Multinational enterprises, sustainability and innovation

Abstract

In recent decades, multinational enterprises (MNEs) have increasingly endeavored to establish foreign direct investments (FDIs) across the globe. Consequently, they must face diverse and differential sustainability agendas, due to the homogeneous and heterogeneous sustainability issues and policies emerging from both home and host countries [1]. In this vein, MNEs must realize superior methods of establishing sustainable development and innovation-based solutions in both home and host countries [2]. Furthermore, the number of studies on sustainable international business and innovative practices by MNEs in developed markets has rapidly increased in recent years, providing knowledge on shareholder values, environmental agendas, and processes for managing macroeconomic instability. Indeed, there has been a stream of literature focusing on sustainability-oriented innovation, relating to both the environmental and social aspects of sustainability. Of these two, the environmental aspect has been particularly driven by the market demand for more sustainable products, and by strengthening environmental regulations and the desire for cost reductions. Nevertheless, unfortunately, there has been lack of studies focusing on sustainable international business and innovative practices by MNEs in emerging and frontier markets [1,2]; however, Brazil, Russia, India, China, and South Africa (BRICS) have undeniably progressed in terms of sustainable development and innovation-based solutions, by virtue of the operation of MNEs inside and outside of their home countries [1]. Additionally, innovation has assumed a rather different form in the case of emerging market MNEs (EMNEs) [3]. As research and development possibilities are limited, learning by doing and organizational capabilities possess greater weight in EMNEs [4,5]. Although the innovation of some EMNEs from advanced emerging markets, for example, South Korea, Singapore, Taiwan, etc., is scientifically savvy, even when compared to those of developed countries [4,5], the innovation of other EMNEs, especially from less-advanced emerging markets, is scientifically less refined than those of developed countries and has generally not involved frontier technologies [6]. The alternative type of innovation pursued by EMNEs, especially considering sustainability issues, thus requires a deeper investigation; this looks at the creation of technology more comprehensively than by simply considering the sphere of research and the patenting activity [6]. Thus, the objective of this Special Issue is to overcome the limitations of the existing studies, which have mostly focused on developed markets, and to expand our relevant themes for research into the realm of international business sustain.