Export Intensity and MNE Customers’ Environmental Requirements: Effects on Local Chinese Suppliers’ Environment Strategies

This study integrates the resource dependence perspective and the stakeholder perspective to analyze local Chinese suppliers’ environment strategies in response to environmental requirements of different types of customers. With a sample of 1,215 local Chinese manufacturing suppliers, we examine the impact of export intensity and environmental requirements of multinational enterprises (MNEs) on local Chinese suppliers’ environment strategies. The results show that local Chinese suppliers with high levels of export intensity are more likely to adopt positive environment strategies to reduce environmental risks. In addition, local Chinese suppliers respond actively to environmental requirements of MNE customers but not to those of local customers. The linkage between MNE customers’ environmental requirements and local Chinese suppliers’ environment strategies remains significant, even after we control for the impact of export intensity. Implications of the findings conclude the article.