Does green innovation enhance the internationalisation of Chinese firms? A legitimacy perspective

Extant research on green innovation has predominantly focused on firms’ domestic business. Building on the organisational legitimacy perspective, this study examines the impact of green innovation on the internationalisation of Chinese firms and the boundary conditions of this relationship. Analyzing 6156 year-specific observations from 949 listed firms in China, we find a positive relationship between green innovation and the internationalisation of Chinese firms. Furthermore, the firms’ environmental information disclosure and the international experience of top management teams strengthen this relationship. Additional information obtained from post-hoc interviews with executives from three major Chinese firms corroborates our findings and confirms the importance of green innovation for enhancing Chinese firms’ expansion to foreign markets. Our study underscores the relevance of green innovation for the internationalisation of Chinese firms and the importance of the legitimacy perspective for understanding the influence of green innovation on firms’ internationalisation.