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Session Chair: Khadija van der Straaten, Rotterdam School of Management, Erasmus University
Location:Otakaari 1, U358
50 people
Interactive Paper Session
Presentations
Greenfield FDI Investment and Green Economic Growth: A Nonlinear Investigation.
E. Ketteni2, C. Kottaridi1
1University of Piraeus, Greece; 2Frederick University, Cyprus
The green deal policy aims to decarbonize economic growth by 2050. Green economic growth might be an important element of development strategy for the EU countries. But EU has disparities and gaps in reducing carbon emission and in achieving green growth even though they do use coherent policies. This is due to their differences in macroeconomic conditions (labour, capital, GDP) and of targeted implementation of the sustainable development goals. In this paper, we explore the effects of greenfield investment on green economic growth. In particular, we examine the potential nonlinear impact of greenfield FDI investment on green economic growth and the mediating effect which could be caused by other variables such as corruption, governance efficiency, regulation, and economic openness. Results point to non-linearities in all groups examined. This means that greenfield FDI may affect positively and negatively green growth based as it accumulates. Obviously, the regulatory framework and institutional quality of countries plays a key role on these effects, hence there is room for policy consideration and intensification.
Assessing the Effects of Countries' Environmental Policy Stringency on Private Sector Eco-innovation Performance
B. de Raemy
FSES Universite de Fribourg, Switzerland
The increasing global focus on environmental issues has led governments and public institutions to enforce stricter regulations in recent decades, pushing the private sector towards eco-friendly solutions and innovations. While some scholars posit that stringent environmental policies cause polluting industries to relocate to countries with less rigorous standards, other research emphasizes that government pressure is crucial for achieving environmental goals and reducing private-sector impacts.
This study assesses how environmental policy stringency influences eco-innovation performance in firms headquartered within a country. Using descriptive statistics and data from the COR&DIP database and the Environmental Policy Stringency (EPS) index provided by the OECD, the study finds a small positive effect of policy stringency on eco-innovation performance. It also underscores the importance of accurately analyzing historical environmental policies to gauge their impact on private sector innovation. The findings contribute to the literature on national environmental policies and eco-innovation, offering valuable insights for companies navigating environmental regulations and policymakers developing effective regulations to encourage green technologies.
How Strategic Policy Interventions Can Accelerate Innovation Within the Triple Helix
J. Dredge
Memorial University of Newfoundland, Canada
Academia has long played an essential and interwoven role in fostering economic growth and business development, often on an international scale. As global economies increase in complexity, they face a variety of economic and humanitarian challenges that must be addressed through strategic and timely policy development. Sectors such as healthcare, housing, and energy are experiencing crisis-level demand in most developed economies, exacerbated by the ongoing global green transition. The Triple Helix Model of Innovation, which elucidates the interplay between Government, Industry, and Academia, has significantly advanced our understanding of how innovation is produced and sustained. This study explores whether strategic changes in
public policy can be utilized to accelerate the rate of innovation within the Triple Helix model or if such efforts might disrupt the natural balance and stifle innovation. By examining innovation metrics, considering the degree of interaction between Triple Helix actors, and analyzing strategic policy interventions, the research herein aims to advance the understanding and utilization of these dynamics. The findings will provide critical insights and support policymakers seeking sustainable economic growth through informed and effective policy decisions.
The Impact of Institutional Forces on the Internationalization of Small and Medium-Sized Enterprises: Insights from a Natural Experiment
J. Nollau1, S. Oertel2, M. Zschoche1
1University of Erfurt, Germany; 2Paris Lodron University of Salzburg, Austria
A company’s decision to internationalize is influenced by a multitude of formal and informal institutions. While current institutional constraints are extensively studied in the IB literature, past institutional influences are often neglected so far. We aim to fill this research gap by investigating the effects of institutional legacies from the communist and capitalist eras on the FDI strategies of German firms. Germany is used as a natural experiment setting to examine differences in the internationalization of small and medium-sized enterprises (SME) within two institutional fields: East and West Germany. Building on neo-institutional theory, we suggest that isomorphism leads to similar firm behavior within each institutional field. We expect that due to the socialist legacy, East German SMEs are less internationalized than West German SMEs. Based on an empirical analysis of 2,437 SMEs, our hypothesis is largely supported. Our findings indicate that firms in the former communist area exhibit distinct internalization strategies compared to those in the capitalist area, suggesting the persistence of institutional legacies.
Civil Discourse and Corporate Sociopolitical Activism: A Social Media Analysis
R.-S. Liou, C. Zhong, S. Han
University of Tampa, United States of America
Civil discourse on social media provides an unfiltered and democratic reflection of a company's stance on controversial sociopolitical issues. Our analysis of social media discussions from 2005 to 2024 offers insights into public perceptions of corporate sociopolitical activism. From 2008 to 2024, there was a notable increase in posts discussing how technology companies manage their workforce and adhere to ethical labor practices. Positive sentiment slightly outweighed negative sentiment overall, but negative sentiment regarding employee compensation and management increased post-2021. In the social practice and politics theme, there was a decrease in neutral posts between 2021 and 2022, indicating more polarized opinions and stronger public reactions to significant events. This study highlights that social media discourse analysis enhances our understanding of corporate effectiveness in engaging with societal stakeholders on contentious issues.