The determinants of multinational enterprises' sustainable innovations

Abstract

This paper addresses into the pivotal role of multinational enterprises (MNEs) in spearheading global sustainability, particularly by aligning their innovations with the United Nations Sustainable Development Goals. We underscore a paradigm shift in international business, emphasizing the pressing need for sustainable practices among MNEs in the face of grand global challenges such as climate change, political instability, trade protectionism, and inequality. We discuss the innovation ecosystems and stakeholder approach as an essential conceptual framework for examining drivers and outcomes of MNEs’ sustainable innovations. The paper offers a fresh perspective on integrating corporate goals with broader sustainability targets by connecting with stakeholders of local communities in host countries who are attuned to idiosyncratic sustainability challenges.