The impact of open innovation on the environmental sustainability practices and international sales intensity nexus: A multicountry study

Abstract

Amid growing environmental concerns and increasing customer demand for environmental sustainability practices (ESP), international firms strive to develop ESP and leverage resources across their global networks as key players in global innovation systems. In this context, we investigate whether adopting an open innovation (OI) strategy is a viable solution to meet the demand for ESP and foster internationalization. Specifically, this study examines the potential moderating effect of OI on ESP because both entail the ability to coordinate, orchestrate, and synchronize networks to enhance international sales. Our study encompasses a multicountry sample of 514 internationally operating manufacturers. The findings reveal that simultaneous efforts to adopt OI with suppliers and ESP constrain the positive association between ESP and international sales intensity. We provide theoretical arguments to elucidate this counterintuitive finding, thereby revitalizing the discussion on the role of international firms’ adoption of ESP and sustainable innovation.

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