Integrating Environmental and International Strategies in a World of Regulatory Turbulence

California Management Review, Vol. 53, No. 4, pp. 23-46, 2011

35 Pages Posted: 25 Aug 2011

See all articles by Frank Wijen

Frank Wijen

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Rob van Tulder

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Date Written: July 10, 2011

Abstract

Companies operating in multiple countries face different and often changing regimes of environmental regulation. This regulatory turbulence raises the question of what environmental strategies multinational enterprises with a portfolio of divergent regulatory regimes should develop in relation to their international business expansion strategies. We argue that multinationals seeking to develop an effective environmental strategy should integrate relative regulatory stringency and international market interdependence. We discuss and illustrate four environmental strategies that match different regulatory/market configurations for multinationals from both developed and emerging markets, as well as the factors that drive strategic changes. We introduce a ‘regulatory turbulence tool’ that describes relevant regulatory/market configurations and prescribes contingently effective, dynamic environmental strategies.

Keywords: Environmental Strategies, Internationalization, Multinational Enterprises, Environmental Regulation

Suggested Citation

Wijen, Frank and van Tulder, Rob J.M., Integrating Environmental and International Strategies in a World of Regulatory Turbulence (July 10, 2011). California Management Review, Vol. 53, No. 4, pp. 23-46, 2011. Available at SSRN: https://ssrn.com/abstract=1916231

Frank Wijen (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

Burg. Oudlaan 50
Room T07-38
3000 DR Rotterdam, 3000 DR
Netherlands
31 10 4081985 (Phone)

Rob J.M. Van Tulder

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

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