The synergistic impact between internationalization and supply-and-demand interaction on firm performance: a study of environmental responsibility in social networking service

Abstract

PurposeThis study aims to investigate the relationship between environmental activities and consumer engagement on firm performance according to supply-and-demand perceptions, and further examines the moderating role of internationalization to demonstrate the effects of environmental activities more comprehensively.Design/methodology/approachThree panel regression models have been used. In total, 510 environmental activities and consumers’ negative engagement collected from the official Facebook brand page are analyzed to examine the study’s models for a period of 13-years (2008–2020). The findings persist when this study compares the estimates resulted from different econometrics methods.FindingsThe study’s results indicate an insignificant effect of environmental activities and consumer engagement on firm performance, respectively, while the interaction effect on firm performance is significant and negative. However, when internationalization plays the moderating role, this study provides new evidence that such negativity impact is no longer effective in the lodging industry as firms expand internationally.Practical implicationsThis study offers strategic insights to managers who are concerned about the detrimental effect of negative consumer engagement that the firm-consumer relationship mitigates the negativity bias in negative engagement. Hotels should actively implement internationalization as a key strategy while practicing environmental activities with integrity.Originality/valueDespite the importance of green management in the social networking service context, little is known about its effect and value on firm performance. This study provides new evidence for the real effectiveness of internationalization by demonstrating its role in the lodging industry.