The effects of internationalization orientation in the sustainable performance of the agri-food industry through environmental collaboration: An emerging economy perspective

Abstract

In order to deal with sustainability requirements in agri-food supply chains, collaboration among partners is fundamental to collectively achieve competitive advantages. A growing body of literature shows that internationally oriented firms suffer more pressure from stakeholders to develop sustainable initiatives. On the other hand, they may achieve higher levels of sustainable performance due to the access to resources and capabilities from different partners. However, the influence collaboration has on the sustainable performance of internationally oriented firms remains unknown. The objective of this study was to assess the effects environmental collaboration has on sustainable performance, especially in internationally oriented companies. In addition, this study also assessed whether company size influences these relationships. A quantitative study was conducted with 388 medium and large Brazilian companies in the agricultural sector. Data were analyzed using the Partial Least Squares method. We found out that environmental collaboration has a direct effect on sustainable performance. Our study also extends the literature by showing that internationalization orientation strengthens the effects of collaboration on sustainable performance. We found out that all three dimensions of sustainability (environmental, social, and economic) have been positively affected by an increase in environmental collaboration, with a lower effect observed on the economic dimension. Our study also showed that economic outcomes significantly differ between larger and medium companies. Grounded on Relational View and Natural Resources-based view theories, this study extends them by showing that competitive advantage will be achieved when an organization is able to transform itself, environmentally aligned with internal and external stakeholders, and by incorporating collaboration as a relational element that positively affects sustainable performance.