Conflicting Forces for Internationalization of Hydropower Equipment Producers: Reconciling Sustainability and CSR with MNEs’ International Strategies

Abstract

Purpose – We seek explanation for the existence of international activity in industries whose characteristics provide conflicting rationales for international expansion. In such industries, the competitive value of some industrial characteristics is magnified by international expansion, whereas the value of others is undermined by these moves. The tension is amplified in the presence of sustainability concerns and the quest for meeting Corporate Social Responsibility (CSR) goals.Design/methodology/approach – The study is based on case studies of the world's largest multinational enterprise (MNE) producers of hydropower plant equipment, which provide representative examples of MNEs in renewable energy industries. We examine the strategic balances that these MNEs strike to deal with the conflicting pressure of international strategy and their performance outcomes.Findings – The insights we generate from the case studies suggest that there might be plural ways to successfully address such tensions, and firms’ histories and competitive advantages shape the choices they make in the face of these conflicts.Implications – Our contribution is of notable merits in the contemporary world whereby the pressure for international expansion extends to industries whose characteristics both favour and inhibit international activity. We outline the distinctive impact that sustainability concerns have in this tension.Originality/value of chapter – Our study serves to deepen the understanding of international activity in the renewable energy sector, a relatively understudied sector, whose significance in the world economy and in international business is growing rapidly. It is novel in extending the tension of international activity to include sustainability and CSR concerns.

Citation

Nachum, L. and Schmid, M. (2013), "Conflicting Forces for Internationalization of Hydropower Equipment Producers: Reconciling Sustainability and CSR with MNEs’ International Strategies", Alejandra Gonzalez-perez, M. and Leonard, L. (Ed.) International Business, Sustainability and Corporate Social Responsibility (Advances in Sustainability and Environmental Justice, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 187-216. https://doi.org/10.1108/S2051-5030(2013)0000011012