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Export Intensity and MNE Customers’ Environmental Requirements: Effects on Local Chinese Suppliers’ Environment Strategies

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Abstract

This study integrates the resource dependence perspective and the stakeholder perspective to analyze local Chinese suppliers’ environment strategies in response to environmental requirements of different types of customers. With a sample of 1,215 local Chinese manufacturing suppliers, we examine the impact of export intensity and environmental requirements of multinational enterprises (MNEs) on local Chinese suppliers’ environment strategies. The results show that local Chinese suppliers with high levels of export intensity are more likely to adopt positive environment strategies to reduce environmental risks. In addition, local Chinese suppliers respond actively to environmental requirements of MNE customers but not to those of local customers. The linkage between MNE customers’ environmental requirements and local Chinese suppliers’ environment strategies remains significant, even after we control for the impact of export intensity. Implications of the findings conclude the article.

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Notes

  1. The cities include Changchun (100 firms), Dandong (109), Chifeng (100), Beijing (100), Shijiazhuang (100), Xi’an (101), Zibo (140), Chongqing (100), Shiyan (115), Wujiang (100), Hangzhou (100), and Shunde (115).

  2. The manufacturing sectors include electronic equipment, electronic components, consumer products, vehicles and vehicle parts, and apparel and leather goods.

  3. The participants provide “yes/no” answers for each of the items related to the measure of the adoption of positive environment strategies.

  4. We are very grateful to one of the anonymous reviewers for her/his suggestion to test this alternative.

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Authors and Affiliations

  1. University of Macau, Avenida da Universidade, Taipa, Macau, China

    Jie Wu

  2. Leeds University Business School, University of Leeds, Maurice Keyworth Building, Leeds, LS2 9JT, UK

    Jie Wu

  3. Management and Organization Studies, Odette School of Business, University of Windsor, 401 Sunset Ave, Windsor, ON, N9B 3P4, Canada

    Zhenzhong Ma

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Correspondence to Jie Wu.

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Wu, J., Ma, Z. Export Intensity and MNE Customers’ Environmental Requirements: Effects on Local Chinese Suppliers’ Environment Strategies. J Bus Ethics 135, 327–339 (2016). https://doi.org/10.1007/s10551-014-2459-2

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