How Sustainability Regulation Shapes Internationalisation Patterns in the Energy Sector

Abstract

Recent activities at different institutional levels have been observed surrounding stricter sustainability regulations being implemented throughout international, regional and national context. This development has resulted in Multinational Corporations (MNCs) shifting their international market presence. This research examines the impact of sustainability regulations on MNCs internationalisation patterns within the energy sector. This research aims to contribute to a deeper understanding of MNCs internationalisation patterns, considering both constraining and enabling effects across different levels of institutional pressures. Inspired by an abductive qualitative research approach through a multiple-case study, 8 MNCs within the energy sector were interviewed to investigate this phenomenon. Key findings of this research include how stability and predictability is identified as central to MNCs international commitment. Market presence is dependent on the duality of internal and regulatory pressures and its individual complexity. MNCs within the energy sector, are able to utilise sustainability regulation to identify potential market opportunities. Adapting asset portfolios and operations with future market outlooks, could enable MNCs in the energy sector to better manage their international market presence, ultimately influencing their internationalisation patterns. This study provides insights into how MNCs manage different levels of both enabling and constraining institutional pressures in their international market presence.