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Shen, Suqin; Venaik, Sunil; Liesch, Peter
International business review, 8/2023Journal Article
Using an Uppsala internationalization framework, informed by upper echelons theory and institutional theory, we investigate the factors associated with a firm’s adoption of Sustainable Development Goals (SDGs) activities and their performance implications. For the period 2010 to 2020, from a dataset of 2,744 Chinese firms, we find that international experience at the top management team (TMT) and firm levels has a positive effect on firm’s commitment to SDGs. TMT international experience is significantly related to all three types of SDG-related activities considered, but the results vary for the depth and breadth of firm internationalization activities. The organizational level SDG regarding innovation has a significant and positive effect on financial performance, but the performance effect is not significant for societal SDGs and other organizational SDGs, and significantly negative for environmental SDGs. Non-market behaviors, alongside market behaviors can be accommodated within an Uppsala internationalization approach, broadening its application, and confirming its contemporaneity in our modern world. •Top management team international experience has a positive impact on firm’s commitment to SDGs•The depth and breadth of firm internationalization have a positive relationship with a firm’s adoption of SDGs•The performance implication of involving in SDG-related activities can be positive, negative or not significant•Non-market considerations should be incorporated into the Uppsala approach
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