Testing the Drivers of Corporate Environmentalism in Vietnam

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Date

2024-03-01

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Abstract

What motivates private firms’ willingness to invest in green technologies and environmentally friendly operations? Some emphasize enhanced government regulation and enforcement, while others point to the greater potential of societal pressure. In this study, we use a survey experiment with more than 10,000 firms in Vietnam to test which type of stakeholder pressure has the strongest impact on domestic and foreign business leaders’ intention to invest in green operations. We find that the effectiveness of stakeholder pressure is conditioned by the firms’ target markets. Foreign investors are more susceptible than domestic firms to intensive regulatory pressure. Accounting for export orientation, however, we find that the most amenable policy targets for regulatory pressure are foreign firms aiming to sell in the Vietnamese domestic market.

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Published Version (Please cite this version)

10.1007/s12116-023-09400-4

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Malesky, EJ, and Q Nguyen (2024). Testing the Drivers of Corporate Environmentalism in Vietnam. Studies in Comparative International Development, 59(1). pp. 86–112. 10.1007/s12116-023-09400-4 Retrieved from https://hdl.handle.net/10161/30461.

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