Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 52, No. 3, pp.621-648
ISSN: 1226-1874 (Print)
Print publication date 30 Jun 2023
Received 01 Dec 2022 Revised 21 Apr 2023 Accepted 24 Apr 2023
DOI: https://doi.org/10.17287/kmr.2023.52.3.621

Internationalization and Corporate Sustainability: The Moderating Roles of Firm and Industry Characteristics

Seunghye Lee ; Yoonjin Kim
(First Author) Sogang University shlee27@sogang.ac.kr
(Corresponding Author) Sogang University alexese7@sogang.ac.kr
국내 기업의 국제화와 지속가능성: 기업 및 산업 특성의 조절 효과를 중심으로


Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Environmental (E),social (S),and governance (G) has been under the limelight for the global corporations. Given this trend, growing number of firms pursue sustainability by enhancing the level of ESG. This paper especially focuses on firm’s internationalization as an important antecedent of corporate sustainability. With Korean MNEs’ listed on Refinitiv ESG Index, we propose that the degree of internationalization has positive influence on the level of corporate sustainability. We further test how internal (i.e., visibility, research and development intensity) and external characteristics (i.e., industry munificence, industry dynamism) of the firm moderate the relationship between internationalization and sustainability. Using a sample of 406 publicly traded Korean firms from 2016 to 2018, we found that firm’s degree of internationalization has positive impact on the level of corporate sustainability. Our results further show that such relationship is more pronounced when a firm has high level of visibility, research and development intensity, and industry dynamism. However, we do not find the moderation effect of industry munificence. We conclude that high degree of internationalization increase the level of sustainability to meet various stakeholder’s interests.

Keywords:

Internationalization, Corporate Sustainability, Corporate Visibility, R&D intensity, Industry munificence, Industry Dynamism

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∙ The author Seunghye Lee is currently working as an adjunct professor at Sogang Univeristy in Korea. She received her bachelor’s degree in business administration from University of Oregon. She received her master degree as well as PhD in business from Sogang University. Her research interest includes CEO characteristics, corporate governance, ESG/CSR, and so on.

∙ The author Yoonjin Kim is currently a PhD candidate at Sogang University. She received her bachelor's degree in Korean Literature and Economics from Yonsei University. She received her MBA from KAIST, MSc from University of Rochester. Her research focuses on environmental management, sustainable management, CEO decision making, and corporate governance.