Professor Sorin Krammer leads winning paper
At the British Academy of Management conference 2024, Sorin Krammer, Professor of Strategy and International Business, won the award for Best Full Paper in International Business and Management.
Professor Krammer led a team of authors on a paper investigating ''Environmental transparency, international orientation of firms, and eco-innovation in emerging markets'. His co-authors were Professor Alvaro Cuervo-Cazurra (Northeastern University, USA), Professor Lichao Wu (Xiamen University, China), Lan Lin (Peking University, China).
Abstract:
We analyze how pollution transparency regulation affects eco-innovation in emerging markets. Building on institutional economics, we propose that new pollution transparency regulation induces firms to proactively engage in eco-innovation. The reason is that regulatory changes reduce information asymmetries with stakeholders, inducing firms to innovate and reduce pollution to re-establish their social contract with stakeholders. We add depth to this idea by proposing that being a foreign firm or a domestic exporter strengthens the relationship because foreign firms and exporters develop institutional capabilities from abroad that make them more responsive to regulatory changes. We find support for these ideas using a natural experiment of new transparency regulations on over a million Chinese manufacturing firms in 2002-2013.
