The Oxford Handbook of International Business

By Alan M. Rugman; Thomas L. Brewer | Go to book overview

In addition, the chapter has highlighted the particular opportunities and threats faced by MNEs when designing environmental strategies. We found that important choices need to be made regarding the development of location bound (poorly internationally transferable) or non-location bound (internationally transferable) green capabilities. The presence or absence of leveraging effects benefiting industrial performance, as well as the flexibility of resource commitments to environmental improvements, are critical in the choice to develop green capabilities. However, little research so far has been conducted on the internal, firm-specific variables that determine the development of green capabilities in MNEs.

A resource-based perspective, with an emphasis on the requirement of complementary assets in the MNE, may be a fruitful avenue for further research. Christmann (2000) has adopted such an approach, albeit in the context of domestic firms. Her approach does suggest, however, that the successful development and international transfer of global best practices in the environment area is unlikely to be suitable to all MNEs. For example, the impact on performance of early timing of environmental innovations and their international transfer is very likely to depend on the MNE's general capability to obtain first-mover advantages through process innovations and their rapid international transfer, within the MNE network.


References

Abbott, F. (1996). 'From Theory to Practice: The Second Phase of the NAFTA Environmental Regime', in R. Wolfrum (ed.), Enforcing Environmental Standards. Berlin: Springer, 451-78.

Andrews, C. (1994). 'Policies to Encourage Clean Technology', in R. Socolow, C. Andrews, F. Berkhout, and V. Thomas (eds.), Industrial Economy and Global Change. Cambridge: Cambridge University Press, 405-22.

Audley, J. (1997). Green Politics and Global Trade: NAFTA and the Future of Environmental Politics. Washington, DC: Georgetown University Press.

Barrett, S. (1991). 'Environmental Regulations for Competitive Advantage', Business Strategy Review 2(1): 1-15.

Bartlett, C., and Ghoshal S. (1989). Managing Across Borders: The Transnational Solution. Boston: Harvard Business School Press.

Buysse, K., Coeck C., and Verbeke A. (1998), 'The International Co-ordination of Environmental Policy from an EU Perspective', in W. Meeusen (ed.), Economic Policy in the European Union: Current Perspectives. Cheltenham: Edward Elgar.

—— Verbeke A., and Coeck C. (2001). 'The Greening of Corporate Strategies', in D. Van Den Bulcke and A. Verbeke (eds.), Globalisation and the Small Open Economy. Cheltenham: Edward Elgar.

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