MNE’s sustainability strategies in emerging and developing markets

Abstract

PurposeNowadays, companies abandon their traditional rent-gaining strategies. They pursue triple bottom-line results by implementing economic, environmental and social sustainability strategies. This paper aims to link the main sustainability strategies of multinational enterprises (MNEs) in emerging and developing markets (EDMs) to the strategic, industrial, market and institutional antecedents of sustainability development.Design/methodology/approachPositivism and a deductive research approach are used to test propositions through a multiple case study strategy, to identify the sustainability strategies of five MNEs belonging in five different industries, and the antecedents of these strategies.FindingsStrategic leadership and strategic behavior/orientation are among the most important antecedents of sustainability strategies development in EDMs. The sustainability strategies are partially industry specific. However, all companies had undertaken activities that go beyond the mitigation of their negative impact, acting as regulators of the EDMs.Originality/valuePrevious literature has explained sustainability as an attempt of the MNEs to cover institutional voids and the absence/failings of the state. This paper contributes to the exploration of sustainability strategies of MNEs in EDMs, by identifying the strategic and market influences driving sustainability and by linking this strategic behavior to industrial and institutional idiosyncrasies.