Despite growing attention to the environment decoupling behaviors of emerging market multinational enterprises (EM-MNEs) in reconciling the resource dilemmas of responding to institutional pressures and achieving profit maximization, there is limited focus on how different environmental management practices affect EM-MNEs’ international expansion. We argue that symbolic environmental protection of EM-MNEs can effectively balance institutional pressures and economic efficiency, thereby facilitating their international expansion. In contrast, substantive environmental protection introduces risks of sacrificing economic benefits in response to institutional pressures, thus inhibiting international expansion. Furthermore, drawing on recent research on the multi-dimensionality of digitalization in addressing resource dilemmas, we argue that higher digitalization intensity strengthens the positive impact of symbolic environmental protection on international expansion and mitigates the negative impact of substantive environmental protection by reducing both legitimacy and efficiency issues. Conversely, a broader digitalization scope weakens the positive effect of symbolic environmental protection on international expansion and amplifies the negative impact of substantive environmental protection by increasing legitimacy and efficiency challenges. Based on a sample of Chinese listed manufacturing MNEs from 2010 to 2020, we find support for our arguments. This study contributes to the international business (IB) literature at the intersection of EM-MNEs’ legitimation strategies, environmental management practices, and digitalization.
Jiang et al. (Fri,) studied this question.