNEs) can adopt.

This study updates the traditional country‐specific advantages/firm‐specific advantages (FSA/CSA) framework. In order to do so, the concepts of environmental institutional distance between countries and MNEs' availability of slack resources are used.

First, a low environmental institutional distance between headquarters' and subsidiaries' countries contributes to creating environmental standards within the company. Second, MNEs with high availability of slack resources are willing to standardize their environmental practices. However, those MNEs that have a high availability of slack resources but have units based in high‐distance countries prefer to generate valuable and advanced environmental management practices only in specific countries. Finally, those MNEs with a low level of slack resources and with units based in low‐distance countries only comply with national environmental institutional requirements, becoming isomorphic with other local firms.

Although previous findings suggest that MNEs are increasingly standardizing their environmental practices, this generalization can be applied to those MNEs with units based in low‐distance countries that have a high availability of slack resources, which lead them to create valuable non‐location‐bound, green, firm‐specific advantages (FSAs).

This paper sheds light on the way in which MNEs' activities affect the natural environment. Since MNEs are key actors in terms of economic and environmental development, they can promote social and environmental values in society, and at the same time encourage other organizations and institutions to adopt a socially responsible attitude.

Purpose – We analyze the influence of the internationalization process of small and medium-sized enterprises on the adoption of a proactive environmental strategy.

Design/methodology – Using direct interviews with the CEOs of 106 Spanish export firms from the food industry, we tested our research question through ordinary least squares regression analysis.

Findings – We find that a high degree of environmental international diversification leads these firms to take advantage of different environmental competitive advantages from the different locations where they operate, and consequently integrate environmental proactive practices and programs within their organizational strategy.

Research implications/limitations – The result obtained in this work contributes to better understanding of the importance of firms’ internationalization process in the generation of valuable environmental knowledge abroad. The chapter also discusses implications for managers, scholars, and policy makers. Future analysis should include longitudinal data of export firms based in other countries.

Originality/value of chapter – We pay special attention to the environmental management undertaken by small- and medium-sized export enterprises. Specifically, we study the environmental institutional profile of the different regions where these firms operate.

This volume of Progress in International Business Research includes a selection of 13 papers from the 35th European International Business Academy (EIBA) annual conference, which was held in Valencia (Spain) from the 13 to the 15 of December 2009. Following the usual guidelines for EIBA annual conference organization, papers submitted to this conference had a double-blind revision process. The acceptance rate for oral presentations was 68%.