Business Behavior, Energy Transition, and Sustainability: A Case From Transnational Corporations

Abstract

In the context of the escalating climate crisis, a thorough examination of the impact of multinational corporations’ (MNCs) business behavior (organizational behavior management [OBM]) on environmental sustainability (environmentally sustainable development [ESD]) is of critical theoretical and practical significance for reducing carbon emissions and achieving sustainable environmental development. This study examines a sample of 218 countries over the period from 1998 to 2022, employing a range of empirical methodologies to analyze the impact of MNCs’ business behavior on environmental sustainability. The empirical findings are that: (1) there are complex effects between OBM and ESD. On the one hand, OBM has a negative impact on ESD, and on the other hand, OBM can positively impact ESD by promoting sustainable energy transition. (2) The degree of country regulation, government stability (GVS), and carbon footprint management (CFM) emerge as crucial factors in mitigating the adverse effects of OBM on ESD. (3) The moment quartile regression (MM-QR) results indicate that OBM is statistically significant for ESD in the lower and middle quartiles. Additionally, CFM exhibits greater significance for countries with lower levels of OBM, while GVS assumes heightened importance in nations characterized by greater OBM. It is worth noting that national regulations that are too strict or too lax are not conducive to environmental sustainability. Based on this, this study puts forward some policy suggestions to promote ESD, which has certain reference significance for global environmental sustainable development.