DEGREE OF INTERNATIONALIZATION AND ENVIRONMENTAL PERFORMANCE: EVIDENCE FROM U.S. MULTINATIONALS

We examine the relationship between the degree of internationalization (DOI) of a sample of 148 U.S.-based MNEs and measures of their corporate environmental performance. Using cross-sectional data for 1993 and 1998, and longitudinal data for 1993–1999, we tested for associations between the two variables of interest. Cross-sectional data suggested a positive relationship between DOI and highly rated environmental performance. Longitudinal findings were similar with positive correlations that grew stronger the longer the “lag” between measurement of DOI and environmental performance. This research supports arguments that MNEs tend to be proactive leaders rather than laggards in fostering better corporate environmental performance.